Method and system for joint optimization of pricing and coupons in ride-hailing platforms

A system comprising one or more processors and one or more non-transitory computer-readable memories coupled to the one or more processors, the one or more non-transitory computer-readable memories storing instructions that, when executed by the one or more processors, cause the system to perform operations comprising:

• obtaining a plurality of spatial-temporal pricing units and a plurality of rider segments, wherein each of the plurality spatial-temporal pricing units corresponds to a price adjustment multiplier applicable to trips that occur within the spatial-temporal pricing unit, and each of the plurality of rider segments corresponds to a rider coupon applicable to a rider in the rider segment;
• constructing a plurality of key performance indicator (KPI) metrics, wherein each of the KPI metrics takes input comprising (1) the price adjustment multiplier applied to a given trip and (2) the rider coupon applied to a rider of the given trip, and generates output comprising a KPI value of the given trip, wherein the price adjustment multiplier and the rider coupon are factors in determining a price for the given trip;
• constructing an optimization model that maximizes a weighted sum of the plurality of KPI metrics with a vector of price-adjustment-multiplier decision variables and a matrix of rider-coupon decision variables, each of the price-adjustment-multiplier decision variables corresponding to one of the plurality of spatial-temporal pricing units, and each of the rider-coupon decision variables respectively corresponding to one of the plurality of rider segments within one of the plurality of spatial-temporal pricing units;
• determining, by solving the optimization model, a plurality of optimal price adjustment multipliers and a plurality of optimal rider coupons;
• and
• deploying the plurality of optimal price adjustment multipliers and the plurality of optimal rider coupons in the ride-hailing platform to determine trip prices.

A non-transitory computer-readable storage medium storing instructions that, when executed by one or more processors, cause the one or more processors to perform operations comprising:

• obtaining a plurality of spatial-temporal pricing units and a plurality of rider segments, wherein each of the plurality spatial-temporal pricing units corresponds to a price adjustment multiplier applicable to trips that occur within the spatial-temporal pricing unit, and each of the plurality of rider segments corresponds to a rider coupon applicable to a rider in the rider segment;
• constructing a plurality of key performance indicator (KPI) metrics, wherein each of the KPI metrics takes input comprising (1) the price adjustment multiplier applied to a given trip and (2) the rider coupon applied to a rider of the given trip, and generates output comprising a KPI value of the given trip, wherein the price adjustment multiplier and the rider coupon are factors in determining a price for the given trip;
• constructing an optimization model that maximizes a weighted sum of the plurality of KPI metrics with a vector of price-adjustment-multiplier decision variables and a matrix of rider-coupon decision variables, each of the price-adjustment-multiplier decision variables corresponding to one of the plurality of spatial-temporal pricing units, and each of the rider-coupon decision variables respectively corresponding to one of the plurality of rider segments within one of the plurality of spatial-temporal pricing units;
• determining, by solving the optimization model, a plurality of optimal price adjustment multipliers and a plurality of optimal rider coupons;
• and
• deploying the plurality of optimal price adjustment multipliers and the plurality of optimal rider coupons in the ride-hailing platform to determine trip prices.