Impacts On Profits Of Taxi Company Of Platform Cooperation Mode

With the rapid development of ride-sourcing services,the taxi industry gradually entered the period of oligopoly.The traditional services provided by taxi company are constantly losing market and making its profits seriously damaged under the pressure of convenient ride-sourcing services platform and high-quality service.Meanwhile,the problems caused by search friction add to the burden.Considering the duopoly,considering search friction,oligopoly three situation,this paper puts forward two platform cooperation mode for taxi company,respectively Information Sharing mode based on the paid demand information and Joint Action mode based on probabilistic service.Then analyze the impact of platform cooperation mode on profit from relative operation effectiveness(ROE)and price decision.Under the situation of duopoly,this paper analyzes the profit of taxi company using ROE.By applying ROE to the Hotelling model,the influence of different operation modes on the profit of the taxi company was analyzed.Although both modes can improve the profit of taxi company,this paper finds that the two modes have slightly different impact on their profit.When ROE is low,taxi company faces a large profit pressure,needs Information Sharing mode brings profits that does not need to share with ride-sourcing services company.So at this moment,Information Sharing mode relatively can improve more profit.On the contrary,the Joint Action mode is better.Considering the taxi company's business is greatly influenced by search friction,this paper adds search friction situation into taxi company operation mode,helps them get the loss of market share caused by search friction,and achieve sustainable development.This paper studies operation modes of price decision level using the Hotelling model.The analysis shows that both modes can increase the profit of the taxi company while increasing the profit of the ride-sourcing services company and the utility of passengers.And when the taxi price is higher,Information Sharing mode is the optimal mode to meet the profit maximization of the three parties.This article cites real data of the city of San Francisco and Shenzhen,verifies the relevant conclusions.At the same time,this work analyzes the effects of passengers' not serviced rate and taxi's empty loading rate on the taxi company's profit,and further verifies the effectiveness of the two kinds of operation modes.Finally,based on the improved Salop circle city model,this paper studies the two operation modes that taxi companies can adopt to improve the profit level in the oligopoly taxi industry.Considering the difference of service value and cost difference between taxi company and ride-sourcing services company,the operation modes of taxi company are compared and analyzed in terms of ROE.The analysis results show that compared with the Complete Competition mode,the two platform cooperation modes can increase the profit of the taxi company and increase the total profit of the industry.But in the face of the taxi company's proposal of information sharing,the ride-sourcing services company needs to collect enough platform usage fee to make up for the loss of lost market share.Comparing the two modes,it is found that when the taxi company has higher ROE,Joint Action mode,the mode of deeper degree of cooperation,can bring more revenue.This work proposes two platform cooperation modes and analyzes their impacts on the profit of taxi company,which helps taxi company to improve the profit level to a certain extent.