Optimal pricing in ride-share platforms

Ride-share platforms are contemporary businesses that match passengers with drivers, unlike taxis can be hailed from the street. In literature, problem of optimizing operations such companies is mostly considered in static settings. We use this paper a dynamic model and propose differential equations to evolution system. The objective maximize profit during planning horizon. Using optimal control theory, we determine rate change ride price rate. An illustrative example along sensitivity analyses shows effect system parameters on solution obtained.