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This paper focuses on the problem of controlling self-interested drivers inride-sourcing applications. Each driver has the objective of maximizing itsprofit, while the ride-sourcing company focuses on customer experience byseeking to minimizing the expected wait time for pick-up. These objectives arenot usually aligned, and the company has no direct control on the waitinglocations of the drivers. In this paper, we provide two indirect controlmethods to optimize the set of waiting locations of the drivers, therebyminimizing the expected wait time of the customers: 1) sharing the location ofall drivers with a subset of drivers, and 2) paying the drivers to relocate. Weshow that finding the optimal control for each method is NP-hard and we providealgorithms to find near-optimal control in each case. We evaluate theperformance of the proposed control methods on real-world data and show that wecan achieve between 20% to 80% improvement in the expected response.

On Re-Balancing Self-Interested Agents in Ride-Sourcing Transportation Networks