New Research Paper (Asian Transport Studies)
On January 1st 2024, Professor Fukuda and Mr. Krittanai published a paper in Asian Transport Studies. The title of the paper was “How do fares affect the utilization of ride-hailing services: Evidence from Uber Japan’s experiments.” The paper was part of Mr. Krittanai’s Master thesis and it was presented at the 15th EASTS conference 2023.
The paper empirically investigates the impact of fares on demand through price elasticities using the session data of Uber taxis from Uber Japan’s experiments in two cities: Nagoya and Kyoto. The following is the abstract of this paper:
Ride-hailing has been introduced and has become popular in many major cities worldwide. The service often relies on the use of dynamic pricing, in which fares are adjusted in real time. Therefore, understanding the impact of fare on demand is necessary for the operation of ride-hailing. The aim of this study is to empirically investigate the impact of fares on demand through price elasticities using the session data of Uber taxis from Uber Japan’s experiments in two cities: Nagoya and Kyoto. A mixed logit model with a flexible mixing distribution was estimated to capture the taste heterogeneity among riders, which increased the reliability of the result. The estimation results indicated that most riders were price inelastic, with an average price elasticity of approximately −0.2 to −0.1. These findings are useful for ride-hailing companies and policymakers because they provide valuable information to enable the maximization of profit or benefit to customers.
Sriwongphanawes, K., & Fukuda, D. (2024). How do fares affect the utilization of ride-hailing services: Evidence from Uber Japan’s experiments. Asian Transport Studies, 10, 100121.
https://doi.org/10.1016/j.eastsj.2023.100121
Link: https://www.sciencedirect.com/science/article/pii/S2185556023000263
