A Study of Ride-Hailing Platforms’ Business Models in the Presence of Surge Demand

Published Online:https://doi.org/10.1287/isre.2022.0695

References

  • Afèche P, Liu Z, Maglaras C (2023) Ride-hailing networks with strategic drivers: The impact of platform control capabilities on performance. Manufacturing Service Oper. Management 25(5):1890–1908.LinkGoogle Scholar
  • Babar Y, Burtch G (2020) Examining the heterogeneous impact of ride-hailing services on public transit use. Inform. Systems Res. 31(3):820–834.LinkGoogle Scholar
  • Benzell SG, Hersh J, Van Alstyne M (2024) How APIs create growth by inverting the firm. Management Sci. 70(10):7120–7141.LinkGoogle Scholar
  • Bhargava HK, Choudhary V (2004) Economics of an information intermediary with aggregation benefits. Inform. Systems Res. 15(1):22–36.LinkGoogle Scholar
  • Bimpikis K, Candogan O, Saban D (2019) Spatial pricing in ride-sharing networks. Oper. Res. 67(3):744–769.LinkGoogle Scholar
  • Bish EK, Wang Q (2004) Optimal investment strategies for flexible resources, considering pricing and correlated demands. Oper. Res. 52(6):954–964.LinkGoogle Scholar
  • Boyabatlı O, Leng T, Toktay LB (2016) The impact of budget constraints on flexible vs. dedicated technology choice. Management Sci. 62(1):225–244.LinkGoogle Scholar
  • Cachon GP, Daniels KM, Lobel R (2017) The role of surge pricing on a service platform with self-scheduling capacity. Manufacturing Service Oper. Management 19(3):368–384.LinkGoogle Scholar
  • Castillo JC, Knoepfle D, Weyl EG (2024) Matching and pricing in ride hailing: Wild goose chases and how to solve them. Management Sci., ePub ahead of print September 11, https://doi.org/10.1287/mnsc.2022.00096.LinkGoogle Scholar
  • Chen J, Guo Z (2022) New-media advertising and retail platform openness. MIS Quart. 46(1):431–456.CrossrefGoogle Scholar
  • Chen J, Feng N, Guo Z, Zhang W (2024) On-demand, long-term, or hybrid? An economic analysis of optimal rental models on sharing platforms. Inform. Systems Res., ePub ahead of print April 25, https://doi.org/10.1287/isre.2022.0441.LinkGoogle Scholar
  • Chen MK, Sheldon M (2016) Dynamic pricing in a labor market: Surge pricing and flexible work on the uber platform. Working paper, University of California, Los Angeles.Google Scholar
  • Cheng HK, Jung KS, Kwark Y, Pu J (2023) Impact of own brand product introduction on optimal pricing models for platform and incumbent sellers. Inform. Systems Res. 34(3):1131–1147.LinkGoogle Scholar
  • Chod J, Markakis MG, Trichakis N (2021) On the learning benefits of resource flexibility. Management Sci. 67(10):6513–6528.LinkGoogle Scholar
  • Dholakia UM (2015) Everyone hates Uber’s surge pricing—Here’s how to fix it. Harvard Business Review Online (December 21), https://hbr.org/2015/12/everyone-hates-ubers-surge-pricing-heres-how-to-fix-it.Google Scholar
  • Dholakia UM, Brown GR (2016) Uber’s surge pricing: 4 reasons why everyone hates it. Government Technology Online (January 27), https://www.govtech.com/archive/ubers-surge-pricing-4-reasons-why-everyone-hates-it.html.Google Scholar
  • Economides N, Katsamakas E (2006) Two-sided competition of proprietary vs. open source technology platforms and the implications for the software industry. Management Sci. 52(7):1057–1071.LinkGoogle Scholar
  • Enders A, König A, Grobe C (2016) The sharing economy: “Upending business as usual.” IMD. Accessed November 10, 2022, https://www.imd.org/research-knowledge/articles/the-sharing-economy-upending-business-as-usual/.Google Scholar
  • Federgruen A, Yang N (2009) Optimal supply diversification under general supply risks. Oper. Res. 57(6):1451–1468.LinkGoogle Scholar
  • Fine CH, Freund RM (1990) Optimal investment in product-flexible manufacturing capacity. Management Sci. 36(4):449–466.LinkGoogle Scholar
  • Goyal M, Netessine S (2007) Strategic technology choice and capacity investment under demand uncertainty. Management Sci. 53(2):192–207.LinkGoogle Scholar
