When Uber
Replaces the
Bus: Learning
from the Pinellas
Suncoast Transit
Authority's
"Direct Connect"
Pilot
A First-Last Mile
Case Study
-
Acknowledgements
JUNE 2019
As the leading public interest organizaon in the mobility sector, the Shared Use Mobility Center
(SUMC) has served as an advisor to cies, transportaon agencies, and business leaders since 2014.
Knowledge creaon and deployment are vital if we are to achieve a mul- modal transportaon
system that works for all. To this end, we look forward to sharing lessons learned from pilots such as
this that can help us reach our goal.
This report was made possible through the direct project support of TransitCenter, a foundaon
dedicated to improving urban mobility across the United States.
The authors are grateful to the Pinellas Suncoast Transit Authority, United Taxi, Uber, and
Wheelchair Transport, whose willingness to share their insights and operaonal data made this case
study possible. The content and conclusions of this report are solely those of the authors.
This report was wrien by Colin Murphy and Kevin Karner of SUMC and Zak Accuardi of
TransitCenter, with addional editorial oversight and input from SUMCs Sharon Feigon and
TransitCenter’s Chris Pangilinan. The report was edited by Leslie Gray and designed by Derek Berardi.
© 2019 Shared -Use Mobility Center. All Rights Reserved.
Shared -Use Mobility Center
Chicago, IL
312.448.8083
Los Angeles, CA
818.489.8651
www.sharedusemobilitycenter.org
Contents
Execuve Summary
01
Origins of the Direct Connect Pilot
05
Improving service without new funding
07
PSTA & Uber agree on terms of partnership
09
The small scope leads to few rides in Phase I
12
Use picks up in Phase II, at least among a subset of users
16
Phase III and future eorts
20
Lessons for Future Experiments 22
Public champions are key to launching pilots 22
Rider engagement pays o 23
Opons and a willingness to iterate are key 23
Get good data, even if it means collecng it yourself 24
Pilot designs should reect goals, have a plan for evaluaon 25
The pilot model can cut costs, but poses important tradeos 26
Conclusion 28
Executive
Summary
The Pinellas Suncoast Transit Authority (PSTA), in Pinellas County, FL, was the rst transit agency in
the US to sign a service provision agreement with a transportaon network company (TNC) to oer
joint rst/last-mile service subsidized by public dollars. PSTA’s “Direct Connect” pilot allows riders
to get to and from bus stops in a taxi, wheelchair-accessible vehicle (WAV), or Uber TNC vehicle at a
subsidized rate.
Direct Connect was originally conceived in 2015 as a replacement for two under-performing, low-
frequency feeder bus routes. Specically, riders were given a $3 subsidy for rides to or from bus
stops in two zones via Uber, United Taxi or the WAV provider, Care Ride. While Direct Connect
ridership was minimal during the inial six months of the pilot, low operaonal costs helped the
agency to jusfy connuing and expanding the service on a provisional basis.
With the goal of increasing ridership, PSTA expanded the Direct Connect service area to eight
zones across the county in 2017. Leading up to the expansion, Uber made usability improvements
to the in-app experience while PSTA switched wheelchair service providers, increased the per-
trip subsidy to $5, and added to the pilot’s overall budget. A greater eort towards markeng and
outreach by PSTA, Uber, and United Taxi also led to several months of consistent ridership growth,
from less than three to around forty rides per day. During that me, PSTA built on their experience
and launched two addional on-demand pilots to improve late night and paratransit service.
1
While the pilot achieved the agency's cost-cung goals, both overall and on a per-rider basis, there
were clear shortcomings. Direct Connect's zone-based service design limited the transit routes
available and required some riders to go out of their way to make an eligible trip while wheelchair
users were funconally excluded enrely due to the pilot’s xed-subsidy (as opposed to xed-
fare) pricing. PSTA’s ability to evaluate Direct Connect’s ecacy in providing a desirable service
alternave to those riders has been limited by a lack of agency rider surveys, eld observaons,
or detailed trip data from Uber. Thus far, there has been no eecve way for PSTA to understand
how Direct Connect use interacts with its scheduled service, including which routes Direct Connect
users are transferring to or from, or whether they are making a transfer at all.
A new iteraon of Direct Connect, launched in April 2018, oers a more exible service model
that allows riders to access the nearest of 24 eligible intersecons, rather than a single intersecon
in their service zone, while the rider subsidy for
wheelchair-accessible rides was raised to make Direct
Connect fares comparable for WAV and non-WAV trips.
In May 2019, the PSTA board voted to establish Direct
Connect as a xture of its transit operaons for the near
term, funding the service through 2021.
There are dierent interpretaons
of success when judging a pilot.
However, we can learn from PSTA's
willingness to modify the original
pilot design and embark on new
pilot programs using TNCs.
Important data gaps remain heading forward. In early
2019, PSTA agged an issue with Uber’s app, eventually
learning that an overly large geofence had resulted in a
signicant overstatement of the number of rides made
in much of 2018. While the agency was not invoiced
for the extra rides, and Uber worked to resolve the
problem, the revelaon underscores the connued need
for transparency from service providers, parcularly
when pursuing new partnership models. Unl a contract revision provides more data access in the
wake of the geofencing error, Direct Connect will connue to evolve without the means for basic
evaluaon and auding of its largest provider.
While PSTA is currently unable to understand how Direct Connect riders interact with scheduled
service (if they do at all), soluons seem aainable in the near future. Since October 2018, Uber
has oered a data dashboard for its late-night pilot, which allows PSTA to visualize trip origins and
desnaons. Addionally, PSTA recently helped launch an account-based fare app and entered into
a partnership with the mulmodal trip planner Transit App, both developments that oer potenal
paths to track transfers between xed-route and on-demand service.
2
PSTA’s overall experience developing, managing, and adapng the Direct Connect pilot provides
insight into what transit agencies can expect when working with on-demand service providers.
While operang on a larger scale, in a denser environment, or with a dierent ridership base
may have oered dierent lessons in implementaon, the Direct Connect pilot’s service design
shows what is necessary for a successful launch of a pilot program: good data and transparency
from all pares, as well as concrete plans for outreach and evaluaon. Though the program faced
challenges, PSTA is to be commended for taking the chance on a new service format and for
adjusng as they learned more about how it was working for riders and for the agency itself.
In summary:
Launching the pilot required public champions. The fact that a complex, highly-visible pilot developed
so soon aer a major funding setback for PSTA speaks to the organizaonal resilience and
dedicaon of key leadership and sta in seeking new ways to provide service.
Rider engagement pays o. Inial ridership gains closely followed ground-based markeng eorts.
