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Seoul Introduces the Country’s First AI-based Taxi Demand Forecasting

Together with Korea Smart Card, Seoul will introduce the country’s first ‘AI Taxi System’ which grafts the AI technology of the Fourth Industrial Revolution onto Seoul taxis. The system is a new attempt that gathers taxi drivers to areas in which taxi demand is expected to be high. It is anticipated that this will improve the imbalance of supply and demand, which was one factor that made it difficult to catch a taxi.

The ‘AI Taxi System’ added even those variables that influence the demand for taxi such as the weather forecast, demographics, business districts, and public transportation information, etc. to taxi boarding history data obtained through the Seoul Taxi Information System (STIS) as a means of improving accuracy.

Seoul has been administering the AI Taxi System through a trial operation with five companies and 380 taxis from November 2018. The system will be improved based on actual feedback from this operation with plans to extend the project to all taxis in Seoul.

The AI taxi classifies areas of Seoul into 100m by 100m zones and predicts taxi demand in each relevant zone. The information will be shown on Android-based taxi payment card readers to help taxi drivers easily move to areas of high taxi demand.

Seoul plans to carry out continuous monitoring with the occurrence of a significant variable of taxi fare adjustment which was implemented on February 16, and it will take feedback from the trial run operation staff to supplement the system, make careful examination to see if there are any side effects that passengers may have experienced, and gradually expand distribution of the system.


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