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The Economics of Multi-Hop Ride Sharing

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  • Timm Teubner
  • Christoph Flath

Abstract

Ride sharing allows to share costs of traveling by car, e.g., for fuel or highway tolls. Furthermore, it reduces congestion and emissions by making better use of vehicle capacities. Ride sharing is hence beneficial for drivers, riders, as well as society. While the concept has existed for decades, ubiquity of digital and mobile technology and user habituation to peer-to-peer services and electronic markets have resulted in particular growth in recent years. This paper explores the novel idea of multi-hop ride sharing and illustrates how information systems can leverage its potential. Based on empirical ride sharing data, we provide a quantitative analysis of the structure and the economics of electronic ride sharing markets. We explore the potential and competitiveness of multi-hop ride sharing and analyze its implications for platform operators. We find that multi-hop ride sharing proves competitive against other modes of transportation and has the potential to greatly increase ride availability and city connectedness, especially under high reliability requirements. To fully realize this potential, platform operators should implement multi-hop search, assume active control of pricing and booking processes, improve coordination of transfers, enhance data services, and try to expand their market share. Copyright Springer Fachmedien Wiesbaden 2015

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  • Timm Teubner & Christoph Flath, 2015. "The Economics of Multi-Hop Ride Sharing," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 311-324, October.
    • Handle: RePEc:spr:binfse:v:57:y:2015:i:5:p:311-324
    DOI: 10.1007/s12599-015-0396-y
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    1. Inayatullah Shah & Mohammed El Affendi & Basit Qureshi, 2020. "SRide: An Online System for Multi-Hop Ridesharing," Sustainability, MDPI, vol. 12(22), pages 1-29, November.
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    3. Schulz, Thomas & Zimmermann, Sina & Böhm, Markus & Gewald, Heiko & Krcmar, Helmut, 2021. "Value co-creation and co-destruction in service ecosystems: The case of the Reach Now app," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    4. Frederik Plewnia & Edeltraud Guenther, 2017. "Advancing a sustainable sharing economy with interdisciplinary research [Der Beitrag interdisziplinärer Forschung zu einer nachhaltigen Sharing Economy]," Sustainability Nexus Forum, Springer, vol. 25(1), pages 117-124, June.
    5. Zhang, Haoran & Chen, Jinyu & Li, Wenjing & Song, Xuan & Shibasaki, Ryosuke, 2020. "Mobile phone GPS data in urban ride-sharing: An assessment method for emission reduction potential," Applied Energy, Elsevier, vol. 269(C).
    6. Zhang, Wenqing & Liu, Liangliang, 2022. "Exploring non-users' intention to adopt ride-sharing services: Taking into account increased risks due to the COVID-19 pandemic among other factors," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 180-195.
    7. Björn Hildebrandt & Andre Hanelt & Sebastian Firk, 2018. "Sharing Yet Caring," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 60(3), pages 227-241, June.
    8. André Palma & Lucas Javaudin & Patrick Stokkink & Léandre Tarpin-Pitre, 2024. "Ride-sharing with inflexible drivers in the Paris metropolitan area," Transportation, Springer, vol. 51(3), pages 963-986, June.
    9. Mohammadbashir Sedighi & Hamideh Parsaeiyan & Yashar Araghi, 2021. "An Empirical Study of Intention to Continue Using of Digital Ride-hailing Platforms," The Review of Socionetwork Strategies, Springer, vol. 15(2), pages 489-515, November.
    10. Ensslen, Axel & Gnann, Till & Jochem, Patrick & Plötz, Patrick & Dütschke, Elisabeth & Fichtner, Wolf, 2020. "Can product service systems support electric vehicle adoption?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 343-359.
    11. Anne Aguiléra & Eléonore Pigalle, 2021. "The Future and Sustainability of Carpooling Practices. An Identification of Research Challenges," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    12. Antonio Menor-Campos & María de los Baños García-Moreno & Tomás López-Guzmán & Amalia Hidalgo-Fernández, 2019. "Effects of Collaborative Economy: A Reflection," Social Sciences, MDPI, vol. 8(5), pages 1-13, May.
    13. Christoph Willing & Tobias Brandt & Dirk Neumann, 2017. "Intermodal Mobility," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(3), pages 173-179, June.
    14. André de Palma & Lucas Javaudin & Patrick Stokkink & Léandre Tarpin-Pitre, 2021. "Modelling Ridesharing in a Large Network with Dynamic Congestion," THEMA Working Papers 2021-16, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    15. Christoph Willing & Tobias Brandt & Dirk Neumann, 2017. "Electronic mobility market platforms – a review of the current state and applications of business analytics," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(3), pages 267-282, August.
    16. Andreas Hein & Jörg Weking & Maximilian Schreieck & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2019. "Value co-creation practices in business-to-business platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(3), pages 503-518, September.
    17. Steven Kane Curtis & Matthias Lehner, 2019. "Defining the Sharing Economy for Sustainability," Sustainability, MDPI, vol. 11(3), pages 1-25, January.
    18. Rebecka Lundgren & Riikka Kyrö & Tuuli Jylhä, 2022. "Access-Based Consumption in the Built Environment: Sharing Spaces," Sustainability, MDPI, vol. 14(9), pages 1-26, May.
    19. Thomas Schulz & Markus Böhm & Heiko Gewald & Zehra Celik & Helmut Krcmar, 2020. "The Negative Effects of Institutional Logic Multiplicity on Service Platforms in Intermodal Mobility Ecosystems," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(5), pages 417-433, October.
    20. Sutherland, Will & Jarrahi, Mohammad Hossein, 2018. "The sharing economy and digital platforms: A review and research agenda," International Journal of Information Management, Elsevier, vol. 43(C), pages 328-341.
    21. Thomas Schulz & Markus Böhm & Heiko Gewald & Helmut Krcmar, 2021. "Smart mobility – an analysis of potential customers’ preference structures," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 105-124, March.
    22. Wong, Yale Z. & Hensher, David A. & Mulley, Corinne, 2020. "Mobility as a service (MaaS): Charting a future context," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 5-19.
    23. Saiful Islam & Ekramul Huda & Farjana Nasrin, 2021. "Ride-sharing Service in Bangladesh: Contemporary States and Prospects," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(9), pages 1-65, July.
    24. Shibayama, Takeru & Emberger, Günter, 2020. "New mobility services: Taxonomy, innovation and the role of ICTs," Transport Policy, Elsevier, vol. 98(C), pages 79-90.
    25. Thays A. Oliveira & Yuri B. Gabrich & Helena Ramalhinho & Miquel Oliver & Miri W. Cohen & Luiz S. Ochi & Serigne Gueye & Fábio Protti & Alysson A. Pinto & Diógenes V. M. Ferreira & Igor M. Coelho & Vi, 2020. "Mobility, Citizens, Innovation and Technology in Digital and Smart Cities," Future Internet, MDPI, vol. 12(2), pages 1-27, January.

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