Distance-based subsidy rate design to incentivize ride-hail access to advanced air mobility hubs
For AAM operators and ride-hailing companies, this work provides a method to design subsidies that improve multimodal integration, though it is an incremental application of existing subsidy concepts to a new domain.
This study proposes a distance-based subsidy rate design for advanced air mobility (AAM) operators to incentivize ride-hail access to AAM hubs, using NYC airport access as a case study. Results show that subsidies are needed when air taxi costs exceed $12/mi, and ridership varies across vertiports due to spatial demand heterogeneity.
The success of advanced air mobility (AAM) operations is largely contingent on its effective integration with other ground transport modes. Under many use cases, AAM operators have to work with ride-hailing operators to create a seamless air taxi travel experience with adequate first and last-mile access. In investigating this multimodal coalition, this study proposes a distance-based subsidy rate design for AAM operators to incentivize ride-hail access to AAM hubs, incorporating air mobility operators' profitability considerations and travelers' route choices jointly. Using New York City (NYC) airport access as a case study, this study integrates high-volume for-hire vehicle (HVFHV) data from NYC taxi zones to consider real-world spatial demand distributions while considering passenger groups with different values of time (VOT) to derive insights on distinctive customer bases. Overall, the results show that AAM operators would need to subsidize the ride-hailing operators on vertiport access trips when air taxi operating costs exceed $12/mi. The analysis of ridership at AAM hubs indicates that ridership and profit contributions differ across different candidate vertiports in Manhattan, reflecting spatial demand heterogeneity. Additionally, having the airport access system in place, the taxi zones that generate the highest passenger demand to all three major NYC airports are identified under lower air taxi fare scenarios. These findings highlight how a distance-based subsidy rate design is beneficial in facilitating better access to vertiports and to foster high air taxi ridership with optimal AAM fare levels.