BM-DDPG: An Integrated Dispatching Framework for Ride-Hailing Systems

Abstract

This paper proposes an integrated dispatching framework for matching drivers with riders in ride-hailing systems. The goal is to compute matching solutions that maximize social welfare and benefit both sides of the market, such that the sustainable growth of the ride-hailing system is ensured. The proposed framework integrates data-driven proactive guidance strategies with batched matching optimization to increase social welfare, improve matching rate and reduce rider wait time. Proactive guidance strategies are computed by leveraging short-term demand forecasts based on historical data. Taken the resulting guidance strategies as inputs, the batched matching algorithm computes optimal bipartite matching between drivers and riders in a batch. Using New York City taxi data from 2016 March 1st to March 31st as input, we conduct a numerical study to evaluate the performance of the proposed framework and compare it with existing approaches in the literature. Our results show that the proposed framework improves social welfare for up to 50%. It also increases the matching rate by an average of 20% and reduces the average rider wait time by over 15%. This implies a strong potential for the proposed dispatching framework to improve service quality in ride-hailing systems.