Transportation Network Companies Could Be a Cost Effective Alternative to Microtransit in Low-Density Communities

Wesley Darling and Michael J. PhD Cassidy

Institute of Transportation Studies, Research Reports, Working Papers, Proceedings from Institute of Transportation Studies, UC Berkeley

Abstract: Many suburban and rural communities struggle to provide affordable, efficient public transit. Some have replaced underused fixed-route, fixed-schedule public transit with on-demand, door-to-door microtransit services. In some cases, microtransit has provided better service, though it’s only economical when most trips serve multiple riders. In low-demand areas, limited ride consolidation drives costs sharply upward– often exceeding $50 per rider trip. Transportation Network Companies (TNCs), like Uber and Lyft, could help fill this gap. They already provide door-to-door service with extensive driver networks and low overhead. Yet most public-private pilot programs using TNCs to supplement or replace traditional transit have failed to last beyond their initial funding periods.

Keywords: Engineering (search for similar items in EconPapers)
Date: 2026-03-01
New Economics Papers: this item is included in nep-tre
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