Ride-Sourcing Dynamic Pricing in Non-Equilibrium Networks

Ride-sourcing services are a prominent mobility mode because of their cost-effectiveness and convenience. They provide a platform that acts as a two-sided market by matching passengers and vacant taxis (or other types of drivers). The conventional ride-sourcing models are based on the equilibrium approach where the demand is cleared (i.e., market clearance) in each time step, and the vacant taxis decide whether to remain or exit the market. This approach is not suitable for operational decision-making where there are noticeable variations in the state of the system, denying the market enough time to balance back into equilibrium. In this paper, the authors propose a controller based on the model predictive control approach to maximize the service provider's profit by dynamically controlling the fare offered to passengers and the wage offered to taxis. The authors assess three pricing strategies where the fare and wage are (i) dynamic and unconstrained, (ii) dynamic and constrained so that the instantaneous profit is positive, and (iii) static and fixed throughout the planning horizon. The results demonstrate that the dynamic and unconstrained strategy has the highest overall profit although it set the wage higher than the fare when the passenger demand peaks.

  • Supplemental Notes:
    • This paper was sponsored by TRB committee ABE25 Standing Committee on Congestion Pricing.
  • Corporate Authors:

    Transportation Research Board

    ,    
  • Authors:
    • Nourinejad, Mehdi
    • Ramezani, Mohsen
  • Conference:
  • Date: 2019

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; References;
  • Pagination: 18p

Subject/Index Terms

Filing Info

  • Accession Number: 01697960
  • Record Type: Publication
  • Report/Paper Numbers: 19-05123
  • Files: TRIS, TRB, ATRI
  • Created Date: Dec 7 2018 9:42AM