Abstract: A system and a method for allocating a proportion of high category vehicles for excess demands of low category vehicles is provided. The historical travel data for a first time period is extracted. Demands for a second time period are predicted based on the historical travel data. An error is determined based on the predicted demands and real-time demands. A real-time correction of the demands is executed at first and second time intervals. A real-time supply is predicted based on real-time location information of vehicles. A time to a booking of a supply is determined based on the real-time corrected demands, the real-time predicted supply, and an inter-arrival time of customers. The proportion of the high category vehicles is determined based on at least the determined time to booking of the supply, which are allocated to supply the excess demands associated with the low category vehicles in real-time.