Drivers, Riders, and Service Providers: The Impact of the Sharing Economy on Mobility

2021 ◽  
Author(s):  
Saif Benjaafar ◽  
Harald Bernhard ◽  
Costas Courcoubetis ◽  
Michail Kanakakis ◽  
Spyridon Papafragkos
Keyword(s):  
Operations Management ◽  
Service Providers ◽  
Sharing Economy ◽  
Car Ownership ◽  
Full Time ◽  
Ride Sharing ◽  
Finite Set ◽  
Nonatomic Game ◽  
Payoff Functions ◽  
The Impact

It is widely believed that ride sharing, the practice of sharing a car such that more than one person travels in the car during a journey, has the potential to significantly reduce traffic by filling up cars more efficiently. We introduce a model in which individuals may share rides for a certain fee, paid by the rider(s) to the driver through a ride-sharing platform. Collective decision making is modeled as an anonymous nonatomic game with a finite set of strategies and payoff functions among individuals who are heterogeneous in their income. We examine how ride sharing is organized and how traffic and ownership are affected if a platform, which chooses the seat rental price to maximize either revenue or welfare, is introduced to a population. We find that the ratio of ownership to usage costs determines how ride sharing is organized. If this ratio is low, ride sharing is offered as a peer-to-peer (P2P) service, and if this ratio is high, ride sharing is offered as a business-to-customer (B2C) service. In the P2P case, rides are initiated by drivers only when the drivers need to fulfill their own transportation requirements. In the B2C case, cars are driven all the time by full-time drivers taking rides even if these are not motivated by their private needs. We show that, although the introduction of ride sharing may reduce car ownership, it can lead to an increase in traffic. We also show that traffic and ownership may increase as the ownership cost increases and that a revenue-maximizing platform might prefer a situation in which cars are driven with only a few seats occupied, causing high traffic. We contrast these results with those obtained for a social welfare-maximizing platform. This paper was accepted by Charles Corbett, operations management.

Competition Between Two-Sided Platforms Under Demand and Supply Congestion Effects

2020 ◽  
Author(s):  
Fernando Bernstein ◽  
Gregory A. DeCroix ◽  
N. Bora Keskin
Keyword(s):  
Service Providers ◽  
Supply And Demand ◽  
Relative Number ◽  
Sharing Economy ◽  
Problem Definition ◽  
Ride Sharing ◽  
Managerial Implications ◽  
The Impact ◽  
Number Of Customers ◽  
Congestion Effects

Problem definition: This paper explores the impact of competition between platforms in the sharing economy. Examples include the cases of Uber and Lyft in the context of ride-sharing platforms. In particular, we consider competition between two platforms that offer a common service (e.g., rides) through a set of independent service providers (e.g., drivers) to a market of customers. Each platform sets a price that is charged to customers for obtaining the service provided by a driver. A portion of that price is paid to the driver who delivers the service. Both customers’ and drivers’ utilities are sensitive to the payment terms set by the platform and are also sensitive to congestion in the system (given by the relative number of customers and drivers in the market). We consider two possible settings. The first one, termed “single-homing,” assumes that drivers work through a single platform. In the second setting, termed “multihoming” (or “multiapping,” as it is known in practice), drivers deliver their service through both platforms. Academic/practical relevance: This is one of the first papers to study competition and multihoming in the presence of congestion effects typically observed in the sharing economy. We leverage the model to study some practical questions that have received significant press attention (and stirred some controversies) in the ride-sharing industry. The first involves the issue of surge pricing. The second involves the increasingly common practice of drivers choosing to operate on multiple platforms (multihoming). Methodology: We formulate our problem as a pricing game between two platforms and employ the concept of a Nash equilibrium to analyze equilibrium outcomes in various settings. Results: In both the single-homing and multihoming settings, we study the equilibrium prices that emerge from the competitive interaction between the platforms and explore the supply and demand outcomes that can arise at equilibrium. We build on these equilibrium results to study the impact of surge pricing in response to a surge in demand and to examine the incentives at play when drivers engage in multihoming. Managerial implications: We find that raising prices in response to a surge in demand makes drivers and customers better off than if platforms were constrained to charge the same prices that would arise under normal demand levels. We also compare drivers’ and customers’ performance when all drivers either single-home or multihome. We find that although individual drivers may have an incentive to multihome, all players are worse off when all drivers multihome. We conclude by proposing an incentive mechanism to discourage multihoming.

