A General Matching Function for Ride-Sourcing Services

33 Pages Posted: 3 Sep 2021

See all articles by Xinwei Li

Xinwei Li

School of Economics and Management, Beihang University

Jintao Ke

The University of Hong Kong

Hai Yang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering

Hai Wang

Carnegie Mellon University - Heinz College of Information Systems and Public Policy; Singapore Management University - School of Information Systems

Yaqian Zhou

affiliation not provided to SSRN

Date Written: September 1, 2021

Abstract

This paper presents a general matching function to delineate the on-demand matching process in ride-sourcing markets under different matching mechanisms with different matching time intervals and matching radius. The matching function characterizes a stationary matching equilibrium for the ride-sourcing market in which passengers can be matched in consecutive batches, and drivers are in either an idle, pick-up, or delivery state. The function well approximates the expected driver idle time and the expected passenger matching time and pick-up time under different supply-demand conditions and platform matching strategies. The general function also unifies several prevailing inductive and deductive matching functions developed in the literature and demonstrates their specific application scope. In particular, when the matching radius is sufficiently small, the function reduces to the Cobb-Douglas-type matching function proposed by Yang and Yang (2011) for street-hailing taxi markets, in which the matching rate depends on the pool size of waiting passengers and idle drivers. Under an instant matching mechanism with a large matching radius, the function reduces to the model of Castillo et al. (Castillo et al. 2017) or a variant of the Cobb-Douglas-type
matching function, in which the matching rate depends on the pool size of waiting passengers and drivers in the pick-up phase. In addition, when both the matching time interval and matching radius are relatively large, the function reduces to a variant of the Cobb-Douglas-type matching function.

Keywords: ride-sourcing; matching function; matching time interval; matching radius

JEL Classification: R41

Suggested Citation

Li, Xinwei and Ke, Jintao and Yang, Hai and Wang, Hai and Zhou, Yaqian, A General Matching Function for Ride-Sourcing Services (September 1, 2021). Available at SSRN: https://ssrn.com/abstract=3915450 or http://dx.doi.org/10.2139/ssrn.3915450

Xinwei Li

School of Economics and Management, Beihang University ( email )

Xueyuan Road, Haidian District
Beijing, 100191
China

Jintao Ke (Contact Author)

The University of Hong Kong ( email )

Hong Kong
China

Hai Yang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering ( email )

Hong Kong

Hai Wang

Carnegie Mellon University - Heinz College of Information Systems and Public Policy ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

Singapore Management University - School of Information Systems ( email )

School of Information Systems
80 Stamford Road
Singapore 178902, 178899
Singapore

Yaqian Zhou

affiliation not provided to SSRN

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