Abstract
• Introducing electric vehicles to ride-sharing platforms is inevitable. • A game-theoretic model is utilized to examine the pricing for green ride service. • Consumers’ environmental awareness and drivers’ opportunity cost are considered. • The pricing strategy is examined under dynamic price and dynamic wage contracts. With the growing awareness of environmental protection, it has emerged as inevitable for ride-sharing platforms to introduce electric vehicles (EVs) and incorporate into the trend of sustainable transportation. To promote the popularization of EVs in the ride-sharing economy, the platforms need to understand uncertainties faced by EV drivers and eco-friendly consumption behaviors exhibited by consumers. With an analytical model that captures the characteristics of ride-sharing participants, this paper examines the pricing mechanism of a profit-maximizing ride-sharing platform operating two ride services, a basic ride service via general vehicles powered by fossil fuel and a green ride service via EVs. We find the optimal price of green ride service under the dynamic pricing contract and the optimal wage under the dynamic wage contract. We show that if there are more consumers than drivers for the green ride service, the optimal solution is independent of the opportunity cost of EV drivers.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Transportation Research Part D: Transport and Environment
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
