Demand-responsive transit/microtransit services can prove a cost-effective alternative to fixed-route services in rural and outlying areas where people and destinations are spread across large geographies, and the great majority of residents drive [1]. In those cases, a tailored, small scale on-demand service can flexibly meet the needs of a small group of riders better than a larger bus service that operates on a fixed schedule can. For rural transit agencies with a small budget, a microtransit pilot program offers an opportunity to lease vehicles and pay a third-party service provider to operate the program without spending the capital costs, liability and long-term labor costs associated with a permanent in-house microtransit operation. In contrast, in urban regions where densely clustered populations can more efficiently use fixed-route services, a microtransit program can bloat a transit agency’s budget. Traditionally, on-demand transit services have mostly been limited to paratransit rides, which due to low ridership rates (vehicles are often largely empty) and labor costs, are some of the most expensive services to provide per passenger [2].

References

  1. J. Walker, “What is ‘Microtransit’ For?,” Human Transit. Accessed: Apr. 19, 2024. [Online]. Available: https://humantransit.org/2019/08/what-is-microtransit-for.html

  2. “Transit agencies are paying the price for inefficient paratransit,” Via Transportation. Accessed: May 13, 2024. [Online]. Available: https://ridewithvia.com/resources/transit-agencies-are-paying-the-price-for-inefficient-paratransit

Related Literature Reviews

See Literature Reviews on Demand-Responsive Transit & Microtransit

See Literature Reviews on Municipal Budgets

Note: Mobility COE research partners conducted this literature review in Spring of 2024 based on research available at the time. Unless otherwise noted, this content has not been updated to reflect newer research.