In a funconally dierent service design involving new technology, me and energy must be spent
engaging and educang potenal riders.
Maintain opons and exibility to iterate. While the execuon of bringing in new providers or
providing equal access has not been seamless, PSTA deserves credit for a willingness to evolve the
service design and to keep parcipaon open to mulple providers. The pilot is richer for leveraging
the diversity of TNC, taxi and wheelchair-accessible service.
Geng good data is key to good service. Agencies should stand rm in requiring crical data from
service providers and be proacve in lling informaon gaps that exist. Basic aspects of pilot
ulizaon, parcularly around equity implicaons of this service model, remain unknown aer
several years due to a lack of survey and TNC data.
Pilots should have up-front goals and plans for program evaluaon. These data gaps, while also
aributable to resource constraints, seem to have stemmed from a lack of service quality goals
or subsequent plans for assessment. Pilot iteraons and expansion eorts likely would have been
beer informed had these been arculated.
The pilot model can cut costs, but poses important trade-os. While successful at cung costs here,
per-ride reimbursements to service providers, transfer discounts provided to riders to keep the
pilot appealing, the inability to count single-occupancy vehicle rides towards federal funding, and
unresolved risk and labor implicaons pose trade-os among fundamental agency goals and likely
limit scalability beyond very low performing routes.
3
Table 1: Esmated Change in Cost Structure by Pilot Phase
Phase I
Feb. 2016 - Jan. 2017
Phase II
Feb. 2017 - Mar. 2018
Phase III
Apr. 2018 to Present
Avg. Uber Fare
(Pre/Post PSTA Subsidy)
*
Unavailable $7.64/$2.64
Unavailable at me of
publicaon
Avg. United Taxi Fare
(Pre/Post PSTA Subsidy)
**
$8.46/$5.46 $6.23/$1.23
Unavailable at me of
publicaon
Avg. WAV Fare
(Pre/Post PSTA Subsidy)
***
$25/$22 $25/$20 $25/$5
Geographic Constraints
Trips must begin or end
within 400 feet of four
potenal transit stops,
located between two
separate communies.
Trips must begin or end
within 800 feet of eight
potenal transit stops,
located in designated
zones spread across the
county.
Trips must begin or end
within 800 feet of 24
eligible bus stops spread
throughout the county.
Bus Fare
(Pre/Post Subsidy)
$2.25/Free day pass
$2.50/Free for single
transfer with Direct
Connect receipt
$2.50/Free for single
transfer with Direct
Connect receipt
Fixed Route
Connecons****
~12 routes between
~20 stops
~20 routes between
~60 stops
~40 routes between
~200 stops
*Average from August 2017 - March 2018
**United Taxi data set draws from a much smaller sample and not necessarily equivalent ride distances
***As of March 2018 no WAV rides had occurred; subsidized fares are based on sta esmates of trip cost
****Dened as within a quarter mile of an eligible transit stop
4
Origins of the Direct
Connect Pilot
5
With a populaon of just over 3 million,
the Tampa Bay metropolitan stascal
area (MSA) is the 17th most populous
in the United States, but its residents
are spread out across a low-density
suburban landscape.
1
Pinellas County
is the peninsula on the west side of
Tampa Bay on Florida’s west coast,
encompassing the city of St. Petersburg,
and is one of three counes in the Tampa
Bay MSA, each with its own independent
transit agency—a governance structure
that inherently limits regional transit
planning coordinaon. Despite the
Tampa Bay region’s populaon, it
ranks far below peer regions in transit
ridership in terms of trips and of
passenger miles, as well as in total and
per-capita transit spending (Table 2).
Table 2: Comparison of transit ridership and spending in Tampa and peer regions
2
Urbanized
Area
UZA 2010
Census
Populaon
(rank)
Unlinked
Passenger
Trips 2014
(rank)
Passenger
Miles 2014
(rank)
Total Operang
Expenses 2016
(rank)
Per Capita
Operang
Expenses 2016
(rank)
San Diego, CA 2,956,746 (15) 109,685 (13) 650,125 (12) $323,310,095 (19) $109.34 (71)
Minneapolis-St.
Paul, MN-WI
2,650,890 (16) 97,603 (15) 495,570 (17) $468,070,572 (14) $176.57 (26)
Tampa-St.
Petersburg, FL
2,441,770 (17) 31,223 (32) 161,190 (32) $139,409,870 (33) $57.09 (180)
Denver-Aurora,
CO
2,374,203 (18) 104,489 (14) 606,026 (14) $478,554,800 (13) $201.56 (20)
Balmore, MD 2,203,663 (19) 115,882 (11) 804,862 (11) $684,759,729 (10) $310.74 (7)
PSTA is governed by a board of elected ocials from the region and relies heavily on property taxes
from communies within the county that receive service. While PSTA caters to a large number of
seasonal tourists, the majority of the agency’s riders are transit-dependent residents in the region.
Like many other transit agencies around the country, the 2008 recession led to an increase in
ridership. Forecasng higher operaonal expenses in the face of a housing slump, PSTA made a
push for a more stable source of funding that could support expanded service.
In 2011, PSTA and the Metropolitan Planning Organizaon (MPO) Forward Pinellas put forward a
plan for the rst light rail line in the Tampa Bay area. The rail would be complemented by addional
bus service that, together, would form the backbone of a high-frequency transit network, and a
shi away from PSTA's exisng hub-and-spoke model. These combined proposals became known
as the “Greenlight Pinellas” plan, with implementaon hinging on Pinellas County voters approving
the replacement of PSTA’s property tax revenue source with a one percent countywide sales tax.
3
1
2016 Public Transportaon Factbook, American Public Transportaon Associaon
2
2016 Naonal Transit Database
3
Pinellas Alternaves Analysis Summary Report, 2012
6
The Greenlight Pinellas campaign was
led by a coalion that included the
MPO, local chambers of commerce,
and other business leaders. Despite the
broad coalion, it garnered intense local
opposion, primarily from a conservave
acvist group called No Tax for Tracks
that had materialized in opposion to a
similar proposal in Tampa in 2010 (and
later Nashville in 2018). The referendum
was also opposed by a state senator in
St. Petersburg, who argued that transit
would soon be rendered obsolete by
autonomous vehicles.
4
In November 2014, the referendum was
defeated by a vote of 62 to 38 percent.
5
An overview of the bus system
improvements and light rail corridor
proposed under the failed Greenlight
Pinellas campaign in 2014.
