On-demand mobility has drastically changed the way transportation systems are operated
and greatly improved people’s access to transportation services. Meanwhile, autonomous driving
technology has matured over time, and driverless vehicles have already been operated in real life.
Replacing traditional taxi fleet with reliable autonomous taxi fleet would improve the service
quality of transportation systems even further. However, with a large fleet of fully controllable
objects, the operational optimization of such system becomes challenging as well. Existing studies
fail to address both the realisticness of system simulation and the advantage of optimization-based
algorithms at the same time. To precisely measure the benefits of operating an AV taxi fleet, this
thesis integrates a reinforcement learning algorithm into to an agent-based simulation model of a
ride hailing system. A real-world scale simulation of New York City (NYC) taxi fleet is conducted,
and the system performance with the algorithm is compared with the common rule-based and
heuristic dispatch algorithms in relevant literatures. It was observed that (1) DQN dispatched
vehicles conservatively but achieved similar rider service level with proactive dispatch methods;
and (2) DQN outperformed all other dispatch methods evaluated in this study with significantly
higher dispatch efficiency.