The Game of Ride Sharing
Source: https://gizmodo.com/i-tried-uber-s-new-pool-express-service-and-honestly-j-1823190462
I’m a cheap college student who is constantly on the go. When time is of the essence, I take an Uber or Lyft to my next step. I was ecstatic when the two apps launched their Pool/Pool Express and Line options, allowing me to be matched with other riders heading the same direction and share my ride with them for a cheaper price. What I discovered, however, was that while these shared rides cost me less money, they cost me more time and frustration.
A Gizmodo article describes UberPool Express as a “dynamic”, moving bus stop where multiple riders can meet their ride. The writer recounts his own experience using the service, claiming it took longer for the Uber app to determine a pickup location and match him with other riders. In addition, the ride took an undetermined amount of time longer than a normal Uber ride would. I too experienced these delays and inconveniences.
The Uber Pool/Pool Express and Lyft Line services offer riders a cheaper option of getting from point A to B. In return, the rider experiences an unpredictable ride, not knowing if or when other riders will join their ride, and not having a guaranteed estimated time of arrival upon ordering the ride. Both the driver and rider(s) experience uncertainty, making them a perfect example of a payoff matrix in game theory. The most optimal scenario for riders is if their ride does not get matches to any other rider, which eliminates further delays. The rider would pay less for their ride and the driver would earn less for the ride. A better earning scenario for the driver is if they got matched with multiple riders– however, this may not always be the driver’s most optimal case because the process of picking up and dropping off riders may cause unpredictable inconveniences due to riders being lost or not showing up on time. The second scenario would be the least optimal situation for the riders on the same ride, as the more riders they share with increases the number of potential delays to their trip. With these factors to consider, which ride option is the dominant strategy for Uber and Lyft users, regular or shared rides?
The Nash Equilibrium would depend on the rider’s flexibility in how much they want to pay for a ride, or both the rider and drivers’ patience if potential delays would occur. Looking at my wallet, I’ll just need to allocate more time for the ride to get to my point B on time.