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Modeling framework for supporting taxi policy making

Taxi services account for a significant part of the daily trips in most cities around the world. These services are regulated by a central authority, which usually monitors the performance of the taxi services provision and defines the policies applied to the taxi sector. In order to support policy makers, fleet managers and individual taxi drivers, there is a need for developing models to understand the behavior of these markets. Most of the models developed for analyzing the taxi market are based on econometric measurements and do not account for the spatial distribution of both taxi demand and supply. Only few simulation models are able to better understand the operational characteristics of the taxi market. This paper presents a framework for the development of taxi models both aggregated and simulation-based. It is aimed at assessing policy makers, taxi fleet managers and individual drivers in the definition of the optimum operation mode and the number of vehicles.