scholarly journals Does Car-Sharing Reduce Car Ownership? Empirical Evidence from Germany

2021 ◽  
Vol 13 (13) ◽  
pp. 7384
Author(s):  
Aaron Kolleck
Keyword(s):  
Business Models ◽  
Operating Mode ◽  
Sharing Economy ◽  
Car Ownership ◽  
Future Research ◽  
Vehicle Miles Traveled ◽  
Car Sharing ◽  
The Impact ◽  
German Cities ◽  
Additional Station

The sharing economy is making its way into our everyday lives. One of its business models, car-sharing, has become highly popular. Can it help us increase our sustainability? Besides emissions and vehicle miles traveled, one key aspect in the assessment regards the effect of car-sharing on car ownership. Previous studies investigating this effect have relied almost exclusively on surveys and come to very heterogeneous results, partly suggesting spectacular substitution rates between shared and private cars. This study empirically explores the impact of car-sharing on noncorporate car ownership and car markets in 35 large German cities. The analysis draws on publicly available data for the years 2012, 2013, 2015, and 2017, including, among others, the number of shared cars per operating mode (free-floating and station-based) and the number of cars owned and registered by private individuals (i.e., excluding company cars). We find that one additional station-based car is associated with a reduction of about nine private cars. We do not find a statistically significant relation between car ownership and free-floating car-sharing. Neither type of car-sharing appears to impact the markets for used and new cars significantly. Given the measurable impacts on car ownership levels, this result is surprising and invites future research to study car-sharing’s impact on the dynamics of car markets.

scholarly journals Sharing economy services in Dhaka: a change towards women’s perception of commuting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Mukitul Hoque ◽  
Bildana Haque Saumi
Keyword(s):  
Public Transportation ◽  
Sharing Economy ◽  
Research Approach ◽  
Content Type ◽  
Ride Sharing ◽  
Study Results ◽  
Smartphone Technology ◽  
Global Positioning System Tracking ◽  
Buying Behaviour ◽  
The Impact

Purpose In the modern era of transportation, using a ride-sharing service can add an extra value to the lifestyles of women. Also, women are thinking about the ride-sharing service, what are the factors they consider while purchasing the service and so on. The purpose of this study is to find out women’s perception of ride-sharing services. Design/methodology/approach This paper is based on deductive research approach and descriptive research design. This paper has followed mixed research method by using qualitative and quantitative data. By dividing the larger population into subgroups, the researchers have conducted a survey on 240 respondents. To select these respondents, researchers have applied simple random technique. Based on a survey on consumers’ buying behaviour of ride-sharing service, the researchers tested the impact of tangibility, reliability, safety, fare, efficiency and convenience as the factors for choosing ride-share rather than other public transportation. Findings The study results indicate that reliability which includes consistency, punctuality and schedule routes are the major concerning issue for women while choosing ride-share service. Women are also concerned about efficiency which includes global positioning system tracking, smartphone technology and so on. One of the important criteria for choosing a ride-sharing service is safety, which includes verified drivers, and drivers review scores. So, reliability, efficiency and safety are the most effective issues. On the other hand, tangibility, fare and convenience do not affect that much. Originality/value To the best of the authors’ knowledge, this is the first research to scrutinize the sharing economy service in Dhaka city towards women’s perception of commuting.

scholarly journals Sharing Economy: A Study on the Factors Influencing Users' Motivation to Use Ride Sharing Platforms

