Pricing and matching for online car hailing platforms
In the past decade, numerous sharing platforms gained popularity around the world with the rapid development of internet technology, which has deeply transformed individuals’ lifestyles in various ways, e.g., travel, accommodation, work, etc. Such a platform has a pivotal role as an intermediary that may use direct or indirect means to regulate users’ behaviours and promote the matching efficiency. The decision making of such a platform is more complex than for most other two-sided markets, since all the members involved in the community have the flexibility to choose whether to act as a supplier or user of services. This thesis aims to answer the following research question: “How can a sharing platform enhance its system efficiency and performance from an operational perspective?” Specifically, this thesis focuses on direct and indirect means of intermediation, i.e., matching and pricing, in the context of the online car hailing market. Practical and actional guidelines are provided to improve the performance of a sharing system. We pay particular attention to the issue of abuse of platform power, especially through high commission fees, which has received considerable critical attention in the literature as well as in the media. Considering the transformation of many traditional centralized intermediaries inspired by the rapid development of blockchain technology, this thesis clarifies how the role of intermediaries will change as new business models emerge. In particular, it is found that the combination of blockchain and the sharing economy performs well, offering great potential for future blockchain development and research.