Data-Driven Methods for Balancing Fairness and Efficiency in Ride-Pooling

Abstract

Rideshare and ride-pooling platforms use artificial intelligence-based matching algorithms to pair riders and drivers. However, these platforms can induce unfairness either through an unequal income distribution or disparate treatment of riders. We investigate two methods to reduce forms of inequality in ride-pooling platforms: by incorporating fairness constraints into the objective function and redistributing income to drivers who deserve more. To test these out, we use New York City taxi data to evaluate their performance on both the rider and driver side. For the first method, we find that optimizing for driver fairness out-performs state-of-the-art models in terms of the number of riders serviced, showing that optimizing for fairness can assist profitability in certain circumstances. For the second method, we explore income redistribution as a method to combat income inequality by having drivers keep an $r$ fraction of their income, and contribute the rest to a redistribution pool. For certain values of $r$, most drivers earn near their Shapley value, while still incentivizing drivers to maximize income, thereby avoiding the free-rider problem and reducing income variability. While the first method is useful because it improves both rider and driver-side fairness, the second method is useful because it improves fairness without affecting profitability, and both methods can be combined to improve rider and driver-side fairness.