Profit Maximization for Carsharing Services: History
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This research considers building a dynamic model of profit maximization for a carsharing system and its verification based on the case of implementing such a system in Astana, Republic of Kazakhstan. The region, bounded by the administrative boundaries of Astana, was divided into subregions that covered the region with regular hexagons placed side by side.

  • carsharing
  • dynamic model
  • discrete optimization

1. Introduction

The global sharing market has been growing dynamically, especially in the last decade. In 2019, it was valued at nearly $400 billion. Moreover, in 2024, according to some estimates, the global market value of the sharing economy may reach more than 1.5 trillion dollars. The annual growth rate is higher than 30% [1]. According to some estimates, the sharing market will add 160 to 572 million euros to the economy of the European Union in the next few years [2]. Some analytical calculations regarding the growth of the sharing market are described in [3]. The changes associated with the rapid development of the sharing market are a crucial aspect of the evolution and transformation of transport systems. The authors of [4] investigated how the sharing market potentially leads to reduced emissions, congestion, etc. This has a positive effect on the development of cities, which leads to an increase in the quality of life of the residents of these cities.
One of the essential components of the sharing market is carsharing. The basis of the carsharing system is a client’s short-term use of a car for a fixed fee. A client can travel by car without being tied to the movement of public transport for sufficiently long distances. An essential advantage of using the carsharing service is that clients pay only for the time using the car and do not pay for its maintenance, insurance, parking, etc. The cost of using carsharing is generally lower compared to using taxi services. In addition to carsharing, micro-sharing systems are being considered. However, such systems are designed for different sectors of customers and have their own characteristics, which are not considered in this work.
In order to make a profit, the owner of the carsharing system must calculate the total cost of car maintenance, transporting cars to different parts of the city, etc. That is, many components of the system must be calculated, which determine the price policy of the owner and the system of restrictions for the user. The task of managing a carsharing system is complex. The influence of various factors can quickly lead to an imbalance of the system, potentially leading to unprofitability. Management should occur in real-time and in different regions of the city network in different ways. When building a carsharing system, several problems arise at the same time. The first of them is the division of regions into subregions according to specific criteria, which would simplify the management of system parameters. Next, one needs to calculate the characteristics that determine the balance of the system and ensure their dynamic calculation. The second task is to build a model for maximizing the profits of the carsharing system, taking into account the specified characteristics and distribution into subregions.
The obtained results in this direction are essential for solving urban network planning problems within urban science. This especially applies to the development of carsharing and micro-sharing services, which aims to increase the sustainability of a city’s development given rapid population growth and improve a city’s ecological situation. The metro area population of Astana in 2022 was 1,254,000. Astana has an annual population growth of 3.5% to 4%. This characterizes the city as one whose population is overgrowing. Accordingly, applying urban science approaches in the implementation of carsharing services will help make the city more ecologically clean and more comfortable for living.

