Differential Pricing Strategy for Ride-sharing Platform Based on Service Quality of Drivers
Ride-sharing platforms such as DiDi widely use differential pricing based on service quality of drivers besides uniform pricing.The platform provides passengers with services at different prices based on the basic and add-on service quality of drivers and pays the drivers different wages when adopts the above differential pricing strategy.Considering the two scenarios where the platform adopted uniform pricing and differential pricing based on service quality of drivers,the profit models for ride-sharing platforms were constructed respectively by using operational optimization methods.The optimal decisions for both scenarios were obtained by maximizing platform profits.The results show that when the total number of potential drivers exceeds a specific threshold,differential pricing based on driver service quality brings more profits to the platform,while on the contrary,uniform pricing is more optimal.In addition,both pricing strategies have different multi-win optimal available regions by comprehensive comparison of platform profits,total transaction volume,average service quality,social welfare,etc.according to the different main objectives of the platform,which provides references and suggestions for the different pricing of the real ride-sharing platforms.
ride-sharing platformdifferential pricingservice qualityadd-on service