The concept and impact analysis of a flexible mobility on demand system

This paper introduces an innovative transportation concept called Flexible Mobility on Demand (FMOD), which provides personalized services to passengers. FMOD is a demand responsive system in which a list of travel options is provided in real-time to each passenger request. The system provides passengers with flexibility to choose from a menu that is optimized in an assortment optimization framework. For operators, there is flexibility in terms of vehicle allocation to different service types: taxi, shared-taxi and mini-bus. The allocation of the available fleet to these three services is carried out dynamically and based on demand and supply so that vehicles can change roles during the day. The FMOD system is built based on a choice model and consumer surplus is taken into account in order to improve the passenger satisfaction. Furthermore, profits of the operators are expected to increase since the system adapts to changing demand patterns. In this paper, we introduce the concept of FMOD and present preliminary simulation results that quantify the added value of this system.