Analysis and Research of the Influence of Taxi Subsidy Scheme on Urban Taxi-Hailing Difficulties

Abstract

Difficulty in taking a taxi is a long term problem entangles with both customers and drivers, and taxi software was born under such background. These apps consider about both customers and drivers to analyze the contradiction between taxi taking and order receiving, then link the waiting time and subsidy profit together to assess the feasibility of current scheme, which will price by time and evolutionary game theory model to market. Finally, this article will promote a proper subsidy scheme based on social welfare theory. Introduction With economic development in China and improved modern construction, taxi comes to become one of daily transportation for citizens.The taxi market is different from ideal market in traditional economic analysis, and the supply and demand relationship almost depends on many intermediate variable such as taxi empty loading rate and time and space distribution differences,etc. This article will analyze taxi-call problem from two parts. Firstly, we will analyze the behaviors of customer and empty cabs influenced by current subsidy and choose taxi empty loading rate, taxi density and waiting time for driving as assessment index for taxi matching degree of supply and demand, which also will analyze the degree for peak time in morning, noon and evening of business area and higher education region.Then connect subsidy profit with taxi waiting time to reach the interval lose balance between short-term and long-term order orders, in the mean time, using evolutionary stable strategy and combine with social welfare theory to promote the best distribution ratio of subsidy. Subsidy Influences for Taxi Supply and Demand Relationship-Choose Taxi Drivers as the Object of Study Behavior characteristics for taxi driver route choice Under the charge system of pay per km, taxi drivers often chose the shortest distance to arrive destination, and drivers will almost not try to search customers on the way. Traditionally, empty taxi drivers often search customers by setting original route and if no customer will be found in this route, the drivers will re-set the searching route until find new customers. Owing to the long-term market regulation, the empty taxi drivers often driver to areas like downtown and train station with multiple customers. But taxi apps change route choices for empty taxi hugely, offering equal information to customers and drivers both. Taxi drivers will be able to receive targeting orders benefit themselves and lower the cost for empty driving. Subsidy influences to taxi order receiving If the customer amount is without limits in taxi market, the starting price for taxi will influence the enthusiasm,which also means order receiving amount for drivers. The taxi price is composed of 2nd International Conference on Education Technology, Management and Humanities Science (ETMHS 2016) © 2016. The authors Published by Atlantis Press 836 two parts, starting price and mileage price calculating via distance. Generally, the upsurge of starting price will increase the unit price for taxi order and add income for drivers. (1) Subside by order numbers Introduce the operation subsidy for drivers 1 b ,suppose to subside by 1 b RMB/order, and the income 0( ) I x for per mile/order (2) Subside by mileage Introduce the operation subsidy for drivers 1 ' b ,suppose to subside by 1 ' b RMB/km, and the income 0 ( )  I x for per mile/order Subsidy Influences to Supply and Demand Relationship Total revenue for taxi based on time pricing In the actual situation,taxi supply is related to actual price of taxi service at that time and the distribution of demand for taxi in previous moment. Taxi price will not change in a long term, the actual payment from customer only relates to the subsidy amount at that time, demand of taxi service shall not influenced by that of previous moment, but affected by that of this time. Suppose the taxi speed v constant, time interval of each order is a constant t , the profit of per taxi order without considering of subsidy will be ( ) t d F f d f v t f v t         , d is regarded as the driving distance of any taxi; d f expresses the average price of unit distance; expresses the price of unit time under the condition of =  t f f v , that is pricing by time, this expression can be transferred and unit time price, that is t t F f t   to the relationship between profit of any taxi order (1) Subside by fix amount for per order The total order for taxi in a time range express as  and total revenue express as Z , that is 1 1 [ ( ) ] n Z F t b 