University of Oulu

Tervo, E., & Väyrynen, K. (2022). Non-adoption of dynamic pricing in traditional taxi dispatch organizations. Proceedings of the 55th Annual Hawaii International Conference on System Sciences, 5017-5026. https://doi.org/10.24251/HICSS.2022.611

Non-adoption of dynamic pricing in traditional taxi dispatch organizations

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Author: Tervo, Erkki; Väyrynen, Karin
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 0.4 MB)
Persistent link: http://urn.fi/urn:nbn:fi-fe2022091959480
Language: English
Published: IEEE Computer Society, 2022
Publish Date: 2022-09-19
Description:

Abstract

Dynamic pricing (DP) was introduced into the taxi industry through ride-sharing platforms such as Uber. Prior research has identified benefits of DP for ride-sharing organizations, drivers and consumers. A legal reform in Finland in July 2018 made DP of taxi rides legally possible. However, even though traditional Finnish dispatch organizations have adopted different technology (e.g., ride-hailing apps), they have not adopted DP. To find out the reasons for the non-adoption, we conducted a qualitative case study among Finnish dispatch organizations. Utilizing IT artifact as an analytical lens, we identified ten aspects related to the technology, the structure and the context within which DP is embedded that help explain why it has not been adopted. We propose that DP in the taxi industry should be seen more broadly than just as “Uber-type” real-time DP, as it has been viewed in previous literature. Our findings have implications for research and practice.

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Series: Proceedings of the Annual Hawaii International Conference on System Sciences
ISSN: 1530-1605
ISSN-L: 1530-1605
ISBN: 978-0-9981331-5-7
Pages: 5017 - 5026
DOI: 10.24251/HICSS.2022.611
OADOI: https://oadoi.org/10.24251/HICSS.2022.611
Host publication: Proceedings of the 55th Annual Hawaii International Conference on System Sciences
Host publication editor: Bui, Tung X.
Conference: 55th Annual Hawaii International Conference on System Sciences
Type of Publication: A4 Article in conference proceedings
Field of Science: 113 Computer and information sciences
Subjects:
Funding: The second author is grateful for research funding received from the Jenny and Antti Wihuri Foundation.
Copyright information: Papers published as part of the Proceedings of the 54th Annual Hawaii International Conference on System Sciences are under Creative Commons licenses (CC-BY-NC-ND4.0). https://creativecommons.org/licenses/by-nc-nd/4.0/
  https://creativecommons.org/licenses/by-nc-nd/4.0/