Ride Acceptance Behaviour of Ride-sourcing Drivers

TL;DR

This study investigates the factors influencing ride-sourcing drivers' acceptance of ride requests, highlighting key determinants like employment status, shift timing, and incentives, with implications for optimizing platform strategies.

Contribution

It introduces a choice modeling approach based on a unique dataset to identify drivers' acceptance determinants, including hypothetical incentives like guaranteed tips and surge pricing.

Findings

Part-time and new drivers are more likely to accept rides.

Pickup time negatively affects ride acceptance.

Guaranteed tips and surge pricing are highly valued by drivers.

Abstract

The performance of ride-sourcing services such as Uber and Lyft is determined by the collective choices of individual drivers who are not only chauffeurs but private fleet providers. In such a context, ride-sourcing drivers are free to decide whether to accept or decline ride requests assigned by the ride-hailing platform. Drivers' ride acceptance behaviour can significantly influence system performance in terms of riders' waiting time (associated with the level of service), drivers' occupation rate and idle time (related to drivers' income), and platform revenue and reputation. Hence, it is of great importance to identify the underlying determinants of the ride acceptance behaviour of drivers. To this end, we collected a unique dataset from ride-sourcing drivers working in the United States and the Netherlands through a cross-sectional stated preference experiment designed based upon disparate information conveyed to the respondents. Using a choice modelling approach, we estimated the effects of various existing and hypothetical attributes influencing the ride acceptance choice. Employment status, experience level with the platform, and working shift are found to be the key individual-specific determinants. Part-time and beginning drivers who work on midweek days (Monday-Thursday) have a higher tendency to accept ride offers. Results also reveal that pickup time, which is the travel time between the driver's location and the rider's waiting spot, has a negative impact on ride acceptance. Moreover, the findings suggest that a guaranteed tip (i.e., the minimum amount of tip that is indicated upfront by the prospective rider, a feature that is currently not available) and an additional income due to surge pricing are valued noticeably higher than trip fare. The provided insights can be used to develop customised matching and pricing strategies to improve system efficiency.