Modeling the Cashflow Management of Bike Sharing Industry

Binrui Shen, Yu Shan, Yunyu Jia, Dejun Xie, Shengxin Zhu

Abstract: The sharing economy has been widely concerned since its inception and bike sharing is one of the most representative examples. The paper attempts to investigate the cashflow management strategy of bike sharing companies to optimize the overall financial return. The framework of our model is based on the assumption that bike sharing companies may invest operation income in financial market for long-term and short-term earnings. Optimal reserve pool is modeled and estimated using double parameterized compound Poisson distributions. Empirical examples and Monte Carlo analysis are provided for model validation.