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Free-floating carsharing (FFCS) systems are characterised by volatile fleet distribution as well as customers' heterogeneous price sensitivity and spatiotemporal flexibility. There is thus an opportunity for operators to employ dynamic pricing to manage various aspects of fleet allocation: which customer is provided which vehicle, at what time and price, and the agreed pick-up and drop-off location. While there are emerging examples of dynamic pricing in FFCS, there is as yet no general framework for the interaction of consumer and operator behaviours in this context, most particularly consumer response to the inherent risks and uncertainties in the journey characteristics noted above. In this study, we propose a choice-based framework for modelling the supply/demand interaction, drawing on behavioural models of decision-making in risky choice contexts and empirical stated-choice data of user preferences in a dynamically priced FFCS market. In addition to the 'spot market' mechanism of dynamic pricing, the proposed framework is capable of evaluating operator strategies of allowing (at an agreed price) customers to make guaranteed advance reservations. We demonstrate that this approach allows the system operator to set an optimal pricing strategy regardless of whether user risk preferences are risk-seeking or risk-averse. We also demonstrate the applicability of the proposed framework when the operator seeks to maximise revenue (as with a private operator) vs social welfare (as with a public operator). In the case study which employs empirical user preferences, we show that users' risk preferences have a relatively small impact on revenue, however the impacts are much larger if there is a mismatch between users' actual risk preferences and the system operator's assumptions regarding users' risk preferences. [ABSTRACT FROM AUTHOR]

There is a large body of literature, spanning multiple disciplines, concerned with the relationship between traditional (physical) shopping and associated travel behaviour. However, despite the recent rapid growth of digital retailing and online shopping, the impact on travel behaviour remain poorly understood. Although the issue of the substitution and complementarity between conventional and virtual retail channels has been extensively explored, few attempts have been made to extend this work so as to incorporate virtual retail channels into modelling frameworks that can link shopping and mobility decisions. Here, we review the existing literature base with a focus on most relevant dimensions for personal mobility. How online activity can be incorporated into operational transport demand models and benefits of such effort are discussed. Existing frameworks of shopping demand are flexible and can, in principle, be extended to incorporate virtual shopping and the associated additional complexities. However, there are significant challenges associated with lack of standard ontologies for crucial concepts and insufficiencies in traditional data collection methods. Also, supply-side questions facing businesses and policy-makers are changing as retailing goes through a digital transformation. Opportunities and priorities need to be defined for future research directions for an assessment of existing tools and frameworks. [ABSTRACT FROM AUTHOR]

The nature of shopping activity is changing in response to innovation in retailing and the growth in online channels. There is a growing interest from transport researchers, policy makers, marketing and retail businesses in understanding the implications of this change. However, existing tools and techniques developed for analysing behaviour in traditional retail environments do not adequately represent emerging complexities resulting from digital innovation. In this paper, we advance existing destination and mode choice models by incorporating online channels in a unified framework. This is a critical extension to existing transport literature on destination choice which largely ignores online activity. Specifically, we develop discrete choice models using elemental store (including both online and in-store) alternatives for joint choice of channel, store, and travel mode. We demonstrate the use of a widely-accepted consumer panel dataset with minor modifications, for the first time in transport research, together with API based data mining tools that offer great potential for enrichment. The analysis focuses on grocery shopping and uses consumer data collected from two selected boroughs in London; results from multinomial logit and nested logit estimations are reported. The extension presented here provides the tools to quantify the effects of increased online shopping on traditional store formats and travel patterns. Our results showed virtual alternatives currently offer an attractive substitute among early adopters for large basket shopping mostly for high income groups. This might suggest a significant reduction in shopping trips to hypermarkets often associated with large basket shopping potentially leading to store closures. Online deliveries mostly draw from driving trips and less so from walking and public transport trips. The present study also confirmed previous findings related to smaller stores and longer travel distances being associated with declining utilities, agglomeration and competition significantly influencing store choice. [ABSTRACT FROM AUTHOR]