Dynamic Prices in Ride-Sharing Scenarios

Lech Duraj, Grzegorz Herman

2024

Abstract

We describe a dynamic pricing strategy applicable to ride-sharing scenarios in public transportation services. The strategy incorporates data about relation popularity and price acceptance rates. Crucially, it captures interdependencies between tickets for different relations served by a single vehicle, and thus is able to balance out locally optimal pricing with the expected future evolution of vehicle occupancy state. Based on historical data about a real-world ride-sharing operator, we demonstrate that the proposed method is robust to imperfections in the input data, and estimate it to be more profitable than both fixed-price strategies (even theoretically optimal), and an actual dynamic pricing strategy prescribed by business experts.

Paper Citation

in Harvard Style

Duraj L. and Herman G. (2024). Dynamic Prices in Ride-Sharing Scenarios. In Proceedings of the 10th International Conference on Vehicle Technology and Intelligent Transport Systems - Volume 1: VEHITS; ISBN 978-989-758-703-0, SciTePress, pages 437-443. DOI: 10.5220/0012722500003702

in Bibtex Style

@conference{vehits24,
author={Lech Duraj and Grzegorz Herman},
title={Dynamic Prices in Ride-Sharing Scenarios},
booktitle={Proceedings of the 10th International Conference on Vehicle Technology and Intelligent Transport Systems - Volume 1: VEHITS},
year={2024},
pages={437-443},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012722500003702},
isbn={978-989-758-703-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 10th International Conference on Vehicle Technology and Intelligent Transport Systems - Volume 1: VEHITS
TI - Dynamic Prices in Ride-Sharing Scenarios
SN - 978-989-758-703-0
AU - Duraj L.
AU - Herman G.
PY - 2024
SP - 437
EP - 443
DO - 10.5220/0012722500003702
PB - SciTePress