Timing the Match: A Deep Reinforcement Learning Approach for Ride-Hailing and Ride-Pooling Services

Abstract: Efficient timing in ride-matching is crucial for improving the performance of ride-hailing and ride-pooling services, as it determines the number of drivers and passengers considered in each matching process. Traditional batched matching methods often use fixed time intervals to accumulate ride requests before assigning matches. While this approach increases the number of available drivers and passengers for matching, it fails to adapt to real-time supply-demand fluctuations, often leading to longer passenger wait times and driver idle periods. To address this limitation, we propose an adaptive ride-matching strategy using deep reinforcement learning (RL) to dynamically determine when to perform matches based on real-time system conditions. Unlike fixed-interval approaches, our method continuously evaluates system states and executes matching at moments that minimize total passenger wait time. Additionally, we incorporate a potential-based reward shaping (PBRS) mechanism to mitigate sparse rewards, accelerating RL training and improving decision quality. Extensive empirical evaluations using a realistic simulator trained on real-world data demonstrate that our approach outperforms fixed-interval matching strategies, significantly reducing passenger waiting times and detour delays, thereby enhancing the overall efficiency of ride-hailing and ride-pooling systems.