Matching Market: Uber Pairing
What makes Uber so successful is how efficiently it matches riders and drives in lower wait time for riders while creating more business for drivers. A rider can be matched with a driver based on their proximity to each other. However, this is not always the best case. Initially, the company believed that matching riders and drivers based on their closeness was the best method. Uber realized the physical proximity doesn’t always guarantee effectiveness and efficiency. That said, the company realized that there is a complexity to matching as there are other factors to consider: traffic, closed roads, one-way streets, overpasses, rivers, and other geographical factors.
Millions of people around the world are logged on to the Uber app at any given moment. On top of that, new users are logging on to the platform every second. This opens millions of possible matches between riders and drivers. With every user requesting rides to different locations at the same time, the company needs to assure quickness and the least waiting possible time.
When the company first started, the company would match riders with drivers respectively to distance-wise. Although for the most part this worked well, it sometimes caused long wait times for other users. Considering the company provides service for millions of riders, the longer waiting times really adds up–especially across a whole city.
All ride-sharing services in Uber’s network are now matched based on the estimated arrival time of the closest driver based on real-time traffic and all other factors related to time. In general, it calculates the driving route that drivers must take to reach a rider’s pickup location, and based on that, calculate an average pick-up time across riders and drivers. The time it takes for a batch of potential ride-driver matches to accumulate after a request can make a huge difference. It leads to better matches, and the collective wait time is shorter.
Keeping the waiting time in mind ensures that the system is optimized for all Uber users and, as a result, drivers are assigned to riders in a manner that is socially optimal for both drivers and riders. Uber is aware that there are several ways to match riders and drivers; the batch matching system is a perfect example of a ‘matching market’ in which riders and drivers have a seamless pairing and pickup experience.
Source: https://www.uber.com/us/en/marketplace/matching/