A METHOD FOR FEASIBILITY ANALYSIS OF SIDE BUSINESS BY TAXI OPERATOR

Abstract

Taxi service is expected to play an important role of transportation in the areas with small population. However, taxi business sustainability is vulnerable because the profits are small when the number of customers is small in such areas. Therefore, it is an effective measure to carry out not only the transportation of passengers but also the side business such as food delivery. When the decision of the side business is made, it is necessary for the business operator to assess the feasibility of the side business from viewpoint of profit and manpower. In this study, we construct a method to evaluate the feasibility of side business using the integer programming method, and empirically assess the feasibility using the actual taxi operation history data.