The Optimal Monthly Strategy Pricing of Free-Floating Bike Sharing Platform - Modern Economy

ME > Vol.9 No.2, February 2018

Modern Economy

Volume 9, Issue 2 (February 2018)

ISSN Print: 2152-7245 ISSN Online: 2152-7261

Google-based Impact Factor: 0.74 Citations h5-index & Ranking

The Optimal Monthly Strategy Pricing of Free-Floating Bike Sharing Platform ()

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Download as PDF (Size: 1965KB) PP. 318-338

DOI: 10.4236/me.2018.92021 1,172 Downloads 3,207 Views Citations

Author(s)

Xi Cheng^*, Yang Gao

Affiliation(s)

School of Business Administration, South China University of Technology, Guangzhou, China.

ABSTRACT

This paper studies the revenue changes of the platform after the free-floating bike sharing platform adopts the monthly strategy, and obtains the best monthly subscription pricing to maximize the platform revenue. Through the comparison of user utility, we divide different types of users, depict the platform requirements, and thus find the platform revenue. We found that when the platform adopts the monthly strategy, if the monthly subscription price is too low, platform’s revenue will be reduced. If the price is too high, the revenue will not change. Only in the case of a suitable monthly subscription price, platform revenue will increase. In addition, we find that the growth rate of platform revenue with the optimal pricing of monthly strategy is related to the purchase cost of bike. The lower the purchase cost, the higher the platform revenue growth rate.

KEYWORDS

Sharing Economy, Free-Floating, Bike Sharing Platform, Pricing

Share and Cite:

Cheng, X. and Gao, Y. (2018) The Optimal Monthly Strategy Pricing of Free-Floating Bike Sharing Platform. Modern Economy, 9, 318-338. doi: 10.4236/me.2018.92021.

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[2]	External Environmental Analysis for Sustainable Bike-Sharing System Development. Energies 2022, 15, 791
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[3]	Understanding Optimal Business Model of Free-Floating Bike-Sharing Platform in the Context of Low-Carbon City.
	Polish Journal of Environmental Studies, 2022

[4]	基于 Bertrand 博弈的共享单车定价与投放联合策略研究
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[5]	A comparison in travel patterns and determinants of user demand between docked and dockless bike-sharing systems using multi-sourced data
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[6]	Dynamic Incentive Schemes for Managing Dockless Bike-Sharing Systems
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[7]	Innovative bike-sharing in China: Solving faulty bike-sharing recycling problem
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[8]	Sustaining dockless bike-sharing based on business principles
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