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Understanding the Operational Dynamics of Mobility Service Providers: A Case of Uber

Published: 07 February 2020 Publication History

Abstract

The rise of mobility service providers (MSPs) is reforming the traditional taxi service (TTS) market. MSPs differ from TTS with the core idea of using technology to optimally match riders with drivers, features like ride-sharing and surge pricing, and are not entry-regulated. It is of great significance to understand how MSPs operate and how we can integrate them with TTS for efficient urban mobility. Unfortunately, little is known about MSPs due to limited data revealed by them. In this study, we collect and mine the trajectory data of online drivers who serve Uber (one of the largest MSP) to demystify how Uber drives their drivers. We analyze the trip patterns of different Uber services and reveal their market share, trip metrics, and the spatial distributions of trip origins and destinations. We explore how MSPs improve the driver-rider matching efficiency and empirically validate the enormous efficiency gap between TTS and MSPs. In the end, we debunk the surge price as an instrument to restore driver-rider balance theory and show that drivers choose to chase or avoid the high surge areas depending on various other factors such as traffic congestion, time and location, and availability of alternate travel options as well. The results of this article provide insightful knowledge about the supply side of MSPs and contribute to new ideas on improving TTS and regulating MSPs.

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    Published In

    cover image ACM Transactions on Spatial Algorithms and Systems
    ACM Transactions on Spatial Algorithms and Systems  Volume 6, Issue 2
    June 2020
    192 pages
    ISSN:2374-0353
    EISSN:2374-0361
    DOI:10.1145/3375460
    Issue’s Table of Contents
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    New York, NY, United States

    Publication History

    Published: 07 February 2020
    Accepted: 01 December 2019
    Revised: 01 June 2019
    Received: 01 December 2018
    Published in TSAS Volume 6, Issue 2

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    Author Tags

    1. Mobility service providers
    2. chasing the surge
    3. searching efficiency
    4. trip pattern
    5. uber data collection

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    • (2024)Spatiotemporal Exploration of Ridesharing Services Ridership through Geovisualization: A Case Study of the New York City RegionThe Professional Geographer10.1080/00330124.2024.2398242(1-13)Online publication date: 7-Oct-2024
    • (2024)Modeling the influence of charging cost on electric ride-hailing vehiclesTransportation Research Part C: Emerging Technologies10.1016/j.trc.2024.104514160(104514)Online publication date: Mar-2024
    • (2024)Understanding the Nexus Between Techno-Stress, Psychological Well-Being, and the Moderating Role of Job Resources in the Gig EconomyEmployee Responsibilities and Rights Journal10.1007/s10672-024-09505-5Online publication date: 28-May-2024
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    • (2023)A Systematic Literature Review on Machine Learning in Shared MobilityIEEE Open Journal of Intelligent Transportation Systems10.1109/OJITS.2023.33343934(870-899)Online publication date: 2023
    • (2023)Noise filter method for mobile trajectory dataHandbook of Mobility Data Mining10.1016/B978-0-443-18428-4.00003-7(35-50)Online publication date: 2023
    • (2022)Ride-hailing services: Competition or complement to public transport to reduce accident rates. The case of MadridFrontiers in Psychology10.3389/fpsyg.2022.95125813Online publication date: 27-Jul-2022
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