Purpose - We introduce and analyze an innovative transportation system called flexible mobility on demand (FMOD). FMOD provides a menu of optimized travel options in real-time. Practical considerations related to the business model for FMOD are taken into account as a prestudy for the pilot that will be conducted in Japan. Design/methodology/approach - A modeling framework of FMOD is developed that integrates scheduling, routing, assortment optimization, and choice modeling methodologies. An assortment optimization model is developed with an objective function to maximize operator profit and consumer surplus. Findings - The FMOD system is analyzed through simulation experiments in a Japanese case study. Simulations are presented for Hino city in Tokyo with different numbers of vehicles in the fleet. This analysis provides insights about the fleet size necessary to maintain reasonable levels of operator profit and consumer surplus. Originality/value - We consider a business model for FMOD that offers flexibility to the operator in terms of who provides resources. The resources are managed with dedicated and non-dedicated services. The experiment indicates that operators can determine the size of the dedicated fleet based on an objective function that maximizes operator profit and passenger satisfaction.@en

This paper analyzes an innovative transportation concept called Flexible Mobility on Demand (FMOD), which provides personalized services to passengers. FMOD is a demand-responsive system: a list of travel options is provided in real-time for each passenger request. The system provides passengers with flexibility to choose from a menu that is optimized in an assortment optimization framework. For operators, there is flexibility in terms of vehicle allocation to service types: taxi, shared taxi, and minibus. The allocation of the available fleet to these three services is carried out dynamically and is based on demand and supply so that vehicles can change roles during the day. The FMOD system is built on a choice model that enables it to analyze the consumer surplus. This paper describes the FMOD system and presents simulation results for a network in Tokyo. For FMOD, three models that maximize profit, consumer surplus, or both are considered. FMOD is compared with its counterpart, which does not have flexibility in vehicle allocation under different scenarios. The results show that FMOD improves profit and consumer surplus with a reasonable real-time performance for the considered network.@en

This paper introduces an innovative transportation concept called Flexible Mobility on Demand (FMOD), which provides personalized services to passengers. FMOD is a demand responsive system in which a list of travel options is provided in real-time to each passenger request. The system provides passengers with flexibility to choose from a menu that is optimized in an assortment optimization framework. For operators, there is flexibility in terms of vehicle allocation to different service types: taxi, shared-taxi and mini-bus. The allocation of the available fleet to these three services is carried out dynamically so that vehicles can change roles during the day. The FMOD system is built based on a choice model and consumer surplus is taken into account in order to improve passenger satisfaction. Furthermore, profits of the operators are expected to increase since the system adapts to changing demand patterns. In this paper, we introduce the concept of FMOD and present preliminary simulation results. It is shown that the dynamic allocation of the vehicles to different services provides significant benefits over static allocation. Furthermore, it is observed that the trade-off between consumer surplus and operator's profit is critical. The optimization model is adapted in order to take into account this trade-off by controlling the level of passenger satisfaction. It is shown that with such control mechanisms FMOD provides improved results in terms of both profit and consumer surplus.

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