NYC Data Science Academy| Blog
Bootcamps
Lifetime Job Support Available Financing Available
Bootcamps
Data Science with Machine Learning Flagship ๐Ÿ† Data Analytics Bootcamp Artificial Intelligence Bootcamp New Release ๐ŸŽ‰
Free Lesson
Intro to Data Science New Release ๐ŸŽ‰
Find Inspiration
Find Alumni with Similar Background
Job Outlook
Occupational Outlook Graduate Outcomes Must See ๐Ÿ”ฅ
Alumni
Success Stories Testimonials Alumni Directory Alumni Exclusive Study Program
Courses
View Bundled Courses
Financing Available
Bootcamp Prep Popular ๐Ÿ”ฅ Data Science Mastery Data Science Launchpad with Python View AI Courses Generative AI for Everyone New ๐ŸŽ‰ Generative AI for Finance New ๐ŸŽ‰ Generative AI for Marketing New ๐ŸŽ‰
Bundle Up
Learn More and Save More
Combination of data science courses.
View Data Science Courses
Beginner
Introductory Python
Intermediate
Data Science Python: Data Analysis and Visualization Popular ๐Ÿ”ฅ Data Science R: Data Analysis and Visualization
Advanced
Data Science Python: Machine Learning Popular ๐Ÿ”ฅ Data Science R: Machine Learning Designing and Implementing Production MLOps New ๐ŸŽ‰ Natural Language Processing for Production (NLP) New ๐ŸŽ‰
Find Inspiration
Get Course Recommendation Must Try ๐Ÿ’Ž An Ultimate Guide to Become a Data Scientist
For Companies
For Companies
Corporate Offerings Hiring Partners Candidate Portfolio Hire Our Graduates
Students Work
Students Work
All Posts Capstone Data Visualization Machine Learning Python Projects R Projects
Tutorials
About
About
About Us Accreditation Contact Us Join Us FAQ Webinars Subscription An Ultimate Guide to
Become a Data Scientist
    Login
NYC Data Science Acedemy
Bootcamps
Courses
Students Work
About
Bootcamps
Bootcamps
Data Science with Machine Learning Flagship
Data Analytics Bootcamp
Artificial Intelligence Bootcamp New Release ๐ŸŽ‰
Free Lessons
Intro to Data Science New Release ๐ŸŽ‰
Find Inspiration
Find Alumni with Similar Background
Job Outlook
Occupational Outlook
Graduate Outcomes Must See ๐Ÿ”ฅ
Alumni
Success Stories
Testimonials
Alumni Directory
Alumni Exclusive Study Program
Courses
Bundles
financing available
View All Bundles
Bootcamp Prep
Data Science Mastery
Data Science Launchpad with Python NEW!
View AI Courses
Generative AI for Everyone
Generative AI for Finance
Generative AI for Marketing
View Data Science Courses
View All Professional Development Courses
Beginner
Introductory Python
Intermediate
Python: Data Analysis and Visualization
R: Data Analysis and Visualization
Advanced
Python: Machine Learning
R: Machine Learning
Designing and Implementing Production MLOps
Natural Language Processing for Production (NLP)
For Companies
Corporate Offerings
Hiring Partners
Candidate Portfolio
Hire Our Graduates
Students Work
All Posts
Capstone
Data Visualization
Machine Learning
Python Projects
R Projects
About
Accreditation
About Us
Contact Us
Join Us
FAQ
Webinars
Subscription
An Ultimate Guide to Become a Data Scientist
Tutorials
Data Analytics
  • Learn Pandas
  • Learn NumPy
  • Learn SciPy
  • Learn Matplotlib
Machine Learning
  • Boosting
  • Random Forest
  • Linear Regression
  • Decision Tree
  • PCA
Interview by Companies
  • JPMC
  • Google
  • Facebook
Artificial Intelligence
  • Learn Generative AI
  • Learn ChatGPT-3.5
  • Learn ChatGPT-4
  • Learn Google Bard
Coding
  • Learn Python
  • Learn SQL
  • Learn MySQL
  • Learn NoSQL
  • Learn PySpark
  • Learn PyTorch
Interview Questions
  • Python Hard
  • R Easy
  • R Hard
  • SQL Easy
  • SQL Hard
  • Python Easy
Data Science Blog > Student Works > Efficient Supply Allocation for a Ride-Hailing App