2019 ◽  
Vol 14 (1) ◽  
pp. 65
Author(s):  
Rosdiana Sijabat
Keyword(s):  
Online Survey ◽  
Secondary Data ◽  
Sharing Economy ◽  
Positive Influence ◽  
Primary Data ◽  
Technological Factors ◽  
Ride Sharing ◽  
Social Environmental ◽  
The Impact ◽  
The Empirical Analysis

<p>This research is intended to explore sharing economy, particularly ride sharing. The study aims to identify the impact of four factors—economic, social, environmental, and technological—on individuals' motivation and decision to use three ride sharing platforms: UBER, GRAB and Go-JEK in Indonesia. Based on available literature, four research hypotheses are tested, namely that (1) economic factors; (2) social factors;(3)  environmental factors; and (4) technological factors have positive influence on individuals' motivation and decision to use ride sharing services. Primary and secondary data are used to answer the research questions. Primary data were obtained through an online survey of 355 respondents, while secondary data were obtained from various related literatures. The research is both descriptive and quantitative in nature, the empirical analysis suggest that economic, social, environmental, and technological factors are positively associated with users' decision to use ride sharing.</p><p><em><strong>Bahasa Indonesia</strong> <em><strong>Abstrak: </strong></em>Penelitian ini bertujuan untuk mengeksplorasi konsep sharing economy, khususnya ride sharing. Secara khusus, studi ini bertujuan untuk mengidentifikasi pengaruh dari empat factor, yaitu faktor ekonomi, sosial, lingkungan, dan teknologi terhadap motivasi dan keputusan individu untuk menggunakan tiga platform perjalanan bersama: UBER, GRAB, dan Go-JEK di Indonesia. Berdasarkan literatur yang tersedia, empat hipotesis penelitian diuji, yaitu bahwa (1) faktor ekonomi; (2) faktor sosial; (3) faktor lingkungan; dan (4) faktor teknologi memiliki pengaruh positif terhadap motivasi dan keputusan individu untuk menggunakan layanan ride sharing. Data primer dan sekunder digunakan untuk menjawab pertanyaan penelitian. Data primer diperoleh melalui survei online terhadap 355 responden, sedangkan data sekunder diperoleh dari berbagai literatur terkait. Penelitian ini bersifat deskriptif dan kuantitatif, analisis empiris menunjukkan bahwa faktor ekonomi, sosial, lingkungan, dan teknologi secara positif terkait dengan keputusan pengguna untuk menggunakan berbagi perjalanan.</em></p>

scholarly journals The sharing economy and management of a sustainable environment in the tourism sector on a global scale

Turyzm ◽  
2019 ◽  
Vol 29 (2) ◽  
pp. 19-22
Author(s):  
Ruhet Genç
Keyword(s):  
Environmental Sustainability ◽  
Global Economy ◽  
Service Providers ◽  
Global Scale ◽  
Sharing Economy ◽  
Ecological Sustainability ◽  
Collaborative Consumption ◽  
Sustainable Environment ◽  
Tourism Sector ◽  
The Impact

The paper will discuss the impact of development of sharing economy on ecological sustainability for the tourism sector at global scale since the main focus in the literature is generally limited to economic and social impacts. It will provide a mathematical model in order to measure the impact of the sharing economy on the welfare of individuals who take part in particular tourism destinations as well as providing benefits for other individuals as a positive external outlook. The development of the model will be dependent on the findings obtained in this study. The results will show that the sharing economy together with collaborative consumption in the tourism sector is an increasing trend in global economy that contributes to ecological sustainability as well. By sharing the means of production, transportation, communication etc both tourists and service providers are capable of decreasing their ecological footprints. In conclusion the paper will contribute to the literature by filling a gap with respect to the lack of connection between environmental sustainability and sharing economy in tourism sector.