Improving service without new funding
In early 2015, the PSTA board held a workshop to review and rene the agency’s strategy
with a focus on opmizing service under the exisng revenue condions. The resulng “path
forward” strategic plan outlined seven goals around dierent revenue collecon and service
delivery strategies that would lower costs, including a move away from countywide coverage.
6
In the lead up to this agency-wide strategic plan, the Board had voted specically to encourage
connecvity to Uber/Ly-type and all private-sector transportaon opons specically to transfer
and intermodal facilies.
7
That summer, PSTA’s planning department moved forward with the
conngency redesign.
4
Streetsblog USA, 2014
5
Tampa Bay Times, 2014
6
PSTA Board of Directors Meeng Minutes, March 2015
7
PSTA Board of Directors Meeng Minutes, February 2015
7
As the planning department launched their network redesign, PSTA’s execuve leadership began
the process of nding partners to ll current and potenal future service gaps. In 2014, Uber had
launched a pilot program with the University of Florida, complemenng a late-night circulator bus
with subsidized Uber trips. The University of Florida student council proposed this pilot as a means
to discourage late-night driving between campus housing and nearby bars, as well as to migate
safety concerns of having students wait at bus stops late at night. In the pilot, students could
enter a code provided by the council government to receive half o the cost of rides beginning
and ending within geo-fenced zones during late night hours.
8
PSTA execuve leadership had a
similar idea, but inially were not able to contact anyone in a senior posion with Uber. Eventually,
PSTA reached Uber’s markeng team with the help of same local senator who had opposed the
referendum and at the me was working to dra a TNC preempon bill for the state legislature.
9
From there, PSTA engaged in discussions with Uber’s local markeng and operaons sta about
adapng some version of the University of Florida model to improve “intermodal” connecvity, per
the PSTA board’s mandate, by subsidizing Uber trips to specic bus stops.
Later that summer, sta introduced a phased plan that included the redesign or eliminaon of
ve low-performing routes (1, 30, 58, 811, and 444), the laer two of which were circulator
services. Route 444, the Pinellas Park Circulator, made ve trips a day and connected several large
residenal developments, an assisted-living facility, and a Walmart Supercenter. Route 811, the
East Lake Connector, ran on weekdays every 70 minutes between three major shopping centers on
a 14-seat bus that, with advance scheduling, could deviate up to ¾ of a mile along its route corridor.
Most stops along these two routes served fewer than three riders a day. Compared to a system-wide
average of around 17 passengers per revenue hour, these two routes carried fewer than ve.
10
In
late August, the Board voted to disconnue the East Lake Connector (along with routes 1 and 30),
while connuing Pinellas Park Circulator and route 58 operaons to allow more me for public
outreach and addional service planning in light of input received from neighborhood residents.
11
The augmentaons to the Pinellas Park Circulator and the replacement of the East Lake Connector
became the basis of the “Direct Connect” pilot—a subsidy program for rst- and last-mile trips to
specic xed-route bus stops, oered for trips on parcipang for-hire vehicle providers. By this
me, Uber’s markeng team had informed PSTA that a stop-based discount system could work
using geo-fences. PSTA also sought out more tradional service providers to accommodate riders
preferring to pay in cash or call for rides through a dispatcher.
8
Independent Florida Alligator, April 2015
9
SB 340/HB 221 was signed into law by Gov. Rick Sco in May 2017
10
PSTA Performance Measurement Tool version 3.4, 2016
11
PSTA Board of Directors Meeng Minutes, August 26, 2015
8
PSTA & Uber agree on
terms of partnership
With service providers idened and the technical
feasibility of Uber’s app demonstrated, PSTA began
to develop the contract template for providers in
tandem with risk management sta, legal counsel,
and the PSTA Board. In spite of the board’s stated
encouragement of connecvity with “Uber/Ly-
type” services, several members had never used
a TNC and were skepcal that it could replace
circulator service. PSTA planning and legal sta
spent the late summer answering quesons from
the board regarding the service concept and TNC
contracng details. PSTA wanted to design their
contract with Uber to be replicable—something that
they could later oer to other providers, including
Ly, which was not yet operang in Pinellas County.
Key issues that emerged from the board discussion
and contract negoaon process, with their
respecve resoluons, included the following:
Insurance and indemnicaon: Early in
the process, it was unclear who would bear
liability for vehicles operang under the
pilot, and whether this would expose PSTA
to greater risk. To address this concern, PSTA
was added as a secondary insured on Uber’s
insurance, something that sta considered
an important hurdle. Uber would maintain a
general commercial liability of $2 million.
Background checks: Across the bay in
Hillsborough County, Uber had eecvely
been banned from operaon due to conicts
with local taxi regulators as to whether Uber’s
background check process conformed to the
local statute.
9
PSTA opted not to add specic background check requirements, deferring to the preempon
legislaon that was by then in discussion at the state legislature.
Usability: PSTA wanted to ensure that people without smartphones, unbanked riders, and
those who did not feel comfortable using Uber had another opon, which led to the agency’s
decision to engage with the local company United Taxi. In addion to United Taxi’s app, users
could book rides via phone dispatch or through their website. United Taxi and Uber would use
the same agreement, with the same ride subsidy.
Wheelchair accessibility: Given Uber’s and United Taxi’s inability to serve people who
needed wheelchair accessible vehicles, PSTA found it necessary to engage an accessible
service provider in the pilot as well. They ulmately brought PSTA’s paratransit provider Care
Ride to parcipate under the same contract, and thus at the same per-ride subsidy as the
other providers in the pilot. Since rides on Care Ride began with a much higher base fare (sta
esmated around $25) to cover the greater operang costs associated with a li vehicle and
specially trained driver, WAV trips remained signicantly more expensive than non-accessible
Uber or United Taxi trips. In the face of concerns that a at subsidy would violate the
Americans with Disabilies Act, PSTA legal sta developed a memo arguing that equalizing
rider costs would make the program unaordable to PSTA, and that riders with disabilies
would sll be able to use PSTA’s exisng paratransit service.
Drug and alcohol tesng: Drug and alcohol tesng for drivers emerged as an important
legal issue for PSTA. FTA policy requires that agencies who are recipients of federal funds
(or contractors who “stand in their shoes”) implement a drug and alcohol tesng program
for all employees who perform “safety sensive funcons”—including drivers and dispatch
personnel. However, FTA guidance from 1997 provided that contractors under voucher
programs could be exempted from this requirement if riders were given a legimate choice
between service providers, at least one of whom must have a compliant drug and alcohol
tesng program in place. PSTA’s legal sta made the case internally that Uber’s exisng drug
and alcohol tesng process, which did not meet FTA standards, would be acceptable as long
as the pilot included alternave providers that did. In this respect, the buy-in from United Taxi
and Care Ride were crical to the regulatory compliance of the pilot.
