The optimal dispatching of taxis under congestion: A rolling horizon approach

Taxis make an important contribution to transport in many parts of the world, offering demand‐responsive, door‐to‐door transport. In larger cities, taxis may be hailed on‐street or taken from taxi ranks. Elsewhere, taxis are usually ordered by phone. The objective of a taxi dispatcher is to maximize the efficiency of fleet utilization. While the spatial and temporal distribution of taxi requests has in general a high degree of predictability, real time traffic congestion information can be collected and disseminated to taxis by communication technologies. The efficiency of taxi dispatching may be significantly improved through the anticipation of future requests and traffic conditions. A rolling horizon approach to the optimisation of taxi dispatching is formulated, which takes the stochastic and dynamic nature of the problem into account. Numerical experiments are presented to illustrate the performances of the heuristics, taking the time dependency of travel times and passenger arrivals into account.     

Equilibrium properties of taxi markets with search frictions

The equilibrium properties of an aggregate taxi market are investigated using a general bilateral searching and meeting function which characterizes the search frictions between vacant taxis and unserved customers. Three specific issues are analyzed for meeting functions that exhibit increasing, constant and decreasing returns to scale. Firstly, service quality in terms of customer wait/search time and average profit per taxi are examined jointly in relation to taxi fleet size, and a Pareto-improving win-win situation is identified, where an increase in taxi fleet size leads to improvements in both service quality and market profitability. Such a Pareto-improving situation is found to emerge if and only if the meeting functions show increasing returns to scale. Secondly, the properties of the socially optimal solution are examined. It is found that the taxi fleet size should be chosen such that the total cost of operating vacant taxis equals the total cost of customer waiting time multiplied by an asymmetric factor of the meeting function, and that taxi services should be subsidized at social optimum only when the meeting functions show increasing returns to scale. Thirdly, the Pareto-efficient services are examined for trade-offs between social welfare and profits in the light of partially conflicting objectives of the public sector and the private taxi firms using a bi-objective maximization approach. The taxi utilization rate and the customer wait/search time or service quality are proved to be constant along the Pareto frontier and equal to those at social optimum if the meeting functions show constant returns to scale. Extensions are made to the cases with increasing and decreasing returns to scale.     

An agent‐based simulation model to assess the impacts of introducing a shared‐taxi system: an application to Lisbon (Portugal)

This paper presents a new concept of urban shared‐taxi services. The proposed system has a new organisational design and pricing scheme that aims to use the capacity in traditional taxi services in a more efficient way. In this system, a taxi acting in ‘sharing’ mode offers lower prices to its clients, in exchange for them to accept sharing the vehicle with other persons who have compatible trips (time and space). The paper proposes and tests an agent‐based simulation model in which a set of rules for space and time matching between a request of a client and the candidate shared taxis is identified. It considers that the client is only willing to accept a maximum deviation from his or her direct route and establishes an objective function for selecting the best candidate taxi. The function considers the minimum travel time combination of pickup and drop‐off of all the pool of clients sharing each taxi while allowing to establish a policy of bonuses to competing taxis with certain number of occupants. An experiment for the city of Lisbon is presented with the objectives of testing the proposed simulation conceptual model and showing the potential of sharing taxis for improving mobility management in urban areas. Results show that the proposed system may lead to significant fare and travel time savings to passengers, while not jeopardising that much the taxi revenues. Copyright © 2014 John Wiley & Sons, Ltd.     

Customers’ selections between premium electric taxis and liquefied petroleum gas taxis

Reducing roadside emissions is a common challenge in metropolitan cities. In Hong Kong, conventional liquefied petroleum gas taxis are one of the main contributors to roadside emissions as they operate on the streets 24 h a day with a long daily driving mileage. Moreover, these taxis suffer from a severely poor service reputation. To enhance the environmental friendliness and service quality of the taxi industry, this study explores the market potential of operating premium electric taxis in the dispatching mode. A stated preference survey was conducted to 1410 taxi customers about their taxi-riding choices between premium electric taxis and conventional liquefied petroleum gas taxis. In total, 5640 observations were obtained and used to develop a series of binary logistic regression models with different model formulations for the determination of the significant factors influencing customers’ selections. The findings indicate that walk time to and wait time for taxis were the most critical concerns to the customers, and they were more willing to take premium taxis if their journey distance was longer and their desired improvement on taxi service quality was greater. The socio-demographic status of taxi customers also influences their choices. The associated policy implications are discussed for promoting taxis with better service quality and fewer roadside emissions. The findings provide some policy insights to other international cities that have a similar taxi market to Hong Kong.     

