Heterogeneous fleet sizing for on-demand transport in mixed automated and non-automated urban areas

The era of intelligent transportation with automated vehicles (AVs) is coming. Nonetheless, the transition to this system will be a gradual process. On the one hand, some zones in the city may be dedicated to AVs with a fully intelligent traffic management system geared toward high performance. On the other hand, automated and conventional vehicles may have to be allowed to drive in the remaining zones of the urban network in a transition stage. In this paper, we consider a situation where AVs are deployed by a taxi operating company to serve door-to-door travel requests. Facing this transition period, a strategic flow-based vehicle routing model is developed to determine the optimal fleet size of automated and conventional taxis as a function of the gradually increasing coverage of the AVs-only dedicated area. Traffic congestion is considered through flow-dependent travel times. Two taxi company service regimes are tested: the User Preference Mode (UPM) and the System Profit Mode (SPM). In the UPM, passengers can choose their preferred vehicle type according to their preference. In the SPM, the taxi company will take charge of the vehicle assignment to maximize the system profit. The developed model formulations are applied to a case study of a large toy network. The results give insight into the performance of the heterogeneous taxi system on a hybrid network. Strategies are presented on how to adjust the fleet size of automated and conventional taxis to get the best system profit while satisfying the mobility demand. The SPM can bring more profit to the operating company by reducing the detour and relocation cost of taxis, reducing the salaries for drivers through a bigger fleet size of AVs, and reducing the delay penalty, compared to the UPM.OptimizationTransport and Plannin