Bay Area Transit System To Subsidize Uber, Lyft Rides

The big questions are whether this will increase ridership at less cost to the public transportation agency (and, by extension, reduce reliance on private autos).

But the other issue is whether this is, simultaneously, replacing jobs on which a family can be supported for part time work which the data already demonstrate can not realistically provide a living. 

The longer term issue is whether this trade-off is economically disadvantageous to the society at large. Or not.JL

Dennis Cuff reports in The Mercury News:

Bus systems haven't changed much in the last 50 years. Passengers ordering Uber or Lyft car trips within two test areas will be eligible to get door-to-destination service at a big discount under a partnership between the ride-hailing companies and the Wheels public bus system. Managers said the private cars may carry an equal or greater number of people than the buses do at less cost to the public agency.

In a first for California, a public transit agency next month plans to begin subsidizing fares of people who take private Uber and Lyft cars to local destinations rather than riding the bus.

Passengers ordering Uber or Lyft car trips within two test areas of Dublin will be eligible to get door-to-destination service at a big discount under a partnership between the ride-hailing companies and the Wheels public bus system in Dublin, Alameda and Pleasanton.The Livermore Amador Valley Transit Authority, which operates Wheels, said the one-year pilot project could help pave the way for changes in how public transit agencies in the United States serve suburban areas hampered by far-flung bus routes, few riders and little money from fares.

A Wheels "express" bus waits for passengers at   the Pleasanton/Dublin BART station in Pleasanton, Calif., on Wednesday, Aug. 10, 2016."Our board is very interested in trying to use new technology in a creative way to improve service and efficiencies in suburban areas that are traditionally very challenging to serve," said Michael Tree, the valley transit authority's executive director. "We are the first transit agency in the West actively planning this type of service."Officials said the $200,000, one-year test is expected to begin around mid-September once a few technical details are worked out with the ride-hailing companies. Talks are ongoing to include a taxi company as well. Fares would be limited to $3 for trips within West Dublin and $5 within the East Dublin project area -- much less than the typical Uber or Lyft fare but more than the $2 Wheels bus fare, according to a report to the valley transit authority.Passengers would order the ride on an app, or in the case of the taxi company, possibly by phone. A driver would pick up the passenger and possibly others on a shared trip.Wheels managers said the private cars may carry an equal or greater number of people than the buses do at less cost to the public agency.

In anticipation of the partnership, Wheels on Aug. 13 eliminated its No. 3 bus route in West Dublin. The route was attracting only about five riders per hour at a public subsidy of $15 per rider, according to the report.
A spokesman for the Bay Area's transportation-planning agency said he is not surprised that local agencies are testing out technology to address problems with poor ridership.
"The world has been disrupted in many ways by new technology that has affected business segments like brick-and-mortar businesses (and) housing. Think Airbnb," said Randy Rentschler, a spokesman for the Metropolitan Transportation Commission. "Now public transit is beginning to feel it. Bus systems haven't changed much in the last 50 years."
Last month in southern Alameda County, AC Transit began a flex service allowing customers to summon vans to a number of pickup spots. The shuttles, however, are operated by AC Transit, a public agency.
The union representing Wheels bus drivers is unhappy with the planned Dublin program.
Teamster Local 70 spokesman Richard Fierro said Wheels should have worked with its bus drivers to find a way for them to offer the service instead of cutting a deal with little advance notice to give the work to nonunion drivers working for Uber.
"We object they are using public funds to subcontract with drivers who are independent contractors working for a company that has a bad reputation for how it treats its workers," Fierro said. "We are not opposed to them finding more cost-effective ways to provide service, but we don't think this is the way to do it."

Fierro said public bus drivers are subjected to extensive background checks and drug testing to assure rider safety, while drivers with ride-hailing services are not.
In a report, Wheels suggested it lacks jurisdiction over testing requirements for Uber or Lyft drivers. Federal rules do not require drug testing of drivers for transportation network companies, and the California Public Utilities Commission does not require background checks or fingerprinting of car drivers in transportation networks, according to the report.
Tree said he hopes the pilot program can determine if the service can be financially sustainable. During the test year, the $200,000 cost of the car service subsidy will be covered by about $100,000 in Wheels funds and a $100,000 grant from the Alameda County Transportation Commission.
Wheels forecast the two Dublin ride-hailing zones will each carry out 50 passengers a day in their first year -- about the same number that buses carried in the area but at a fraction of the cost.
"It's hard to estimate how many riders we will get," Tree said. "We could find it takes off faster than we expected."