Public Transit May Get The Uber Treatment

Move over, Uber. The next wave in transportation disruption may come from a myriad of startups looking to provide a convenient niche service to commuters.

By offering rides based on real-time rider demand and/or pre-determined routing, companies are breaking into a new mobility movement called “microtransit” – a middle-tier offering between more expensive but convenient taxi or ride-hailing apps and cheaper public transit services which are usually slower.

The businesses flooding the microtransit market usually fall into one of two categories: those that operate commuting shuttles in specific areas based on the demand of users, such as Chariot or Bridj, or services which allow riders to split fares with other people who are nearby and going in a similar direction, including Via and CabCorner.

While these companies usually operate in a small number of select cities, many hope they can eventually have an Uber-like influence on public transportation, much like the ride-hailing app impacted the business of cab rides.

“Now it’s not unusual to open your computer or email and find out about two or three new services that have popped up,” UC Berkeley transportation researcher Susan Shaheen told The Atlantic’s CityLab. “I do feel like we’re transitioning to a different type of mobility system.”

But this different type of system isn’t really a novel idea.

For decades, unofficial shuttle busses called dollar vans have run throughout neighborhoods in New York, typically providing low-income riders with relatively few public transportation options an easier way to get from place to place.

However, the latest trend of tech-based services started back in 2013 with a Helsinki-based program called Kutsuplus, Vox reported.

Kutsuplus offers a network of municipally owned shuttle busses, which run on various routes based on the request of riders. After a passenger uses their smartphone to request a pickup and destination location, an algorithm is used to determined the most efficient shuttle option and calculate the appropriate fare for each passenger on the route.

The director of the Kutsuplus program, Kari Rissanen, told Vox it was best described as “a new form of public transport, positioned between taxis and traditional mass transport.”

For now, Kutsuplus remains just a pilot program, still heavily subsidized by the city government and only running 15 shuttles, but Vox said the system has inspired numerous startups from San Francisco to D.C.

The benefits of microtransit revolve around providing commuters with more transportation options, but this could come at an even higher price if the trend never truly catches on with riders.

“The key for us isn’t getting two or three people on a vehicle — it’s getting eight or 10 on a vehicle, which is what allows us to keep prices low,” Bridj’s chief scientist David Block-Schachter told Vox.

“The more area you’re able to cover, the more origins and destinations you can serve, the more attractive the service becomes,” Block-Schachter added.

In order for microtransit companies to gain mass appeal, there has to be a large number of users willing to forgo traditional methods of transportation. But establishing a dense customer base is a challenge in itself, as many of these services are only running very limited routes in small areas of certain cities. Getting more riders means expanding services, but it will be tough to expand services without more riders, a problem that may stand as a huge roadblock.

There are also many questions surrounding the legality of microtransit and if it will face the same regulatory battles as the ride-hailing apps that have come before it. Uber is no stranger to being driven out of cities both in the U.S. and abroad.

With microtransit’s status as an almost semi-public transport option, it’s hard to say whether regulators will permit private companies to offer such a service. According to City Lab, Boston-based Bridj is attempting to work alongside transit agencies and seek approval from municipalities prior to offering its services in a city.

While the potential for a more convenient ride is alluring, the new wave of microtransit services still seem to have a long way to go before more widespread offerings can be made to commuters.

Much can be said about the disruption of the long-standing system of public transportation, but it seems that microtransit still has a very long way to go even though the demand for something new is there.

“There is a shift toward people wanting to free themselves from responsibilities that aren’t a top priority—like owning a vehicle and maintaining it, especially in the city,” Nelson\Nygaard transport consultant Paul Supawanich told City Lab. “What I think these services are doing is exposing that middle ground to the masses.”