Beyond solving the last mile problem: the substitution effects of bike-sharing on a ride-sharing platform. (2nd January 2018)

• Record Type: Journal Article
• Authors: Qin, Juan; Lee, Stephanie; Yan, Xiangbin; Tan, Yong
• Is Part Of: Journal of Business Analytics. Volume 1:Number 1(2018)
• Page Start: 13
• Page End: 28
• Publication Date: 2018-01-02
• Subjects: Bike-sharing -- ride-sharing -- substitution effect -- natural experiment -- geographic heterogeneity -- last mile problem; Business intelligence -- Periodicals; Management -- Statistical methods -- Periodicals; Decision making -- Statistical methods -- Periodicals; 658.403
• DOI: 10.1080/2573234X.2018.1506686
• Languages: English
• ISSNs: 2573-234X

Abstract

ABSTRACT: Ride-sharing services have been popularly used for both short-distance and long-distance trips. The recent introduction and growth of bike-sharing services can help solve the last mile problem and provide a good mobility option, especially for short-distance travellers. We examine the extent to which bike-sharing platforms solve the last mile problem and affect short-distance travels by studying their impacts on ride-sharing orders. To do so, we exploit a natural experiment setting in which bike-sharing platforms were newly launched in Chengdu, China. We combine detailed granular one-month order data collected from DiDi with Chengdu's geographic information data from Gaode Map, a Chinese leading map provider. We find that the introduction of bike-sharing platforms significantly reduces short-distance ride-sharing orders. We additionally examine the heterogeneity in substitution effects across different pickup and drop-off locations and find that location attributes significantly affect bike-sharing's substitution effects on ride-sharing platforms.