Real-time city-scale ridesharing via linear assignment problems

In this paper, we propose a novel, computational efficient, dynamic ridesharing algorithm. The beneficial computational properties of the algorithm arise from casting the ridesharing problem as a linear assignment problem between fleet vehicles and customer trip requests within a federated optimization architecture. The resulting algorithm is up to four times faster than the state-of-the-art, even if it is implemented on a less dedicated hardware, and achieves similar service quality. Current literature showcases the ability of state-of-the-art ridesharing algorithms to tackle very large fleets and customer requests in almost near real-time, but the benefits of ridesharing seem limited to centralized systems. Our algorithm suggests that this does not need to be the case. The algorithm that we propose is fully distributable among multiple ridesharing companies. By leveraging two datasets, the New York city taxi dataset and the Melbourne Metropolitan Area dataset, we show that with our algorithm, real-time ridesharing offers clear benefits with respect to more traditional taxi fleets in terms of level of service, even if one considers partial adoption of the system. In fact, e.g., the quality of the solutions obtained in the state-of-the-art works that tackle the whole customer set of the New York city taxi dataset is achieved, even if one considers only a proportion of the fleet size and customer requests. This could make real-time urban-scale ridesharing very attractive to small enterprises and city authorities alike. However, in some cases, e.g., in multi-company scenarios where companies have predefined market shares, we show that the number of vehicles needed to achieve a comparable performance to the monopolistic setting increases, and this raises concerns on the possible negative effects of multi-company ridesharing.