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Multi-party ride-matching problem in the ride-hailing market with bundled option services

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Abstract

As demands for convenient and comfortable mobility grow, transportation network companies (TNCs) begin to diversify the ride-hailing services they offer. Modes that are offered now include ride-pooling (RP), non-ride-pooling (NP), and a third “bundled” option, which combines RP and NP. This emerging bundled option allows riders to be served via either RP or NP mode, whichever becomes available first. This paper examines the added complexity that a ride-hailing service platform faces when it introduces a third bundled option. Incorporating the predicted pooling information in the near future, a ride-matching problem is dedicated to matching vehicles with riders under various scenarios over a number of matching iterations. We formulate the multi-period ride-matching problem using an integer linear programming model with multiple objectives and to make dispatching decisions based on certain matching criteria. The complexity of the problem requires resolution via a two-stage Kuhn-Munkres (2-KM) algorithm, whose robustness is verified by computational tests. Some interesting insights are obtained: (1) how the bundled option impacts system performance metrics depends on whether the supply is sufficient or not; (2) there is an optimal value of the criterion of the maximum pickup time that maximizes the ride-pooling time savings.

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... Unlike traditional travel forms, the ride-hailing app offers various types of service options, such as express, comfort, commercial, or luxury. Ride-hailing apps allow riders to choose one-to-one service or bundled service (Wang and Yang 2019;Qin et al. 2021). One-to-one service means that riders select only one of the service options when placing an order (see Fig. 1(a)). ...
... To the best of our knowledge, few studies have addressed these heterogeneous ordering behaviors among riders. One is Qin et al. (2021), who formulate an integer linear programming model to examine a multi-period ride-matching problem with three mode choice behaviors: ride-pooling (RP), non-ride-pooling (NP), and a third "bundled" option that combines both RP and NP. In accordance with their model, riders can ordering a single service or a bundled service. ...
... This setting allows the platform with the authority to assign orders based on the service load of each service option as well as lower the average waiting time for all riders. Therefore, different from Qin et al. (2021) who address a matching problem with different travel modes, we explore an order assignment problem where the platform allows riders to choose single or multiple service options in one travel mode. However, our study is similar to Wong et al. (2008) who extend the model of urban taxi services in congested networks to the case of multiple user classes, multiple taxi modes, and customer hierarchical modal choice. ...
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We study an order assignment problem in a ride-hailing system with two classes of riders (i.e., single-choice riders and multi-choice riders) and n types of vehicles. We regard the system as an M/G/n queueing system and develop an order assignment strategy based on the service loads of the n servers. We construct a nonlinear programming model to solve the order assignment problem with the objective of minimizing the average waiting time for riders. Using Lagrange duality theory, we derive the closed form of the optimal solution with a Lagrangian multiplier. Using parameter optimization theory, we carry out optimality analyses and theoretically demonstrate the Lipschitz stability of the feasible region and optimal objective value, the Ho¨lder\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$H\ddot{o}lder$$\end{document} stability of the optimal solution, and the existence and differentiability of the optimal solution. To understand the theoretical results intuitively, we conduct two groups of numerical experiments. The first one is implemented in an M/G/2 queueing system to graph the effects of parameter variation on the optimal order assignment strategy. The second one is conducted in an M/G/n queueing system to show the applicability of this study in systems with multiple heterogeneous service options. The results demonstrate that the service load of each server is directly related to its service capacity and order arrival rate. And the service load is a main factor influencing the optimal order assignment strategy. Management insights for the optimal order assignment strategy can be generated to inform real ride-hailing platforms.
... Ridehailing has become one of the most active and exciting research topics in the transportation sector [7,8]. Ride-hailing platforms established a technology and market structure that is more effective than traditional taxi services, enabling passengers to request a vehicle on short notice [9][10][11][12][13]. The ability for passengers and drivers to connect via mobile smartphone applications is made possible by many factors, including social networks, real-time information, and mobile technology [14]. ...
... In order to assess the effects of assignment time intervals and assignment radius, the authors of [12] provided a model that defines the assignment process in ride-sourcing markets. An assignment model with several service alternatives, such as a bundled option, was proposed by [13]. A discrete-time geometric assignment and the effects of spatial pricing were described by [26]. ...
