Dynamic pricing approach for integrated cruising taxis and ride-hailing services in small and medium-sized cities

Integrating traditional cruising taxis and ride-hailing services is crucial for upgrading urban transportation, particularly in China's small and medium-sized cities (SMCs) struggling with low operational efficiency and compliance bottlenecks. To address this, this study develops a bilateral evolutionary game model between integrated taxi operators and passengers to establish an adaptive scientific pricing strategy. Using real-world order and questionnaire data from an SMC in Northeast China, the research analyses the nonlinear dynamic impacts of marginal fare and fleet size increments. Results identify critical bifurcation thresholds: fleet expansions exceeding approximately 828 vehicles trigger driver resistance, while fares above 4.0 CNY/km prompt passengers to choose alternative travel modes. However, increasing the fare to approximately 1.6 CNY/km can successfully support a fleet expansion of 1,500–2,000 vehicles. Ultimately, synergising dynamic pricing with capacity regulation provides local governments with robust decision-making frameworks to ensure the sustainable operation of SMC taxi systems.