Funding: With limited funding for the Direct Connect pilot and with lile precedent to draw
from for TNC rides, PSTA aempted to strike a balance for a per-trip subsidy that would be
appealing to the rider but would protect against quickly exhausng the pilot budget. The
agency set the inial subsidy at up to $3 per ride for qualied trips. With Uber’s minimum
ride price of about $6 in the region and inial service areas built at a travel radius that
would keep most trips at or below the base mileage, this le a typical Direct Connect rider
responsible for around $3 per ride, or $0.75 more than a full bus fare.
10
As an early promoon for the pilot, riders presenng a Direct Connect receipt would receive
a transit day pass, valued at $4.50. Uber would be required to provide technical support to
PSTA and would invoice the agency for covered rides. PSTA did not compensate Uber for
the soware engineering needed to prepare the Uber app for the pilot, and both pares
shared responsibility for markeng the pilot aer its launch.
Data sharing: PSTA wanted to have access to data on a trip-level in order to understand how
the service was being used, though ulmately Uber was unwilling to agree to any sharing
beyond what was required to invoice monthly payments. This was a hardline posion for
Uber and a point on which PSTA ulmately agreed: PSTA would be prohibited from sharing
data related to trips and would assume liability for informaon that compromised Uber’s
trade secrets. PSTA sta were ulmately willing to make this concession in order to move
the pilot forward, receiving monthly totals for eligible trips taken through Uber. As the pilot
progressed, Uber agreed to provide a quarterly ranking of the eligible intersecons with
the most rides. Under the contract, United Taxi and Care Ride would also provide monthly
totals, but also oered to provide trip-level details including pick-up and drop-o mes and
locaons, rider idenes, and fares.
Throughout this process, PSTA planning sta coordinated closely with their CEO and key agency
stakeholders to discuss the pilot design and navigate complex agency and regional polics. Without
the CEO’s engagement and willingness to champion this untested service model, it could have fallen
apart at many junctures. By October 2015, the pilot parameters and the two zones encompassing
both East Lake and Pinellas Park were established and proposed to the board.
Under the pilot proposal, service providers would be available for on-demand service to and from
several designated bus stops between two locaons in each service area, from 7am to 7pm daily
(Figure 1). For the discount to apply, riders would enter a coupon code in Uber's app and then enter
an origin or desnaon that was within a 400-foot radius of an eligible bus stop's intersecon. While
the discount was supposed to be available only to trips adhering to the radial boundary, discounts
for trips by the non-TNC providers (and thus coordinated outside of an app) were applied at the
discreon of drivers. Providers would keep track of Direct Connect trips, adjust fares accordingly,
and invoice PSTA monthly for eligible trips.
11
Figure 1: Phase I Service Areas and
Eligible Origin/Desnaon Transit Stops
The small scope leads
to few riders in Phase I
PSTA was eventually compelled to amend their
proposal and exclude Uber from the East Lake
travel zone aer objecons from Clearwater’s
state senator, whose legislave district
encompassed the East Lake neighborhood.
In Pinellas Park, opons for Uber, United
Taxi and Care Ride remained available. Aer
minor revisions to the contract language in
November, the pilot was fully approved in early
December 2015 for a trial between February
and July 2016.
12
The pilot’s budget was set at $40,000,
supported by funds reallocated from the
roughly $400,000 in operaonal costs
saved from cung the East Lake Connector.
In addion to the funding for the ride
subsidy, the pilot budget included around
$11,000 for markeng materials, including
brochures, newspaper ads, direct mailings and
instruconal signs at each eligible transit stop.
In the words of one project stakeholder, “it didn’t rock anybody’s world.” From February to August
2016, the pilot had 202 trips total, less than two per day. All but 28 of these were Uber rides
supplemenng the Pinellas Park Circulator, which connued to provide around 21 rides per day
during this me. Ridership virtually disappeared in East Lake, where United Taxi made less than
one trip per day compared to the approximately 26 rides per day that the East Lake Connector
would have been expected to make based on ridership in the prior year.
14
12
PSTA Board of Directors Meeng, December 9, 2015
13
APTA AdWheel Award Entry, 2015
14
Route 811 based esmated from prior years,
adjusted for 2017 system decline
12
Pilot parcipaon was low for a variety of reasons. Rider surveys conducted during a system
redesign study earlier in 2015 indicated that many circulator riders believed they would be able to
make the trips they wanted via car, bike, walking, or otherwise, if the route was cut. Other riders
likely never learned about the pilot in the rst place or failed to use it correctly, due either to limited
inial outreach on the part of PSTA and Uber or to the program’s complexity—a new service model
requiring coupon codes and conngent on narrow geographic requirements. Other lower-income
and elderly transit riders, parcularly concentrated in the Pinellas Park service area, may have had
less reliable smartphone access or were deterred by the use of an unfamiliar service.
Despite the pilot’s limited scale, it garnered
immediate interest with press coverage from around
the country, including a feature on the cover of Mass
Transit magazine. PSTA sta endorsed the pilot’s
connuaon and proposed expanding the service
area, increasing the overall budget, and focusing more
on direct markeng and outreach. In October 2016,
the PSTA board voted to formally extend and expand
the pilot through FY 2017, with a goal to reach
50 rides per day.
15
The pursuit of statewide grant
funding for an addional TNC-based pilot
16
and the
PSTA board’s ongoing desire to watch the program’s
progress both contributed to the decision to connue
the pilot. It was further decided that Phase II would
have access to the leover budget as well as an
addional $100,000 from annual savings provided
by the system redesign, which would support raising
the maximum trip subsidy from $3 to $5. Sta hoped
the higher subsidy would make the program more
appealing and account for potenal surge pricing.
Prior to the expansion in early 2017, Uber also made
changes to the app user interface. Instead of entering
a discount code in the app’s “promoons” tab and
entering an eligible Direct Connect locaon to see
the PSTA icon and discount, the PSTA icon would
automacally appear and just the price would adjust
when an eligible origin or desnaon was entered.
15
PSTA Board of Directors Meeng Minutes, October 26, 2016
16
The Transportaon Disadvantaged Late Shi Program.
13
PSTA also expanded the approved pick-up and drop-o zones at the center of each designated
intersecon. PSTA and Uber observed that the 400-foot restricon led some passengers to be
dropped o on the side of the road in relavely high-trac areas and that expanding the boundary
to 800 feet would improve drop-o safety while remaining small enough to minimize the likelihood
of using the program for other purposes besides connecng to transit. Trips coordinated through
the taxi service—without the use of an app or geo-fence—connued to operate without a strict
boundary. Throughout Phase II, drivers were instructed by United Taxi management to leave
passengers at the closet available locaon that the driver deemed safe enough to park at while
passengers paid and exited the vehicle.
