Economics of the international ridesharing services - a trap for amateurs

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04130081%3A_____%2F19%3AN0000065" target="_blank" >RIV/04130081:_____/19:N0000065 - isvavai.cz</a>

Alternative codes found

RIV/70883521:28120/19:63523463

Result on the web

<a href="https://jssidoi.org/jesi/article/277" target="_blank" >https://jssidoi.org/jesi/article/277</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.9770/jesi.2019.6.3(8)" target="_blank" >10.9770/jesi.2019.6.3(8)</a>

Result language

angličtina

Original language name

Economics of the international ridesharing services - a trap for amateurs

Original language description

An explosively growing international business model of peer-to-peer ridesharing brings benefits to the customers and provides part-time and full-time jobs for the drivers. While the services are provided mostly by the drivers with low knowledge of economics and finance, provision of the services might be a trap for them in case that they do not take into consideration all costs related to the service provision. The aim of the study was to investigate the economics of the ridesharing providers in case of UBER in Prague, and to create a simulation model estimating the annual performance of the ridesharing transport service operators and classic taxi service from the point of view of individual drivers, considering certain deviations and random effects defined by the stochastic methods using Monte Carlo approach. The results of the modelling show that the net income of Uber drivers is compatible with the taxi drivers only in case of the most expensive Uber Black category, but the net income of ridesharing providers in the category of Uber Pop and Uber Select hardly covers the costs of service provision. The alarming fact is that most of the drivers, who took part in our research, were not capable to acknowledge the hidden costs of ridesharing and were blinded by the vision of a short-term cash incomes without any awareness of the existence of the postponed or implicit costs. While our results confirm that Uber drivers in general are significantly underpaid, Uber Pop and Uber Select services generate a loss for the driver when we take into account the implicit costs of the driver's salary at the level of an average salary in the Czech Republic.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Entrepreneurship and Sustainability Issues

ISSN

2345-0282

e-ISSN

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Volume of the periodical

6

Issue of the periodical within the volume

3

Country of publishing house

LT - LITHUANIA

Number of pages

10

Pages from-to

1172-1181

UT code for WoS article

000460934100008

EID of the result in the Scopus database

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