Exact matching of attractive shared rides (ExMAS) for system-wide strategic evaluations

Abstract

The premise of ride-sharing is that service providers can offer a discount, so that travellers are compensated for prolonged travel times and induced discomfort, while still increasing their revenues. While recently proposed real-time solutions support online operations, algorithms to perform strategic system-wide evaluations are crucially needed. We propose an exact, replicable and demand-, rather than supply-driven algorithm for matching trips into shared rides. We leverage on delimiting our search for attractive shared rides only, which, coupled with a directed shareability multi-graph representation and efficient graph searches with predetermined node sequence, narrows the (otherwise exploding) search-space effectively enough to derive an exact solution. The proposed utility-based formulation paves the way for model integration in travel demand models, allowing for a cross-scenario sensitivity analysis, including pricing strategies and regulation policies. We apply the proposed algorithm in a series of experiments for the case of Amsterdam, where we perform a system-wide analysis of the ride-sharing performance in terms of both algorithm computations of shareability under alternative demand, network and service settings as well as behavioural parameters. In the case of Amsterdam, 3000 travellers offered a 30% discount form 1900 rides achieving an average occupancy of 1.67 and yielding a 30% vehicle-hours reduction at the cost of halving service provider revenues and a 17% increase in passenger-hours. Benchmarking against time-window constrained approaches reveals that our algorithm reduces the search-space more effectively, while yielding solutions that are substantially more attractive for travellers.