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Microtransit
Microtransit options offer flexible routing and scheduling on minibuses, small shuttles, or vans.
Photo by Andy Ambrosius via Via. Used with permission.
Microtransit is usually operated on an on-demand basis alongside fixed or flexible routes, and relies on smartphone apps or other technology platforms for ride requests and routing details. Microtransit fleets, as a general rule, are smaller than those used by public transit--typically consisting of shuttles or minibuses rather than full-sized buses. Microtransit is often seen as a spatial or temporal complement to fixed-route transit, providing services in less dense areas or at times with infrequent fixed-route service. Many microtransit service operators include private companies, including Via and Transloc although some transit agencies also directly operate, rather than contract out, microtransit services.
Variables to consider
Public vs. Private Usage
Microtransit can either be oriented around either public or private ridership. In public ridership models, public transit agencies either contract or provide microtransit services toprovide short-range transit for individuals or groups who request service through an app or related technology platform. Conversely, private microtransit is typically set up by an organization to provide transportation for employees either travelling and from a workplace or between two workplaces, often through a fixed route or schedule. Examples of the former include Via and Transloc, while examples of the latter include the employee shuttle programs operated by companies such as Google and Apple.
Public Transit Integration
Microtransit services are often integrated with public transit, either by tailoring routing and scheduling to complement public transit equivalents, by entering into formalized partnerships with transit authorities to provide first- and last-mile connections between transit hubs, or both. In these cases, pricing is typically kept similar to public transit fares, or in some cases are even included in public transit passes. However, microtransit services can also operate independently from or in competition with public transit services. In these cases, prices can remain similar to public transit fares, or they can be significantly higher if the service provider is targeting a more affluent riderbase. One study suggests that one of the most promising use cases for microtransit is as an alternative to fixed-route transit in low density areas.
Photo by TransLoc via TransLoc Media
Innovation Drivers
Widespread internet-capable device usage has been a key element in the growth of microtransit services. Where conventional shuttle services typically require calling a dispatcher to request a ride, microtransit operators enable riders to request and pay for service through their smartphones, tablets, or other mobile devices. In addition to being more convenient, this app-based approach also allows microtransit operators to match requests to routes and available vehicles in real time.
Microtransit can fill gaps left by public transit or other modes of transportation. In areas where public transit operates on a limited basis or doesn’t operate at all, microtransit can provide either point-to-point or first-/last-mile transportation for people unable or unwilling to drive. Microtransit services can also operate outside of normal public transit hours, providing safe transportation for non-drivers during off hours.
Microtransit can be more convenient than other transportation modes. This is often a major driver behind private microtransit usage, where using company-provided microtransit instead of driving or using public transit can be faster or more pleasant. This is particularly true for companies that operate microtransit services in cities such as San Francisco, where commute times can be long and the amenities offered by a company shuttle can allow riders to work en route.
Micromobility services can expand public mobility options to provide a more robust choice set of modes to fit different rider and trip needs. Some public transit agencies, such as LA Metro which directly operates its microtransit service Metro Micro, position micromobility as a part of a comprehensive mobility system alongside fixed-route transit and bikeshare.
Photo by Ford via Ford Media. Used with permission.
Barriers
Microtransit often operates at high costs relative to fixed route services. In many cases, microtransit trips are significantly more expensive to operate than conventional public transit trips, and without being heavily subsidized, microtransit services often struggle to remain financially solvent. As a result, a number of high-profile private operators (e.g., Bridj, Chariot) shuttered following a period of growth and hype. Financial hurdles stem from the very nature of the service itself—microtransit is in part designed around on-demand transportation, and there is no guarantee that any given trip will acquire enough riders to cover expenses. Microtransit also offers limited scalability to reduce costs per passenger due to smaller vehicle sizes. In addition, high capital costs, low demand, and lack of differentiation with public transit continues can pose a barrier to financial viability.
Private microtransit is not always equitable in how services are provided. Whereas public transit operates under a public mandate, private microtransit operators are primarily private, for-profit enterprises. As a result, while a public transit authority can justify operating certain routes at a loss in order to serve the public interest, private microtransit operators typically cannot. This can have significant equity implications if, for example, a microtransit service replaces low-usage public transit routes and then decides to suspend service, leaving riders dependent on transit stranded. Similarly, while public transit typically keeps fare prices low, often well below the price point necessary to break even, private microtransit pricing can be much higher, especially if affluent riders are the target demographic.