... The success of assignments, while minimizing denied requests, is affected by drivers, distance, socioeconomic features, and land use [16]. In general, the assignment considers the pick-up travel distance and pick-up travel time [9,12,13,15,24,26,[34][35][36]. Some studies considered minimizing the number of unsatisfied requests [24,32]. ...
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Uber, Gojek, and Grab are companies providing new massive job opportunities for driver partners. Ride-hailing provides convenient services because passengers can determine the position of the vehicle picking the, up in real time. Ride-hailing also provides security because passengers can quickly determine the driver’s identity. However, the rapid development of ride-hailing has led to increased congestion and emissions. This study proposes pick-up strategies to reduce fuel consumption and emissions, formulated as an assignment model. The assignment problem is abstracted into a linear programming model by considering the uncertainty of the parameters represented by fuzzy numbers. The proposed assignment model can handle the uncertainty of travel delays caused by unpredictable traffic conditions. The assignment aims to minimize fuel consumption, travel delays, and unserviced requests. The assignment model is designed to work for platforms that allow passengers to walk according to their readiness and the maximum walking distance. The numerical simulation results show that allowing passengers to walk to the vehicle can maintain optimality and significantly reduce fuel consumption. The proposed model’s implementation is expected to enable sustainable transport and significantly mitigate emissions caused by vehicle mobility in picking up passengers.
... Meanwhile, to assign the ride-sharing vehicles while considering network traffic dynamics, Zhou et al. [33] proposed a scalable dynamic ride-sharing method that can solve the endogenous congestion effect. While optimizing vehicle assignment and routing simultaneously, Qin et al. [34] investigated the ride-sharing matching problem in conjunction with predicted near-term pooled information for matching vehicles and passengers in various scenarios over multiple matching iterations. ...
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Reasonable matching of capacity resources and transported cargoes is the key to realizing intelligent scheduling of less-than-truck-load (LTL) logistics. In practice, there are many types and numbers of participating objects involved in LTL logistics, such as customers, orders, trucks, unitized implements, etc. This results in a complex and large number of matching schemes where truck assignments interact with customer order service sequencing. For the truck–cargo online matching problem under real-time demand, it is necessary to comprehensively consider the online matching process of multi-node orders and the scheduling of multi-types of trucks. Combined with the actual operation scenario, a mixed-integer nonlinear programming model is introduced, and an online matching algorithm with a double-layer nested time window is designed to solve it. By solving the model in a small numerical case using Gurobi and the online matching algorithm, the validity of the model and the effectiveness of the algorithm are verified. The results indicate that the online matching algorithm can obtain optimization results with a lower gap while outperforming in terms of computation time. Relying on the realistic large-scale case for empirical analysis, the optimization results in a significant reduction in the number of trips for smaller types of trucks, and the average truck loading efficiency has reached close to 95%. The experimental results demonstrate the general applicability and effectiveness of the algorithm. Thus, it helps to realize the on-demand allocation of capacity resources and the timely response of transportation scheduling of LTL logistics hubs.
... This service reduces travelers' waiting time and improves their overall experience. Various matching strategies have been proposed to optimize order matching efficiency (Guo et al., 2021;Qin et al., 2021). However, the impact of order matching efficiency on satisfaction remains unknown. ...
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This study proposes an integrated theoretical framework to comprehensively examine the satisfaction and subjective well-being of ridesourcing travelers. A total of 1370 survey responses from China were empirically examined, using partial least squares structural equation modeling and multigroup comparison methods. The findings show that platform safety, driver competence, car comfort, environmental benefit, and social benefit significantly affect travel satisfaction. The influence of order matching efficiency on satisfaction is non-significant but contributes to improving subjective well-being. Environmental concern positively moderates the effect of satisfaction on subjective well-being. Additionally, platform safety significantly improves female satisfaction while environmental concern significantly enhances male satisfaction. Order matching efficiency exerts a stronger impact on improving well-being in the shared travel mode than in the non-shared travel mode. These findings supplement the existing knowledge on shared mobility satisfaction and well-being, and provide valuable practical implications for the sustainable development of ridesourcing.