The most signicant change to Direct Connect was the expanded coverage from two small service
areas to a countywide patchwork of eight zones. Six new intersecons were added across the
county, while the four original stops in East Lake and Pinellas Park were consolidated into two
(Figure 2). Collecvely, these eight intersecons were within a quarter mile of about 60 transit
stops and 20 dierent routes.
Figure 2: Phase II Zone Boundaries,
Eligible Stops and Connecng Routes
Phase II also came with some change to
service providers. Care Ride, the primary
demand-responsive transit service for the
county, dropped out aer concerns of a
company driver shortage and was replaced
with another local provider, Wheelchair
Transport.
Having designed the Direct Connect contract
to aract new providers, PSTA entered
talks with Ly (which had by then begun
operaons in Pinellas County) about joining
the pilot before the launch of Phase II. Ly
agreed in principle to parcipate, but was
never formally brought under contract. PSTA
took Ly at their word, going as far as to print
physical signage for Phase II that included
Ly’s logo. While contract language had
been negoated, the nal version was never
signed, and the evening before the Phase II
launch Ly informed PSTA that they would
not be parcipang.
14
3
Direct
Connect
will get you
a ride to the bus stop for as low as $1
Want to save money?
Take Uber, United Taxi or
Wheelchair Transport to key bus stops
and hop on a PSTA bus to your ÿnal destination.
Wheelchair Transport via
wheelchairtransport.com
or 727-586-2811
Uber via App: Slide
over to “PSTA option
United Taxi via App or
727-777-7777
HOW TO RIDE
SERVICE PROVIDERS
HOW IT WORKS
• Trips must begin or end at the designated stop, and be in the zone.
PSTA pays the ÿrst $5, most trips cost the rider about $1. Actual fare may vary. Bus fare not included.
• Service available 6 a.m. to 11 p.m., 7 days a week.
• Questions? Call the PSTA InfoLine at 727-540-1900.
Choose a provider Hail a ride Ride the busTravel to/from a
designated PSTA stop
Service brought to you byService brought to you by
Flyers mailed to area residents explained
Direct Connect Phase II
Direct Connect Phase II Ribbon Cung
According to Ly’s representaves, the company was uncomfortable with the possibility that
the pilot might be abruptly disconnued if it were to exhaust its budget, which would result in
a negave user experience associated with their product. It is unclear whether Ly was able to
technically implement the Direct
Connect program’s geo-fence
structure in me for the launch.
In January 2017, Phase I ended
and PSTA began adversing Direct
Connect’s expansion. In addion to
PSTA’s Phase I outreach strategies,
including email blasts, brochures
in taxis and buses, and physical
signage at eligible bus stops, PSTA
engaged Uber and United Taxi to
send email alerts to past users.
PSTA and Uber also sent sta to
eligible stops to directly instruct
riders how to use the pilot program.
Ancipang increased usage, PSTA
replaced the promoonal day
passes with a single free ride upon
presentaon of a recent Uber or
United Taxi receipt to bus drivers.
Use picks up in Phase II, at least among
a subset of users
From February to March 2017, Direct Connect’s average daily ridership increased from less than
three rides per day to nearly ten, connuing to grow over the summer and eventually seling at
around 40 rides per day (1,200 per month) in October (Figure 3). There were no trips on Wheelchair
Transport during this me, despite the company reporng customer inquiries. Uber rides made up
most of the usage, though United Taxi grew steadily over Phase II and maintained comparable fares
from at least August 2017 through March 2018.
17
At the me, PSTA sta perceived United Taxi to
be the preferred service for riders who did not already use app-based, transportaon services.
17
United Taxi only began reporng fares
to PSTA in August of 2017
16
Figure 3: Phase II Ride Growth by Provider
Total (+average daily) Trips by Direct Connect Provider, Phase II
1400
1200
1000
800
600
400
200
0
Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Uber Rides Taxi Rides Wheelchair Rides Total Rides
37.7
36.2 38.8
30.9
30.4
34
31.7
34.2
23.6
25
27.5
14.3
4.1
5
5.3
4.8
5.3
6.5
4
8.1
1.2
2
2
1.3
1.5
3.4
1.1
Phase II aracted roughly 40 rst-me users per month through June, with growth slowing slightly
for the remainder of the summer and picking up again in the fall. Between February 2017 and
March 2018, at least 468 individuals took nearly 12,750 rides — or slightly less than PSTA's average
daily systemwide ridership (Figure 4).
18
Figure 4: Phase II Cumulave Trips and Unique Riders
While Phase II drew riders from around the county, most rides originated from several clusters. Of
the top three performing zones, Zone 5 in Pinellas Park and Zone 1 in East Lake corresponded to
the original Phase I service areas and Zone 7 covered St. Petersburg, the most populous area of the
county. Ten census block groups represented nearly a third of all rides taken in Phase II (Figure 5).
Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Total Rides Unique Riders
Unique Passengers
0
2000
4000
6000
8000
10000
12000
14000
0
50
100
150
200
250
300
350
400
450
500
18
A lower-bound esmate since United Taxi does not
systemacally track users. SUMC esmates approx. 80
individuals used the tax-based service through March.
17
Figure 5:
Distribuon
of Phase II
Ridership
Pinellas County residents in areas of relavely high pilot use matched the demographics of the
county in terms of median age, household size and transit dependency. They were dierent in terms
of populaon density and median income, each being about 30% lower than the county average.
While there was lile dierence in zero-vehicle households, transit commuters represented 3% of
the populaon there as opposed to 2.1% in Pinellas County.
During this me, much of the pilot’s ridership came from a core group of users who integrated the
service into their regular roune, likely also inuencing the geographic concentraon above. From
February to May 2017, 139 individuals tried Direct Connect through Uber at least once; however,
60% of them took fewer than ve rides during that me. By comparison, the top ten most frequent
users had each taken at least 40 rides, as many as 75 mes for two riders, and alone represented
40% of all rides. Trips through United Taxi followed a similar trend through the last point of analysis
in September 2017, with 55 of the 78 disnct users in Phase II taking fewer than ve rides.
19
Of the
468 individuals who had used Direct Connect through Uber by March 2018, 277 had taken fewer
than ve rides, while the top ten individuals made up 30% of overall use, each taking upwards of
200 trips over thirteen months. For these individuals, Direct Connect had become part of a weekly
roune. For most others, it remained mostly a one-o or infrequent amenity (Figure 6).
