Transit Agencies See Uber As Low-Cost Alternative To Subsidized Mass Transit

Transit agencies are embracing Uber as a partner, increasingly viewing mobility startups as a low cost alternative to public mass transit.

The American Public Transportation Association (APTA) announced in a press release last month that it aims to create a "dynamic multimodal lifestyle" together with companies like Uber and Lyft. APTA unveiled a study suggesting that car-sharing and ride-sharing services can become a valuable partner in complementing traditional transit agencies operating on fixed routes.

According to CityLab, the APTA study suggests that Uber and Lyft do not serve the same purpose as public transit. Rather than commuting, riders usually use ride-sourcing apps for social trips. The peak demand for car-sharing and ride-sharing services in a week lands on weekends, between 10 P.M. and 4 A.M., at a time when public transit operates infrequently or has stopped running.

Some cities already launched partnerships with the mobility service providers. Florida, St. Petersburg, Dallas, Atlanta are experimenting with ride apps helping people to get to and from transit stations. Uber and Lyft transformed in just few years in a valuable partner of the transit agencies.

Green Car Reports reports that Altamonte Springs, a suburb of Orlando, has become the first American city to subsidize Uber within its borders. The city will cover 20 percent of rides that begin or end within its limits. For rides to the region's commuter train system, SunRail, the city will cover 25 percent of the Uber fare.

The partnership between Uber and Altamonte Springs is considered as a public-private venture aimed to provide a low-cost alternative to subsidized mass transit.  Frank Martz. Altamonte Springs City Manager explained for NPR that the city had allocated $1.5 million for a project supposed to operate like a city-owned Uber.  The project called FlexBus was stopped and the funds were relocated for subsidizing Uber.

In most low density cities mass transit on a fixed route is not convenient for their population. Users of the public mass transit would need to wait considerable time and walk lengthy distances to get to their destinations. Ride-sharing and car-sharing services might prove a more efficient solution and we could see more similar public-private partnerships in the future.