Abstract
The problem of structural imbalance in terms of supply and demand due to changes in traffic patterns by time zone has been continuously raised in the mobility market. In Korea, unlike large overseas cities, the waiting time tolerance increases during the daytime when supply far exceeds demand, resulting in a large loss of operating profit. The purpose of this study is to increase taxi demand and further improve driver’s profits through real-time fare discounts during off-peak daytime hours in Seoul, Korea. To this end, we propose a real-time fare bidding system among taxi drivers based on a dynamic pricing scheme and simulate the appropriate fare discount level for each regional time zone. The driver-to-driver fare competition system consists of simulating fare competition based on the multi-agent Deep Q-Network method after developing a fare discount index that reflects the supply and demand level of each region in 25 districts in Seoul. According to the optimal fare discount level analysis in the off-peak hours, the lower the OI Index, which means the level of demand relative to supply, the higher the fare discount rate. In addition, an analysis of drivers’ profits and matching rates according to the distance between the origin and destination of each region showed up to 89% and 65% of drivers who actively offered discounts on fares. The results of this study in the future can serve as the foundation of a fare adjustment system for varying demand and supply situations in the Korean mobility market.
Highlights
By the fourth Industrial Revolution, the development of mobile and ICT (Information and Communication Technology) opened a new era in platform-based online businesses
A fare-adjusting mechanism called dynamic pricing is considered, and we study the application of reinforcement learning (RL), an artificial intelligence-based learning methodology to implement it
As a result of analyzing prior research on dynamic pricing, we can report that it was mainly studied in terms of revenue management measures before the early
Summary
By the fourth Industrial Revolution, the development of mobile and ICT (Information and Communication Technology) opened a new era in platform-based online businesses. Automakers and IT (Information Technology) companies have recently expanded their entry into the mobility market [1] This led to the provision of the new concept of mobile services that encompass various areas from digital infrastructure to platform services. The platform-based mobility on demand (MOD) service, which includes ride-hailing and ride-sharing services, has grown significantly This includes car-hailing and ride-sharing services, and according to the Ministry of Land, Infrastructure and Transport of Korea, the number of brand taxis combined with platforms surpassed 30,000 [2]. This is attracting attention as a way to improve user mobility and accessibility [3]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
