OPERATIONS, TECHNOLOGY, AND INFORMATION MANAGEMENT


Private vs. Pooled Transportation: Customer Preference and Design of Green


Transport Policy Manufacturing & Service Operations Management, 26, 2, December 2023 online


KARAN GIROTRA CHARLES H. DYSON FAMILY


PROFESSOR OF MANAGEMENT


Samuel Curtis Johnson Graduate School of Management


Cornell SC Johnson College of Business Cornell University


LINK TO PAPER


Co-authors • Karan Girotra Charles H. Dyson Family Professor of Management, Samuel Curtis


Johnson Graduate School of Management, Cornell SC Johnson College of Business, Cornell University


• Kashish Arora, Indian School of Business • Fanyin Zheng, Imperial College Business School


Summary


Large cities around the globe are facing an alarming growth in traffic conges- tion and greenhouse gas emissions. In the U.S., around 20% of total green- house gas (GHG) emissions come from passenger vehicles, and 6.4% of Delhi’s 40 million tons of annual GHG emissions comes from idling cars, and on-de- mand cabs operated by ride-hailing platforms contribute significantly to this plague. Microtransit services, newly-emerging pooled transportation options like shuttles, are cheaper and greener, yet many customers remain reluctant to switch from private on-demand transportation options. With this paper, Girotra et al. aim to understand customer preferences in choosing between private and pooled transportation services and to investigate how policies can be designed to incentivize customers to use pooled transportation.


Since these alternatives are still new to many customers and policy makers, the design of promotion policies demands careful investigation. Te au- thors use detailed usage data and build a structural model to study customer preferences of price and service features when choosing between private cabs and a scheduled shuttle service. Improving use of pooled transportation can effectively reduce the number of ride-hailing vehicles and, as a result, GHG emissions and traffic congestion.


TO IMPACT CONTENTS


RESEARCH WITH IMPACT: CORNELL SC JOHNSON COLLEGE OF BUSINESS • 2023 EDITION


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