Distance-based subsidy rate design to incentivize ride-hail access to advanced air mobility hubs

2026-06-19

AI Summary

This study addresses the “first/last-mile” connectivity challenge in advanced air mobility (AAM) by proposing a distance-based dynamic subsidy mechanism that jointly optimizes AAM operator revenue and route choice behavior across heterogeneous passenger classes. Innovatively integrating spatial demand heterogeneity and variations in passengers’ value of time into subsidy design, the authors develop a zonal cost–benefit optimization model calibrated with high-dimensional ride-hailing data from New York City. Results indicate that subsidies become necessary when air taxi operating costs exceed $12 per mile. The model accurately quantifies passenger contributions to each vertiport in Manhattan and identifies high-demand ground-access corridors to the city’s three major airports under low-fare scenarios, enabling targeted and granular incentive strategies.

Abstract

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.

Problem

• advanced air mobility
• ride-hailing
• subsidy design
• first-last mile access
• multimodal integration

Innovation

• distance-based subsidy
• advanced air mobility
• ride-hailing integration
• vertiport access
• value of time