Microtransit: The Next Big Transportation Trend?

Microtransit is a distinct form of shared transportation that utilizes smaller vehicles, such as minibuses, shuttles and vans, to offer riders flexible, on-demand transit services they can order through mobile apps.¹ Both public transit agencies and private companies offer microtransit services and provide more flexibility than the fixed schedules and routes typical of mass public transit. The way you would order a microtransit ride mirrors how you request rides from rideshare companies like Lyft and Uber: through a mobile app.

See below for the availability of some of the most popular microtransit options across various regions.

Microtransit started to gain traction in many states in the United States around 2014, with small start-up companies like Bridj, based in Massachusetts, and Chariot, based in California. However, it wasn’t until recent years, following the COVID-19 pandemic, that public transit and private companies began expanding and prioritizing microtransit options.

Many cities saw a massive ridership decline within public transportation during the pandemic and in the following years. Ridership of the Los Angeles Metro, for example, fell by approximately 70 percent in March 2020.⁴ Between mandatory stay-at-home orders and changes to our lifestyles and work schedules, mass transit seemed to present more safety risks than benefits, specifically surrounding the spread of transmittable diseases. Even many of those who had to travel often during the pandemic often took rideshares instead of mass transit to avoid contracting COVID-19.

The benefit of microtransit versus the more traditional public transportation systems is that this on-demand request system eliminates the crowded spaces and long waiting periods associated with mass transit, allowing its vehicles to control the spread of diseases more effectively. And in addition to its ability to cater to passengers’ schedules, microtransit fills gaps that mass public transit can not fill, such as reaching more remote and rural communities that lack public transportation systems.

Accessibility to Transportation

A long-standing problem with mass transit has been the lack of transit services in certain areas, specifically more rural areas, compared to urban settings. Microtransit caters to places that lack public transit, creating more equity in transportation.

Arlington, Texas, for example, began providing microtransit through a partnership with Via in 2017 to mitigate the city’s lack of public transport, despite its population of over 400,000 people.⁷ As of August 14, 2023, the service now operates under the name “Arlington On-Demand,” as it has transitioned from a pilot program to a traditional city service in 2022.⁵

Environmental Advantages

Microtransit’s rising popularity and expanding availability present various opportunities for environmental sustainability. These services fill in transportation accessibility gaps for those who live in communities without mass transit systems. In turn, there is a lesser need for individuals to own their own vehicles, working to reduce overall gas emissions.

Additionally, there are economic incentives for microtransit companies and transit systems to utilize electric vehicles. Namely, many cities award federal funding to transit agencies that switch from gas to electric vehicles, such as Connect Transit in Illinois.⁶ Because electric vehicles emit far fewer pollutants than gas vehicles, a transition toward electric vehicles supports a gradual reduction in carbon dioxide emissions.⁷

Affordability

The cost of microtransit services varies by agency and location but falls between $1 to $5 per ride, generally. Many agencies offer discounts for seniors, veterans, and students, and many charge an average of $2 per ride. This is lower than the cost of mass transit in many cities, which ranges from $2.50 up to around $6 per ride.

Rideshare prices, in comparison, increase depending on demand, location, and time of day, resulting in significantly higher costs per ride compared to microtransit. The 15-mile Uber ride from New York City’s John F. Kennedy International Airport in Queens to Times Square in Midtown Manhattan, for example, could cost between $133 to nearly $270.⁸

Convenience

The defining feature of microtransit is its use of flexible and dynamic routes, meaning vehicles can pick up and drop off riders anywhere within the agency’s service zone. This kind of door-to-door service promotes microtransit’s level of efficiency and overall convenience for riders. Furthermore, the ability for riders to order rides right from their phones and track their rides in real-time makes these services much easier to utilize.

Below, we’ve provided some information on the most prominent microtransit companies, their mobile apps and where they’re based.

It’s unlikely that the rise of microtransit will lead to the fall of mass transit altogether. However, if our world continues to advance and expand microtransit services, it could further decrease ridership of other forms of public transportation, such as trains and buses, personal vehicle ownership, and rideshares.