  • Hagiu A, Jullien B, Wright J (2020) Creating platforms by hosting rivals. Management Sci. 66(7):3234–3248.LinkGoogle Scholar
  • Hall J, Kendrick C, Nosko C (2015) The effects of Uber’s surge pricing: A case study. Working paper, The University of Chicago Booth School of Business, IL.Google Scholar
  • Hamilton IA (2019) Uber drivers are reportedly colluding to trigger “surge” prices because they say the company is not paying them enough. Business Insider Online (January 14), https://www.businessinsider.com/uber-drivers-artificially-triggering-surge-prices-reports-abc7-2019-6.Google Scholar
  • He S, Qiu L, Cheng X (2021) Surge pricing and short-term wage elasticity of labor supply in real-time ridesharing markets. MIS Quart. 46(1):193–228.CrossrefGoogle Scholar
  • He S, Peng J, Li J, Xu L (2020) Impact of platform owner’s entry on third-party stores. Inform. Systems Res. 31(4):1467–1484.LinkGoogle Scholar
  • Hu B, Hu M, Zhu H (2022) Surge pricing and two-sided temporal responses in ride hailing. Manufacturing Service Oper. Management 24(1):91–109.LinkGoogle Scholar
  • Ke J, Xiao F, Yang H, Ye J (2020) Learning to delay in ride-sourcing systems: A multi-agent deep reinforcement learning framework. IEEE Trans. Knowledge Data Engrg. 34(5):2280–2292.CrossrefGoogle Scholar
  • Kouvelis P, Li J (2008) Flexible backup supply and the management of lead‐time uncertainty. Production Oper. Management 17(2):184–199.CrossrefGoogle Scholar
  • Lowrey A (2014) Is Uber’s surge-pricing an example of high-tech gouging? The New York Times Magazine Online (January 10), https://www.nytimes.com/2014/01/12/magazine/is-ubers-surge-pricing-an-example-of-high-tech-gouging.html.Google Scholar
  • Maximize Market Research (2024) Ride-hailing market: Global analysis and forecast (2024–2030). Accessed February 15, 2025, https://www.maximizemarketresearch.com/market-report/global-ride-hailing-market/78559/.Google Scholar
  • Niculescu MF, Wu DJ, Xu L (2018) Strategic intellectual property sharing: Competition on an open technology platform under network effects. Inform. Systems Res. 29(2):498–519.LinkGoogle Scholar
  • Parker GG, Van Alstyne M (2018) Innovation, openness, and platform control. Management Sci. 64(7):3015–3032.LinkGoogle Scholar
  • Simchi‐Levi D, Wang H, Wei Y (2018) Increasing supply chain robustness through process flexibility and inventory. Production Oper. Management 27(8):1476–1491.CrossrefGoogle Scholar
  • Song W, Chen J, Li W (2021) Spillover effect of consumer awareness on third parties’ selling strategies and retailers’ platforms openness. Inform. Systems Res. 32(1):172–193.LinkGoogle Scholar
  • Statista Market Insights (2023) Ride-hailing: Market data & analysis. Accessed December 20, 2023, https://www.statista.com/outlook/mmo/shared-mobility/ride-hailing/china.Google Scholar
  • Wang Y, Webster S (2022) Product flexibility strategy under supply and demand risk. Manufacturing Service Oper. Management 24(3):1779–1795.LinkGoogle Scholar
  • Xu Z, Yin Y, Ye J (2020) On the supply curve of ride-hailing systems. Transportation Res. B Methodology 132:29–43.CrossrefGoogle Scholar
  • Yang H, Shao C, Wang H, Ye J (2020) Integrated reward scheme and surge pricing in a ridesourcing market. Transportation Res. B Methodology 134:126–142.CrossrefGoogle Scholar
  • Yoo B, Choudhary V, Mukhopadhyay T (2002) A model of neutral B2B intermediaries. J. Management Inform. Systems 19(3):43–68.CrossrefGoogle Scholar
  • Zhang C, Chen J, Raghunathan S (2024) When sharing economy meets traditional business: Coopetition between ride-sharing platforms and car-rental firms. Inform. Systems Res. 35(3):1137–1153.LinkGoogle Scholar
  • Zhu Z, Ke J, Wang H (2021) A mean-field Markov decision process model for spatial-temporal subsidies in ride-sourcing markets. Transportation Res. B Methodology 150:540–565.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.