Evolution of labour supply in ridesourcing

Arjan de Ruijter*, Oded Cats, Rafal Kucharski, Hans van Lint

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)
25 Downloads (Pure)

Abstract

Contrary to traditional transit services, supply in ridesourcing systems emerges from individual labour decisions of gig workers. The effect of decentralisation in supply on the evolution of on-demand transit services is largely unknown. To this end, we propose a dynamic model comprising of the subsequent supply-side processes: (i) initial exposure to information about the platform, (ii) a long-term registration decision, and (iii) daily participation decisions, subject to day-to-day learning based on within-day matching outcomes. We construct a series of experiments to study the effect of supply market properties and pricing strategies. We find that labour supply in ridesourcing may be non-linear and undergo several transitions, inducing significant variations in income levels and level of service over time. Our results provide indications that the ridesourcing market may benefit from a cap in supply and regulation of the commission fee.

Original languageEnglish
Pages (from-to)599-626
Number of pages28
JournalTransportmetrica B
Volume10
Issue number1
DOIs
Publication statusPublished - 2022

Keywords

  • labour supply
  • participation
  • pricing
  • registration
  • Ridesourcing

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