Approximate Dynamic Programming for Planning a Ride-Sharing System using Autonomous Fleets of Electric Vehicles

Within a decade, almost every major auto company, along with fleet operators such as Uber, have announced plans to put autonomous vehicles on the road. At the same time, electric vehicles are quickly emerging as a next-generation technology that is cost effective, in addition to offering the benefits of reducing the carbon footprint. The combination of a centrally managed fleet of driverless vehicles, along with the operating characteristics of electric vehicles, is creating a transformative new technology that offers significant cost savings with high service levels. This problem involves a dispatch problem for assigning riders to cars, a planning problem for deciding on the fleet size, and a surge pricing problem for deciding on the price per trip. In this work, we propose to use approximate dynamic programming to develop high-quality operational dispatch strategies to determine which car (given the battery level) is best for a particular trip (considering its length and destination), when a car should be recharged, and when it should be re-positioned to a different zone which offers a higher density of trips. We then discuss surge pricing using an adaptive learning approach to decide on the price for each trip. Finally, we discuss the fleet size problem which depends on the previous two problems.