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The major assumption is that the total number of cabs in a city should meet two requirements: a) the average customer waiting time is ≤ 15 minutes. b) less than 10% of customers end up waiting more than 25 minutes. Now we take a town named Ithaca as an example to work out the optimal taxi quantity. We establish the model of passengers waiting, to research what is the total number of cabs needed to serve the town and meet the two requirements. Passengers waiting for a taxi can be thought as the process of queuing up and waiting for service, in other words, we can use queuing theory to solve the problem.

Queuing Theory Model of the Optimal Taxi Quantity