... The study of ride-hailing platforms mainly focuses on monopoly pricing [3,4], competitive strategies of ride-hailing platforms [5][6][7][8][9][10][11], compatibility strategies of ride-hailing platforms [12][13][14][15], bundling strategies of ride-hailing platforms [16][17][18][19][20][21], regulation strategies of ride-hailing platforms [22], and two-sided matching in ride-hailing platforms [23]. As the research on pricing in ride-hailing platforms is more relevant to our study, we primarily review the research in this area. ...
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The pricing of ride-hailing platforms (e.g., Didi Rider and Uber) is heavily and simultaneously influenced by the cross-group network effect and congestion effect. To analyze the bilateral pricing of ride-hailing platforms under the influence of these two effects, in this paper we construct a game-theoretic model under four different scenarios and analyze the equilibrium outcomes. The results show that: (1) when both passengers and drivers are sensitive to hassle costs, if the cross-group network effect on the passenger side is higher than that on the driver side, then the platform’s pricing on both sides increases with the increase in the congestion effect, otherwise the prices on both sides of the platform decrease with the increase in the congestion effect; (2) when passengers are sensitive to hassle costs and drivers are sensitive to price, if the ratio for passengers’ and drivers’ different perceptions of price and hassle cost is greater than a certain threshold, then the platform’s pricing on the passenger side increases with the increase in the congestion effect and the platform’s pricing on the driver side decreases with the increase in the congestion effect, otherwise the platform’s pricing on the passenger side decreases with the increase in the congestion effect and the platform’s pricing on the drivers’ side increases with the increase in the congestion effect; (3) when passengers are sensitive to price and drivers are sensitive to hassle costs, if the ratio for passengers’ and drivers’ different perceptions of price and hassle costs is greater than a certain threshold, then the platform’s pricing on the passenger side decreases with the increase in the congestion effect and the platform’s pricing on the drivers’ side increases with the increase in the congestion effect, otherwise the platform’s pricing on the passenger side increases with the increase of the congestion effect and the platform’s pricing on the driver side decreases with the increase in the congestion effect; (4) when both passengers and drivers are price-sensitive, if the cross-group network effect on the passengers’ side is larger than that on the drivers’ side, then the platform should decrease its pricing on both sides with the increase in the congestion effect, otherwise, if the cross-group network effect on the passengers’ side is less than that on the drivers’ side, the platform should increase its pricing on both sides with the increase in the congestion effect; (5) the platform is able to generate the highest profit in each scenario, and the results of the profit comparison between the four scenarios depends on the cross-group network effects and the congestion effects on both the passengers’ and the drivers’ sides.
... The greedy algorithms have been widely applied in practice but have been proven to be inefficient by Maciejewski et al. (2016). The batch matching optimization can be formulated as a bipartite matching problem (Tong et al., 2016;Qin et al., 2021b). Some literature proposes a dynamic optimization model to determine the optimal matching interval and radius Yang et al., 2020;Qin et al., 2021a). ...
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... In recent years, the concepts of collaboration and sharing have been introduced in many studies to realize the efficient configuration of resources, thereby promoting cost and resource savings through multidepot collaboration [48][49][50]. Many third-party platforms are created to provide sharing services, which promote various collaboration modes [51,52]. Wei et al. [53] investigated a matching problem for ride-sourcing markets. ...
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With the emergence of ride-sharing companies that offer transportation on demand at a large scale and the increasing availability of corresponding demand data sets, new challenges arise to develop routing optimization algorithms that can solve massive problems in real time. In this paper, we develop an optimization framework, coupled with a novel and generalizable backbone algorithm, that allows us to dispatch in real time thousands of taxis serving more than 25,000 customers per hour. We provide evidence from historical simulations using New York City routing network and yellow cab data to show that our algorithms improve upon the performance of existing heuristics in such real-world settings.
