Research On Dynamic Pricing Strategy Of Taxi In China

Taxi pricing is a system influenced by many factors,variables and stakeholders,such as social economy,market supply and demand,urban passenger transport system development and government policies.With the development of "Internet +" technology,especially under the impact of online car hailing,some key issues become increasingly prominent,which are rationality of tradition taxi’s freight rate structure,formation mechanism and adjustment mechanism of freight rate.In order to adapt to the new situation,it is urgent to study a dynamic traditional taxi pricing strategy.Researches on taxi pricing problem both at home and abroad are analyzed.It is put out that the problem of traditional taxi price mechanism adjustment needed to be solved urgently with the participation of online car hailing.Taking 36 central cities in China as object,the current situation and industry system of taxi pricing are analyzed.Four major stakeholders are passengers,taxi drivers,taxi companies and relevant government departments,their main functions in taxi operation and pricing system and their interest relationship are analyzed.The taxi pricing influences of market supply and demand,operating costs,residents’ payout ability,the development of online car hailing and other passenger transportationare analyzed in detail.Then,the system boundary is determined according to the system modeling target.The system dynamics method is applied to analyze inter-correlation among influence factors,to study the structure of taxi pricing system,and to draw the causal loop diagram and flow diagram of taxi pricing system.The dynamics model of taxi pricing system is built and its effectiveness is tested.Taking Xi’an as an example,the built model is solved by Vensim software.It is shown that the risk of fuel price change in taxi companies could be shared by fuel price linkage mechanism,the market supply and demand during the peak period could be holden by an appropriate increasing price,taxi price would be increased reasonably and developed by the network under the new situation of online car hailing coexist,thus the taxi empty driving rate could be reduced and attraction coefficient could be improved,and a “small and multi-frequency” pay raises to drivers could make them work with more enthusiasm.So,the built model is reasonable,and the dynamic pricing strategy of taxi and relevant policy suggestions for the development of taxi industry could be obtained by simulation.