IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v205y2026ics1366554525004910.html

How do B2C and C2C ride-sourcing platforms perform with and without market aggregation: Theoretical analysis

Author

Listed:
  • Jiang, Gege
  • Zhang, Xin
  • Qin, Xiaoran
  • Xie, Jiemin

Abstract

Recently, there has been a rapid growth in third-party aggregation platforms that simultaneously integrate ride-sourcing companies and travelers. Travelers on the aggregation platform can select one or more companies, and the aggregation platform will choose the optimal matching vehicle from the chosen companies to provide services. Company aggregation refers to the process through which independent ride-sourcing companies access and accept dispatching from aggregation platforms. Company aggregation is an irreversible market trend. This study aims to explore the impact of different types of company aggregation on multiple stakeholders and their decisions in the market. Passenger travel choices and competitive interactions among ride-sourcing companies are modeled and subsequently validated through numerical simulations. Two prevailing business models, business-to-consumer (B2C) and customer-to-customer (C2C), are explicitly incorporated. The impacts of company aggregation are then examined under three distinct scenarios: (i) aggregation among B2C companies, (ii) aggregation among C2C companies, and (iii) simultaneous aggregation encompassing both B2C and C2C companies. Theoretical analysis indicates that under certain conditions, all three aggregation scenarios can reduce travel costs and increase total demand. The numerical experiments first evaluates the market efficiency of company aggregation under fixed pricing, thereby verifying the conclusions of the theoretical analysis. The reduction in travel costs can reach up to 9.6%. However, aggregation may potentially decrease the profits of some companies. Consequently, this study investigates the impact of aggregation on companies’ pricing strategies and profit changes. The numerical experiments demonstrate that only when the aggregated companies collaborate on pricing within a certain range can a win-win outcome be achieved. This study provides a reference for different types of companies to develop management strategies after company aggregation.

