  We examine how introduction of Shared Connected and Automated vehicles
(SCAVs) as a new mobility mode could affect travel demand, welfare, as well as
traffic congestion in the network. To do so, we adapt an agent-based day-to-day
adjustment process and develop a central dispatching system, which is
implemented on an in-house traffic microsimulator. We consider a two-sided
market in which demand and SCAV fleet size change endogenously. For dispatching
SCAV fleet size, we take changing traffic conditions into account. There are
two available transport modes: private Connected Automated Vehicles (CAVs) and
SCAVs. The designed system is applied on downtown Toronto network using real
data. The results show that demand of SCAVs goes up by 43 per cent over seven
study days from 670 trips on the first day to 959 trips on the seventh day.
Whereas, there is a 10 per cent reduction in private CAV demand from 2807 trips
to 2518 trips during the same duration. Moreover, total travel time of the
network goes down by seven per cent indicating that traffic congestion was
reduced in the network.
