Dynamic Pricing for Smart Travel-matching Applications Based on Travel-request Rejection Behavior of Drivers

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Farajollahzadeh, Setareh | 2016

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 49367 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Sheikhzadeh, Mehdi; Fatemi, Farshad
Abstract:
With the growth and success of applications like Uber using the sharing economy concept in order to create value, many firms try to run businesses with similar ideas. Assisting such businesses to be created and grew, we present an analysis of Uber’s operation in this thesis. In addition, factors affecting supply and demand function for travel-matching applications are perceived with Tap30’s dataset and the mismatch between these functions in some areas and times is recognized as Tap30’s current problem. To address this problem, a mechanism is designed to adjust supply function with the demand in order to increase the number of customer-driver matching in the system. To design a mechanism, a logit regression model is applied on the dataset to estimate the probability of a travel-request rejection from the drivers’ side. Finally, by introducing price as a managerial tool for such systems, increasing price for some particular regions and times to promote drivers’ consentration is proposed. The objective is to increase dirvers’ congestion in these particular regions in certain times and to incite drivers to accept rides to or from these regions
Keywords:
Dynamic Pricing ; Promotion Strategies ; UrbanTransport ; Taxi Market ; Travel Rejection

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