Optimization of matching-time interval and matching radius in ride-sourcing markets

Abstract

In the on-demand matching process of a ride-sourcing market, the matching-time interval and matching radius are the two key control variables that most affect the matching efficiency. This chapter investigates how the matching-time interval and matching radius affect the performance measures of a ride-sourcing market, such as passengers' matching time, pick-up time and matching rate. First, an aggregate theoretical model is developed for determining the optimal combination of matching-time interval and matching radius under various supply-and-demand conditions. Then, efficient dynamic-matching strategies are designed to adjust the matching-time interval and matching radius in response to changes in these conditions. Finally, numerical studies and simulation experiments are conducted to verify the theoretical results and evaluate the performance of the novel dynamic algorithm that we develop, which adjusts the matching-time interval and matching radius in real time to maximise the long-term performance of a ride-sourcing system.