Efficient Supply Allocation for a Ride-Hailing App

Okpala Mmaduabuchi
Posted on May 18, 2023

Introduction:

In the competitive world of ride-hailing services, efficiently allocating supply (drivers) to meet the ever-changing demand (riders) is crucial for the success of the platform. This blog post explores data-driven solutions that actively guide drivers towards areas with higher expected demand, optimizing both rider experience and driver earnings. We will discuss the problem statement, propose a solution, build a baseline model, design the deployment process, outline communication strategies for driver recommendations, and suggest an experiment to validate our solution in live operations.

Problem Statement:

Efficiently allocating supply and meeting rider demand while providing stable earnings for drivers is our primary challenge. Understanding how demand fluctuates over time and space actively helps us comprehend supply dynamics.

  1. Explore the Data and Suggest a Solution: We actively analyze historical data to identify patterns and suggest a solution that guides drivers towards areas with higher expected demand at a given time and location. This involves examining data such as rider pick-up/drop-off locations, timestamps, and other relevant factors. By leveraging this information, we actively build a predictive model that estimates future demand, enabling optimal allocation of drivers.
  2. Build a Baseline Model: We actively develop a baseline model as an initial version of the predictive model, serving as a starting point for further improvements. The model actively considers various features such as time of day, day of the week, weather conditions, local events, and historical demand patterns. We actively employ machine learning algorithms like regression, time series analysis, or even deep learning models to actively train the model on the collected data.
  3. Design and Deploy the Model: We actively design and deploy the model in a scalable and efficient manner. This involves actively setting up a data pipeline to continuously collect and preprocess new data, regularly training the model to adapt to changing patterns, and actively integrating it into the ride-hailing app's backend infrastructure. We actively include monitoring and evaluation mechanisms to ensure the model's performance and actively make necessary adjustments as needed.
  4. Communicate Model Recommendations to Drivers: To actively guide drivers towards areas with high demand, clear and concise communication is vital. The ride-hailing app actively displays real-time heat maps or zones indicating areas with expected high demand. Drivers actively receive notifications, in-app messages, or alerts suggesting optimal areas to position themselves. Additionally, the app actively offers incentives or bonuses to encourage drivers to move to high-demand areas.
  5. Experiment Design for Validation: Validating the effectiveness of the solution in live operations actively requires a well-designed experiment. A possible approach is to actively divide the city or region into control and experimental groups. The control group actively follows the existing allocation strategy, while the experimental group actively utilizes the new predictive model for driver deployment. Key metrics to actively monitor include rider waiting times, driver earnings, and overall user satisfaction. Statistical analysis can actively compare the performance of the experimental group against the control group, ensuring the efficacy of the proposed solution.

Exploratory Data Analysis (EDA):

The preprocessing function is applied to the dataframe, sorting it chronologically and dropping missing values. Date and time components are extracted from the "start_time" column. Locations are filtered to include only same-city orders. Distance and cost per kilometer are calculated. Locations are approximated for improved granularity. Data is aggregated by location, day of the week, and time, calculating the number of orders and average ride value. The resulting dataframe is ready for further analysis, providing insights into ride-hailing dynamics.

Visualization:

Our objective is to visually depict the starting and terminal locations of drivers and riders for each weekday.

To accomplish this, we can create separate plots or maps for each weekday, where the starting and terminal locations are represented as points on the map. By assigning different colors or markers to drivers and riders, we can easily differentiate between them.

These visualizations will enable us to observe any spatial patterns or clustering of starting and terminal locations for drivers and riders on different weekdays. This information can be valuable for understanding the demand-supply dynamics and optimizing driver allocation based on the specific patterns observed on each weekday.

Time Series Visualization:

To visualize the time series data, we can utilize the provided "plotTimeSeries1" function. This function utilizes the Pandas and Matplotlib libraries for plotting.

