Asset Details
Do you wish to reserve the book?
Platform-level consequences of performance-based commission for service providers: Evidence from ridesharing
Hey, we have placed the reservation for you!
By the way, why not check out events that you can attend while you pick your title.
Oops! Something went wrong.
Looks like we were not able to place the reservation. Kindly try again later.
Are you sure you want to remove the book from the shelf?
Platform-level consequences of performance-based commission for service providers: Evidence from ridesharing
Do you wish to request the book?
Platform-level consequences of performance-based commission for service providers: Evidence from ridesharing
Please be aware that the book you have requested cannot be checked out. If you would like to checkout this book, you can reserve another copy
We have requested the book for you!
Your request is successful and it will be processed during the Library working hours. Please check the status of your request in My Requests.
Oops! Something went wrong.
Looks like we were not able to place your request. Kindly try again later.
Journal Article
Platform-level consequences of performance-based commission for service providers: Evidence from ridesharing
2024
Overview
Ridesharing platforms compensate drivers using a fixed commission system that does not systematically reward effective drivers, which reduces platform engagement. Unsurprisingly, driver transaction activity is intermittent and service unpredictable. Influenced by agency theory, we propose a variable commission that jointly accounts for drivers’ transactions and service performance. To alleviate disengagement, we propose a customer-oriented engagement framework that challenges the notion of the sole monetary focus of drivers. We compare the effects of variable and fixed commission schemes on consequences such as driver net revenue and referral value, mediated by attitudinal outcomes. In a 3-month cluster-randomized field experiment with 3,367 ridesharing drivers across 16 cities and two population tiers, we show improvements in driver satisfaction and emotional connectedness accentuated by goal-oriented feedback. Variable commission with goal-oriented feedback translates to a 24.5% rise in revenue, a 19.5% increase in referral value, and a 43.21% lower churn. A cost–benefit analysis reinforces these results.
Publisher
Springer US,Springer,Springer Nature B.V
