Highlights A new class of on-demand transport services is investigated. New agent-based models are introduced for passengers and the service provider. We propose and analyze a market mechanism to jointly schedule, route, and price passengers. The profit and efficiency of our mechanism are compared. We demonstrate our mechanism can outperform standard fixed price-rate approaches.

    Abstract On-demand transport services in the form of dial-a-ride and taxis are crucial parts of the transport infrastructure in all major cities. However, not all on-demand transport services are equal: not-for-profit dial-a-ride services with coordinated drivers significantly differ from profit-motivated taxi services with uncoordinated drivers. In fact, there are two key threads of work on efficient scheduling, routing, and pricing for passengers: dial-a-ride services; and taxi services. Unfortunately, there has been only limited development of algorithms for joint optimization of scheduling, routing, and pricing; largely due to the widespread assumption of fixed pricing. In this paper, we introduce another thread: profit-motivated on-demand transport services with coordinated drivers. To maximize provider profits and the efficiency of the service, we propose a new market mechanism for this new thread of on-demand transport services, where passengers negotiate with the service provider. In contrast to previous work, our mechanism jointly optimizes scheduling, routing, and pricing. Ultimately, we demonstrate that our approach can lead to higher profits and reduced passenger prices, compared with standard fixed price approaches, while also improving efficiency.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Market mechanism design for profitable on-demand transport services


    Contributors:


    Publication date :

    2016-04-21


    Size :

    18 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






    Growing niche market offers profitable opportunities

    British Library Online Contents | 2007


    Preferences for the Demand for Telematics Services on the Rail Freight Transport Market

    Figura, Janusz | British Library Conference Proceedings | 2020


    Demand Elasticity on the Transport Market

    Teodor Perić / Nada Štrumberger | DOAJ | 2002

    Free access