Behavior of taxi customers in hailing vacant taxis: a nested logit model for policy analysis

This study models and examines the taxi customers' preferences for hailing vacant taxis on streets. A stated preference survey was conducted to randomly select and interview 1242 taxi customers at taxi stands and pedestrians on streets, who had experiences of taking taxis recently, about their choices under different given hypothetical scenarios. In total, 4968 observations were collected and used for developing the discrete choice models for the analysis. To account for the potential correlations among alternatives, two nested logit models are developed, calibrated, and compared with a standard multinomial logit model in the investigation. The results of likelihood ratio test demonstrate that one of the developed nested logit models is better than the standard multinomial logit model to describe the search behavior of taxi customers. The model results also show that the walking time to and the waiting time at the location for hailing taxis, the extra travel time to the destination because of local circulation for finding a way from the pickup location heading to a passenger's destination, as well as the taxi customers' perceptions for walking to and waiting at taxi stands were found as significant factors to influence their decisions. In addition, the results of market segmentation analysis illustrate the variations in taxi‐search strategies of taxi customers in different districts and regions. Some policy implications on introducing more taxi stands and improving the utilization rates of taxi stands are also discussed. We believe that the proposed models, findings, and discussion are useful for developing micro‐simulation models to evaluate the performance of road traffic networks with taxi services and developing simulation‐based optimization models to answer policy questions related to taxi services. Copyright © 2015 John Wiley & Sons, Ltd.     

Dynamic ride sharing using traditional taxis and shared autonomous taxis: A case study of NYC

This study analyzes the potential benefits and drawbacks of taxi sharing using agent-based modeling. New York City (NYC) taxis are examined as a case study to evaluate the advantages and disadvantages of ride sharing using both traditional taxis (with shifts) and shared autonomous taxis. Compared to existing studies analyzing ride sharing using NYC taxi data, our contributions are that (1) we proposed a model that incorporates individual heterogeneous preferences; (2) we compared traditional taxis to autonomous taxis; and (3) we examined the spatial change of service coverage due to ride sharing. Our results show that switching from traditional taxis to shared autonomous taxis can potentially reduce the fleet size by 59% while maintaining the service level and without significant increase in wait time for the riders. The benefit of ride sharing is significant with increased occupancy rate (from 1.2 to 3), decreased total travel distance (up to 55%), and reduced carbon emissions (up to 866 metric tonnes per day). Dynamic ride sharing, wich allows shared trips to be formed among many groups of riders, up to the taxi capacity, increases system flexibility. Constraining the sharing to be only between two groups limits the sharing participation to be at the 50–75% level. However, the reduced fleet from ride sharing and autonomous driving may cause taxis to focus on areas of higher demands and lower the service levels in the suburban regions of the city.     

Fixed‐route taxi system: route network design and fleet size minimization problems

This paper introduces the taxi route network design problem (TXRNDP) for a fixed‐route taxi service operating in Iran and, in similar form, in various other developing countries. The service operates fairly similar to regular transit services in that vehicles are only permitted to follow a certain predetermined route on the network. The service is provided with small size vehicles and main features are that vehicles only depart if full and that there are no intermediate boarding stops. In Iran the service attracts a high modal share but requires better coordination which is the main motivation for the present study. We develop a mathematical programming model to minimize the total travel time experienced by passengers while constraining the number of taxi lines, the trip transfer ratio and the length of taxi lines. A number of assumptions are introduced in order to allow finding an exact rather than heuristic solution. We further develop a linear programming solution to minimize the number of taxis required to serve the previously found fixed‐route taxi network. Results of a case study with the city of Zanjan, Iran, illustrate the resulting taxi flows and suggest the capability of the proposed model to reduce the total travel time, the total waiting time and the number of taxi lines compared to the current taxi operation. Copyright © 2016 John Wiley & Sons, Ltd.     

