Evolution of labour supply in ridesourcing
A.J.F. de Ruijter (TU Delft - Transport and Planning)
O. Cats (TU Delft - Transport and Planning)
Rafał Kucharski (TU Delft - Transport and Planning)
J.W.C. van Lint (TU Delft - Transport and Planning)
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Abstract
Contrary to traditional transit services, supply in ridesourcing systems emerges from individual labour decisions of gig workers. The effect of decentralisation in supply on the evolution of on-demand transit services is largely unknown. To this end, we propose a dynamic model comprising of the subsequent supply-side processes: (i) initial exposure to information about the platform, (ii) a long-term registration decision, and (iii) daily participation decisions, subject to day-to-day learning based on within-day matching outcomes. We construct a series of experiments to study the effect of supply market properties and pricing strategies. We find that labour supply in ridesourcing may be non-linear and undergo several transitions, inducing significant variations in income levels and level of service over time. Our results provide indications that the ridesourcing market may benefit from a cap in supply and regulation of the commission fee.
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