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A Consumer Compensation System in Ride-hailing Service

Published: 18 July 2023 Publication History

Abstract

In the ride-hailing business, compensation is mostly used to motivate consumers to place more orders and grow the market scale. However, most of the previous studies focus on car-hailing services. Few works investigate localized smart transportation innovations, such as intra-city freight logistics and designated driving. In addition, satisfying consumer fairness and improving consumer surplus, with the objective of maximizing revenue, are also important. In this paper, we propose a consumer compensation system, where a transfer learning enhanced uplift modeling is designed to measure the elasticity, and a model predictive control based optimization is formulated to control the budget accurately. Our implementation is effective and can keep the online environment lightweight. The proposed system has been deployed in the production environment of the real-world ride-hailing platform for 300 days, which outperforms the expert strategy by using 0.5% less subsidy and achieving 14.4% more revenue.

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cover image ACM Conferences
SIGIR '23: Proceedings of the 46th International ACM SIGIR Conference on Research and Development in Information Retrieval
July 2023
3567 pages
ISBN:9781450394086
DOI:10.1145/3539618
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

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Published: 18 July 2023

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Author Tags

  1. deep neural networks
  2. model predictive control
  3. ride-hailing
  4. transfer learning
  5. uplift modeling

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