18
19
Unique users for United Taxi were not esmated
by SUMC from October to March 2018
February 2017
Unique Users
September 2017
May 2017
January 2018
Rides
Figure 6: Monthly Cumulave Rides per Unique User
Whether these Direct Connect riders made any impact on xed-route ridership could not be
determined without a more systemac rider survey eort. Sensor-based boarding counts on buses
picking up at the transit stops served by Direct Connect showed an upck of about 10% in the
spring of 2017 compared to the same months in the previous year.
20
That apparent upck reversed
in the following months, however, when boardings at those stops dropped about 8% between
October 2017 and February 2018.
21
While this was closely aligned with PSTA’s broader system
ridership decline, it was also when Direct Connect began topping out at around 40 rides per day.
The impact of Direct Connect on the scheduled services it was originally designed to replace seems
somewhat less mixed. Zones 1 and 2 provided an average of seven rides per day compared to the
approximately 17 per day that could have been expected on the on the East Lake Circulator, which
previously serviced both areas.
22
The Pinellas Park Circulator, however, gradually lost riders over
the course of 2017 as Direct Connect ridership grew.
20
Data reects boarding esmates from February to
May. PSTA tri-annually aggregates stop-level boardings
for average weekdays, Saturdays, and Sundays.
21
Reader collecon data was not available from January
to March 2018
22
East Lake Connector ridership based on 2015 monthly
totals adjusted for systemwide decline
19
While direct causality can’t be determined based on monthly averages, a comparison of circulator
ridership from Phase I suggests that as much as half of the daily average Pinellas Park Circulator
ridership may have switched to Direct Connect during Phase II (Table 3). Aer a vote to remove the
Pinellas Park Circulator in December 2017, the route was nally cut early the following year.
Table 3: Total (above) and Daily (below) Direct Connect and Circulator Average Ridership
Phase I
DC
Zones 1,2
Phase I
ELC
Phase I
DC Zone 5
Phase I
PPC
Phase I
DC
Total
23
Phase II
DC
Zones 1, 2
Phase II
ELC
24
Phase II
DC
Zone 5
Phase II
PPC
Phase II
Total
25
Fixed Route
Ridership
26
40 6, 287 436 5,007 476 2,871 7,329 5,016 2,807 12,748 13,713,041
0 26 2 21 2 7 17 12 10 30 32,419
Phase III and Future Eorts
In early 2018, the PSTA board allocated an addional $60,000 to the program and voted to
launch a Phase III of the pilot in April. The larger budget was accompanied by an increase in the
WAV subsidy from $5 to $25, which sta hoped would equalize the potenal out-of-pocket cost
between Wheelchair Transport, United Taxi and Uber. While the terms of parcipaon remained
the same between PSTA and its service providers, day-to-day contact with Uber moved from the
local sta in Florida to the company's main oce in California.
Based in part on feedback from riders, PSTA made a signicant change to the service design
and removed the zones altogether, adding 16 addional locaons and allowing riders to travel
to or from any of 24 eligible transit stops within the county. The move opened up the possibility
for more expensive trips, but also provided riders greater exibility and was viewed as easier to
communicate.
27
The changes seemingly led to a sharp increase in rides on Uber over the summer. While Phase
II had capped out at around 1,200 rides per month earlier in the year, gures reported to PSTA
indicated that it had surpassed 4,000 rides that September alone.
The apparent growth solidied
Direct Connect as an essenal component of PSTA's rst/last-mile strategy, and in October, the
PSTA board voted to pursue contract renewals with Uber, United Taxi and Wheelchair
Transport
through 2021. Facing connued revenue uncertainty and the prospect of future service cuts, sta
presented Direct Connect as one of the means for its connued shi away from a coverage-based
network to one focused on smaller number of higher frequency, core routes (Figure 7).
28
23
Includes Uber and United Taxi trips, 2/29/16 – 1/31/17
24
Monthly ridership from 2/1/17 – 3/31/18
25
Includes Uber and United Taxi trips, 2/1/17 – 3/31/18
26
PSTA FY Ridership Reports, 2016 - 2018
27
Average trip length increased from 2.8 to 4 miles between
Phase II and Phase III
28
The actual ridership had remained at 1,200 rides and only
broke past 2,000 rides in early 2019
20
Figure 7: Phase III Eligible Stops
29
The move towards greater reliance on TNC service was bolstered the following month with the
announcement of the Transit+ feature in mobile trip planning service, TransitApp. PSTA was one of
several partner agencies selected to beta test a feature allowing users to plan and book rides either
on Uber or Ly on the same plaorm as schedule service.
30
Despite the forward momentum for Direct Connect, several challenges came to light in the lead-up
to its formal connuaon. In December 2018, PSTA and a vising scholar agged what appeared
to be an issue with the geofence around certain stops. Aer several aempts and several months
later, Uber noed the agency that during the transion between oces, the geofence boundaries
around the 24 locaons were unintenonally enlarged. For the following year, riders on Uber who
entered the code to use Direct Connect had seen discounted rates for trips ending or beginning far
outside the intended range. While ridership had grown slightly, gures were overstated anywhere
from 60 to 300% for any given month aer March 2018, represenng tens of thousands of rides
using a $5 subsidy. While Uber xed the glitch and never invoiced the agency for the extraneous
rides, PSTA noted that it was one of several instances during the pilot in which Uber had needed
to retroacvely adjust monthly totals due to a technical issue. Contracts for Direct Connect service
providers were ulmately renewed in May 2019 on a verbal commitment from Uber to provide a
means for greater data transparency in the future.
29
Board of Direors Meeng, Oober 24, 2018
30
Tampa Bay Business Journal, November 27, 2018
.
21
Lessons for Future
Experiments
Public champions are key to launching pilots
The Pinellas Suncoast Transit Authority has one of the lowest operang budgets for a transit agency
serving a metropolitan area of its size and, since the failure of its 2014 referendum for a consistent
funding source, has needed to cut or recongure a dozen of its scheduled routes. It is despite
that adequate support—not because of it—that PSTA has been able to establish a name for itself
pioneering on-demand service models.
Launching a new genre of transit service requires acve engagement from agency leadership,
capable sta project management, and external polical champions. Geng Direct Connect o the
ground depended on the CEO’s engagement throughout the process, guiding the program’s vision
and serving as an intermediary between various project stakeholders, from PSTA’s board to regional
elected ocials.
