Piggyback on TNCs for Electricity Services: Spatial Pricing and Synergetic Value

Major Transportation Network Companies (TNCs), including Uber and Lyft, are in the process of electrifying their fleets. These electrified fleets can provide electricity service in addition to transportation service. This paper examines the problem of optimal spatial pricing for an electrified TNC jointly providing transportation and electricity services. When the system demand is spatially balanced, we establish a tight characterization of the optimal pricing policy and the platform profit. Furthermore, we highlight the role electricity service may provide in reducing the transportation spatial imbalance and characterize the resulting synergetic value.