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We present a novel order dispatch algorithm in large-scale on-demand ride-hailing platforms. While traditional order dispatch approaches usually focus on immediate customer satisfaction, the proposed algorithm is designed to provide a more efficient way to optimize resource utilization and user experience in a global and more farsighted view. In particular, we model order dispatch as a large-scale sequential decision-making problem, where the decision of assigning an order to a driver is determined by a centralized algorithm in a coordinated way. The problem is solved in a learning and planning manner: 1) based on historical data, we first summarize demand and supply patterns into a spatiotemporal quantization, each of which indicates the expected value of a driver being in a particular state; 2) a planning step is conducted in real-time, where each driver-order-pair is valued in consideration of both immediate rewards and future gains, and then dispatch is solved using a combinatorial optimizing algorithm. Through extensive offline experiments and online AB tests, the proposed approach delivers remarkable improvement on the platform's efficiency and has been successfully deployed in the production system of Didi Chuxing.
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Bipartite matching markets pair agents on one side of a market with agents, items, or contracts on the opposing side. Prior work addresses online bipartite matching markets, where agents arrive over time and are dynamically matched to a known set of disposable resources. In this paper, we propose a new model, Online Matching with (offline) Reusable Resources under Known Adversarial Distributions (OM-RR-KAD), in which resources on the offline side are reusable instead of disposable; that is, once matched, resources become available again at some point in the future. We show that our model is tractable by presenting an LP-based adaptive algorithm that achieves an online competitive ratio of 1/2 - eps for any given eps greater than 0. We also show that no non-adaptive algorithm can achieve a ratio of 1/2 + o(1) based on the same benchmark LP. Through a data-driven analysis on a massive openly-available dataset, we show our model is robust enough to capture the application of taxi dispatching services and ride-sharing systems. We also present heuristics that perform well in practice.
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Ride-sharing (RS) has great values in saving energy and alleviating traffic pressure. Existing studies can be improved for better efficiency. Therefore, we propose a new ride-sharing model, where each driver has a requirement that if the driver shares a ride with a rider, the shared route percentage (i.e., the ratio of the shared route's distance to the driver's total travel distance) exceeds an expectation rate of the driver, e.g., 0.8. We consider two variants of this problem. The first considers multiple drivers and multiple riders and aims to compute driver-rider pairs to maximize the overall shared route percentage (SRP). We model this problem as the maximum weighted bigraph matching problem, where the vertices are drivers and riders, edges are driver-rider pairs, and edge weights are driver-rider's SRP. However, it is rather expensive to compute the SRP values for large numbers of driver-rider pairs on road networks. To address this problem, we propose an efficient method to prune many unnecessary driver-rider pairs and avoid computing the SRP values for every pair. To improve the efficiency, we propose an approximate method with error bound guarantee. The basic idea is that we compute an upper bound and a lower bound for each driver-rider pair in constant time. Then, we estimate an upper bound and a lower bound of the graph matching. Next, we select some driver-rider pairs, compute their real shortest-route distance, and update the lower and upper bounds of the maximum graph matching. We repeat above steps until the ratio of the upper bound to the lower bound is not larger than a given approximate rate. The second considers multiple drivers and a single rider and aims to find the top- $k$ drivers for the rider with the largest SRP. We first prune a large number of drivers that cannot meet the SRP requirements. Then, we propose a best-first algorithm that progressively selects the drivers with high probability to be in the top- $k$ results and prunes the drivers that cannot be in the top- $k$ results. Extensive experiments on real-world datasets demonstrate the superiority of our method.
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Dynamic ride-sharing systems enable people to share rides and increase the efficiency of urban transportation by connecting riders and drivers on short notice. Automated systems that establish ride-share matches with minimal input from participants provide convenience and the most potential for system-wide performance improvement, such as reduction in total vehicle-miles traveled. Indeed, such systems may be designed to match riders and drivers to maximize system performance improvement. However, system-optimal matches may not provide the maximum benefit to each individual participant. In this paper, we consider a notion of stability for ride-share matches and present several mathematical programming methods to establish stable or nearly stable matches, where we note that ride-share matching optimization is performed over time with incomplete information. Our numerical experiments using travel demand data for the metropolitan Atlanta region show that we can significantly increase the stability of ride-share matching solutions at the cost of only a small degradation in system-wide performance.
