Business & Information Systems Engineering

, Volume 57, Issue 5, pp 311–324

The Economics of Multi-Hop Ride Sharing

Creating New Mobility Networks Through IS
Research Paper

Abstract

Ride sharing allows to share costs of traveling by car, e.g., for fuel or highway tolls. Furthermore, it reduces congestion and emissions by making better use of vehicle capacities. Ride sharing is hence beneficial for drivers, riders, as well as society. While the concept has existed for decades, ubiquity of digital and mobile technology and user habituation to peer-to-peer services and electronic markets have resulted in particular growth in recent years. This paper explores the novel idea of multi-hop ride sharing and illustrates how information systems can leverage its potential. Based on empirical ride sharing data, we provide a quantitative analysis of the structure and the economics of electronic ride sharing markets. We explore the potential and competitiveness of multi-hop ride sharing and analyze its implications for platform operators. We find that multi-hop ride sharing proves competitive against other modes of transportation and has the potential to greatly increase ride availability and city connectedness, especially under high reliability requirements. To fully realize this potential, platform operators should implement multi-hop search, assume active control of pricing and booking processes, improve coordination of transfers, enhance data services, and try to expand their market share.

Keywords

Multi-hop ride sharing Sharing economy Mobility networks Platform economics 

References

  1. Amey A, Attanucci J, Mishalani R (2011) Real-time ridesharing. Transp Res Rec: J Transp Res Board 2217(1):103–110CrossRefGoogle Scholar
  2. Bardhi F, Eckhardt GM (2012) Access-based consumption: the case of car sharing. J Consum Res 39(4):881–898CrossRefGoogle Scholar
  3. Basole RC, Rouse WB (2008) Complexity of service value networks: conceptualization and empirical investigation. IBM Syst J 47(1):53–70Google Scholar
  4. Beul-Leusmann S, Samsel C, Wiederhold M, Krempels K-H, Jakobs E-M, Ziefle M (2014) Usability evaluation of mobile passenger information systems. In: Design, user experience, and usability. Theories, methods, and tools for designing the user experience. Springer, pp 217–228Google Scholar
  5. Bicocchi N, Mamei M (2014) Investigating ride sharing opportunities through mobility data analysis. Pervasive Mob Comput 14(2014):83–94CrossRefGoogle Scholar
  6. Blau B, Conte T, van Dinther C (2010) A multidimensional procurement auction for trading composite services. Electron Commer Res Appl 9(5):460–472CrossRefGoogle Scholar
  7. Blau B, van Dinther C, Conte T, Xu Y, Weinhardt C (2009) How to coordinate value generation in service networks. Bus Inf Syst Eng 1(5):343–356CrossRefGoogle Scholar
  8. Bohmann T, Leimeister JM, Möslein K (2014) Service systems engineering – a field for future information systems research. Bus Inf Syst Eng 6(2):73–79CrossRefGoogle Scholar
  9. Botsman R, Rogers R (2010) What’s mine is yours. HarperBusiness, New YorkGoogle Scholar
  10. Brereton M, Roe P, Foth M, Bunker JM, Buys L (2009) Designing participation in agile ridesharing with mobile social software. In: Proc 21st Annu Conf Australian Comput-Human Interact Special Interest Group. ACM, New York, pp 257–260Google Scholar
  11. Chan ND, Shaheen SA (2012) Ridesharing in North America: past, present, and future. Transp Rev 32(1):93–112CrossRefGoogle Scholar
  12. Cohen B, Kietzmann J (2014) Ride On! Mobility business models for the sharing economy. Org Environ 27(3):279–296CrossRefGoogle Scholar
  13. Coltin BJ, Veloso M (2013) Towards ridesharing with passenger transfers. In: Proceedings of the 2013 international conference on Autonomous agents and multi-agent systems, pp 1299–1300Google Scholar
  14. Cordeau J-F, Toth P, Vigo D (1998) A survey of optimization models for train routing and scheduling. Transp Sci 32(4):380–404CrossRefGoogle Scholar
  15. Cusumano MA (2014) How traditional firms must compete in the sharing economy. Commun ACM 58(1):32–34CrossRefGoogle Scholar
  16. Deakin E, Frick KT, Shively KM (2010) Markets for dynamic ridesharing? Transp Res Rec: J Transp Res Board 2187(1):131–137CrossRefGoogle Scholar
  17. Dedrick J (2010) Green IS: concepts and issues for information systems research. Commun Assoc Inf Syst 27(1):173–184Google Scholar
  18. Drews F, Luxen D (2013) Multi-hop ride sharing. In: Proceedings of the Sixth International Symposium on Combinatorial Search, pp 71–79Google Scholar
  19. Eisenmann T, Parker G, Van Alstyne M (2011a) Platform envelopment. Strat Manag J 32(12):1270–1285CrossRefGoogle Scholar
  20. Eisenmann TR, Parker G, Van Alstyne M (2011b) Opening platforms: how, when and why? In: Gawer A (ed) Platforms, markets and innovation. Edward Elgar, pp 131–162Google Scholar
  21. Eisenmann T, Parker G, Van Alstyne MW (2006) Strategies for two-sided markets. Harv Bus Rev 84(10):92–101Google Scholar
  22. Erlander S, Stewart NF (1990) The gravity model in transportation analysis: theory and extensions, vol 3. Brill Academic, UtrechtGoogle Scholar
