Incentive-driven transition to high ride-sharing adoption

TL;DR

This paper models individual incentives for ride-sharing, revealing two regimes of adoption and showing that small financial incentives can significantly boost ride-sharing in high-demand urban areas.

Contribution

It introduces a novel model of ride-sharing adoption regimes and validates it with large-scale real-world data from major cities.

Findings

Two distinct ride-sharing adoption regimes identified

Discontinuous transition from low to high adoption at high demand

Moderate incentives can greatly increase ride-sharing adoption

Abstract

Ride-sharing - the combination of multiple trips into one - may substantially contribute towards sustainable urban mobility. It is most efficient at high demand locations with many similar trip requests. However, here we reveal that people's willingness to share rides does not follow this trend. Modeling the fundamental incentives underlying individual ride-sharing decisions, we find two opposing adoption regimes, one with constant and another one with decreasing adoption as demand increases. In the high demand limit, the transition between these regimes becomes discontinuous, switching abruptly from low to high ride-sharing adoption. Analyzing over 360 million ride requests in New York City and Chicago illustrates that both regimes coexist across the cities, consistent with our model predictions. These results suggest that even a moderate increase in the financial incentives may have a disproportionately large effect on the ride-sharing adoption of individual user groups.