Microtransit trends: strategies shaping public transit’s future

Microtransit is reshaping public transit with flexible, on-demand options that enhance connectivity and expand access in underserved areas.

In brief

• Nearly 60% of US transit riders prefer flexible, on-demand mobility options, prompting agencies to adopt microtransit as a strategic solution.
• Microtransit bridges service gaps by connecting riders to existing transit points, expanding access in underserved areas and enhancing overall ridership.
• Public-private partnerships and AI-driven planning are key trends in microtransit, enabling agencies to optimize services and improve cost efficiency.

Nearly 60% of transit riders in the US say they prefer flexible, on-demand mobility options over fixed-route schedules, according to a survey conducted by the University of Michigan Transportation Research Institute.¹ As rider preferences and commute-to-work patterns have changed, public transit agencies are rethinking their service models — and microtransit is quickly emerging as a strategic tool in the new mobility ecosystem.

The response from many transit agencies has been thoughtful and adaptive. Microtransit — typically defined as dynamically routed, tech-enabled shared rides — is increasingly being deployed to bridge service gaps, extend coverage and better align service supply with rider demand.

Emerging trends in microtransit

As agencies move from pilots to permanent programs, several key trends are shaping how microtransit is being designed, funded and integrated into broader transit networks:

• Connectivity, not competition. Agencies are deploying microtransit as a first last-mile connector between a rider’s home and existing transit access points such as bus stops or rail stations. This approach can help grow the overall transit customer base rather than simply redirect existing fixed-route customers to microtransit.
• Expanded access. In cities like Los Angeles, Atlanta and Houston, microtransit pilots have been used to eliminate mobility deserts, often in historically underserved communities, and expand transportation access in low-density areas where fixed-route service may not be viable.
• Public-private partnerships. To scale quickly, many agencies are partnering with private mobility providers. Between 2020 and 2023, more than 65 microtransit programs were launched in collaboration with private operators, according to the Shared-Use Mobility Center.²
• AI-powered service planning. With the help of real-time data and AI tools, agencies are optimizing vehicle routing and deployment dynamically based on demand. This leads to improved cost efficiency and customer satisfaction. In some pilots, microtransit has outperformed underutilized fixed routes on a per-passenger cost basis.

Why it matters — microtransit as a strategic inflection point

For public-sector leaders, the shift toward microtransit is more than a service innovation — it’s a strategic inflection point. Agencies are being asked to do more with less. In this context, microtransit offers an opportunity to reimagine service delivery in ways that are more agile, data-informed and customer-centric. Here are six reasons why this trend matters:

In short, microtransit is not a silver bullet, but it is a high-leverage tool: a low-capital, data-rich proving ground that can help agencies preserve ridership, stretch scarce dollars, broaden access and modernize their tech stack — all while buying time for long-lead capital projects to come online.

The views reflected in this article are those of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.