Development a pricing model for taxi services (Case study: Isfahan city)

Articles in Press

Document Type : Original Article

Authors

1 University of Zanjan

2 Islamic Azad University, Najaf Abad branch

3 Associate Professo, Faculty of civil and Transportation, University of Isfahan, Isfahan, Iran,

10.22034/road.2024.424705.2220

Abstract

In this study, a model for pricing taxi services is presented with the goal of making the model fair and transparent in a way that reflects the value of the services the taxi provides to the customers while also taking into account various factors that influence the cost of the services. The major pricing strategy in this model bases the taxi fee on the distance covered during the journey. Additionally, the duration of the trip is taken into account because some people may choose a longer journey others may the length of the trip can be longer than normal because of the traffic. The hourly rate of time is taken into account to account for this anomaly. By dividing the hourly rate of travel time by the additional cost, the duration of the journey is determined based on the conditions anticipated by the model. Different pricing strategies are utilized for various hours and designated time periods to control the demand. Price discrimination is the foundation of this tactic. By managing demand, it makes cabs available even during rush hour. In order to accurately and fairly compute the cost based on the real time and distance traveled, the pricing model developed in this research takes into account all the aspects impacting the service for four different modes of operation. Comparing the predicted costs using the research's methodology reveals that practically current fares are unprofitable.

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