TITLE:
The Optimal Monthly Strategy Pricing of Free-Floating Bike Sharing Platform
AUTHORS:
Xi Cheng, Yang Gao
KEYWORDS:
Sharing Economy, Free-Floating, Bike Sharing Platform, Pricing
JOURNAL NAME:
Modern Economy,
Vol.9 No.2,
February
27,
2018
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.