{"id":26961,"date":"2018-04-10T16:04:12","date_gmt":"2018-04-10T23:04:12","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=26961"},"modified":"2024-03-27T05:59:22","modified_gmt":"2024-03-27T12:59:22","slug":"taxis-toyota-and-ai","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/taxis-toyota-and-ai","title":{"rendered":"Taxis Fight Back, Using AI and Location Intel to Predict Demand"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[791,171,1021],"tags":[],"department":[476822],"wherenext-category":[],"industry":[],"class_list":["post-26961","wherenext","type-wherenext","status-publish","format-standard","hentry","category-digital-transformation","category-education","category-transportation","department-data-and-ai"],"acf":{"short_description":"As ride-sharing services poach fares from taxis, a pilot program uses AI, big data, and location intelligence to predict where customers will be.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"On-demand car services, such as Uber, have been jamming traditional taxi services, disrupting an industry that had long enjoyed predictable customers and revenue. But just because there\u2019s a new game in town, doesn\u2019t mean that the taxi industry is going to give way. In Tokyo, a group of companies is using location-enriched big data and artificial intelligence (AI) to place cabbies at the intersection of supply and demand, hoping that AI-based predictions will give them a competitive edge.\r\n\r\nIn a recent announcement, Toyota Motor Corp. revealed that it would partner with JapanTaxi, KDDI, and Accenture to pilot what the companies call an <a href=\"https:\/\/newsroom.toyota.co.jp\/en\/corporate\/21417666.html\">AI-based taxi dispatch support system<\/a>. The dispatch system applies AI to predict where and when taxi service will be in demand.\r\n\r\nAI has made a name for itself by <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/artificial-intelligence-improves-business-decisions\/\">extracting value from massive datasets<\/a>. In this instance, the big data includes a trove of static and dynamic location-related information, from taxi logs to Tokyo event calendars, weather, traffic, and cell phone location. Toyota says the <a href=\"https:\/\/www.esri.com\/en-us\/artificial-intelligence\/overview\">AI technology<\/a>\u2014using anonymized location data\u2014predicts people\u2019s movements by time and location. The dispatch system displays this information on a map that appears on a tablet, which taxi drivers access in their cars.\r\n\r\n<strong>Innovation Based on Human Weather <\/strong>\r\n\r\nSome observers refer to the kind of data tracked in the Tokyo experiment as \u201chuman weather,\u201d and transportation companies are not the only ones using it in their location analysis. In a recent <em>WhereNext <\/em>article, I noted that retail companies were <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/new-forecast-human-weather\/\">among the first to adopt human weather techniques<\/a>, using the data to make better real estate decisions and market products and services with a more personalized touch.\r\n\r\nOther businesses with big data on customers might use AI techniques to predict buyer behavior and position products in the sweet spot between supply and demand to increase sales.\r\n\r\nIn Tokyo, the taxis\u2019 onboard maps show drivers the predicted number of occupied vehicles in certain locations, as well as areas of possible demand. According to the companies involved, taxis that used the AI-based <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a> during the trial saw an average sales bump of 20 percent.\r\n\r\nAs the taxi industry invokes human weather and location-savvy AI to compete in a changing industry, it\u2019s demonstrating the power of <a href=\"https:\/\/www.esri.com\/about\/newsroom\/arcuser\/location-technology-drives-intelligent-action\/\">advanced location technology<\/a> and innovation to counter disruption.\r\n\r\n&nbsp;\r\n\r\n<em>Photo courtesy of Sean Knight\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/em>"}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxis Use AI, Big Data, and Location Intelligence to Counter Ride Sharing<\/title>\n<meta name=\"description\" content=\"Toyota, JapanTaxi, KDDI, and Accenture partner to test an AI model that predicts when and where customers will need rides.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/taxis-toyota-and-ai\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Taxis Fight Back, Using AI and Location Intel to Predict Demand\" \/>\n<meta property=\"og:description\" content=\"Toyota, JapanTaxi, KDDI, and Accenture partner to test an AI model that predicts when and where customers will need rides.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/taxis-toyota-and-ai\" \/>\n<meta property=\"og:site_name\" content=\"Esri\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/esrigis\/\" \/>\n<meta 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