A Unified Network Equilibrium for E-Hailing Platform Operation and Customer Mode Choice

Abstract: This paper aims to combine both economic and network user equilibrium for ride-sourcing and ride-pooling services, while endogenously optimizing the pooling sequence of two origin-destination (OD) pairs. With the growing popularity of ride-sourcing and ride-pooling services provided by transportation network companies (TNC), there lacks a theoretical network equilibrium model that accounts for the emerging ride-pooling service, due to the challenge in enumerating all possible combinations of OD pairs pooling and sequencing. This paper proposes a unified network equilibrium framework that integrates three modules, including travelers' modal choice between e-pooling and e-solo services, e-platforms' decision on vehicle dispatching and driver-passenger matching, and network congestion. To facilitate the representation of vehicle and passenger OD flows and pooling options, a layered OD graph is created encompassing ride-sourcing and ride-pooling services over origins and destination nodes. Numerical examples are performed on both small and large road networks to demonstrate the efficiency of our model. The proposed equilibrium framework can efficiently assist policymakers and urban planners to evaluate the impact of TNCs on traffic congestion, and also help TNCs with pricing and fleet sizing optimization.