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In this paper, we present an ensemble learning approach for better understanding ridesplitting behavior of passengers of ridesourcing companies who provide prearranged and on-demand transportation services. An ensemble learning model is a weighted combination of multiple classification models or week classifiers to form a strong classification model. The goal of ensemble learning is to combine decisions or predictions of several base classifiers to improve prediction, generalizability, and robustness over a single classifier. This paper employs the Boosting ensemble by growing individual decision trees sequentially and then assembling these trees to produce a powerful classification model. To improve the prediction accuracy of ridesplitting choices, we explored real-world individual level data extracted from the on-demand ride service platform of DiDi in Hangzhou, China. Over one million trips of the four service types, i.e., Taxi Hailing Service, Express, Private Car Service, and Hitch, are explored with descriptive statistics. A variety of features that may impact ridesplitting behavior are ranked and selected by using the ReliefF algorithm, such as trip travel time, trip costs, trip length, waiting time fee, travel time reliability of origins/destinations and so on. The Boosting ensemble trees with full features and selected features are trained and validated using two independent datasets. This paper also verifies that ensemble learning is particularly useful and powerful in the ridesplitting analysis and outperforms three other widely used classifiers. This paper is one of the first quantitative studies that empirically reveal the real-world demand and supply pattern by exploring the city-wide data of an on-demand ride service platform.
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The potential benefits from increased ridesharing are substantial, and impact a wide range of stakeholders. In a properly applied rideshare scheme, drivers and passengers achieve cost savings, they potentially achieve travel time savings, and they benefit from increased travel options. Employers can reduce expensive parking construction or leasing, and benefit from higher worker productivity. Society benefits from congestion reduction, energy security improvements, greenhouse gas (GHG) emission reductions and increased social equity. Unfortunately, ridesharing's historical success has been rather modest, with a substantial decrease in popularity since the 1970's and participation that remains near an all-time low. Clearly there is a disconnect between the purported benefits and the real or perceived challenges associated with sharing rides. This thesis asks why ridesharing is not more popular than current participation suggests, and what can be done to encourage greater participation going forward? After a review of past and present rideshare initiatives, it becomes clear that there is no single challenge to be overcome that will increase interest and participation in ridesharing. Rather, the 'rideshare challenge' is a series of economic, behavioral, institutional and technological obstacles to be addressed. Yet, two opportunities show particular promise at helping overcome these challenges - a focus on large employers, and a technology-based service innovation known as "real-time" ridesharing. Large employers are a unique type of institution that can successfully influence private household travel decisions while simultaneously advancing employer-specific goals and various societal goals. "Real-time" ridesharing extends the range of existing rideshare options available to travelers and it begins to address a number of challenges associated with ridesharing. To increase rideshare participation going forward, this thesis proposes a detailed design for an employer based, technology-focused rideshare trial for the Massachusetts Institute of Technology (MIT), supported by a rigorous, Institute-specific analysis of rideshare viability. The trial is designed to be expanded to other institutions in the MIT/Kendall Square area of Cambridge, MA in the future. The analysis suggests that on an ideal day, approximately 65% of consistent, single occupant commuters could share rides, leading to a 19% reduction in Institute-wide, commuting trip VMT. The trial design focuses on the use of technology, incentives and personalized marketing to overcome the 'rideshare challenge' and realize a significant portion of this best case VMT reduction.
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Ridesharing offers the opportunity to make more efficient use of vehicles while preserving the benefits of individual mobility. Presenting ridesharing as a viable option for commuters, however, requires minimizing certain inconvenience factors. One of these factors includes detours which result from picking up and dropping off additional passengers. This paper proposes a method which aims to best utilize ridesharing potential while keeping detours below a specific limit. The method specifically targets ridesharing systems on a very large scale and with a high degree of dynamics which are difficult to address using classical approaches known from operations research. For this purpose, the road network is divided into distinct partitions which define the search space for ride matches. The size and shape of the partitions depend on the topology of the road network as well as on two free parameters. This allows optimizing the partitioning with regard to sharing potential utilization and inconvenience minimization. Match making is ultimately performed using an agent-based approach. As a case study, the algorithm is applied to investigate the potential for taxi sharing in Singapore. This is done by considering about 110 000 daily trips and allowing up to two sharing partners. The outcome shows that the number of trips could be reduced by 42% resulting in a daily mileage savings of 230 000 km. It is further shown that the presented approach exceeds the mileage savings achieved by a greedy heuristic by 6% while requiring 30% lower computational efforts.
