Selcuk, Cemil  ORCID: https://orcid.org/0000-0002-2267-604X and Gokpinar, Bilal
2025.
EXPRESS: Incentivizing flexible workers in the gig economy: The Case of ride-hailing.
Production and Operations Management
10.1177/10591478251403250
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Abstract
On-demand platforms like ride-sharing services rely heavily on economic incentives to attract, retain, and manage independent workers who have significant discretion over whether and where to work. Using an analytically tractable spatial model, we explore the impact of different pricing and commission strategies on customer demand, driver entry and retention, and their location choices. Our model yields several unique results and actionable insights. We find that flexible commission policies are more effective than fixed commission policies in allocating drivers efficiently across locations, reducing bottlenecks, and improving driver retention. We also show that commission-based interventions are more effective than price interventions in responding to labor market changes, as they directly affect driver incentives without distorting customer demand. Finally, if fairness-sensitive customers are prevalent in the market, then fixed pricing, combined with flexible commissions, becomes the optimal rule. Simulations based on actual ride patterns from New York City and Los Angeles confirm our insights.
| Item Type: | Article |
|---|---|
| Date Type: | Published Online |
| Status: | In Press |
| Schools: | Schools > Business (Including Economics) |
| Publisher: | SAGE Publications |
| ISSN: | 1059-1478 |
| Date of First Compliant Deposit: | 21 November 2025 |
| Date of Acceptance: | 20 November 2025 |
| Last Modified: | 25 Nov 2025 15:30 |
| URI: | https://orca.cardiff.ac.uk/id/eprint/182568 |
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