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Balancing Fares and Demand: Exploring Pricing Strategies for Microtransit and Fixed-Route Transit

Status

Complete

Project Timeline

October 1, 2024 - September 30, 2025

Principal Investigator

Michael HylandMichael Hyland

Project Team

Ritun Saha, Yufan Yang

Sponsor, Program & Award Number

SB1 // STRP Faculty Research: 2025-24
(Also see the UC ITS page)

Areas of Expertise

Zero-Emission Vehicles & Low-Carbon Fuels

Team Departmental Affiliation

Civil and Environmental Engineering

Project Summary

Fares for both conventional fixed-route transit (FRT) and microtransit significantly impact demand, traveler costs, and transit agency revenues. While crowding is typically not an issue for most FRT systems in California, microtransit’s smaller vehicles make it more prone to “crowding,” where demand temporarily exceeds service capacity. This can result in long wait times or service rejections, especially during peak periods. Fares can help manage peak demand, but fare increases can be controversial, as many users rely on transit for essential travel. This study will explore the effects and trade-offs of various fare levels (e.g., $2, $5, $10) and fare structures (e.g., flat, distance-based, time-of-day-based, or means-tested discounts) on microtransit and integrated systems combining microtransit with FRT. The research team will evaluate factors such as transit revenues, ridership by mode, subsidies per trip, traveler costs, wait times, rejection rates, travel times, mode share, vehicle miles traveled, and other key metrics.

Related Publications

presentation | Oct 2025

Optimal Fare Policy and Fleet-sizing for Integrated Fixed and Microtransit Systems

Read more
Preprint Journal Article | Aug 2025

Optimal Fare Policy and Fleet Sizing for an Integrated Fixed-Route Transit and Microtransit System

Read more

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Phone: 949-824-5989 | Fax: 949-824-8385

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