Regulating TNCs: Should Uber and Lyft set their own rules?
Seminar | November 15 | 4 p.m. | 290 Hearst Memorial Mining Building
Sen Li, Uc Berkeley
Sen Li, postdoctoral fellow in the Department of Mechanical Engineering at The University of California, Berkeley, will present Regulating TNCs: Should Uber and Lyft set their own rules? at the ITS Berkeley Transportation Seminar on Nov. 15, 2019 at 4 p.m. in 290 Hearst Memorial Mining Building. Join us for Beverages and cookies at 3:30 p.m.
Abstract: We evaluate the impact of three proposed regulations of transportation network companies (TNCs) like Uber and Lyft: (1) a minimum wage for drivers, (2) a cap on the number of drivers or vehicles, and (3) a congestion surcharge on each TNC trip. The impact is assessed using a queuing theoretic equilibrium model, which incorporates the stochastic dynamics of the app-based ride-hailing matching platform, the ride prices and driver wages established by the platform, and the incentives of passengers and drivers. We show that a floor placed under driver earnings pushes the ride-hailing platform to hire more drivers, at the same time that passengers enjoy faster and cheaper rides, while platform rents are reduced. In contrast to a wage floor, imposing a cap on the number of vehicles hurts drivers, because the platform reaps all the benefits of limiting the supply. We also construct variants of the model to discuss platform subsidy, platform competition, and autonomous vehicles.
Bio: Dr. Sen Li is a postdoctoral fellow in the Department of Mechanical Engineering at The University of California, Berkeley, working with Prof. Kameshwar Poolla and Prof. Pravin Varaiya. He received his B.S. from Zhejiang University, and Ph.D. from The Ohio State University. Previously, Dr. Li was an intern at Pacific Northwestern National Laboratory, and a visiting student at Harvard University. Dr. Li's research interest lies in the intersection of control, optimization and game theory with applications in large-scale cyber-physical systems. He is particularly interested in renewable energy integration and intelligent transportation systems. He is a finalist of Best Student Paper Award at 2018 European Control Conference.