Optimizing Matching Time Interval and Matching Radius In On-Demand Matching of a Ride-Sourcing Market

42 Pages Posted: 14 May 2019

See all articles by Hai Yang

Hai Yang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering

Xiaoran Qin

Hong Kong University of Science & Technology (HKUST)

Jintao Ke

Hong Kong University of Science & Technology (HKUST)

Jieping Ye

DiDi Labs - DiDi Research Institute

Date Written: April 15, 2019

Abstract

With the availability of location information on drivers and passengers, ride-sourcing platforms are now able to provide more efficient online matching than the physical searching and meeting in traditional taxi market. The matching time interval (a time interval over which waiting passengers and idle drivers are accumulated and then peer-to-peer matching is executed) and matching radius (or maximum allowable pickup distance, within which matching or pairing between waiting passengers and idle drivers can be done) are two key control variables that the platform can employ to optimize the system performance in an online matching system. By appropriately extending matching time interval, the platform can accumulate more waiting (or unserved) passengers and idle drivers and thus match the two pools with shorter expected pickup distance. However, if the matching time interval is excessively long, some passengers may become impatient, and may even cancel their requests. Meanwhile, a short matching radius can reduce expected pickup distance but may decrease the matching rate as well. Therefore, it is important to optimize the matching time interval and matching radius to enhance system efficiency in terms of passenger waiting time, vehicle utilization and matching rate. This paper proposes a model to delineate the online matching process in a ride-sourcing market. The model is then used to examine the impact of the matching time interval and matching radius on system performance and to jointly optimize the two variables under different levels of supply and demand. Numerical experiments are conducted to demonstrate how the proposed modelling and optimization approaches can improve real-time matching processes of ride-sourcing platforms.

Keywords: ride-sourcing, online matching, matching time interval, matching radius

Suggested Citation

Yang, Hai and Qin, Xiaoran and Ke, Jintao and Ye, Jieping, Optimizing Matching Time Interval and Matching Radius In On-Demand Matching of a Ride-Sourcing Market (April 15, 2019). Available at SSRN: https://ssrn.com/abstract=3372349 or http://dx.doi.org/10.2139/ssrn.3372349

Hai Yang

Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering ( email )

Hong Kong

Xiaoran Qin

Hong Kong University of Science & Technology (HKUST) ( email )

Clear Water Bay
Hong Kong

Jintao Ke (Contact Author)

Hong Kong University of Science & Technology (HKUST) ( email )

Clear Water Bay
Hong Kong

Jieping Ye

DiDi Labs - DiDi Research Institute ( email )

Beijing, Haidian District 100085
China

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