Optimal vehicle allocation and pricing for dockless shared electric moped service providers: A demand-based optimization approach

The global growth in shared electric moped (SEM) use has led to the development of multi-operator service markets within the one city and corresponding changes in user choice behavior based on operator characteristic differences. Providers must thus consider users’ choice behavior when planning their operational strategies. Critical to these strategies are vehicle allocation and pricing decisions directly affecting users’ dockless SEM operator choices. This study proposes a demand-based vehicle allocation and pricing solution to the problem that incorporates user choice into SEM operator decision support, employing a Logit model to characterize users’ choice behavior and estimate demand across SEM alternatives. To enhance the computational efficiency of the nonlinear integer model in solving practical-scale instances, reformulation–linearization techniques and a heuristic are introduced. Using its case study of shared moped services in Taiwan, this research evaluates the performance of its solutions and demonstrates the practical applicability of the approach. The study’s empirical results and sensitivity analyses provide valuable data and its insights will assist operators in making informed vehicle allocation and pricing decisions.