New Model Helps Cities Balance EV Ride-Hailing and Charging

As electric vehicles take over ride-hailing, cities face a tricky puzzle: too few charging stations means drivers can't recharge, and riders get stranded. This paper builds a mathematical model of a "three-sided market" involving mobility companies (like Uber or Lyft), energy providers (charging networks), and a regulator (the city). It's like a game where each side tries to maximize its own benefit, and the regulator sets rules to keep things fair and efficient.

The study's first big finding is that there's a charging-capacity tipping point. If a city has fewer chargers than this threshold, ride-hail companies must drastically cut the number of cars on the road. That leads to "transit deserts"—neighborhoods where you can't get a ride at all. So investing in charging infrastructure isn't just about green energy; it's about keeping transportation accessible.

Second, the researchers found that a ride-hail company's profit grows as it adds cars, but only up to a point. Add too many cars and the market gets saturated—more drivers competing for the same riders, higher charging congestion, and shrinking profits. There's a "sweet spot" fleet size just before that saturation. Third, pricing is delicate. Raising prices during peak hours brings steady revenue, but cutting prices off-peak acts as a sensitive lever—small changes have big effects on whether drivers keep working.

This isn't just academic. For cities planning EV infrastructure, the model offers practical guidance: build enough chargers to avoid the tipping point, don't let ride-hail fleets grow endlessly, and use dynamic pricing carefully. For riders, it means more reliable service and potentially fairer prices. For companies, it's a roadmap to profitability without over-expansion.