An empirical investigation of taxi driver response behavior to ride-hailing requests: A spatio-temporal perspective.

Abstract

Using data provided by a ride-hailing platform, this paper examines the factors that affect taxi driver response behavior to ride-hailing requests. The empirical investigation from a driver's perspective is of great importance for ride-hailing service providers, given that approximately 40% of the hailing requests receive no response from any driver. To comprehensively understand taxi driver response behavior, we use a rich dataset to generate variables related to the spatio-temporal supply-demand intensities, the economic incentives, the requests' and the drivers' characteristics. The results show that drivers are more likely to respond to requests with economic incentives (especially a firm subsidy), and those with a lower spatio-temporal demand intensity or a higher spatio-temporal supply intensity. In addition, drivers are more likely to respond to requests involving rides covering a greater geographical distance and to those with a smaller number of repeated submissions. The drivers' characteristics, namely, the number of requests received and the number of requests responded, however, have relatively little impacts on their response probability to the current request. Our findings contribute to the related literature and provide managerial implications for ride-hailing service providers.