One PSTA sta member was the point person responsible for developing and managing the pilot
day to day, coordinang among various project stakeholders, and overseeing the research and
planning necessary to make the project possible. While over me the responsibility for the pilot
was distributed more widely throughout the agency, the value of a few dedicated individuals in
launching complex, highly visible projects cannot be overstated.
22
Rider engagement pays o
No maer how simple, any new and unfamiliar service model will be an adjustment for riders. Direct
Connect ridership grew slowly unl PSTA and Uber ramped up outreach in early 2017, dedicang
sta me to on-the-ground demonstraons with riders on how to use the app. Agencies should
bear in mind the importance of eld-based outreach to introduce riders to new services, parcularly
app-based models that may be less familiar to agencies’ core customer base. While the growth in
unique users over 2017 and 2018 indicate that these outreach eorts were successful, the fact
that a relavely small number of heavy users made up such a large proporon of rides throughout
that period suggest that issues with the technology or service design may have prevented wider
adopon.
Opons and a willingness to iterate are key
One technological barrier to rider adopon was parally addressed through the ability of riders to
choose between TNCs and convenonal taxi service. United Taxi has maintained a dedicated user
base and seems to have been able to provide comparably priced rides. PSTA was thoughul in
designing a common contract for Uber, United Taxi, and Care Ride (and later Wheelchair Transport)
that could be used by a wider variety of service providers over me. By maintaining opons, Direct
Connect can potenally take advantage of an increasingly compeve ridesourcing marketplace.
But while allowing open parcipaon can be benecial, Ly's unexpected departure aer PSTA had
already begun distribung adversing and signage featuring the company demonstrates a potenal
risk in that approach. In hindsight, PSTA would have beneed from requiring Ly to demonstrate
their technical ability to implement the pilot program well in advance of launch. In general, agencies
should not rely on potenal contractors to keep their word without more proof of good-faith
collaboraon, whether in the form of formal commitments in wring or, at minimum, advance
demonstraon of progress.
Having more providers does not necessarily improve access either. Direct Connect’s $3-5 at
subsidy between providers did not result in meaningful access to riders using wheelchairs.
Rather, it eecvely created a two-ered service model that le wheelchair-dependent riders
paying upwards of $20 each way to a Direct Connect stop. PSTA deserves credit for addressing
this accessibility barrier in the later iteraons of the pilot, increasing the wheelchair subsidy and
equalizing the out-of-pocket expense for riders. While it remains unclear what service uptake
will look like among riders using wheelchairs in the long term, it should be noted that PSTA had
not received an invoice from Wheelchair Transport by the end of 2018. Sta speculate that the
door-to-door access provided by its exisng paratransit provider, even while requiring advance
scheduling, has remained the more appealing opon for those riders.
23
Get good data, even if it means
collecng it yourself
Many of the issues that persist with Direct Connect stem from a lack of data, which ulmately
inhibit PSTA's ability to learn from the pilot and make fully-informed service design improvements.
While United Taxi and the WAV providers could conceivably have been the only program
parcipants—if the agency chose to include data sharing as a requirement of the contract—PSTA
believed that Uber’s presence was key to the pilot’s success. At the me of the contract design,
PSTA felt Uber would not have parcipated had they insisted on access to more detailed data than
what was necessary for invoicing, even though Uber’s local representaves had at one point earlier
commied to sharing trip data and later backed away from that oer. Trip-level data from Uber
would have helped provide insights on spaal and temporal dimensions of travel behavior in the
pilot. This could have been used as the basis for where and how to focus outreach eorts or formed
a basis for understanding the impact of Direct Connect on its xed-route service. Understanding
how many unique riders were using Uber over me would have provided more meaning on the
impact of the service than just a monthly total. While data from United Taxi connues to oer some
insight on these fronts, their trips represent only a fracon of those in the overall pilot and may
represent a completely dierent user base than those taking Uber.
28
However, Uber’s trip data would have only illustrated certain aspects of Direct Connect’s ridership.
Understanding the individual rider behavior and demographics, such as those currently using the
service and those who stopped aer the disconnuaon of the circulators, would have only been
possible by conducng focus groups or interviewing these riders directly. While this could have
been facilitated through the app with Uber’s cooperaon, it could also have been accomplished
through tradional rider intercept surveys. Feedback from riders has proved benecial when sought
out; for instance, PSTA's interacons with riders during Phase II outreach eorts ulmately helped
persuade the agency to remove the zone structure.
While the terms of the provider contracts remained the same for Phase III, it should be noted that
Uber's team worked to oer other data metrics as the pilot unfolded. Since Phase III in 2018, PSTA
has received an aggregate number of trips made under the pilot, along with the overall number of
unique riders, average response me and the average distance travelled. However, as with earlier in
the pilot, PSTA connues to only receive a quarterly ranking of stops with the highest use.
24
28
Aer providing anonymized and aggregated data
to support this case study, Uber provided the same
data to PSTA.
That lack of trip-level detail prevented PSTA from nocing the incorrect size of the geofences,
which led to vastly inated performance reports for nearly a year following the Phase III service
design. Not only did the board vote to extend the pilot for several years based on erroneous
informaon from Uber, had the issue not been brought to PSTA's aenon by a vising scholar
who was wring about the pilot, the agency might have been invoiced for hundreds of thousands of
dollars worth of ineligible trips.
Since late 2018, the ability to view trip origins and desnaons has been available for TD Late
Shi, one of PSTA's other TNC-based pilots, on a view-only basis through a dashboard maintained
by Uber on its own servers. While parcipaon in that pilot is more limited and requires a specic
enrollment process, the data-dashboard model represents a potenal mechanism to balance the
interests of agencies seeking to at least verify the services they pay for and service providers'
ongoing desire to protect trade secrets and customer privacy. In the near term, both PSTA and
Uber would benet from a similar arrangement that would facilitate a baseline level of transparency
without exchanging sensive data with a public agency.
Going forward, PSTA should survey riders with United Taxi and Uber, either through their apps
or through local markeng sta. Understanding the user bases between on-demand service
providers and those using scheduled service is crucial to
understanding the pilot's role as an alternave to low-
frequency bus service and its broader viability.
In the near term, both PSTA
and Uber would benet from
a similar arrangement that
would facilitate a baseline
level of transparency
without exchanging
sensive data with a public
agency.
Pilots should reect goals,
have a plan for evaluaon
There is signicant value in tesng new ideas, but even
with low stakes, public agencies designing pilot projects
should be guided by fundamental goals and principles.
