Abstract
This paper studies the revenue changes of the platform after the free-floating bike sharing platform adopts the monthly strategy, and obtains the best monthly subscription pricing to maximize the platform revenue. Through the comparison of user utility, we divide different types of users, depict the platform requirements, and thus find the platform revenue. We found that when the platform adopts the monthly strategy, if the monthly subscription price is too low, platform’s revenue will be reduced. If the price is too high, the revenue will not change. Only in the case of a suitable monthly subscription price, platform revenue will increase. In addition, we find that the growth rate of platform revenue with the optimal pricing of monthly strategy is related to the purchase cost of bike. The lower the purchase cost, the higher the platform revenue growth rate.
Highlights
Business models that focus on providing access to assets rather than on transferring ownership of goods have become one of the most fundamental recent industry trends [1]
This paper studies the revenue changes of the platform after the free-floating bike sharing platform adopts the monthly strategy, and obtains the best monthly subscription pricing to maximize the platform revenue
We found that when the platform adopts the monthly strategy, if the monthly subscription price is too low, platform’s revenue will be reduced
Summary
Business models that focus on providing access to assets rather than on transferring ownership of goods have become one of the most fundamental recent industry trends [1]. The focus on enabling access rather than ownership is one of the drivers of what has been called the sharing economy [3] Latest reports show that Mobike’s daily orders are more than 30 million, while Ofo’s daily orders exceeded 20 million; in terms of daily active users, the number of Mobike was 8.18 million, surpassing Ofo of 7.23 million [6] With such a large user base and average daily orders, pricing strategies for sharing bicycles are even more important. Free-floating vehicle sharing platform pricing strategy research [7], we mentioned that shared bicycles are priced according to the number of use, that is, 0.5 yuan or 1 yuan a time. What is the purpose of bike sharing platform to launch the monthly card? Just for profit to consumers? Can adopting the monthly strategy increase the platform revenue? This article will answer these questions by building mathematical models
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