Title
Dynamic Pricing for User-Based Rebalancing in Free-Floating Vehicle Sharing: A Real-World Case
Author
Neijmeijer, Nout (Student TU Delft)
Schulte, F. (TU Delft Transport Engineering and Logistics) 
Tierney, Kevin (Bielefeld University)
Polinder, H. (TU Delft Transport Engineering and Logistics)
Negenborn, R.R. (TU Delft Transport Engineering and Logistics)
Contributor
Lalla-Ruiz, Eduardo (editor)
Mes, Martijn (editor)
Voß, Stefan (editor)
Date
2020
Abstract
Dynamic pricing can be used for better fleet distribution in free-floating vehicle sharing (FFVS), and thus increase utilization and revenue for the provider by reducing supply-demand asymmetry. Supply-demand asymmetry refers to the existence of an undersupply of vehicles at some locations at the same time as underutilization of vehicles at other locations. We propose to use dynamic pricing as an instrument to incentivize users to rebalance these vehicles from low demand locations to high demand locations. Despite significant research in rebalancing vehicle sharing, the literature so far lacks experimental results on dynamic pricing in free-floating vehicle sharing. We propose to use an algorithm that minimizes the differences in the idle time of vehicles. The algorithm is tested in a real-life experiment that was conducted in cooperation with an FFVS provider. The results of the experiment are not statistically significant, but they clearly indicate that even slight differences in pricing and a simple algorithm can already influence user-behavior to counter supply-demand asymmetry. Improving the existing algorithm with more experimental research is advised to further uncover the potential of this strategy.
Subject
Dynamic pricing
Free-floating vehicle sharing
Living lab
Price sensitivity
User-based operations
User-based rebalancing
To reference this document use:
http://resolver.tudelft.nl/uuid:69e82aaf-aae8-414d-917b-0ba08c307323
DOI
https://doi.org/10.1007/978-3-030-59747-4_29
Publisher
Springer, Cham, Switzerland
Embargo date
2021-03-22
ISBN
978-3-030-59746-7
Source
Computational Logistics: Proceedings of the 11th International Conference, ICCL 2020
Event
11th International Conference on Computational Logistics, ICCL 2020, 2020-09-28 → 2020-09-30, Enschede, Netherlands
Series
Lecture Notes in Computer Science, 0302-9743, 12433
Bibliographical note
Green Open Access added to TU Delft Institutional Repository 'You share, we take care!' - Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
Part of collection
Institutional Repository
Document type
conference paper
Rights
© 2020 Nout Neijmeijer, F. Schulte, Kevin Tierney, H. Polinder, R.R. Negenborn