It is the responsibility of an agency’s board to set the
policy and strategic direcon from which these goals and
principles ow. Individual projects like Direct Connect
should then be evaluated in the context of those goals
using relevant performance evaluaon criteria chosen
to reect the agency’s aims. The PSTA board asked
sta to cut inecient service and provide some sort of
alternave, possibly by using Uber- and Ly-like services to feed into exisng PSTA service. The
Direct Connect model represents a very literal interpretaon of service that might achieve these
goals and is not in obvious conict with the agency’s mission, “to safely connect people to places.
25
But the pilot has connued without explicit goals needed to measure changes in service quality or
ridership, like improved access to desnaons, more reliable service at an equal fare, or increased
ridership at targeted stops. As such, Direct Connect has evolved without a way of understanding of
whether the service model was helping connect as many people as possible to the agency’s xed-
route bus services—or more importantly, even to the places they want to travel.
The ability to track program ecacy in these respects could be augmented if the agency could
directly measure how many riders are transferring to PSTA’s xed-route service relave to the
number of trips being subsidized. While parcipants can present their Uber and United Taxi receipts
to get a free bus transfer, the same is not possible when using those services as “last-mile” service
opons. In the service design iteraons through Phase II there was lile eort to validate whether
users in fact did use the bus service either before or aer taking a subsidized TNC or taxi trip,
leaving unexplored the queson of whether Direct Connect was accomplishing one of its core
purposes.
Another pilot feature that would have been beer guided with explicit goals is the zone-based
model, which has since been employed in other rst-last mile pilots. There were clear limits to this
format when applied here, parcularly apparent in places like Clearwater where the core of the city
was bisected by a zone boundary and each zone’s designated stop located away from downtown.
As a result, riders who wanted to travel to downtown Clearwater from transit-poor neighborhoods
outside the city center had to rst travel away from downtown in order to connect to a bus going
back to their nal desnaon, creang long and indirect trips unlikely to aract repeat riders.
Despite these shortcomings, PSTA should be applauded for making posive changes to Direct
Connect. Users have clearly taken to the simpler service design of Phase III, in which they
can simply choose the transit stop that most directly connects them to their desnaon. This
simplifying approach mirrors the eliminaon of coupon codes aer the pilot’s rst phase.
The pilot model can cut costs, but poses
important tradeos
Direct Connect was a relavely small nancial risk for PSTA, which was looking for ways to provide
a viable and cost-eecve alternave to high-cost, low-ridership xed routes that sta had
recommended cung. Cung the East Lake Connector saved the agency around $360,000 in bus
capital costs and $422,000 a year in net annual operang costs.
Phase I of Direct Connect cost
far less than the $40,000 it was alloed, around $15,000 in total. Not including sta me, Direct
Connect only cost about $120,000 up through Phase II. In the case of the East Lake Connector
and the Pinellas Park Circulator, where the rider subsidy was over $40 per trip, a $5 per trip subsidy
represents signicant savings to the agency.
33
32
31
31
System Redesign 2015 - 2017 Phase 1 Analysis
32
(476 x $3 subsidy) + (476 x $4.50 day pass) + $11,000 in markeng
33
(12,748 x $5 subsidy) + (1,629 x $4.50 day pass) + (11,119 x $2.25
fare) + $7,000 in markeng
26
- © 2019 PSTA All Rights Reserved.
In other contexts, it is foreseeable that a per-ride subsidy model could become more expensive
than the xed route service it is designed to replace. The $5 per trip subsidy, which doesn’t include
the transit discounts that have been provided to riders for most of the pilot, is higher than the
agency’s system-wide average subsidy of roughly $3 per trip for xed-route service. This highlights
a fundamental tension of Direct Connect’s per-ride subsidy model, the opposite of xed-route
transit’s typical incenve structure: The more riders Direct Connect aracts, the less nancially
sustainable it becomes. Had the quick ridership growth in Phase III been real, the 17,000 rides
taken between April and September would have used up much of the remaining pilot budget. There
is also the potenal issue that future cuts to bus service—which by design are shared—in favor
of solo TNC or taxi rides that cannot be counted towards federal funding would actually further
exacerbate exisng revenue issues.
Sll, the ability to replace low-ridership transit routes with on-demand services remains a
compelling concept, given the potenal to improve service quality at a dramacally lower per-rider
subsidy.
Sta now esmate that Direct Connect will cost between $20,000 and $25,000 per
month going forward. A full accounng of the Direct Connect pilot’s cost must, however, recognize
that much of the cost savings depend on the on-demand service providers operang independently
from the agency and deriving most of their income from non-agency sources, oen in non-
unionized, lower-wage roles, as in the case of Uber drivers. Other savings come from assigning
price risk to riders—if surge-pricing is in place, riders bear the added cost of the trip—and from
having fewer riders in total. Agencies should consider these trade-os explicitly in the planning
process.
34
34
70 minute xed-route headways at $40 a trip vs. on-demand
wait mes of under 10 minutes at $5 a trip
-
Conclusion
Through the Direct Connect process, PSTA has built valuable instuonal knowledge and useful
relaonships with private-sector stakeholders that should improve the agency’s capacity to develop
and manage similar pilot projects moving forward. Subsequent pilots with Uber and Ly have been
designed to use these services’ strengths to improve transportaon access for transit-dependent
groups, rather than primarily as a means to cut costs. The Transportaon Disadvantaged Late
Shi pilot allows income-qualied residents to get to and from work aer xed-route service has
ended via subsidized transit passes and free rides on Uber, United Taxi and the wheelchair provider
Care Ride. The other, funded through the Federal Transit Administraon’s Mobility on Demand
Sandbox program, will provide on-demand trips for riders with disabilies, seeking to improve on the
tradional paratransit model.
The shortcomings of Direct Connect’s inial rst- and last-mile subsidy model—paying a xed, per
ride fee to on-demand service providers—are clear, and limited the program’s scalability. The Phase I
and II designs oered limited improvements in transit access to riders by liming opons to a narrow
list of stops in inexible zones. While the pilot succeeded in reducing PSTA’s operaonal costs, by
design it could only remain nancially sustainable by serving a relavely niche travel market. PSTA’s
recent changes to the model—doing away with zones, for example—reect this understanding and
will need to be monitored and evaluated moving forward.
The transit industry sll has much to learn about using contracts with on-demand service
providers to improve service quality, via pilot projects and otherwise. The scale, meframe and
local circumstances of the pilot leave the possibility that this model would work dierently in a
denser, more transit-rich context rather than in a low-density environment where transit has long
represented a last-resort opon. Agencies around the country would do well to learn from PSTA’s
willingness to try something new, their missteps along the way, and the creavity the agency and
their private-sector partners have applied to solving challenges over the course of the ongoing
Direct Connect pilot.
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Case Study
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