Dynamic evolution of ride-hailing platforms from a systemic perspective: Forecasting financial sustainability

Transportation platforms are often thought to be poised for a bright future, yet issues about the profitability of this industry surface frequently. This study uses the system dynamics modeling framework to forecast ride-hailing platforms? growth on a series of key performance indicators, including profit and the influence of various micro and macro, internal and external factors on growth. More specifically, taking ride-hailing platforms as a focal case, this study explores the internal structure and growth mechanism of a simulated transportation platform from a systematic perspective. The results provide a better understanding of the sustainable growth paths and mechanisms about ride-hailing platforms while further constituting an analytical tool for the operation and management of the emerging platform business model. By so doing, the paper presents useful conclusions for researchers, managers, and policy-makers alike, since it further advances theoretical and practical understanding of the digital transportation economy.