Institute of Transportation, MOTC-Digital Archive-Transportation Dissertation-A Study on the Implementing Differential Pricing of Taxicab

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Transportation Dissertation

Title	A Study on the Implementing Differential Pricing of Taxicab
Year	2001
Summary	Yu-Fu Hung, 2001.06 Institute of Traffic and Transportation, National Chiao Tung University 　　Current taxi fare is basically a uniform pricing system, which cannot reflect the difference in operating costs of different service quality provided. In order to enhance service quality and competing capability of the taxi industry, the government has taken several actions, and differential pricing is being discussed. Although earlier studies indicated that differential pricing system is acceptable by many taxi riders and drivers, there is lack of detailed study regarding the possible effects that may occur on riders and the industry, once it is implemented. This study intends to explore the choice behavior of taxi riders, and to develop appropriate models to describe their characteristics. The models will then used to predict the effects of different differential pricing schemes on riders and on the industry. Based on the results of analysis, the feasibility of all alternatives are evaluated and compared. 　　The study begins with literature review, and analysis of operational conditions and cost structure of taxi industry. A two-stage survey are then conducted to analyze the behavior and to develop the choice models of the taxi riders, using the stated preference method. Different alternatives of differential pricing scheme proposed in the study are evaluated using the models as prediction tool. 　　The choice behavior of taxi riders is the object of this study, and the alternatives available are normal taxi, larger taxi, newer taxi, taxi with excellent drivers, and taxi with excellent brands etc. The study indicates that fare, fare/income, principal mode, and trip purpose are important factors affecting choice behavior. When the government implements differential pricing, various alternatives of excellent-taxi can increase their profit under the condition that the price difference does not exceed certain threshold value. It can also increase profit of taxi operator by regulating taxi quantity.

Title

A Study on the Implementing Differential Pricing of Taxicab

Year

2001

Summary

Yu-Fu Hung, 2001.06
Institute of Traffic and Transportation, National Chiao Tung University

　　Current taxi fare is basically a uniform pricing system, which cannot reflect the difference in operating costs of different service quality provided. In order to enhance service quality and competing capability of the taxi industry, the government has taken several actions, and differential pricing is being discussed. Although earlier studies indicated that differential pricing system is acceptable by many taxi riders and drivers, there is lack of detailed study regarding the possible effects that may occur on riders and the industry, once it is implemented. This study intends to explore the choice behavior of taxi riders, and to develop appropriate models to describe their characteristics. The models will then used to predict the effects of different differential pricing schemes on riders and on the industry. Based on the results of analysis, the feasibility of all alternatives are evaluated and compared.

　　The study begins with literature review, and analysis of operational conditions and cost structure of taxi industry. A two-stage survey are then conducted to analyze the behavior and to develop the choice models of the taxi riders, using the stated preference method. Different alternatives of differential pricing scheme proposed in the study are evaluated using the models as prediction tool.

　　The choice behavior of taxi riders is the object of this study, and the alternatives available are normal taxi, larger taxi, newer taxi, taxi with excellent drivers, and taxi with excellent brands etc. The study indicates that fare, fare/income, principal mode, and trip purpose are important factors affecting choice behavior. When the government implements differential pricing, various alternatives of excellent-taxi can increase their profit under the condition that the price difference does not exceed certain threshold value. It can also increase profit of taxi operator by regulating taxi quantity.

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