The Appropriate Scale of Competition Between Online Taxis and Taxis Based on the Lotka-Volterra Evolutionary Model

Abstract

In order to determine the optimal scale for urban ride-hailing services and taxis while promoting their sustainable growth, we have developed a Lotka-Volterra evolutionary model that accounts for the competitive, cooperative, and mixed dynamics between these two entities. This model is rooted in the theory of synergistic evolution and is supported by data simulation and analysis. By employing this model, we can identify the appropriate size for urban ride-hailing services and taxis when they reach equilibrium under different environmental conditions. The study’s findings reveal that the evolutionary outcomes of online ride-hailing services and traditional taxis are closely linked to the competitive impact coefficient and the cooperative effect coefficient. In highly competitive environments, intense rivalry can lead to the elimination of the less competitive party, while the dominant player ultimately attains a specific size threshold. As competition moderates, both entities can achieve a balanced and stable coexistence in the market. In cooperative environments, both online ride-hailing services and traditional taxis have more room for development, which facilitates the integration of existing and innovative business models. In environments marked by competition, the development trends of both entities mirror those in competitive settings, but cooperation can slow down the decline of the less competitive party. In conclusion, we propose strategies to foster fair competition between online ride-hailing services and traditional taxis, consider the coexistence of old and new business models, and promote their integrated development.