A two-stage approach to modeling vacant taxi movements

In this paper, a two-stage modeling approach is proposed to predict vacant taxi movements in searching for customers. The taxi movement problem is formulated into a two-stage model that consists of two sub-models, namely the first and second stage sub-models. The first stage sub-model estimates the zone choice of vacant taxi drivers for customer-search and the second stage sub-model determines the circulation time and distance of vacant taxi drivers in each zone by capturing their local customer-search decisions in a cell-based network within the zone chosen in the first stage sub-model. These two sub-models are designed to influence each other, and hence an iterative solution procedure is introduced to solve for a convergent solution. The modeling concept, advantages, and applications are illustrated by the global positioning system data of 460 Hong Kong urban taxis. The results demonstrate that the proposed model formulation offers a great improvement in terms of root mean square error as compared with the existing taxi customer-search models, and show the model capabilities of predicting the changes in vacant taxi trip distributions with respect to the variations in the fleet size and fare. Potential taxi policies are investigated and discussed according to the findings to provide insights in managing the Hong Kong taxi market.     

Modeling the bilateral micro‐searching behavior for urban taxi services using the absorbing markov chain approach

This paper develops a mathematical model that is based on the absorbing Markov chain approach to describe taxi movements, taking into account the stochastic searching processes of taxis in a network. The local searching behavior of taxis is specified by a logit form, and the O‐D demand of passengers is estimated as a logit model with a choice of taxi meeting point. The relationship between customer and taxi waiting times is modeled by a double‐ended queuing system. The problem is solved with a set of non‐linear equations, and some interesting results are presented. The research provides a novel and potentially useful formulation for describing the urban taxi services in a network.     

How can the taxi industry survive the tide of ridesourcing? Evidence from Shenzhen,China

This paper aims to examine the impact of ridesourcing on the taxi industry and explore where, when and how taxis can compete more effectively. To this end a large taxi GPS trajectory data set collected in Shenzhen, China is mined and more than 2,700 taxis (or about 18% of all registered in the city) are tracked in a period of three years, from January 2013 to November 2015, when both e-hailing and ridesourcing were rapidly spreading in the city. The long sequence of GPS data points is first broken into separate “trips”, each corresponding to a unique passenger state, an origin/destination zone, and a starting/ending time. By examining the trip statistics, we found that: (1) the taxi industry in Shenzhen has experienced a significant loss in its ridership that can be indisputably credited to the competition from ridesourcing. Yet, the evidence is also strong that the shock was relatively short and that the loss of the taxi industry had begun to stabilize since the second half of 2015; (2) taxis are found to compete more effectively with ridesourcing in peak period (6–10 AM, 5–8 PM) and in areas with high population density. (3) e-hailing helps lift the capacity utilization rate of taxis. Yet, the gains are generally modest except for the off-peak period, and excessive competition can lead to severely under-utilized capacities; and (4) ridesourcing worsens congestion for taxis in the city, but the impact was relatively mild. We conclude that a dedicated service fleet with exclusive street-hailing access will continue to co-exist with ridesourcing and that regulations are needed to ensure this market operate properly.     

A three-dimensional macroscopic fundamental diagram for mixed bi-modal urban networks

Recent research has studied the existence and the properties of a macroscopic fundamental diagram (MFD) for large urban networks. The MFD should not be universally expected as high scatter or hysteresis might appear for some type of networks, like heterogeneous networks or freeways. In this paper, we investigate if aggregated relationships can describe the performance of urban bi-modal networks with buses and cars sharing the same road infrastructure and identify how this performance is influenced by the interactions between modes and the effect of bus stops. Based on simulation data, we develop a three-dimensional vehicle MFD (3D-vMFD) relating the accumulation of cars and buses, and the total circulating vehicle flow in the network. This relation experiences low scatter and can be approximated by an exponential-family function. We also propose a parsimonious model to estimate a three-dimensional passenger MFD (3D-pMFD), which provides a different perspective of the flow characteristics in bi-modal networks, by considering that buses carry more passengers. We also show that a constant Bus–Car Unit (BCU) equivalent value cannot describe the influence of buses in the system as congestion develops. We then integrate a partitioning algorithm to cluster the network into a small number of regions with similar mode composition and level of congestion. Our results show that partitioning unveils important traffic properties of flow heterogeneity in the studied network. Interactions between buses and cars are different in the partitioned regions due to higher density of buses. Building on these results, various traffic management strategies in bi-modal multi-region urban networks can then be integrated, such as redistribution of urban space among different modes, perimeter signal control with preferential treatment of buses and bus priority.     

