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.     

Nonlinear pricing of taxi services

This paper examines the effects of nonlinear fare structures in taxi markets using an extended taxi model with an explicit consideration of perceived profitability. The expected profit, defined as the profit per unit time (inclusive of both occupied and vacant taxi times), that a taxi driver expects to receive from picking up a customer in a particular zone or location, has great impact on the taxi driver’s choice of location in the search for customers. The fare structure directly governs the profitability of taxi rides of different distances originating from different locations. With these explicit considerations, the extended model is intended to look into the market effects of adopting a nonlinear fare structure with declining incremental charges. The proposed nonlinear fare structure could help restore a level-playing field for taxi operators whose businesses have been affected by some taxi drivers who resort to practices such as offering fare discounts or accepting requests for discounted fares from passengers for long-haul trips. Analysis of sensitivity of social welfare and profit gain as well as taxi/customer wait/search times is conducted with respect to the parameters in the nonlinear fare structure for the Hong Kong taxi market, and Pareto-improving nonlinear fare amendments are identified that neither disadvantage any customer nor reduce the taxi operators’ profits.     

Dynamic modeling and control of taxi services in large-scale urban networks: A macroscopic approach

Taxis are increasingly becoming a prominent mobility mode in many major cities due to their accessibility and convenience. The growing number of taxi trips and the increasing contribution of taxis to traffic congestion are cause for concern when vacant taxis are not distributed optimally within the city and are unable to find unserved passengers effectively. A way of improving taxi operations is to deploy a taxi dispatch system that matches the vacant taxis and waiting passengers while considering the search friction dynamics. This paper presents a network-scale taxi dispatch model that takes into account the interrelated impact of normal traffic flows and taxi dynamics while optimizing for an effective dispatching system. The proposed model builds on the concept of the macroscopic fundamental diagram (MFD) to represent the dynamic evolution of traffic conditions. The model considers multiple taxi service firms operating in a heterogeneously congested city, where the city is assumed to be partitioned into multiple regions each represented with a well-defined MFD. A model predictive control approach is devised to control the taxi dispatch system. The results show that lack of the taxi dispatching system leads to severe accumulation of unserved taxi passengers and vacant taxis in different regions whereas the dispatch system improves the taxi service performance and reduces traffic congestion by regulating the network towards the undersaturated condition. The proposed framework demonstrates sound potential management schemes for emerging mobility solutions such as fleet of automated vehicles and demand-responsive transit services.     

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.     

Equilibria of bilateral taxi–customer searching and meeting on networks

This paper proposes an equilibrium model to characterize the bilateral searching and meeting between customers and taxis on road networks. A taxi driver searches or waits for a customer by considering both the expected searching or waiting time cost and ride revenue, and a customer seeks a taxi ride to minimize full trip price. We suppose that the bilateral taxi–customer searching and meeting occurs anywhere in residential and commercial zones or at prescribed taxi stands, such as an airport or a railway station. We propose a meeting function to spell out the search and meeting frictions that arise endogenously as a result of the distinct spatial feature of the area and the taxi–customer moving decisions. With the proposed meeting function and the assumptions underlying taxi–customer search behaviors, the stationary competitive equilibrium achieved at fixed fare prices is determined when the demand of the customers matches the supply of taxis or there is market clearing at the prevailing searching and waiting times in every meeting location. We establish the existence of such an equilibrium by virtue of Brouwer’s fixed-point theorem and demonstrate its principal operational characteristics with a numerical example.     

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.     

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.     

Taxi services with search frictions and congestion externalities

Built upon the previous studies, this paper incorporates both bilateral taxi–customer search frictions and congestion externalities into the economic analyses of the equilibrium properties of taxi markets. We take account of congestion externalities by adopting a realistic distance‐based and delay‐based taxi fare structure. We first investigate comparative static effects of regulatory variables of taxi fare and fleet size on the market and then examine the properties of the Pareto‐efficient solutions for simultaneous maximization of social welfare and taxi profit in the congested market. Copyright © 2012 John Wiley & Sons, Ltd.     

