Abstract
This report examines the use of taxi firms as the providers of publicly supported demand responsive transit. These subsidized shared ride taxi (SRT) systems have become the predominant form of general public DRT in California, with 29 such systems now in operation. Based on California’s experiences with subsidized SRT, this study presents case reviews of SRT implementation and operation, analyzes the issues associated with the development of taxi -based transit services, and evaluates the performance of subsidized SRT. The major issues concern: (1) service provision, including the institutional reasons for contracting, competition for contracts, and contractual arrangements and their effects; and (2) the consequences for taxi firms of becoming public transit providers including legal implications, operational changes, labor-management relations, the impact of subsidization, and the effects of contracting on the firm’s financial situation and future plans. SRT performance is evaluated in terms of cost-efficiency and effectiveness and also compared to that achieved by other forms of community level transit.