How do fares affect the utilization of ride-hailing services: Evidence from Uber Japan's experiments

Asian Transport Studies Pub Date : 2024-01-01 DOI:10.1016/j.eastsj.2023.100121

Krittanai Sriwongphanawes, Daisuke Fukuda

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Abstract

Ride-hailing has been introduced and has become popular in many major cities worldwide. The service often relies on the use of dynamic pricing, in which fares are adjusted in real time. Therefore, understanding the impact of fare on demand is necessary for the operation of ride-hailing. The aim of this study is to empirically investigate the impact of fares on demand through price elasticities using the session data of Uber taxis from Uber Japan's experiments in two cities: Nagoya and Kyoto. A mixed logit model with a flexible mixing distribution was estimated to capture the taste heterogeneity among riders, which increased the reliability of the result. The estimation results indicated that most riders were price inelastic, with an average price elasticity of approximately −0.2 to −0.1. These findings are useful for ride-hailing companies and policymakers because they provide valuable information to enable the maximization of profit or benefit to customers.

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票价如何影响打车服务的使用率？优步日本公司的实验证据

世界各地的许多大城市都推出并流行打车服务。这种服务通常依赖于动态定价，即实时调整票价。因此，了解票价对需求的影响对打车服务的运营十分必要。本研究的目的是利用 Uber 日本公司在两个城市的实验数据，通过价格弹性来实证研究车费对需求的影响：名古屋和京都。为了捕捉乘客之间的口味异质性，采用了具有灵活混合分布的混合对数模型进行估计，从而提高了结果的可靠性。估计结果表明，大多数乘客缺乏价格弹性，平均价格弹性约为-0.2 至-0.1。这些研究结果对打车公司和政策制定者很有帮助，因为它们提供了有价值的信息，有助于实现利润或客户利益的最大化。

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来源期刊

Asian Transport Studies

CiteScore

2.10

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0.00%

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