Taxi-hailing Apps: A New Method for Travel Through Information Exchange

Abstract

In this paper, we considered three major strategies in the China’s cab service market, and made comparisons pair by pair to examined under which conditions existed, one of the strategies dominated the others. We emphasized the impact of two crucial factors, information heterogeneity between informed and less-informed passengers as well as information exchange insufficiency, on the cabdriver’s earning. We also made a suggestion from the aspect of apps’ designers and government on the online cab service.