Optimal scheduling of a taxi fleet with mixed electric and gasoline vehicles to service advance reservations

This study addresses the problem of scheduling a fleet of taxis that are appointed to solely service customers with advance reservations. In contrast to previous studies that have dealt with the planning and operations of a taxi fleet with only electric vehicles (EVs), we consider that most taxi companies may have to operate with fleets comprised of both gasoline vehicles (GVs) and plug-in EVs during the transition from GV to (complete) EV taxi fleets. This paper presents an innovative multi-layer taxi-flow time-space network which effectively describes the movements of the taxis in the dimensions of space and time. An optimization model is then developed based on the time-space network to determine an optimal schedule for the taxi fleet. The objective is to minimize the total operating cost of the fleet, with a set of operating constraints for the EVs and GVs included in the model. Given that the model is formulated as an integer multi-commodity network flow problem, which is characterized as NP-hard, we propose two simple but effective decomposition-based heuristics to efficiently solve the problem with practical sizes. Test instances generated based on the data provided by a Taiwan taxi company are solved to evaluate the solution algorithms. The results show that the gaps between the objective values of the heuristic solutions and those of the optimal solutions are less than 3%, and the heuristics require much less time to obtain the good quality solutions. As a result, it is shown that the model, coupled with the algorithms, can be an effective planning tool to assist the company in routing and scheduling its fleet to service reservation customers.     

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.     

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.     

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.     

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.     

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.     

Modeling urban taxi services in road networks: Progress,problem and prospect

Traditionally, many economists have examined the models and economics of urban taxi services under various types of regulation such as entry restriction and price control in an aggregate way. Only recently have we modeled urban taxi services in a network context. A realistic method has been proposed to describe vacant and occupied taxi movements in a road network and taxi drivers' search behavior for customers. A few extensions have been made to deal with demand elasticity and congestion effects together with development of efficient solution algorithms. Calibration and validation of the network taxi service models have been conducted towards their practical applications. This paper presents an overview of the research that has been carried out by the authors to develop network equilibrium models and solution algorithms for urban taxi services, and offers perspectives for future researches.     

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.     

Solution methods for the taxi pooling problem

In Taiwan, taxi pooling is currently performed by some taxi companies using a trial-and-error experience-based method, which is neither effective nor efficient. There is, however, little in the literature on effective models and solution methods for solving the taxi pooling problem. Thus, in this study we employ network flow techniques and a mathematical programming method to develop a taxi pooling solution method. This method is composed of three models. First, a fleet routing/scheduling model is constructed to produce fleet/passenger routes and schedules. A solution algorithm, based on Lagrangian relaxation, a sub-gradient method and a heuristic to find the upper bound of the solution, is proposed to solve the fleet routing/scheduling model. Then, two single taxi-passenger matching models are constructed with the goals of decreasing number of passenger transfers and matching all passengers and taxis. These two taxi-passenger matching models are directly solved using a mathematical programming solver. For comparison with the solution method, we also develop another heuristic by modifying a heuristic recently proposed for solving a one-to-many taxi pooling problem. The performance of the solution method and the additional heuristic are evaluated by carrying out a case study using real data and suitable assumptions. The test results show that these two solution methods could be useful in practice.     

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.     

Evaluating the impact of spatio-temporal demand forecast aggregation on the operational performance of shared autonomous mobility fleets

Fleet operators rely on forecasts of future user requests to reposition empty vehicles and efficiently operate their vehicle fleets. In the context of an on-demand shared-use autonomous vehicle (AV) mobility service (SAMS), this study analyzes the trade-off that arises when selecting a spatio-temporal demand forecast aggregation level to support the operation of a SAMS fleet. In general, when short-term forecasts of user requests are intended for a finer space–time discretization, they tend to become less reliable. However, holding reliability constant, more disaggregate forecasts provide more valuable information to fleet operators. To explore this trade-off, this study presents a flexible methodological framework to evaluate and quantify the impact of spatio-temporal demand forecast aggregation on the operational efficiency of a SAMS fleet. At the core of the methodological framework is an agent-based simulation that requires a demand forecasting method and a SAMS fleet operational strategy. This study employs an offline demand forecasting method, and an online joint AV-user assignment and empty AV repositioning strategy. Using this forecasting method and fleet operational strategy, as well as Manhattan, NY taxi data, this study simulates the operations of a SAMS fleet across various spatio-temporal aggregation levels. Results indicate that as demand forecasts (and subregions) become more spatially disaggregate, fleet performance improves, in terms of user wait time and empty fleet miles. This finding comes despite demand forecast quality decreasing as subregions become more spatially disaggregate. Additionally, results indicate the SAMS fleet significantly benefits from higher quality demand forecasts, especially at more disaggregate levels.

     

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.