Team formation and competition increases driver productivity in ride sharing: A field experiment at DiDi

Authors names and affiliations

Wei Ai, Yan Chen and Qiaozhu Mei School of Information, University of Michigan, Ann Arbor, MI 48109.

Jieping Ye and Lingyu Zhang AI Labs, DiDi Chuxing, Beijing, China, 100094

Time and location

North Quad 4330, Thursday (1:00-2:00) pm

Abstract

While the gig economy benefits workers with autonomy and flexibility, the lack of a strong identity from work and bonds with co-workers can lead to low productivity and high attrition. Applying social identity theory to the ride sharing context, we conducted a team formation and inter-team contest field experiment at DiDi, the dominant ride-sharing platform in China. Drivers were randomized into treatments where they were assigned to teams either randomly or based on homophily in productivity, age, or hometown location. Teams engaged in five rounds of inter-team contest for cash prizes. We find that: (1) teams comprised of drivers from the same region were more responsive and communicative within team prior to the contest; (2) compared to those in the control condition, treated drivers worked longer hours, completed more trips and earned higher revenue during the contest, with a much larger effect for responsive teams; and (3) drivers in responsive teams as well as teams comprised of drivers with similar age continued to be more productive during the two weeks after the contest ended, absent of any cash prize or formal team structure. Our results indicate that team identity can be leveraged as a design tool to increase productivity in the gig economy. This is especially true if teams are formed to facilitate member communication.