Hybrid Fleet Management and Vehicle Repositioning in Mobility-as-a-Service Operations

While mobility-as-a-service platforms have revolutionized urban transportation and fundamentally transformed travelers’ experience and engagement, they encounter a significant challenge in maintaining a temporal and spatial balance between supply and demand, particularly with the inclusion of crowd-sourced freelance drivers. In this study, we propose a hybrid supply-side management problem that accounts for heterogeneous revenue dependent on surge pricing, where surge pricing not only determines per-trip earnings but also influences demand elasticity and overall revenue generation. This problem combines the physical repositioning of in-house vehicles with an incentive-driven approach for freelance vehicles. A multinomial logit model is employed to model the repositioning behavior of crowd-sourced drivers, and reformulated as a low-level equilibrium problem embedded in a bi-level program. To characterize the surge price-dependent uncertain demand, a tailored residual-based Wasserstein ambiguity set is constructed. Notably, the proposed residual-based Wasserstein DRO model is demonstrated to satisfy both finite sample guarantee and asymptotic optimality. A linear decision rule approximation facilitates a tractable reformulation, and it is shown to incur no loss of optimality for the single-period case. We validate the practical applicability of our model using a dataset from RideAustin. We find that the hybrid fleet approach gets the best of both worlds by increasing average revenue using crowd-sourced vehicles and enhancing system robustness using in-house vehicles. Interestingly, we show that a “sweet-spot” may exist as an optimal ratio between the number of in-house and crowd-sourced vehicles that maximizes the overall revenue.

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Publication Details

Journal
Production and Operations Management
Published
2025-09-25
DOI
https://doi.org/10.1177/10591478251386538
Primary Topic
Transportation and Mobility Innovations
Type
article
Field-Weighted Citation Impact
0.00
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article

Hybrid Fleet Management and Vehicle Repositioning in Mobility-as-a-Service Operations

Ning Zhu, Ning Jia, Qiao‐Chu He, Guowei Zhang et al.
Production and Operations Management
Transportation and Mobility Innovations
article

Hybrid Fleet Management and Vehicle Repositioning in Mobility-as-a-Service Operations

Ning Zhu, Ning Jia, Qiao‐Chu He, Guowei Zhang, Long Zhao
article en

Abstract

While mobility-as-a-service platforms have revolutionized urban transportation and fundamentally transformed travelers’ experience and engagement, they encounter a significant challenge in maintaining a temporal and spatial balance between supply and demand, particularly with the inclusion of crowd-sourced freelance drivers. In this study, we propose a hybrid supply-side management problem that accounts for heterogeneous revenue dependent on surge pricing, where surge pricing not only determines per-trip earnings but also influences demand elasticity and overall revenue generation. This problem combines the physical repositioning of in-house vehicles with an incentive-driven approach for freelance vehicles. A multinomial logit model is employed to model the repositioning behavior of crowd-sourced drivers, and reformulated as a low-level equilibrium problem embedded in a bi-level program. To characterize the surge price-dependent uncertain demand, a tailored residual-based Wasserstein ambiguity set is constructed. Notably, the proposed residual-based Wasserstein DRO model is demonstrated to satisfy both finite sample guarantee and asymptotic optimality. A linear decision rule approximation facilitates a tractable reformulation, and it is shown to incur no loss of optimality for the single-period case. We validate the practical applicability of our model using a dataset from RideAustin. We find that the hybrid fleet approach gets the best of both worlds by increasing average revenue using crowd-sourced vehicles and enhancing system robustness using in-house vehicles. Interestingly, we show that a “sweet-spot” may exist as an optimal ratio between the number of in-house and crowd-sourced vehicles that maximizes the overall revenue.

Production and Operations Management
University of Science and Technology of China (CN), Tianjin University (CN), National University of Singapore (SG), Dalian University of Technology (CN), Southern University of Science and Technology (CN)
Openalex Percentile: Top 71%
Transportation and Mobility Innovations
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