{"title":"The rich get richer: Derivative revenue as a catalyst for bike-sharing subscription services","authors":"","doi":"10.1016/j.tre.2024.103843","DOIUrl":null,"url":null,"abstract":"<div><div>By leveraging the derived revenue from subscription services, our study investigates the feasibility of shared bicycle platforms using pricing strategies for these services to enhance their market competitiveness. We establish that, in scenarios where platforms set prices independently, the derived revenue can effectively counterbalance the potential deficits stemming from service expenditures. In a market dominated by exclusive subscription services, an overemphasis on the locking effects can precipitate a mutually detrimental outcome. In a non-exclusive context, the substantial derived revenue can engender a Matthew Effect. Platforms endowed with elevated availability rates are positioned to perpetuate the expansion of their inherent advantages, progressively eroding the market share of their counterparts with diminished availability rates through strategic encroachment. Additionally, we elucidate the strategic dynamics within a competitive platform landscape, underscoring the imperative for platforms to meticulously evaluate their derived revenue scale and devise strategic choices that resonate with their distinctive advantages.</div></div>","PeriodicalId":49418,"journal":{"name":"Transportation Research Part E-Logistics and Transportation Review","volume":null,"pages":null},"PeriodicalIF":8.3000,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Transportation Research Part E-Logistics and Transportation Review","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1366554524004344","RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
By leveraging the derived revenue from subscription services, our study investigates the feasibility of shared bicycle platforms using pricing strategies for these services to enhance their market competitiveness. We establish that, in scenarios where platforms set prices independently, the derived revenue can effectively counterbalance the potential deficits stemming from service expenditures. In a market dominated by exclusive subscription services, an overemphasis on the locking effects can precipitate a mutually detrimental outcome. In a non-exclusive context, the substantial derived revenue can engender a Matthew Effect. Platforms endowed with elevated availability rates are positioned to perpetuate the expansion of their inherent advantages, progressively eroding the market share of their counterparts with diminished availability rates through strategic encroachment. Additionally, we elucidate the strategic dynamics within a competitive platform landscape, underscoring the imperative for platforms to meticulously evaluate their derived revenue scale and devise strategic choices that resonate with their distinctive advantages.
期刊介绍:
Transportation Research Part E: Logistics and Transportation Review is a reputable journal that publishes high-quality articles covering a wide range of topics in the field of logistics and transportation research. The journal welcomes submissions on various subjects, including transport economics, transport infrastructure and investment appraisal, evaluation of public policies related to transportation, empirical and analytical studies of logistics management practices and performance, logistics and operations models, and logistics and supply chain management.
Part E aims to provide informative and well-researched articles that contribute to the understanding and advancement of the field. The content of the journal is complementary to other prestigious journals in transportation research, such as Transportation Research Part A: Policy and Practice, Part B: Methodological, Part C: Emerging Technologies, Part D: Transport and Environment, and Part F: Traffic Psychology and Behaviour. Together, these journals form a comprehensive and cohesive reference for current research in transportation science.