1 Introduction
Millions of drivers provide transportation services for over ten million passengers every day at Didi Chuxing [1], which is a Chinese counterpart of UberPOOL [2]. In peak travel periods, Didi needs to match more than a hundred thousand passengers to drivers every second [3], and rider demand often greatly exceeds rider capacity. Two approaches can be used to mitigate this problem. The first method attempts to predict areas with high travel demands using historical data and statistical predictions or a heat map, and taxis are strategically deployed in the corresponding areas in advance. An alternative approach is to serve multiple riders with fewer vehicles using a ridesharing service: riders with similar routes and time schedules can share the same vehicle [4], [5]. According to statistical data from the Bureau of Infrastructure, Transport and Regional Economics [6], there are less than 1.6 persons per vehicle per kilometer in Australia. If only 10 percent of vehicles had more than one passenger, then it would reduce annual fuel consumption by 5.4 percent [7]. Therefore, increasing vehicle occupancy rates would provide many benefits including the reduction of gas house emissions. Moreover, it has been reported that a crucial imbalance exists in supply and demand in peak hour scenarios, where the rider demand is double the rider availability based on historical data statistical analysis at Didi Chuxing [8]. Alleviating traffic congestion challenges during peak commuter times will ultimately require significant government commitment dedicated to increasing the regions investment in core transportation infrastructure [9]. In this paper, we focus on the dynamic ridesharing problem, specifically during peak hour travel periods.