Labor challenges can arise where microtransit operators are not afforded the same worker protections, compensation, or training compared to traditional public transit operators.
Key players
Private microtransit operators such as Via, Circuit, and TransDev typically partner with cities or transit agencies to operate contracted microtransit services. Previous efforts to operate for-profit private microtransit services (e.g., Bridj, Chariot) proved financially untenable, paving the way for greater reliance on publicly-contracted services or public-private partnerships.
Tech giants and other large corporations represent the largest internal microtransit operators. Companies such as Google and Apple have operated microtransit services for their employees for several years now, with Google’s service in particular having been in operation since 2007. Tesla, Amazon, Facebook, and Ford also have also operated their own internal microtransit services. In contrast to public-oriented microtransit, these company services do not necessarily need to be financially self-sufficient.
Public transit authorities have also sometimes operated microtransit services of their own. Since 2016, the federal government has funded over $8 million through a series of Mobility on Demand Sandbox pilot projects such as the Via to Transit pilots in the Seattle, Washington and Los Angeles, California regions. Some of these pilot demonstrations spurred permanent programs including Metro Flex in Seattle and Los Angeles' Metro Micro program, among others, which operate in select areas within the broader public transit service area. The American Public Transit Authority also tracks microtransit efforts across the country.
Use case examples
People use microtransit services for first- and last-mile transportation. Travelling to and from other transportation hubs such as transit centers is a common microtransit use, particularly in areas where no other transit options exist. Additionally, microtransit is often used to provide site-to-site transportation, such as travelling across a corporate campus.
People use microtransit when no other transportation options are available. In areas with limited or no public transit service, or during times when no such service is available, microtransit can often be used instead. Additionally, microtransit can be useful for people unable or unwilling to drive, with “safe ride” microtransit services for people who are intoxicated or would be vulnerable if travelling alone often enjoying great popularity.
People use microtransit for convenience. Microtransit vehicles are often more amenities-rich than those used by public transit, and the smaller, on-demand nature of the service often means that microtransit is the faster option.
Pilots & developments
1914 - The jitney, the first precursor to microtransit, first appears in Los Angeles when individuals began providing bus-like service during a streetcar strike.
October 2012 - Kutsuplus launches in Helsinki, Finland, and is considered the first modern-day microtransit offering in the world.
June 2014 - Bridj begins providing rides in the Greater Boston Area, making it the first company to offer microtransit service in the United States.
November 2014 - Chariot, a microtransit company headquartered in San Francisco, announces beta testing of “crowdfunding” new routes. Using tilt.com, a crowdfunding platform, Chariot sells discounted monthly passes to multiple proposed routes. If enough monthly passes are sold, Chariot adds the new route to their regular service.
August 2015 - TransLoc makes their OnDemand software available to transit agencies, introducing the “agency-owned” model of microtransit to the United States.
December 2015 - Despite high customer satisfaction, the Finnish microtransit service Kutsuplus stops operating, primarily due to high costs.
2016 - The Federal Transit Administration launches its Mobility on Demand Sandbox Program, providing funding to transit agencies across the US to pilot microtransit services.
March 2016 - The Kansas City Area Transportation Authority (KCATA) and Bridj begin a six-month pilot project, the first in the United States. The Transportation Sustainability Research Center (TSRC) at the University of California conducted an analysis for the pilot, and can be found here.
March 2017 - Lyft becomes the first American TNC to offer microtransit services. Lyft launches their Lyft Shuttle in San Francisco and Chicago.
April 2017 - The CEO of Bridj, a microtransit company at the time operating in Boston, Washington DC, and Kansas City, announces the company will cease all operations.
January 2018 - In Texas, the City of Arlington becomes the first US city to use microtransit as the sole public transportation service.
December 2018 - TNC giant Uber unveils their own microtransit service, Uber Bus, in Cairo, Egypt.
January 2019 - Chariot, the microtransit company acquired by Ford in late 2016, reveals that they will stop operating and will lay off 625 employees throughout the United States.
July 2019 - Via starts to test the use of autonomous vehicles for microtransit in a retirement village in New South Wales, Australia.
2020 - LA Metro launches its direct-operated microtransit service, Metro Micro, in Los Angeles.
2020 - California Air Resources Board announces its Clean Mobility Options program, which sponsors shared mobility pilot programs, including microtransit, in underserved communities in California.
2020-2022 - Dozens of cities across the US launch microtransit pilot programs.
Related Impacts
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Metropolitan Footprint
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