Cooperation between Ride-Hailing and Public Transportation with Tradable Credit Schemes

Abstract

Ride-Hailing (RH) companies have expanded significantly in urban areas in the past decade. However, they may compete with Public Transportation (PT) instead of completing them. This work proposes to use Tradable Credit Scheme (TCS), a quantity-based policy, to encourage RH drivers to operate in parts of the network not well served by PT. Credits are given to the RH drivers. Operating in some regions requires credits. RH drivers can trade credits between themselves. We use a trip-based Macroscopic Fundamental Diagram (MFD) to compute the dynamic and heterogeneous RH trips. Customers choose between different PT and RH alternatives. The RH drivers’ decision to operate in a region is a balance between the potential revenue and the credit charge of this region. We evaluate the equilibrium of different TCS on a test case. TCS fosters multimodal trips, which combine PT and RH to complete the trips.