IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v59y2025i5p932-950.html
   My bibliography  Save this article

Dynamic Confirmation, Compensation and Routing for Combined Urban Transportation of Passengers and Parcels

Author

Listed:
  • Yilun Wang

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong)

  • Min Xu

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong)

Abstract

Passengers and parcels have long been served by separate vehicle fleets in urban areas. This study investigates the integration of parcel delivery and passenger ride services by a single fleet of mobility-on-demand companies. While this integration holds significant promise for enhancing profitability, it poses a challenge for operational sustainability: the detours required for parcel deliveries could adversely affect the passenger experience. We explore the viability of offering compensations as incentives for detours in a dynamic and stochastic environment. In this scenario, service requests are received dynamically, and the passengers’ acceptance of detours remains uncertain. We propose an innovative anticipatory policy, which integrates confirmation, compensation, and routing decisions. The proposed policy is underpinned by a novel regression-tree-based value function approximation. The numerical experiments have validated the efficacy of proposed policy. Moreover, we also explore the advantage of this combined transportation, which could effectively enhance profitability with few marginal costs. The study serves as a valuable reference for mobility-on-demand companies regarding the combined transportation of passengers and parcels.

Suggested Citation

  • Yilun Wang & Min Xu, 2025. "Dynamic Confirmation, Compensation and Routing for Combined Urban Transportation of Passengers and Parcels," Transportation Science, INFORMS, vol. 59(5), pages 932-950, September.
    • Handle: RePEc:inm:ortrsc:v:59:y:2025:i:5:p:932-950
    DOI: 10.1287/trsc.2024.0827
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2024.0827
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.2024.0827?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:59:y:2025:i:5:p:932-950. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.