The function first calculates the average ride value per hour by grouping the data based on the "day_and_hour" column. This average value is merged back into the dataframe.

Next, the function calculates the average ride value per weekday and hour by grouping the data based on the "day_of_week" and "time" columns. This average value is also merged back into the dataframe.

Using the Matplotlib library, a line plot is created with the x-axis representing the "day_and_hour" and the y-axis representing the average and individual ride values. Two lines are plotted: one for the average value and one for the individual value.

The plot provides a visual comparison between the average value and the individual value over time, allowing us to observe any trends, patterns, or fluctuations in the ride values.

The plot is displayed with a title, x-axis label ("day_and_hour"), y-axis label ("Value"), and a legend to differentiate between the average value and individual value.

This time series visualization provides insights into the average and individual ride values over time, aiding in the analysis of ride value dynamics and potential patterns.

The time series analysis reveals clear seasonality patterns based on the time of day and weekday. Additionally, any random fluctuations or noise in the data have been minimized.

This indicates that we can make reasonable predictions about the number of orders or ride values at a given time. We can utilize the average number of orders per time or the average ride value per time to make these predictions.

By leveraging the patterns observed in the time series data, we can make informed forecasts and optimize decision-making regarding driver allocation, supply management, and resource planning.

Exploring data and optimizing driver allocation plan:

Our plan is to develop a machine learning model that can predict the demand for drivers at specific times and locations. We will explore two approaches to tackle this unsupervised machine learning problem.

Approach 1: Modeling the ride-hailing service state - We will create a model that considers the time of day, day of the week, and location to recommend drivers to move to areas with a higher expected demand compared to the available number of drivers. This approach aims to optimize driver allocation based on the expected number of riders at each location.

Approach 2: Clustering mobility patterns - We will utilize clustering techniques to identify patterns of mobility within the ride-hailing service. This will help us forecast demand for each cluster and guide drivers accordingly. By understanding and leveraging these patterns, we can make more accurate predictions about demand in different areas.

To achieve this, we need to establish a stable average number of riders at each location, per time, and per weekday. We will approximate the starting locations and time to ensure granularity and create meaningful groups for analysis. However, limitations exist, such as the absence of driver location data at specific times and the need to incorporate road networks to determine the actual shortest distance for drivers.

By implementing these approaches, we aim to improve the efficiency of driver allocation, optimize resource utilization, and enhance the overall ride-hailing experience for both drivers and riders.

(1) Exploring clustering methods and dimensionality reduction:

At the macro level, we can employ categorical variable dummy encoding and Principal Component Analysis (PCA) to reduce dimensionality. This will enable us to identify unique clusters using clustering algorithms such as K-means, DBSCAN, Hierarchical Clustering Analysis (HCA), or MLP (Multi-Layer Perceptron). Each algorithm will be carefully evaluated to understand its strengths and weaknesses, selecting the most suitable approach for our specific objective.

(2) Building and documenting the baseline model:

Our baseline model will utilize standard sklearn tools to compare the number of riders and drivers in each location. Its purpose is to establish a straightforward model that serves as a benchmark for evaluating the performance of more complex models. This enables us to determine whether the advanced models genuinely enhance the solution's performance or introduce unnecessary complexity.

To construct and document our baseline model, we have already outlined the problem statement and objectives. We will identify suitable evaluation metrics and select an appropriate model type. Data preprocessing will involve handling missing values, outlier removal, feature selection, and data scaling to ensure feature consistency.

Once the data is prepared, we will train the baseline model using the chosen algorithm. This entails fitting the model to the training data, adjusting its parameters to minimize training data error.

We partitioned the map into 1366 unique starting locations and 1590 unique terminating locations. Using a decision tree model, we constructed a linear model that forecasts the number of riders per hour at each location. If the actual number of riders surpasses this prediction, drivers are directed to that location.

Additionally, we performed Principal Component Analysis (PCA) and applied K-means clustering to identify distinct clusters that exist for each weekday. This approach allows us to better understand the spatial and temporal patterns of demand and guide drivers towards areas with higher expected demand.

