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This article was originally written by Rodrigo Becker for Seguinte.
Eight months ago, a transport operator in Cachoeirinha-RS inaugurated a service that serves passengers with on-demand transport.
All you have to do is download the app, book a trip and wait for the vehicle to arrive — just like a ride hailing app, but with vans of up to 14 seats that take you throughout the city of Cachoeirinha for a fixed fare of R$ 6.25 (less than $1.5 USD) per trip, regardless of the distance traveled. This is how 'Teu Bus' works, an app launched eight months ago in the neighboring city, which operates with six vans and two minibuses accessible to wheelchair users.
Fernando Casagrande, the owner of Transbus, a company that has been operating the municipal transport system in Cachoeirinha for five years and implemented 'Teu Bus' in the middle of last year, told the blog Seguinte that the on-demand transport application is a new concept in the Southern Region in Brazil. "We contracted a service that had initially been launched in Australia. We have adapted it to the reality of Cachoeirinha and launched it", he sums up. "It's been performing well and getting bigger and bigger."
One of the main changes made in the project in Cachoeirinha is the use of vans instead of buses or minibuses for the application. "The vans are smaller and, therefore, more agile for traffic in the city," Casagrande reveals. "And more economical, too." On a service day, the vehicles make more trips and serve more passengers at a lower financial cost — which allows them to maintain an affordable fare. "It's the same price charged for selective urban transport within the city," adds the director.
"We are very happy with the service and the innovative character of the app," says the mayor of Cachoeirinha, Cristian Wasen. "The modern and efficient transport we want for the city needs new solutions like this."
Easy to use
The 'Teu Bus' app, developed by Liftango, is very easy to use. The passenger selects the time and place of their trip, and the app dynamically adds the passenger into the optimal route. To maximize efficiency, the app may suggest a nearby location or more convenient time for the trip in order to pick up all the passengers.
Users can also schedule multiple trips at once, always at the same time and destination, which makes it easier for those who use Teu Bus to go to or from school or work.
The fare can be paid with the TEU Card, used across the metropolitan area to pay for urban transport, directly through the app, cash, or debit and credit cards.
If the trend catches on...
The innovative app implemented in Cachoeirinha is a pioneer in the region, leading the way for metropolitan transport. Many transport operators in the region have faced financial difficulties due to a drop in passenger numbers in recent years; first came the ride hailing apps, then the pandemic. When services resumed, the passenger numbers were not as high as their previous figures. With the introduction of on-demand transport to the region, alongside a consistent marketing awareness campaign, there has been a boost to passenger numbers over the first few months. There has also been steady growth as the service has been optimized over time.
On-demand transportation can be used as a complementary service alongside traditional urban transportation. The benefits are greatest when both are operated by the same company, as is the case in Cachoeirinha, ensuring there is no cannibalization of passenger numbers. On the contrary, the passenger is empowered to choose the service that suits him better.
If the fare is fair, on-demand transport will flourish.
