The disclosed embodiments illustrate method and system for managing a dispatch of vehicles based on generation of a dispatch schedule. The method includes generating a dispatch schedule for one or more vehicles at one or more time instants based on a first demand for the one or more vehicles along a route. For a current time instant, the method includes predicting a second demand for the one or more vehicles at each of the one or more stations, at time instants subsequent to the current time instant, based on a current demand. The method further includes updating the dispatch schedule by varying the count of vehicles to be dispatched from the first station based at least on the second demand. Further, the method includes transmitting a notification to a computing device installed in each of the one or more vehicles.