Evolution of labour supply in ridesourcing. Issue 1 (31st December 2022)

• Record Type: Journal Article
• Authors: de Ruijter, Arjan; Cats, Oded; Kucharski, Rafal; van Lint, Hans
• Is Part Of: Transportmetrica. Volume 10:Issue 1(2022)
• Page Start: 599
• Page End: 626
• Publication Date: 2022-12-31
• Subjects: Ridesourcing -- labour supply -- registration -- participation -- pricing; Transportation -- Mathematical models -- Periodicals; 388.015118
• DOI: 10.1080/21680566.2021.2024917
• Languages: English
• ISSNs: 2168-0566

Abstract

Abstract : Contrary to traditional transit services, supply in ridesourcing systems emerges from individual labour decisions of gig workers. The effect of decentralisation in supply on the evolution of on-demand transit services is largely unknown. To this end, we propose a dynamic model comprising of the subsequent supply-side processes: (i) initial exposure to information about the platform, (ii) a long-term registration decision, and (iii) daily participation decisions, subject to day-to-day learning based on within-day matching outcomes. We construct a series of experiments to study the effect of supply market properties and pricing strategies. We find that labour supply in ridesourcing may be non-linear and undergo several transitions, inducing significant variations in income levels and level of service over time. Our results provide indications that the ridesourcing market may benefit from a cap in supply and regulation of the commission fee.