Competition between the transportation network company and the government with subsidies to public transit riders

Zhu, Zheng; Xu, Ailing; He, Qiao Chu; Yang, Hai

doi:10.1016/j.tre.2021.102426

Cited by 36 publications

(23 citation statements)

References 50 publications

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“…For example, Pinellas Suncoast Transit Authority in Florida and Metro Transit of Minneapolis-Saint Paul reimburse TNC (Uber/Lyft) trips after regular working hours for economically disadvantaged workers (Metro Transit, 2020;Pinellas Suncoast Transit Authority, 2020). A limited number of empirical studies have suggested careful design of the transit-TNC integration to ensure equitable and efficient services for disadvantaged populations (Zhu et al, 2021;Zuniga-Garcia et al, 2022).…”

Section: Integrating Tnc and Transit Servicesmentioning

confidence: 99%

Integrating transit and TNC services to improve job accessibility: Scenario analysis with an equity lens

Sun

2023

JTLU

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With the rapid growth of Transportation Network Company (TNC) services and the continued decline of transit ridership, existing research has proposed and some transit agencies have implemented programs that integrate transit and TNC services. This paper expands the research area to examine the equity implications of such integrations, focusing on job accessibility improvements for low-income workers. We develop an analytical framework that compares improvements in accessibility to jobs under different hypothetical scenarios in which TNC travel serves as the last-mile connection of transit services. Using the city of Chicago for the case study, this research confirms that such transit-TNC integration increases job accessibility for all low-income workers throughout the city, but it also pinpoints nuanced differences in the accessibility improvements among workers of different races, ethnicities, and sexes during peak and off-peak hours.

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Section: Integrating Tnc and Transit Servicesmentioning

confidence: 99%

Integrating transit and TNC services to improve job accessibility: Scenario analysis with an equity lens

Sun

2023

JTLU

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“…[23] established a network equilibrium model to analyze the multimodal commute behavior with ridesplitting programs as both feeders and competitors to public transit. [24] developed a bilevel game-theoretic approach to model the cooperative and competitive relationship between the TNC and the government. They highlighted that a carefully designed subsidy can benefits both the TNC and society, especially in areas with low public transit accessibility.…”

Section: Interactions Between Amod and Public Transitmentioning

confidence: 99%

Regulating For-Hire Autonomous Vehicles for An Equitable Multimodal Transportation Network

Li¹

2023

Preprint

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This paper assesses the equity impacts of for-hire autonomous vehicles (AVs) and investigates regulatory policies that promote the spatial and social equity in future autonomous mobility ecosystems. To this end, we consider a multimodal transportation network, where a ride-hailing platform operates a fleet of AVs to offer mobility-on-demand services in competition with a public transit agency that offers transit services on a transportation network. A game-theoretic model is developed to characterize the intimate interactions between the ride-hailing platform, the transit agency, and multiclass passengers with distinct income levels. An algorithm is proposed to compute the Nash equilibrium of the game and conduct an ex-post evaluation of the performance of the obtained solution. Based on the proposed framework, we evaluate the spatial and social equity in transport accessibility using Theil index, and find that although the proliferation of for-hire AVs in the ride-hailing network improves overall accessibility, the benefits are not fairly distributed among distinct locations or population groups, implying that the deployment of AVs will enlarge the existing spatial and social inequity gaps in the transportation network if no regulatory intervention is in place. To address this concern, we investigate two regulatory policies that can improve transport equity: (a) a minimum service-level requirement on ride-hailing service, which improves the spatial equity in the transport network; (b) a subsidy on ride-hailing trips that serve as first/last-mile connection to public transit, which promotes the use of public transit and improves the social equity of the transport network. We show that the minimum service-level requirement entails a trade-off: as a higher minimum service level is imposed, the spatial inequity reduces, but the social inequity will be exacerbated. In contrast, subsidies on bundled trips can enhance accessibility, increase transit ridership, improve the profit of the ride-hailing platform, and more crucially, simultaneously bridge spatial and social inequity gaps. These results are validated through realistic numerical studies for San Francisco.

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“… Sun et al (2019) focused on the cruise sales supply chain, established a pricing model based on a cruise company and a travel agency, and explored the impact of the choice of subsidy recipients on port profits. However, these studies were limited to the pricing decisions and profit performance of supply chain members in the monopoly scenario, and rarely considered the competition of cruise lines ( Liu and Wang, 2019 ; Zhu et al, 2021 ) and government budget restrictions. Compared with previous studies, the model setting in this paper is more practical.…”

Section: Literature Reviewmentioning

confidence: 99%

“… Hu et al (2022) examined the optimal container subsidies for shippers to promote intermodal transport involving waterways in a regional transport network. In addition, some studies set the goal of subsidy policies to improve social welfare or consumer welfare ( Xia et al, 2019 ; Wang et al, 2020 ; Zhu et al, 2021 ). Regarding the research on the effect of subsidies, Li et al (2020) showed that higher consumer surplus and social welfare are generated when the equilibrium state of the two ports is to adopt subsidies.…”

Section: Literature Reviewmentioning

confidence: 99%

“… Qu et al (2020) indicated that the undifferentiated subsidy strategy adopted by local governments is unhelpful. Zhu et al (2021) argued that excessive subsidies in areas with high public transit accessibility can harm social welfare and transportation network companies' profits. Regarding the choice of subsidy recipients, Yu et al (2018) studied the optimal subsidy problem for “home appliances to the countryside”, and suggested that the government should only subsidize consumers/manufacturers to maximize consumer welfare if the retail price is exogenously/endogenously given.…”

Section: Literature Reviewmentioning

confidence: 99%

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Optimal subsidy policies of the Chinese cruise market under the impact of COVID-19

et al. 2022

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Competition between the transportation network company and the government with subsidies to public transit riders

Cited by 36 publications

References 50 publications

Integrating transit and TNC services to improve job accessibility: Scenario analysis with an equity lens

Integrating transit and TNC services to improve job accessibility: Scenario analysis with an equity lens

Regulating For-Hire Autonomous Vehicles for An Equitable Multimodal Transportation Network

Optimal subsidy policies of the Chinese cruise market under the impact of COVID-19

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