Effect of Price and Time on Private and Shared Transportation Network Company Trips

Abstract

Transportation network companies (TNCs) offer two types of service: private-party ridehailing and shared ridehailing. Policymakers have an interest in encouraging shared over private ridehailing to promote more efficient use of the transportation network. While transportation researchers have analyzed ridehailing behavior before, there is limited literature describing the effect of price and time on a rider’s choice between private-party and shared ridehailing. This paper fills this gap by analyzing revealed preferences for private-party and shared ridehailing trips in 15 American cities coupled with a survey of 4,365 users of a large TNC that includes stated preference questions focused on various alternative options for their most recent trip choice. This study finds that an increase in the relative price difference of $1 per mile increases an individual’s probability of sharing by over 8%, while a decrease in the relative travel time difference of 1 min per mile increases the probability of sharing by over 33%. The survey results also show that that a sizable proportion of private-party TNC trips (approximately 35%) will be difficult or even impossible to convert to shared rides through a price-based incentive. Market segmentation analysis reveals user and trip types where price- and time-based incentives have a relatively greater effect on the choice between private and shared rides. Finally, heterogeneity in user time versus money trade-offs suggests new product possibilities that would increase TNC sharing.

Exploring non-users' intention to adopt ride-sharing services: Taking into account increased risks due to the COVID-19 pandemic among other factors

“… Malik et al (2021) found that increased time and privacy concern affect consumers’ adoption intention towards shared ridehailing. Middleton et al (2021) suggested that time and price have a relatively great impact on the choice between private and shared rides.…”

An analysis of ridesharing trip time pre- and amid-COVID-19 pandemic using advanced text mining technique – the USA vs Indian case study across different age and gender groups

“…To determine the importance of this issue, we examined the pre-and amid-COVID-19 literature. In fact, a shared future can reduce congestion, reduce Vehicle Miles Traveled (VMT), lead to better air quality, support economic growth (42), and improve travel time for all road users (9), as well as travel time by ride-sharing is more valuable than by train or bus in France (43), For this reason, high-income people value their travel time more, and ride-sharing has been an attractive option for them more than other travel modes (44). A study showed that the value of users' time and travel time uncertainty has significant effects on the performance of sharing systems (45).…”

“…A study in India shows that for the people of Mumbai, travel comfort is more important than security and waiting time (41). According to a survey of 4,365 people in the United States, reducing relative travel time by one minute per mile increased sharing by 33 percent (42). A large portion of travel was canceled or rescheduled in a study on long travel duration in Canada during the COVID period (20).…”

Spatiotemporal Analysis of the Relationships Between Pricing Strategies and Willingness to Share for Ridesourcing Modes

“…There is limited body of literature on the factors affecting ridesourcing users’ WTS ( 14 ). The work conducted in the area of analyzing TNCs’ surge pricing scheme is limited, too ( 15 ).…”

“…The work conducted in the area of analyzing TNCs’ surge pricing scheme is limited, too ( 15 ). Capturing the interdependencies between surge pricing and passengers’ WTS their rides is not adequately explored ( 14 ). Nurul Habib ( 16 ) in tackling the mode choice component of ridesourcing highlighted the insufficient resources on the “surge price of Uber”.…”