In the context of smart cities, ridesharing in urban areas is gaining researchers’ interest and is considered to be a sustainable transportation solution. In this paper, we present SRide (Shared Ride), a multi-hop ridesharing system as a mode of sustainable transportation. Multi-hop ridesharing is a type of ridesharing in which a rider travels in multiple hops to reach a destination, transferring from one driver to another between hops. The key problem in multi-hop ridesharing is to find an optimal itinerary or route plan for a rider from an origin to a destination in a dynamic, online setting. SRide adopts a novel approach to finding itineraries for riders suited to the online nature of the problem. The system represents ride offers as a time-dependent directed graph and finds itineraries dynamically by updating the graph incrementally and decrementally as ride offers are updated in the system. The system’s distinguishing feature is its incremental and decremental operation, which is enabled by employing dynamic single-source shortest-path algorithms. We conducted two extensive simulation studies to evaluate its performance. Metrics, including the matching rate, savings in total system-wide vehicle-miles, and total system-wide driving times were measured. In the first study, SRide’s dynamic update algorithms were compared with their non-dynamic versions. Results show that SRide’s algorithms run up to thirteen times faster than their non-dynamic versions. In the second study, we used data from the travel demand model for metropolitan Atlanta in the US state of Georgia, to assess the benefits of multi-hop ridesharing. Results show that matching rates increase up to 68%, saving in total system-wide vehicle-miles of up to 12%, and reduction in the total system-wide driving time of up to 12.86% is achieved.