Unveiling and Mitigating Bias in Ride-Hailing Pricing for Equitable Policy Making

Abstract: Ride-hailing services have skyrocketed in popularity due to the convenience they offer, but recent research has shown that their pricing strategies can have a disparate impact on some riders, such as those living in disadvantaged neighborhoods with a greater share of residents of color or residents below the poverty line. Since these communities tend to be more dependent on ride-hailing services due to lack of adequate public transportation, it is imperative to address this inequity. To this end, this paper presents the first thorough study on fair pricing for ride-hailing services by devising applicable fairness measures and corresponding fair pricing mechanisms. By providing discounts that may be subsidized by the government, our approach results in an increased number and more affordable rides for the disadvantaged community. Experiments on real-world Chicago taxi data confirm our theoretical findings which provide a basis for the government to establish fair ride-hailing policies.