4 questions to ask before investing in microtransit

  • Author: Dillon Twombly
  • Source: Metro Magazine
  • Date: 01/13/2020

"The world is undergoing a transportation revolution as cities, transit agencies, private companies, and even universities expand their commitment to and investment in microtransit.

The idea of developing a custom on-demand public transit network has its appeal anchored in an age where traffic congestion is at an all-time high and transit ridership continues to fall. Overall, public transportation ridership in the U.S. declined by nearly 5% over the last decade, driven by a cumulative 15% decline in bus ridershipover the same period, according to KPMG’s ­Accelerating Mobility Study.

The reason may be that the appetite for on-demand ride-hailing has reached a fever pitch, and when managed improperly, cities are paying the consequences. A traffic congestion study commissioned by Uber and Lyft revealed the companies account for up to 14% of vehicle miles traveled in some cities, a reason why cities like New York are passing legislation directly aimed at how often cars cruise without passengers."

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