In this study, we propose a novel heuristic two-step algorithm for shared ridehailing in which users can share their rides with only one more user. The algorithm, which is centrally formulated, starts with matching users and creating a set of passenger pairs in step 1 and is followed by solving an assignment problem to assign passenger pairs to the vehicles. To solve the problem of high computational time in dynamic ride-matching problems, we propose a distributed system that is based on vehicle to infrastructure (V2I) and infrastructure to infrastructure (I2I) communication. To evaluate the distributed system's performance, we compare it with the proposed centralized ridehailing algorithm. Both centralized and distributed systems are implemented in a micro-traffic simulator to assess their performance and their impact on traffic congestion. Downtown Toronto road network was chosen as the study area. Based on our obtained results, the service rate of the distributed system was 91.59% which is close to 95.80% in the centralized system. However, the distributed system yielded much lower computational time compared to centralized. Furthermore, the scalability of the distributed system was shown by testing it on a small network and comparing with the entire network.