Cost structures of ride-hailing providers in the context of vehicle electrification and automation

Pia Negro, Dorian Ridderskamp, Moritz Paul, Heidrun Belzner, Fabian Fehn, Klaus Bogenberger

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

On-Demand Mobility (ODM) has appeared in recent years in almost all places on earth. Notably, in large cities, it is no longer possible to imagine passenger transport without it. In the course of this development, the costs for this form of mobility have been anything but constant and transparent. However, in recent years, prices stabilized and now permit a detailed cost analysis. This paper analyzes the topic of ride-hailing cost composition and develops and quantifies cost components for the case of a premium ride-hailing provider in Munich. For a complete analysis, costs are investigated for Fleet Managers and ODM Providers separately, taking into account vehicle, overhead, and platform costs. In addition, different scenarios quantifying the influence of fleet sizes, total mileage, and trips, as well as the emerging trends of fleet electrification and automation, are investigated. The results show the high fixed costs of Fleet Managers, who should aim for high utilization to achieve positive economies of scale. Electric and autonomous fleets indicate cost-saving potential for Fleet Managers, respectively, due to favorable regulation or eliminated driver costs. The results also show the low fixed asset share of ODM Providers, making it easy for them to scale up.

Original languageEnglish
Title of host publication2021 7th International Conference on Models and Technologies for Intelligent Transportation Systems, MT-ITS 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728189956
DOIs
StatePublished - 16 Jun 2021
Externally publishedYes
Event7th International Conference on Models and Technologies for Intelligent Transportation Systems, MT-ITS 2021 - Heraklion, Greece
Duration: 16 Jun 202117 Jun 2021

Publication series

Name2021 7th International Conference on Models and Technologies for Intelligent Transportation Systems, MT-ITS 2021

Conference

Conference7th International Conference on Models and Technologies for Intelligent Transportation Systems, MT-ITS 2021
Country/TerritoryGreece
CityHeraklion
Period16/06/2117/06/21

Keywords

  • Autonomous driving
  • Cost analysis
  • Cost function
  • Electric vehicles
  • Multi-sided platform
  • Ride-hailing

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