The application of the double-sided ridesourcing market simulation model to a case study resembling the city of Amsterdam, the Netherlands, provides valuable insights into the dynamics of the transportation market. In this simulation, travellers have the option to choose between ridesourcing, private cars, bikes, and public transport, all operating on a road network similar to that of Amsterdam. The model considers various factors such as travel speeds, service quality, and behavioural preferences based on real-world data and past studies.
The simulation involves a large number of traveller and job seeker agents, representing the population of Amsterdam. The model outputs include metrics such as platform profit, request satisfaction rate, average waiting time for travellers, and driver income. Additionally, welfare indicators for both travellers and drivers are formulated to assess the overall impact of the ridesourcing market on society.
One of the key findings of the simulation is the effect of socio-economic inequality on market participation. The results show that higher levels of inequality lead to increased participation on both the demand and supply sides of the ridesourcing market. As inequality rises, more travellers and job seekers are attracted to the ridesourcing platform, resulting in higher market shares and increased service levels.
The analysis also reveals the impact of extreme levels of inequality on market performance. In highly unequal societies, where only a few individuals have a high value of time, the ridesourcing market may become oversupplied, leading to lower driver earnings. Conversely, in societies with low inequality, the market may be undersupplied, with limited participation from both travellers and drivers.
Furthermore, the study explores the role of pricing strategies in maximizing platform profit in different socio-economic contexts. The results suggest that in highly unequal societies, adjusting the commission rate can have a significant impact on platform profitability, while in more equal societies, lower fares may be more beneficial for both travellers and drivers.
Overall, the simulation provides valuable insights into the complex interactions between socio-economic inequality, market dynamics, and pricing strategies in ridesourcing markets. By understanding these dynamics, policymakers and industry stakeholders can make informed decisions to optimize the efficiency and equity of transportation systems in urban areas.
