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Briefing

Innisfil, Ont. Uber pilot project projected to cost $1.2 million in 2019

That figure is reportedly more than what bus routes would have cost the town, at a projected $1 million. The program’s popularity also stretched its budget beyond the allotted $900,000 for 2019. Because the town subsidizes part of each ride, the more successful the project becomes, the more it costs the city. The city paid $50,000 more than its projected cost in 2017 and $140,000 more than its projected cost in 2018. In April, fares increased by $1, but the additional revenues were offset by further increased ridership costs. (The Guardian, CityLab)

Briefing

Innisfil, Ont. Uber pilot project projected to cost $1.2 million in 2019

By Amanda Roth
Jul 16, 2019
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That figure is reportedly more than what bus routes would have cost the town, at a projected $1 million. The program’s popularity also stretched its budget beyond the allotted $900,000 for 2019. Because the town subsidizes part of each ride, the more successful the project becomes, the more it costs the city. The city paid $50,000 more than its projected cost in 2017 and $140,000 more than its projected cost in 2018. In April, fares increased by $1, but the additional revenues were offset by further increased ridership costs. (The Guardian, CityLab)

Talking point: Innisfil’s experiment shows that while many residents may like the service, it may not be economically sustainable for all municipalities. It may also have a negative environmental impact due to the increase in vehicle emissions. However, the benefits over a limited public transit system remain attractive: Uber is able to transport passengers to their preferred locations from a number of designated “hubs,” compared to bus stops, which are typically more spread out. Innisfil has said other municipalities have contacted the town for advice on how to create a similar program.

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