Business

Market share

Revealed preference

Pooling

Advertising

Marketing

Econometrics

Artificial intelligence

Economics

Microeconomics

Discrete choice

Willingness to pay

Computer science

Preference

Transportation

Simulation studies suggest that pooled on-demand services (also referred to as Demand Responsive Transport, ridesharing, shared ride-hailing or shared ridesourcing services) have the potential to bring large benefits to urban areas while inducing limited time losses for their users. However, in reality, the large majority of users request individual rides (and not pooled rides) in existing on-demand services, leading to increases in motorised vehicle miles travelled. In this study, we investigate to what extent fare discounts, additional travel time, and the (un)willingness to share the ride with (different numbers of) other passengers play a role in the decision of individuals to share rides. To this end, we design a stated preference study targeting Dutch urban individuals. In our research, we (1) disentangle the sharing aspect from related time-cost trade-offs (e.g. detours), (2) investigate preference heterogeneity regarding the studied attributes and identify distinct market segments, and (3) simulate scenarios to understand the impact of the obtained parameters in the breakdown between individual and pooled services. We find that less than one third of respondents have strong preferences against sharing their rides. Also, we find that different market segments vary not only in their values of the willingness to share, but also in how they perceive this willingness to share (per-ride or proportional to the in-vehicle time). Further, the scenario analysis demonstrates that the share of individuals who are willing to share rides depends primarily on the time-cost trade-offs, rather than on the disutility stemming from pooling rides per se.

What are the determinants of the willingness to share rides in pooled on-demand services?