Dedicated vs Pooling Models: Optimizing Ride-Hailing Profits
On-Demand Ride-Hailing Platforms with Heterogeneous Quality-Sensitive Customers - Dedicated System or Pooling System?
Tags: CUHK Business School, Hong Kong, Transportation & Automotive, Consumer Goods & Services
This technology examines the decision-making process of on-demand ride-hailing platforms when choosing between a dedicated system (with quality-specific queues) and a pooling system (random matching). It analyzes the pricing, wages, and participation behaviors of customers and drivers. The research finds that the pooling system can lead to a win-win-win scenario under certain conditions, but the dedicated system may be more profitable for platforms with quality-sensitive customers. Applications include ride-hailing services like Uber and DiDi.
IP Type or Form Factor: Discovery & Research; Software & Algorithm
TRL: 4 - minimum viable product built in lab
Industry or Tech Area: Transport Systems; Retail & E-Commerce