Model Deployment:

For efficient model deployment, it is crucial to ensure reliability and minimize chances of failure in real-time production. To achieve this, the model and system should have the capability to revert back to the initial state and automatically reproduce the entire modeling output stack if necessary.

To catch any potential issues before they reach production, continuous integration should be implemented as part of the deployment process. This involves conducting automated tests on the main pipeline to verify that the data and prediction metrics are within acceptable bounds.

Once the model is live, it can be extracted using the pickle module and optimized for mobile devices to ensure smooth performance. Additionally, creating an interactive dashboard using frameworks like Dash or a Flask API can enable rendering the model's output in JSON format.

When the API is invoked, the relevant data is parsed, and the output is sent to the front end of the application. Utilizing the GPS live location, the driver's current location can be obtained and forwarded to the model for further processing.

Having a well-defined rollback plan is essential in case the model fails to meet the required accuracy in production. Instead of deploying the model to the entire user base, it is prudent to expose it to a certain percentage of elite users, typically 10% of the total user base, to gauge its performance before a full rollout. This approach ensures that any potential issues can be identified and addressed promptly while minimizing the impact on the overall user experience.

Conclusion:

Efficient supply allocation actively drives ride-hailing apps to meet rider demand and provide drivers with stable earnings. By actively leveraging data analysis, predictive modeling, and effective communication strategies, ride-hailing platforms actively guide drivers towards areas with higher expected demand. This actively improves the overall user experience and optimizes driver utilization and earnings. Through careful experimentation and validation, these solutions can be actively fine-tuned and implemented for live operations, ensuring sustained success in the dynamic ride-hailing marketplace.

About Author

Okpala Mmaduabuchi

I hold a Ph.D. in Mathematics and I have conducted research on Artificial Intelligence and Machine Learning. Throughout my academic journey, I have developed a deep understanding of advanced algorithms, data analysis, and predictive modeling. My research and...
View all posts by Okpala Mmaduabuchi >

Leave a Comment

No comments found.

View Posts by Categories

All Posts 2399 posts
AI 7 posts
AI Agent 2 posts
AI-based hotel recommendation 1 posts
AIForGood 1 posts
Alumni 60 posts
Animated Maps 1 posts
APIs 41 posts
Artificial Intelligence 2 posts
Artificial Intelligence 2 posts
AWS 13 posts
Banking 1 posts
Big Data 50 posts
Branch Analysis 1 posts
Capstone 206 posts
Career Education 7 posts
CLIP 1 posts
Community 72 posts
Congestion Zone 1 posts
Content Recommendation 1 posts
Cosine SImilarity 1 posts
Data Analysis 5 posts
Data Engineering 1 posts
Data Engineering 3 posts
Data Science 7 posts
Data Science News and Sharing 73 posts
Data Visualization 324 posts
Events 5 posts
Featured 37 posts
Function calling 1 posts
FutureTech 1 posts
Generative AI 5 posts
Hadoop 13 posts
Image Classification 1 posts
Innovation 2 posts
Kmeans Cluster 1 posts
LLM 6 posts
Machine Learning 364 posts
Marketing 1 posts
Meetup 144 posts
MLOPs 1 posts
Model Deployment 1 posts
Nagamas69 1 posts
NLP 1 posts
OpenAI 5 posts
OpenNYC Data 1 posts
pySpark 1 posts
Python 16 posts
Python 458 posts
Python data analysis 4 posts
Python Shiny 2 posts
R 404 posts
R Data Analysis 1 posts
R Shiny 560 posts
R Visualization 445 posts
RAG 1 posts
RoBERTa 1 posts
semantic rearch 2 posts
Spark 17 posts
SQL 1 posts
Streamlit 2 posts
Student Works 1687 posts
Tableau 12 posts
TensorFlow 3 posts
Traffic 1 posts
User Preference Modeling 1 posts
Vector database 2 posts
Web Scraping 483 posts
wukong138 1 posts

