The Price Strategy of Ride-Hailing Service Under Government Supervision : Coexistence Target vs Environmental Target

Ride-hailing service is becoming more plausible and poses a substantial threat to taxi service. Yet how to supervise ride-hailing service has not been adequately studied. In this paper, we adopt regulated price and entry restriction to regulate the ride-hailing service to satisfy the coexistence target. Moreover, we consider two types of ride-haling services, i.e., solo-ride service and ride-pooling service, according to the perceived service level. We examine the impact of supervisory policies on the platform’s price strategy. The result shows that the regulated price strategy is likely to increase the optimal price, depending on the service type and the taxi price. In contrast, the entry restriction reduces the platform's optimal price when it achieves the coexistence target. Additionally, from the perspective of environment issues, we set another supervisory target related to carbon emission. We find that the regulation intensity with environment target is usually looser than that with coexistence target