Equilibrium analysis and route guidance in large-scale networks with MFD dynamics

Recent studies have demonstrated that Macroscopic Fundamental Diagram (MFD), which provides an aggregated model of urban traffic dynamics linking network production and density, offers a new generation of real-time traffic management strategies to improve the network performance. However, the effect of route choice behavior on MFD modeling in case of heterogeneous urban networks is still unexplored. The paper advances in this direction by firstly extending two MFD-based traffic models with different granularity of vehicle accumulation state and route choice behavior aggregation. This configuration enables us to address limited traffic state observability and to scrutinize implications of drivers’ route choice in MFD modeling. We consider a city that is partitioned in a small number of large-size regions (aggregated model) where each region consists of medium-size sub-regions (more detailed model) exhibiting a well-defined MFD. This paper proposes a route guidance advisory control system based on the aggregated model as a large-scale traffic management strategy that utilizes aggregated traffic states while sub-regional information is partially known. In addition, we investigate the effect of equilibrium conditions (i.e. user equilibrium and system optimum) on the overall network performance, in particular MFD functions.     

Taxis in road pricing zone: should they pay the congestion charge?

This study aims at investigating the impact and feasibility of charging taxis with toll fee in the pricing zone when designing congestion pricing scheme. A bi‐level programming model is developed to compare the maximum social welfares before and after the congestion charge is imposed on taxis. The lower level is a combined network equilibrium model formulated as a variational inequality program, which considers the logit‐based mode split, route choice, elastic demand, and vacant taxi distributions. The upper level is to maximize the social welfare when toll rates vary. The bi‐level problem can be solved by the genetic algorithm, whereas the lower level is solved by the block Gauss–Seidel decomposition approach together with the method of successive averages and diagonalization algorithm. An application with numerical examples is conducted to demonstrate the effectiveness of the proposed model and algorithm and to reveal some interesting findings. Copyright © 2014 John Wiley & Sons, Ltd.     

Regulating taxi services in the presence of congestion externality

In most large cities, the taxi industry is subject to various types of regulation, such as entry restrictions and price controls, and economists have examined the economic consequences of such regulation extensively. Unfortunately, in conventional economic analyses of competition and regulation in the taxi industry little attention has been paid to one important issue: congestion externalities due to both occupied and vacant taxi movements together with normal vehicular traffic. This study investigates the nature of equilibrium and regulation in the taxi market by taking account of congestion externalities and adopting a realistic distance-based and delay-based taxi fare structure. The monopoly, the social optimum and the stable competitive solutions are examined and illustrated with a numerical example.     

A cell-based logit-opportunity taxi customer-search model

This paper proposes a cell-based model to predict local customer-search movements of vacant taxi drivers, which incorporates the modeling principles of the logit-based search model and the intervening opportunity model. The local customer-search movements were extracted from the global positioning system data of 460 Hong Kong urban taxis and inputted into a cell-based taxi operating network to calibrate the model and validate the modeling concepts. The model results reveal that the taxi drivers’ local search decisions are significantly affected by the (cumulative) probability of successfully picking up a customer along the search route, and that the drivers do not search their customers under the random walk principle. The proposed model helps predict the effects of the implementation of the policies in adjusting the taxi fleet size and the changes in passenger demand on the customer-search distance and time of taxi drivers.     

Modeling and optimization of multimodal urban networks with limited parking and dynamic pricing

Cruising-for-parking constraints mobility in urban networks. Car-users may have to cruise for on-street parking before reaching their destinations. The accessibility and the cost of parking significantly influence people's travel behavior (such as mode choice, or parking facility choice between on-street and garage). The cruising flow causes delays eventually to everyone, even users with destinations outside limited parking areas. It is therefore important to understand the impact of parking limitation on mobility, and to identify efficient parking policies for travel cost reduction. Most existing studies on parking fall short in reproducing the dynamic spatiotemporal features of traffic congestion in general, lack the treatment of dynamics of the cruising-for-parking phenomenon, or require detailed input data that are typically costly and difficult to collect. In this paper, we propose an aggregated and dynamic approach for modeling multimodal traffic with the treatment on parking, and utilize the approach to design dynamic parking pricing strategies. The proposed approach is based on the Macroscopic Fundamental Diagram (MFD), which can capture congestion dynamics at network-level for single-mode and bi-modal (car and bus) systems. A parsimonious parking model is integrated into the MFD-based multimodal modeling framework, where the dynamics of vehicular and passenger flows are considered with a change in the aggregated behavior (e.g. mode choice and parking facility choice) caused by cruising and congestion. Pricing strategies are developed with the objective of reducing congestion, as well as lowering the total travel cost of all users. A case study is carried out for a bi-modal city network with a congested downtown region. An elegant feedback dynamic parking pricing strategy can effectively reduce travel delay of cruising and the generic congestion. Remarkably, such strategy, which is applicable in real-time management with limited available data, is fairly as efficient as a dynamic pricing scheme obtained from system optimum conditions and a global optimization with full information about the future states of the system. Stackelberg equilibrium is also investigated in a competitive behavior between different parking facility operators. Policy indications on on-street storage capacity management and pricing are provided.     

