On-Demand Ride-Hailing Service Platforms With Hired Drivers During Coronavirus (COVID-19) Outbreak: Can Blockchain Help?

During the recent COVID-19 (CoV) global outbreak, there is a sharp decline of revenue of on-demand ride-hailing (ODR) platforms because people have serious worries of infection in the shared vehicles. Blockchain, which supports cryptocurrency and creates full traceability of the service history of each car and driver, may come to rescue by allowing the platform to offer only the "safe cars" to consumers. Motivated by the real world challenges associated with the CoV outbreak for the ODR platform, we build game-theoretical models based on the M/M/n queuing system to explore if and how blockchain can help. In the basic model, the ODR platform decides the service price and special hygiene level. Comparing between the cases with and without blockchain, we find that blockchain implementation increases both the service price and hygiene level. In addition, when the consumers' inherent worry of infection is substantially large, implementing blockchain achieves all-win for the ODR platform, drivers and consumers. In the extended models, we first consider the case when the special hygiene level is determined by the drivers under a mixed-leadership game and then explore the case when customers are risk averse. The main findings about blockchain adoption remain valid in both cases. However, when the drivers take charge of the special hygiene level, both optimal decisions are lower in most cases. It is also important to make efforts to reduce consumers' feeling volatility toward service valuation for improving the value of blockchain adoption and related performances.