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VGU RESEARCH REPOSITORY


Please use this identifier to cite or link to this item: https://epub.vgu.edu.vn/handle/dlibvgu/1059
Title: Dynamics of ride hailing services a comparison between surge pricing and fixed pricing model in Ho Chi Minh city
Authors: Nguyen Pham My Duyen 
Keywords: Ride hailing services;Surge pricing;Fixed pricing
Issue Date: 2019
Abstract: 
Since the appearance of Grab and Uber in Vietnam in 2014, there have been significant changes in the transportation culture in the country. People now refer to ride hailing as the act of ordering a pickup from the mobile platform instead of waving for a taxi on the street or calling an operator. Also thanks to Uber and Grab, a new concept has been introduced: surge pricing, which is related to amethod that calculates the trip fare based on supply and demand at each location. Different passengers are now presented with different prices for the same trip distance at different time of the day. This has brought up various questions regarding how dynamic pricing algorithm affects the competition between platfoms and traditional taxi services. In particular, this paper focuses on Ho Chi Minh City, a dynamic market with various types of vehicles where Grab currently accounts for a very large share that almost counts as monopoly power. Will relevant effects take place in this situation? Can other ride hailing platforms compete with Grab? This paper aims to answer these questions by formulating a model that examines the pricing dynamics via a random distribution of passengers and drivers in different simulations that imitate the real market conditions in Ho Chi Minh City
URI(1): http://epub.vgu.edu.vn/handle/dlibvgu/1059
Rights: Attribution-NonCommercial 4.0 International
Appears in Collections:Finance & Accounting (FA)

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