2. Profit Maximization for Carsharing Services

Building an effective carsharing system and organizing an excellent carsharing service is an urgent task for both the user and the owner. From the owner’s point of view, such a system can be profitable, given the dynamics of market development in this direction in recent years. Also, the potential profitability of the system is determined by the peculiarities of the region in which it is implemented and the client’s needs from the carsharing service. From the customer’s point of view, such a system is an excellent alternative to personal transport, taxi services, and public transport. The functioning of the carsharing system within a specific region has a positive effect on reducing traffic jams, reducing air pollution, increasing revenues to the regional budget, etc. [5]. This obviously has a positive effect on improving the comfort of the region’s residents.
Building an optimization model of profit maximization for carsharing services must be completed and requires a separate study. The creation of such a model is closely related to the requests of the system’s owner. Therefore, parameters that affect the owner’s profit should be reflected in the model, considering regional characteristics, demand, and customer needs. Also, the maximization model depends on the type of carsharing, which exerts influence and profitability of the system in different regional and geographical conditions. In particular, [6] describes the system of carsharing using electric cars. This study found that such a system still needs to be fixed since electric cars need a long time to charge. This leads to a decrease in the profitability of such a system over time compared to a traditional carsharing system. The paper [7] describes a model of electric carsharing and micro-mobility, as well as the potential impacts of these types of carsharing. However, the problem of maximizing the profitability of such systems needs to be described. The positive impact on the development of city infrastructure and the improvement of the quality of life of city residents is determined by the effective functioning of such a carsharing system, which is beneficial to the system’s owner. Otherwise, there is no point in investing in developing this type of service.
For the effective functioning of the carsharing system, operational decisions must be made constantly. Some of them require solving relevant optimization problems. In particular, Ref. [4] describes a profit maximization model of a carsharing system and a mathematical programming method for finding its solution. In this model, cars do not move without the participation of customers. In [8], a simulation model for evaluating options for such movements was developed. However, the specified model is static and does not consider the change in demand for cars in different parts of the region and times of day. This is important for a rational calculation of the potential profit of the system, taking into account the built-in restrictions. The paper [9] describes a mixed integer programming model for establishing the sequence of actions for moving cars in a carsharing system. In works [10,11], systems for optimizing the movement of vehicles are considered.
Work [12] describes the problem of maximizing the profit of the carsharing system, which considers car maintenance costs. Integer programming was used to solve the problem. The problem of linear programming for maximizing the profits of the carsharing system is described in [13]. An overview of scientific studies on modeling and optimization for the carsharing system is described in [14], where the authors classify the literature into three categories: strategic, tactical, and operational, according to the level of decisions made in optimization tasks. Optimization models and solution methods proposed in existing studies are considered for each category. In particular, in the category of studies on state strategic planning, [15,16,17] are critical publications that aim to maximize profits. Other works discuss the category of making operational decisions on managing the carsharing system to optimize profits [18,19,20]. The problem of profit maximization related to the relocation of cars is described in works [21,22,23]. Related problems must also be solved, such as user verification [24,25,26] and the problem of managing a complex transport system [27].
Study [28] carried out a systematic review of the literature in the field of vehicle sharing, in particular carsharing. A meta-analysis of studies showed that dynamic carsharing services reduce travel costs and demand for parking and improve the ecology of the city. The development of carsharing and micro-sharing services contributes to the urban development of cities. The development of carsharing systems can contribute to sustainability as well as social and transport justice. The authors of study [28] advocate for the consolidation of urban transport policy to achieve the desired results for solving the problems of urban mobility. The study also shows that the field of urban mobility is not sufficiently studied.
Study [29] shows that the carsharing market is not sufficiently developed in the Republic of Kazakhstan. Since the country’s population is growing fast, the implementation of such systems will make the quality of living in large cities and towns of this country more comfortable and convenient.
In [30], it is shown that optimal planning of the location of the infrastructure of charging stations and the distribution of the car fleet and the operation of moving vehicles in a city contribute to increasing profits. The importance of taking into account the uncertain time-varying demand in the input parameters of the profit maximization model is also shown. This significantly increases the efficiency of carsharing systems by 5.3%. Study [30] was conducted on the case of New York City. A similar study is necessary for other large cities with dense transport infrastructure. However, unlike the New York City, data on other cities (for example, Astana) are missing or access is restricted. This complicates research in this direction. There are few studies that take into account the dynamics in the functioning models of carsharing systems. This study is a development in the direction of urban science in terms of filling the gap in the use of dynamic models for maximizing the profit of carsharing systems, in particular in the Central Asian region. This study considers building a profit maximization model for a carsharing service for the capital of the Republic of Kazakhstan, Astana. Regional aspects and needs of customers in this region have determined the need to develop this type of service. Moreover, it is about the development of carsharing services. Micro-services in this region may be less popular due to the significant distances that city residents travel daily, which is related to the vastness of the city and the peculiarity of the location of urban infrastructure facilities.

This entry is adapted from the peer-reviewed paper 10.3390/urbansci7030074

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