Suggested Citation

  • Jiang, Gege & Zhang, Xin & Qin, Xiaoran & Xie, Jiemin, 2026. "How do B2C and C2C ride-sourcing platforms perform with and without market aggregation: Theoretical analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:transe:v:205:y:2026:i:c:s1366554525004910
    DOI: 10.1016/j.tre.2025.104450
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554525004910
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2025.104450?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jiang, Gege & Zhang, Xin & Li, Manzi & Li, Chuanyao, 2024. "The impact of regulatory level of the aggregation platforms on the ride-sourcing market with heterogeneous travelers," Economics of Transportation, Elsevier, vol. 37(C).
    2. Bao, Yue & Zang, Guangzhi & Yang, Hai & Gao, Ziyou & Long, Jiancheng, 2023. "Mathematical modeling of the platform assignment problem in a ride-sourcing market with a third-party integrator," Transportation Research Part B: Methodological, Elsevier, vol. 178(C).
    3. Jun Pei & Ping Yan & Subodha Kumar & Xinbao Liu, 2021. "How to React to Internal and External Sharing in B2C and C2C," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 145-170, January.
    4. Rafał Kucharski & Oded Cats, 2022. "Simulating two-sided mobility platforms with MaaSSim," PLOS ONE, Public Library of Science, vol. 17(6), pages 1-20, June.
    5. Huang, Yeu-Shiang & Fang, Chih-Chiang & Lin, Szu-Yu, 2023. "Pricing and operating strategies for products in the sharing economy," International Journal of Production Economics, Elsevier, vol. 266(C).
    6. Lin Tian & Baojun Jiang & Yifan Xu, 2021. "Manufacturer’s Entry in the Product-Sharing Market," Manufacturing & Service Operations Management, INFORMS, vol. 23(3), pages 553-568, May.
    7. Baojun Jiang & Lin Tian, 2018. "Collaborative Consumption: Strategic and Economic Implications of Product Sharing," Management Science, INFORMS, vol. 64(3), pages 1171-1188, March.
    8. Zhou, Yaqian & Yang, Hai & Ke, Jintao & Wang, Hai & Li, Xinwei, 2022. "Competition and third-party platform-integration in ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 159(C), pages 76-103.
    9. Mo, Dong & Yu, Jingru & Chen, Xiqun Michael, 2020. "Modeling and managing heterogeneous ride-sourcing platforms with government subsidies on electric vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 447-472.
    10. Chiwei Yan & Helin Zhu & Nikita Korolko & Dawn Woodard, 2020. "Dynamic pricing and matching in ride‐hailing platforms," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(8), pages 705-724, December.
    11. Lin Tian & Baojun Jiang, 2018. "Effects of Consumer†to†Consumer Product Sharing on Distribution Channel," Production and Operations Management, Production and Operations Management Society, vol. 27(2), pages 350-367, February.
    12. Beojone, Caio Vitor & Geroliminis, Nikolas, 2023. "A dynamic multi-region MFD model for ride-sourcing with ridesplitting," Transportation Research Part B: Methodological, Elsevier, vol. 177(C).
    13. Liu, Bin & Zhao, Xiuyan & Gu, Qiongqiaong, 2024. "Pricing strategy and platform competition with partial multi-homing agents: When the aggregation platform exists in ride-sharing market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ye, Fei & Ni, Debing & Li, Kevin W. & Fang, Xiang, 2026. "Partial vertical ownership cooperation between manufacturers and sharing economy platforms," European Journal of Operational Research, Elsevier, vol. 329(3), pages 825-835.
    2. Huiqi Guan & Xin Geng & Haresh Gurnani, 2023. "Peer‐to‐peer sharing platforms with quality differentiation: Manufacturer's strategic decision under sharing economy," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 485-500, February.
    3. Lu, Ke & Shi, Chunmei, 2024. "Exploring determinants of travelers’ discontinuance behavioral intention on integrated ride-hailing services: A perspective on perceived risk," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    4. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    5. Ke Lu & Chunmei Shi, 2025. "Why do travelers discontinue using integrated ride-hailing platforms? The role of perceived value and perceived risk," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    6. Huang, Yeu-Shiang & Fang, Chih-Chiang & Lin, Szu-Yu, 2023. "Pricing and operating strategies for products in the sharing economy," International Journal of Production Economics, Elsevier, vol. 266(C).
    7. Chang, Xiaoxiao & Zhao, Lindu, 2024. "Collaborative strategies in the product-sharing market considering manufacturer's capital entry," International Journal of Production Economics, Elsevier, vol. 275(C).
    8. Chomachaei, Fahimeh & Gal-Or, Esther & Letizia, Paolo & Roma, Paolo, 2024. "The economic viability of the sharing economy business model and its environmental impact," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1197-1209.
    9. Daogang Qu & Cong Gao & Bo Xu, 2025. "Pricing and consumption in the P2P product sharing era: How does the dual-channel manufacturer cooperate with third-party sharing platforms?," Electronic Commerce Research, Springer, vol. 25(1), pages 663-680, February.
    10. Hu, Shu & Tang, Yanli, 2024. "Impact of product sharing and heterogeneous consumers on manufacturers offering trade-in programs," Omega, Elsevier, vol. 122(C).
    11. Zenan Zhou & Xiang Wan, 2022. "Does the Sharing Economy Technology Disrupt Incumbents? Exploring the Influences of Mobile Digital Freight Matching Platforms on Road Freight Logistics Firms," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 117-137, January.
    12. Men, Huijuan & Zhou, Yong-Wu & Li, Fei, 2025. "Product line design for the automaker under shared mobility: considering dispatching level and carbon emissions," Energy, Elsevier, vol. 335(C).
    13. Zhong, Yuanguang & Lan, Yibo & Chen, Zhi & Yang, Jiazi, 2023. "On-demand ride-hailing platforms with heterogeneous quality-sensitive customers: Dedicated system or pooling system?," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 247-266.
    14. Hu, Xu & Yang, Zhaojun & Sun, Jun & Zhang, Yali, 2021. "Sharing economy of electric vehicle private charge posts," Transportation Research Part B: Methodological, Elsevier, vol. 152(C), pages 258-275.
    15. Wang, Yingjia & Fan, Di & Fung, Yi-Ning & Luo, Suyuan, 2022. "Consumer-to-consumer product exchanges for original fashion brands in the sharing economy: Good or bad for fashion knockoffs?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    16. Mallidis, Ioannis & Aguilera-García, Álvaro & Salanova Grau, Josep Maria & Siomos, Alexandros & Vassallo, José Manuel, 2026. "Optimizing fleet size for on-demand taxi and ridehailing services: application to the case of Madrid," Transport Policy, Elsevier, vol. 175(C).
    17. Li, Ruijie & Liu, Yang & Liu, Xiaobo & Nie, Yu (Marco), 2024. "Allocation problem in cross-platform ride-hail integration," Transportation Research Part B: Methodological, Elsevier, vol. 188(C).
    18. Xiao, Haohan & Xu, Min & Wang, Shuaian, 2025. "Does vehicle purchase tax effectively restrict car ownership and promote public transport?," Transport Policy, Elsevier, vol. 164(C), pages 104-117.
    19. Zhu, Siyuan & Nie, Tengfei & Zhang, Jianghua & Du, Shaofu, 2025. "Product design and pricing decisions in platform-based co-creation," European Journal of Operational Research, Elsevier, vol. 324(3), pages 893-907.
    20. Saif Benjaafar & Ming Hu, 2020. "Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 93-101, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:205:y:2026:i:c:s1366554525004910. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.