Optimal Demand-Aware Ride-Sharing Routing

Authors:
Qiulin Lin The Chinese University of Hong Kong, Hong Kong
Lei Deng The Chinese University of Hong Kong, Hong Kong
Jingzhou Sun Tsinghua University, P.R. China
Minghua Chen The Chinese University of Hong Kong, P.R. China

Abstract:

We consider the problem of exploring travel demand statistics to optimize ride-sharing routing, in which the driver of a vehicle determines a route to transport multiple customers with similar itineraries and schedules in a cost-effective and timely manner. This problem is important for unleashing economical and societal benefits of ride-sharing. Meanwhile, it is challenging due to the need of (i) meeting travel delay requirements of customers, and (ii) making online decisions without knowing the exact travel demands beforehand. We present a general framework for exploring the new design space enabled by the demand-aware approach. We show that the demand-aware ride-sharing routing is fundamentally a two-stage stochastic optimization problem. We show that the problem is NP-Complete in the weak sense. We exploit the two-stage structure to design an optimal solution with pseudo-polynomial time complexity, which makes it amenable for practical implementation. We carry out extensive simulations based on real-world travel demand traces of Manhattan. The results show that using our demand-aware solution instead of the conventional greedy-routing scheme increases the driver's revenue by 10%. The results further show that as compared to the case without ride-sharing, our ride-sharing solution reduces the customers' payment by 9% and the total vehicle travel time (indicator of greenhouse gas emission) by 17%. The driver can also get 26% extra revenues per slot by participating in ride-sharing.

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