  23. Evans DS (2003) The antitrust economics of multi-sided platform markets. Yale J Regul 20(2):325–382Google Scholar
  24. Furuhata M, Dessouky M, Ordóñez F, Brunet M-E, Wang X, Koenig S (2013) Ridesharing: the state-of-the-art and future directions. Transp Res Part B: Methodol 57(2013):28–46CrossRefGoogle Scholar
  25. Gefen D, Detmar WS (2004) Consumer trust in B2C e-commerce and the importance of social presence: experiments in e-products and e-services. Omega 32(6):407–424Google Scholar
  26. Goebel C, Jacobsen H-A, del Razo V, Doblander C, Rivera J, Ilg J, Flath C, Schmeck H, Weinhardt C, Pathmaperuma D, Appelrath H-J, Sonnenschein M, Lehnhoff S, Kramer O, Staake T, Fleisch E, Neumann D, Strüker J, Erek K, Zarnekow R, Ziekow H, Lässig J (2014) Energy informatics. Bus Inf Syst Eng 6(1):25–31CrossRefGoogle Scholar
  27. Guihaire V, Hao J-K (2008) Transit network design and scheduling: a global review. Transp Res Part A: Policy Pract 42(10):1251–1273Google Scholar
  28. Gurvich I, Lariviere M, Moreno A (2014) Staffing service systems when capacity has a mind of its own. Working paper. Available at SSRN 2336514Google Scholar
  29. Herbawi WM, Weber M (2012) A genetic and insertion heuristic algorithm for solving the dynamic ridematching problem with time windows. In: Proceedings of the fourteenth international conference on Genetic and evolutionary computation conference. ACM, pp 385–392Google Scholar
  30. Hou Y, Li X, Qiao C (2012) TicTac: from transfer-incapable carpooling to transfer-allowed carpooling. In: Global Communications Conference (GLOBECOM). IEEE, pp 268–273Google Scholar
  31. Jones K, Leonard LNK (2008) Trust in consumer-to-consumer electronic commerce. Inf Manag 45(2):88–95CrossRefGoogle Scholar
  32. Kim C, Mirusmonov M, Lee I (2010) An empirical examination of factors influencing the intention to use mobile payment. Comput Hum Behav 26(3):310–322CrossRefGoogle Scholar
  33. Kleiner A, Nebel B, Ziparo VA (2011) A mechanism for dynamic ride sharing based on parallel auctions. IJCAI 11:266–272Google Scholar
  34. Lequerica I, Longaron MG, Ruiz PM (2010) Drive and share: efficient provisioning of social networks in vehicular scenarios. IEEE Commun Mag 48(11):90–97CrossRefGoogle Scholar
  35. Leukel J, Kirn S, Schlegel T (2011) Supply chain as a service: a cloud perspective on supply chain systems. IEEE Syst J 5(1):16–27CrossRefGoogle Scholar
  36. Malhotra A, Van Alstyne M (2014) The dark side of the sharing economy... and how to lighten it. Commun ACM 57(11):24–27CrossRefGoogle Scholar
  37. Rayle L, Shaheen S, Chan N, Dai D, Cervero R (2014) App-based, on-demand ride services: comparing taxi and ridesourcing trips and user characteristics in San Francisco. Working PaperGoogle Scholar
  38. Rochet J-C, Tirole J (2003) Platform competition in two-sided markets. J Eur Econ Assoc 1(4):990–1029CrossRefGoogle Scholar
  39. Rochet J-C, Tirole J (2006) Two-sided markets: a progress report. RAND J Econ 37(3):645–667CrossRefGoogle Scholar
  40. Shaheen S, Sperling D, Wagner C (1998) Carsharing in Europe and North American: past, present, and future. Transp Q 52(3):35–52Google Scholar
  41. Shaheen SA, Mallery MA, Kingsley KJ (2012) Personal vehicle sharing services in North America. Res Transp Bus Manag 3(2012):71–81CrossRefGoogle Scholar
  42. Slee T (2013) Some obvious things about internet reputation systems. Working PaperGoogle Scholar
  43. Sundararajan A (2013) From zipcar to the sharing economy. Harv Bus RevGoogle Scholar
  44. Teal RF (1987) Carpooling: who, how and why. Transp Res Part A: Gen 21(3):203–214CrossRefGoogle Scholar
  45. Teubner T (2014) Thoughts on the sharing economy. In: Proceedings of the International Conference on e-Commerce, pp 322–326Google Scholar
  46. Teubner T, Adam MTP, Camacho S, Hassanein K (2014) Understanding resource sharing in C2C platforms: the role of picture humanization. In: Proc 25th Australasian Conf Inf SystGoogle Scholar
  47. van Heck E, Vervest P (2007) Smart business networks: how the network wins. Commun ACM 50(6):28–37CrossRefGoogle Scholar
  48. vom Brocke J, Jan, Watson RT, Dwyer C, Elliot S, Melville N (2013) Green information systems: directives for the IS Discipline. Commun Assoc Inf Syst 33(30):509–520Google Scholar
  49. Watson RT, Boudreau M-C, Chen AJ (2010) Information systems and environmentally sustainable development: energy informatics and new directions for the IS community. Manag Inf Syst Q 34(1):23–38Google Scholar
  50. Zhao D, Zhang D, Enrico HG, Yuko S, Makoto Y (2014) Incentives in ridesharing with deficit control. In: Proceedings of the 2014 International Conference on Autonomous Agents and Multi-agent Systems (AAMAS), pp 1021–1028Google Scholar

Copyright information

© Springer Fachmedien Wiesbaden 2015

Authors and Affiliations

  1. 1.Institute of Information Systems and Marketing (IISM)Karlsruhe Institute of Technology (KIT)KarlsruheGermany
  2. 2.Department of Business ManagementUniversität WürzburgWürzburgGermany

Personalised recommendations