Privacy-Preserved Taxi Demand Prediction System Utilizing Distributed Data

Accurate taxi-demand prediction is essential for optimizing taxi operations and enhancing urban transportation services. However, using customers' data in these systems raises significant privacy and security concerns. Traditional federated learning addresses some privacy issues by enabling model training without direct data exchange but often struggles with accuracy due to varying data distributions across different regions or service providers. In this paper, we propose CC-Net: a novel approach using collaborative learning enhanced with contrastive learning for taxi-demand prediction. Our method ensures high performance by enabling multiple parties to collaboratively train a demand-prediction model through hierarchical federated learning. In this approach, similar parties are clustered together, and federated learning is applied within each cluster. The similarity is defined without data exchange, ensuring privacy and security. We evaluated our approach using real-world data from five taxi service providers in Japan over fourteen months. The results demonstrate that CC-Net maintains the privacy of customers' data while improving prediction accuracy by at least 2.2% compared to existing techniques.