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The Impact of Aggregation Platforms on the Ride-Sourcing Market with Different Models of Companies

Xin Zhang^1,2, Gege Jiang^1,2,*

1 Shenzhen Campus of Sun Yat-sen University, Shenzhen, 518000, China
2 Sun Yat-Sen University, Guangzhou, 510275, China

* Corresponding Author: Gege Jiang. Email:

The International Conference on Computational & Experimental Engineering and Sciences 2023, 26(3), 1-5. https://doi.org/10.32604/icces.2023.09222

Abstract

With the booming development of the ride-sourcing (RS)industry, aggregation platforms that integrate RS companies have emerged in recent years, such as Gaode and Meituan. Aggregation platforms can consolidate resources and avoid fragmentation of the market. But the emergence of aggregation platforms has also changed the market structure and brought challenges. This paper explores the impact of aggregation platforms on the market with two models of companies: customer-to-customer (C2C) companies, and business-to-customer (B2C) companies. C2C companies adjust supply and demand to maximize revenue by determining travel fares and the cut taken from the travel fares, i.e., the commission. B2C companies will be affected by the decisions of C2C companies. Numerical studies have shown that joining an aggregation platform reduces the optimal commission of C2C companies, which leads to a decrease in optimal revenues. In addition, the revenue of part-time drivers and B2C companies increase significantly. Besides, this paper explores the impact of drivers' sensitivity to income on the RS market. This research can provide a reference for the operation of the company after joining the aggregation platform.

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Keywords

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