scholarly journals Evaluation of Environmental Impact of Car Sharing in Consideration of Uncertainty of Influential Variables

2020 ◽  
Vol 14 (6) ◽  
pp. 975-983
Author(s):  
Katsuya Tsuji ◽  
◽  
Kiyo Kurisu ◽  
Jun Nakatani ◽  
Yuichi Moriguchi
Keyword(s):  
Sensitivity Analysis ◽  
Service Providers ◽  
Rebound Effect ◽  
Environmentally Friendly ◽  
Sharing Economy ◽  
Influential Factors ◽  
Car Sharing ◽  
New Production ◽  
Rebound Effects ◽  
The Impact

Sustainable production and consumption are categorized as target 12 in the United Nations’ Sustainable Development Goals. The “sharing economy” has been developing globally as a new consumption style, and it is often recognized as being environmentally friendly by both consumers and service providers. Several aspects of the practice, such as the avoidance of new production, can reduce the impact to the environment. However, additional factors, such as the expansion of consumption, namely rebound effects, can increase the impact to the environment. Although many variables exist to determine the total impact of sharing services on the environment, additional and rebound effects and the uncertainty of influential variables have not been well considered. In this study, we aim to reveal the conditions that car-sharing practices place in increasing or decreasing environmental loads, and to identify the significant influential factors on the environment imposed by car-sharing services. We analyze the CO2 emission of car sharing by considering various influential factors and their distributions. Furthermore, we consider differences in car size, fuel type, ownership condition, and several other factors in the simulation. The distribution of each variable is determined, and a Monte Carlo simulation is conducted. The CO2 emissions from the production and operational stages over a 10-y period are estimated. The simulation is conducted with sensitivity analysis to identify the variables that contribute significantly to the total CO2 emission. In some cases, the CO2 emission involved in car sharing exceeded cases in which car sharing is not practiced. Among those cases, although the main contributor to the total CO2 emission is in the operational stage, CO2 emission from the production stage increased the amount of emission. It is discovered that the number of cars increased significantly during the target 10 y after sharing is introduced in some cases. These results indicate a high probability that car sharing can achieve CO2 reduction, but the increase in CO2 emission can occur under certain conditions. Additionally, the sensitivity analysis shows that the main determinants of CO2 emission are the ratio of people who eliminated their private cars, degree of rebound effect, and increasing ratio of number of cars introduced to car-sharing practices. This suggests that whether car sharing becomes environmentally friendly depends substantially on consumer behavior and the manner in which sharing services are operated.

scholarly journals Shared accommodation as a globalization trend in tourism

2020 ◽  
Vol 74 ◽  
pp. 03002
Author(s):  
Miroslava Kostková
Keyword(s):  
Service Providers ◽  
Marketing Research ◽  
Sharing Economy ◽  
Playing Field ◽  
Global Trend ◽  
Traditional Service ◽  
Modern Economic ◽  
Tourism Service ◽  
Tourist Accommodation ◽  
The Impact

Modern tourism trends have a distinctly global character. They include the use of online tourism service platforms and the sharing of services based on sharing economy. Governments and municipalities create regulatory measures to operate in accordance with the destination’s municipal, financial, security, and tourism interests to ensure transparency and a level playing field for entrepreneurship. The paper deals with this global trend in the field of the accommodation services through the Airbnb platform in the Czech Republic and in the Silesian Moravian Region, in the use and provision of tourist accommodation services and identification of the impact on tourism development and tourist attendance the destination, within the project Trends of tourism in the Moravian-Silesian Region, using the methods of marketing research. The results declare that shared economy platforms in the field of accommodation have a place in the modern economic system, they put competitive pressure on tourism service providers, the offer expands for the consumers and traditional service providers force to move to innovative concepts. The hoteliers want to offer the creation of standards that the sharing accommodation providers should follow and public administration and city representatives want to clearly describe the duties for each accommodation provider and regulate accommodation through Airbnb.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

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