An optimization-based approach for passenger to shared taxi allocation

Taxis play a vital role in modern public transportation networks, especially in countries where public transportation services are still underdeveloped. Street hailing is the current common method for getting a taxi. Taxi drivers currently rely on a simple first come-first serve approach, with a high coefficient of luck controlling their profit. Problems arising from the current system are low taxi utilization, long passenger waiting times, road safety issues, and traffic congestion. In this paper, we present a system that improves the shared taxi service by benefiting both the taxi drivers and the passengers. The proposed system is based on a server that receives requests from passengers and effectively relates information to taxi drivers using smart phones with GPS capabilities and Internet access (3G/WIFI hotspots). In particular, information extracted from the passengers and the taxi drivers are sent to the server, which runs a novel scheduling algorithm that identifies the optimal taxi to pick up each passenger: the assigned taxi is provided with an optimal route that includes the sequence of drop-off and pickup locations. The server also monitors taxi movement patterns to gain insight into a city´s general congestion levels. The presented system proposes a solution in the form of a reliable, efficient and inexpensive transportation service.