Our Recent Popular Posts

AI 4 AI: ChatGPT Unifies My Blog Posts
by Vinod Chugani
Dec 18, 2022
Meet Your Machine Learning Mentors: Kyle Gallatin
by Vivian Zhang
Nov 4, 2020
NICU Admissions and CCHD: Predicting Based on Data Analysis
by Paul Lee, Aron Berke, Bee Kim, Bettina Meier and Ira Villar
Jan 7, 2020

View Posts by Tags

#python #trainwithnycdsa 2019 2020 Revenue 3-points agriculture air quality airbnb airline alcohol Alex Baransky algorithm alumni Alumni Interview Alumni Reviews Alumni Spotlight alumni story Alumnus ames dataset ames housing dataset apartment rent API Application artist aws bank loans beautiful soup Best Bootcamp Best Data Science 2019 Best Data Science Bootcamp Best Data Science Bootcamp 2020 Best Ranked Big Data Book Launch Book-Signing bootcamp Bootcamp Alumni Bootcamp Prep boston safety Bundles cake recipe California Cancer Research capstone car price Career Career Day ChatGPT citibike classic cars classpass clustering Coding Course Demo Course Report covid 19 credit credit card crime frequency crops D3.js data data analysis Data Analyst data analytics data for tripadvisor reviews data science Data Science Academy Data Science Bootcamp Data science jobs Data Science Reviews Data Scientist Data Scientist Jobs data visualization database Deep Learning Demo Day Discount disney dplyr drug data e-commerce economy employee employee burnout employer networking environment feature engineering Finance Financial Data Science fitness studio Flask flight delay football gbm Get Hired ggplot2 googleVis H20 Hadoop hallmark holiday movie happiness healthcare frauds higgs boson Hiring hiring partner events Hiring Partners hotels housing housing data housing predictions housing price hy-vee Income industry Industry Experts Injuries Instructor Blog Instructor Interview insurance italki Job Job Placement Jobs Jon Krohn JP Morgan Chase Kaggle Kickstarter las vegas airport lasso regression Lead Data Scienctist Lead Data Scientist leaflet league linear regression Logistic Regression machine learning Maps market matplotlib Medical Research Meet the team meetup methal health miami beach movie music Napoli NBA netflix Networking neural network Neural networks New Courses NHL nlp NYC NYC Data Science nyc data science academy NYC Open Data nyc property NYCDSA NYCDSA Alumni Online Online Bootcamp Online Training Open Data painter pandas Part-time performance phoenix pollutants Portfolio Development precision measurement prediction Prework Programming public safety PwC python Python Data Analysis python machine learning python scrapy python web scraping python webscraping Python Workshop R R Data Analysis R language R Programming R Shiny r studio R Visualization R Workshop R-bloggers random forest Ranking recommendation recommendation system regression Remote remote data science bootcamp Scrapy scrapy visualization seaborn seafood type Selenium sentiment analysis sentiment classification Shiny Shiny Dashboard Spark Special Special Summer Sports statistics streaming Student Interview Student Showcase SVM Switchup Tableau teachers team team performance TensorFlow Testimonial tf-idf Top Data Science Bootcamp Top manufacturing companies Transfers tweets twitter videos visualization wallstreet wallstreetbets web scraping Weekend Course What to expect whiskey whiskeyadvocate wildfire word cloud word2vec XGBoost yelp youtube trending ZORI

NYC Data Science Academy

NYC Data Science Academy teaches data science, trains companies and their employees to better profit from data, excels at big data project consulting, and connects trained Data Scientists to our industry.

NYC Data Science Academy is licensed by New York State Education Department.

Get detailed curriculum information about our
amazing bootcamp!

Please enter a valid email address
Sign up completed. Thank you!

Offerings

  • HOME
  • DATA SCIENCE BOOTCAMP
  • ONLINE DATA SCIENCE BOOTCAMP
  • Professional Development Courses
  • CORPORATE OFFERINGS
  • HIRING PARTNERS
  • About

  • About Us
  • Alumni
  • Blog
  • FAQ
  • Contact Us
  • Refund Policy
  • Join Us
  • SOCIAL MEDIA

    ยฉ 2025 NYC Data Science Academy
    All rights reserved. | Site Map
    Privacy Policy | Terms of Service
    Bootcamp Application