Matching Policy Design for Gig Platforms with “Priority” Features

Abstract

In recent years, gig platforms like Uber and DoorDash have implemented strategies to boost gig drivers' earnings during peak hours. Uber's 'back-to-back' feature allows drivers to accept new trips while still on route, and Uber Eats' 'Batch Order Route' initiative allows drivers to pick up multiple deliveries from different locations, which may result in multiple tops before one order is delivered. Despite revenue gains, these features lead to user complaints about extended waiting times. In response, platforms introduce features like Uber Eats' 'Priority Delivery' and Uber's 'Priority', where customers pay an extra subscription fee for guaranteed reduced waiting times. This paper focuses on designing matching policies to enhance system revenue while limiting customer waiting times. We present a hybrid model combining online matching and queue theory for quantitative analysis of users' waiting times. Additionally, we introduce an LP-based sampling framework and a unified queue-theory-based method for evaluating online performance. Comprehensive experiments on real datasets validate our theoretical findings, highlighting the efficiency of our matching framework in promoting profit and meeting committed waiting times.