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Ride-sharing is a modern urban-mobility paradigm with tremendous potential in reducing congestion and pollution. Demand-aware design is a promising avenue for addressing a critical challenge in ride-sharing systems, namely joint optimization of request-vehicle assignment and routing for a fleet of vehicles. In this paper, we develop a probabilistic demand-aware framework to tackle the challenge. We focus on maximizing the expected number of passenger pickups, given the probability distributions of future demands. The key idea of our approach is to assign requests to vehicles in a probabilistic manner. It differentiates our work from existing ones and allows us to explore a richer design space to tackle the request-vehicle assignment puzzle with a performance guarantee but still keeping the final solution practically implementable. The optimization problem is non-convex, combinatorial, and NP-hard in nature. As a key contribution, we explore the problem structure and propose an elegant approximation of the objective function to develop a dual-subgradient heuristic. We characterize a condition under which the heuristic generates a $left(1-1/eright)$ approximation solution. Our solution is simple and scalable, amendable for practical implementation. Results of numerical experiments based on real-world traces in Manhattan show that, as compared to a conventional demand-oblivious scheme, our demand-aware solution improves the passenger pickups by up to 46%. The results also show that joint optimization at the fleet level leads to 19% more pickups than that by separate optimizations at individual vehicles.
Sharing economy is a transformative socio-economic phenomenon built around the idea of sharing underused resources and services, e.g. transportation and housing, thereby reducing costs and extracting value. Anticipating continued reduction in the cos
We propose a formal graph-theoretic model for studying the problem of matching rides online in a ride-sharing platform. Unlike most of the literature on online matching, our model, that we call {em Online Windowed Non-Bipartite Matching} ($mbox{OWNBM
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Accurate estimation of parameters is paramount in developing high-fidelity models for complex dynamical systems. Model-based optimal experiment design (OED) approaches enable systematic design of dynamic experiments to generate input-output data sets
On-demand ride-pooling (e.g., UberPool) has recently become popular because of its ability to lower costs for passengers while simultaneously increasing revenue for drivers and aggregation companies. Unlike in Taxi on Demand (ToD) services -- where a