Getting around without a car isn’t easy in many U.S. cities. People who rely on public transit often contend with many challenges, including decaying infrastructure, not having easy access to a transit stop, lack of system reliability, restrictions to how late or early a system operates, and often a lack of support to fund transit improvements. These difficulties can impact people in many ways, including their ability to access essential healthcare, jobs, and grocery stores. Ride-hailing companies like Uber and Lyft can pick up the slack from inadequate public transit, but they also present challenges, like being inaccessible to people with disabilities; lacking the incentive to work along unpopular routes; creating more emissions per mile traveled; and siphoning riders (and money) from public transit. One solution to these challenges is for transit agencies to enter into public-private partnerships with ride-hailing companies to expand public transit coverage.
The Ann Arbor Area Transportation Authority (AAATA) partnered with a University of Michigan Dow Sustainability Fellows team to explore the potential for a public-private partnership that could supplement and enhance the current public transit system in Ann Arbor, Michigan. The team researched the economic, social, and environmental costs and benefits of different ride-hailing public-private partnership models to determine which model could best be used to cover under-used bus routes and connect riders to transit stops.