How machine learning informs ride-hailing services: A survey

In recent years, online ride-hailing services have emerged as an important component of urban transportation system, which not only provide significant ease for residents’ travel activities, but also shape new travel behavior and diversify urban mobility patterns. This study provides a thorough review of machine-learning-based methodologies for on-demand ride-hailing services. The importance of on-demand ride-hailing services in the spatio-temporal dynamics of urban traffic is first highlighted, with machine-learning-based macro-level ride-hailing research demonstrating its value in guiding the design, planning, operation, and control of urban intelligent transportation systems. Then, the research on travel behavior from the perspective of individual mobility patterns, including carpooling behavior and modal choice behavior, is summarized. In addition, existing studies on order matching and vehicle dispatching strategies, which are among the most important components of on-line ride-hailing systems, are collected and summarized. Finally, some of the critical challenges and opportunities in ride-hailing services are discussed

Dynamic pricing or not?:pricing models of Finnish taxi dispatch centers under the act on transport services

Abstract. In 1.7.2018, Finnish government liberalized Finnish taxi markets to create possibilities to introduce new technology, digitalization and new business models into transport sector. Also allowing usage of dynamic pricing in Finnish taxi markets was specifically mentioned. Before the Act on Transport Services came into effect, Finnish regulations specified maximum limits for fares, taxi licenses and operational area where dispatch centers were allowed to operate. In this study, I will look into how pricing models have evolved after the Act on Transport Services came into effect by collecting data from internet and conducting interviews to understand purposes of the changes more in-depth. Also, I looked into how pricing models have become more dynamic compared to old pricing model, and how dynamic pricing is described in literature. Lastly, I combined list of different aspects that affect to implementation of dynamic pricing. Currently, none of the Finnish dispatch centers have implemented similar dynamic pricing based on demand and supply in real-time as what Uber uses. But based on results, Finnish dispatch center’s pricing models have evolved to be more dynamic even though Finnish dispatch center’s do not consider them to be dynamic. Also, there are obstacles related to willingness, technology and regulations why Finnish dispatch centers do not consider dynamic pricing similar to what Uber uses to be currently possible to implement

Operational research and simulation methods for autonomous ride-sourcing

Ride-sourcing platforms provide on-demand shared transport services by solving decision problems related to ride-matching and pricing. The anticipated commercialisation of autonomous vehicles could transform these platforms to fleet operators and broaden their decision-making by introducing problems such as fleet sizing and empty vehicle redistribution. These problems have been frequently represented in research using aggregated mathematical programs, and alternative practises such as agent-based models. In this context, this study is set at the intersection between operational research and simulation methods to solve the multitude of autonomous ride-sourcing problems. The study begins by providing a framework for building bespoke agent-based models for ride-sourcing fleets, derived from the principles of agent-based modelling theory, which is used to tackle the non-linear problem of minimum fleet size. The minimum fleet size problem is tackled by investigating the relationship of system parameters based on queuing theory principles and by deriving and validating a novel model for pickup wait times. Simulating the fleet function in different urban areas shows that ride-sourcing fleets operate queues with zero assignment times above the critical fleet size. The results also highlight that pickup wait times have a pivotal role in estimating the minimum fleet size in ride-sourcing operations, with agent-based modelling being a more reliable estimation method. The focus is then shifted to empty vehicle redistribution, where the omission of market structure and underlying customer acumen, compromises the effectiveness of existing models. As a solution, the vehicle redistribution problem is formulated as a non-linear convex minimum cost flow problem that accounts for the relationship of supply and demand of rides by assuming a customer discrete choice model and a market structure. An edge splitting algorithm is then introduced to solve a transformed convex minimum cost flow problem for vehicle redistribution. Results of simulated tests show that the redistribution algorithm can significantly decrease wait times and increase profits with a moderate increase in vehicle mileage. The study is concluded by considering the operational time-horizon decision problems of ride-matching and pricing at periods of peak travel demand. Combinatorial double auctions have been identified as a suitable alternative to surge pricing in research, as they maximise social welfare by relying on stated customer and driver valuations. However, a shortcoming of current models is the exclusion of trip detour effects in pricing estimates. The study formulates a shared-ride assignment and pricing algorithm using combinatorial double auctions to resolve the above problem. The model is reduced to the maximum weighted independent set problem, which is APX-hard. Therefore, a fast local search heuristic is proposed, producing solutions within 10\% of the exact approach for practical implementations.Open Acces

Balancing the Tradeoff between Profit and Fairness in Rideshare Platforms During High-Demand Hours

Rideshare platforms, when assigning requests to drivers, tend to maximize profit for the system and/or minimize waiting time for riders. Such platforms can exacerbate biases that drivers may have over certain types of requests. We consider the case of peak hours when the demand for rides is more than the supply of drivers. Drivers are well aware of their advantage during the peak hours and can choose to be selective about which rides to accept. Moreover, if in such a scenario, the assignment of requests to drivers (by the platform) is made only to maximize profit and/or minimize wait time for riders, requests of a certain type (e.g. from a non-popular pickup location, or to a non-popular drop-off location) might never be assigned to a driver. Such a system can be highly unfair to riders. However, increasing fairness might come at a cost of the overall profit made by the rideshare platform. To balance these conflicting goals, we present a flexible, non-adaptive algorithm, \lpalg, that allows the platform designer to control the profit and fairness of the system via parameters $\alpha$ and $\beta$ respectively. We model the matching problem as an online bipartite matching where the set of drivers is offline and requests arrive online. Upon the arrival of a request, we use \lpalg to assign it to a driver (the driver might then choose to accept or reject it) or reject the request. We formalize the measures of profit and fairness in our setting and show that by using \lpalg, the competitive ratios for profit and fairness measures would be no worse than $\alpha/e$ and $\beta/e$ respectively. Extensive experimental results on both real-world and synthetic datasets confirm the validity of our theoretical lower bounds. Additionally, they show that \lpalg under some choice of $(\alpha, \beta)$ can beat two natural heuristics, Greedy and Uniform, on \emph{both} fairness and profit