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With the rising fuel costs, ride sharing is becoming a common mode of transportation. Sharing taxis which has been prominent in several developing countries is also becoming common in several cities around the world. Sharing taxis presents several advantages as it minimizes vacant seats in cars thus reducing costs on taxi operators which results in significantly lower taxi fares for passengers. Besides the economical advantages, taxi sharing is highly important for reducing congestion on the roads and for minimizing the impact of transportation on the environment. In this paper, we formulate the problem of assigning passengers to taxis and computing the optimal routes of taxis as a mixed integer program. To solve the proposed model, we present a Lagrangian decomposition approach which exploits the structure of the problem leading to smaller problems that are solved separately. Furthermore, we propose two heuristics that are used to obtain good quality feasible solutions. The Lagrangian approach along with the heuristics are implemented and compared to solving the full problem using CPLEX. The computational results indicate the efficiency of the methodology in providing tighter bounds than CPLEX in shorter computational time.
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Significance Recent advances in information technologies have increased our participation in “sharing economies,” where applications that allow networked, real-time data exchange facilitate the sharing of living spaces, equipment, or vehicles with others. However, the impact of large-scale sharing on sustainability is not clear, and a framework to assess its benefits quantitatively is missing. For this purpose, we propose the method of shareability networks, which translates spatio-temporal sharing problems into a graph-theoretic framework that provides efficient solutions. Applying this method to a dataset of 150 million taxi trips in New York City, our simulations reveal the vast potential of a new taxi system in which trips are routinely shareable while keeping passenger discomfort low in terms of prolonged travel time.
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Taxi ridesharing can be of significant social and environmental benefit, e.g. by saving energy consumption and satisfying people's commute needs. Despite the great potential, taxi ridesharing, especially with dynamic queries, is not well studied. In this paper, we formally define the dynamic ridesharing problem and propose a large-scale taxi ridesharing service. It efficiently serves real-time requests sent by taxi users and generates ridesharing schedules that reduce the total travel distance significantly. In our method, we first propose a taxi searching algorithm using a spatio-temporal index to quickly retrieve candidate taxis that are likely to satisfy a user query. A scheduling algorithm is then proposed. It checks each candidate taxi and inserts the query's trip into the schedule of the taxi which satisfies the query with minimum additional incurred travel distance. To tackle the heavy computational load, a lazy shortest path calculation strategy is devised to speed up the scheduling algorithm. We evaluated our service using a GPS trajectory dataset generated by over 33,000 taxis during a period of 3 months. By learning the spatio-temporal distributions of real user queries from this dataset, we built an experimental platform that simulates user real behaviours in taking a taxi. Tested on this platform with extensive experiments, our approach demonstrated its efficiency, effectiveness, and scalability. For example, our proposed service serves 25% additional taxi users while saving 13% travel distance compared with no-ridesharing (when the ratio of the number of queries to that of taxis is 6).
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Taxis make an important contribution to transport in many parts of the world, offering demand-responsive, door-to-door transport. In larger cities, taxis may be hailed on-street or taken from taxi ranks. Elsewhere, taxis are usually ordered by phone. The objective of a taxi dispatcher is to maximize the efficiency of fleet utilization. While the spatial and temporal distribution of taxi requests has in general a high degree of predictability, real time traffic congestion information can be collected and disseminated to taxis by communication technologies. The efficiency of taxi dispatching may be significantly improved through the anticipation of future requests and traffic conditions. A rolling horizon approach to the optimisation of taxi dispatching is formulated, which takes the stochastic and dynamic nature of the problem into account. Numerical experiments are presented to illustrate the performances of the heuristics, taking the time dependency of travel times and passenger arrivals into account.
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A practical and applicable taxi-sharing system based on the use of intelligent transportation system (ITS) technologies has been developed in Taipei City. This system is easy for members to use and inexpensive for the service provider to operate. This paper gives an overview of the taxi-sharing service, presents key algorithms for dynamic rideshare matching processes, describes the field trial operation of the system in Taipei Nei-Hu Science and Technology Park and discusses empirical results to provide valuable implications for better taxi-sharing service in the future.
Optimizing online matching for ride-sourcing services with multi-agent deep reinforcement learning
  • J Ke
  • F Xiao
  • H Yang
  • J Ye