Toward Fair Ride Sharing Platforms: The Role of Regulations and Wait Time

This paper investigates the impact of the service-time threshold and regulation on minimum hourly wage of driver in the ride-hailing platform. The impact is assessed using a market equilibrium queuing model where passengers’ fare and drivers’ wages are established by the platform. Numerical analysis and managerial insights are provided which indicated that when a large number of passengers are arriving, the platform should operate with regulations on a low wait-time threshold while prioritizing drivers incentives to incorporate fairness for all the stakeholders of ride hailing platform. Managers, therefore, should strive to attract more passengers and drivers to match supply with demand which mitigates trade-off between objectives of all the stakeholders and also incorporate social welfare.