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Autonomous driving will unlock profits for on-demand transit

Can a microtransit shuttle service be a sustainable business if it relies on human drivers? By Freddie Holmes

Microtransit is one of many emerging mobility solutions that aims to support existing public transit networks. Commercial projects have rolled out slower than micromobility, car-sharing or other on-demand ride services, which have seen explosive growth in recent years.

Special report: microtransit

In part, this may be due to the inherent challenges of running a shared transportation service with no fixed route, using vehicles with fewer seats than a conventional bus, and forking out on high driver wages. Estimates vary, but a driver can account for anywhere between 30% and 60% of the operating expenses (OpEx) of a traditional public bus. It can be done, but sustained success is hard to come by.

Automation makes a more compelling argument for microtransit. Without a human driver, vehicles can operate continuously, or at least as long as power remains in the battery. They also offer a whole new level of flexibility, serving

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