The ‘redheads’ of Niamey: an original way of providing urban transport

In Niamey, private motor vehicles carry 80% of those who use public transport. These vehicles are urban shared taxis called ‘redheads’ and run through the streets of the city in all directions. Their vital importance for the mobility of city‐dwellers justifies their strict supervision and the setting of fares by public authorities.

At present, the ‘redheads’ are in crisis. Taxi owners are no longer able to make a profit on their capital and are ceasing to invest. Urban buses are unable to replace taxis, for they operate at a large deficit. The government of Niger hopes to restore the level of transport service by means of new regulations for the taxi business in the city.

But this business is in the hands of both taxi owners and drivers, who, while partners in the operation, dispute over their share of the revenues. The aim of this article is to provide an economic and political analysis of this particular form of production of urban transport, in which employers who cannot control their companies, employees who reserve the profits of the business for themselves, and public authorities who are compelled to intervene, are coming face to face.     

Dynamics of heterogeneity in urban networks: aggregated traffic modeling and hierarchical control

Real traffic data and simulation analysis reveal that for some urban networks a well-defined Macroscopic Fundamental Diagram (MFD) exists, which provides a unimodal and low-scatter relationship between the network vehicle density and outflow. Recent studies demonstrate that link density heterogeneity plays a significant role in the shape and scatter level of MFD and can cause hysteresis loops that influence the network performance. Evidently, a more homogeneous network in terms of link density can result in higher network outflow, which implies a network performance improvement. In this article, we introduce two aggregated models, region- and subregion-based MFDs, to study the dynamics of heterogeneity and how they can affect the accuracy scatter and hysteresis of a multi-subregion MFD model. We also introduce a hierarchical perimeter flow control problem by integrating the MFD heterogeneous modeling. The perimeter flow controllers operate on the border between urban regions, and manipulate the percentages of flows that transfer between the regions such that the network delay is minimized and the distribution of congestion is more homogeneous. The first level of the hierarchical control problem can be solved by a model predictive control approach, where the prediction model is the aggregated parsimonious region-based MFD and the plant (reality) is formulated by the subregion-based MFDs, which is a more detailed model. At the lower level, a feedback controller of the hierarchical structure, tries to maximize the outflow of critical regions, by increasing their homogeneity. With inputs that can be observed with existing monitoring techniques and without the need for detailed traffic state information, the proposed framework succeeds to increase network flows and decrease the hysteresis loop of the MFD. Comparison with existing perimeter controllers without considering the more advanced heterogeneity modeling of MFD highlights the importance of such approach for traffic modeling and control.     

Predicting market potential and environmental benefits of deploying electric taxis in Nanjing,China

This paper investigates the market potential and environmental benefits of replacing internal combustion engine (ICE) vehicles with battery electric vehicles (BEVs) in the taxi fleet in Nanjing, China. Vehicle trajectory data collected by onboard global positioning system (GPS) units are used to study the travel patterns of taxis. The impacts of charger power, charging infrastructure coverage, and taxi apps on the feasibility of electric taxis are quantified, considering taxi drivers’ recharging behavior and operating activities. It is found that (1) depending on the charger power and coverage, 19% (with AC Level 2 chargers and 20% charger network coverage) to 56% (with DC chargers and 100% charger network coverage) of the ICE vehicles can be replaced by electric taxis without driving pattern changes; (2) by using taxi apps to find nearby passengers and charging stations, drivers could utilize the empty cruising time to charge the battery, which may increase the acceptance of BEVs by up to 82.6% compared to the scenario without taxi apps; and (3) tailpipe emissions in urban areas could be significantly reduced with taxi electrification: a mixed taxi fleet with 46% compressed-natural-gas-powered (CNG) and 54% electricity-powered vehicles can reduce the tailpipe emissions by 48% in comparison with the fleet of 100% CNG taxis.