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Chinese Journal of Management Science ›› 2022, Vol. 30 ›› Issue (7): 210-220.doi: 10.16381/j.cnki.issn1003-207x.2019.2050

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Research on Surge Subsidy Strategy of Ride-hailing Platform

LIU Yang1, DENG Qian-qian2, FAN Zhi-ping2, ZHANG Qi2   

  1. 1. School of Economics and Management, Dalian University of Technology, Dalian 116024, China;2. School of Business Administration, Northeastern University, Shenyang 110169, China
  • Received:2019-12-10 Revised:2020-04-16 Online:2022-08-05 Published:2022-08-05
  • Contact: 樊治平 E-mail:zpfan@mail.neu.edu.cn

Abstract: Surge subsidy strategies are frequently adopted by the ride-hailing platform when the supplement of drivers is not sufficient during the surge demand period. According to the different sources of subsidy cost, surge subsidy strategies can be classified into three categories, i.e., platform subsidizing drivers strategy, passengers subsidizing drivers strategy, platform and passengers simultaneously subsidizing drivers strategy. Which surge subsidy strategy should be adopted under a given market scenario? It is worth to conduct the research on surge subsidy strategy of ride-hailing platform.

Key words: ride-hailing platform; surge subsidy; optimal strategy; market size

CLC Number: