AbstractThis study explores the challenge of the dynamic dispatching of taxis to the immediate passenger booking requests. In particular, the study leverages on a stable marriage assignment algorithm and applies it for dispatching taxis to passengers. The stable marriage algorithm was developed initially for matching men and women according to their preferences in polynomial time. The results of the custom built simulation model show that the taxi dispatching strategy based on the stable marriage matching improves the taxi operation performance in all observed indicators (taxi profit, number of served passengers, not-occupied and total taxi mileage and passenger waiting time) as compared to the standard first-come, first-served strategy.