What is Microtransit?

You may have come across terms like ‘technology-enabled transit’, ‘flexible routing’, ‘Demand-Responsive Transport’ or ‘On-Demand Transport’, but all of these ideas can be combined under one clear definition—microtransit.

It all began in 2015, when the transport industry decided to ‘shake things up’, recognising that neither the solo traveller nor bulky public transit models were failing to meet needs. A middle ground was needed that was flexible, affordable, and scalable; this is where microtransit found its niche.

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What is microtransit?

Microtransit is a shared transportation service combining traditional public transit elements with flexible, on-demand options.

It typically uses smaller vehicles like vans or minibuses and can operate on fixed routes or adapt routes and schedules based on real-time demand. In many regions, this style of service is often considered part of the broader on-demand transit ecosystem, where it is commonly referred to as demand-responsive transport (DRT) or on-demand transport (ODT), rather than being categorized separately.

This form of transport sits between personal travel options, such as taxis and Ubers, and traditional public transportation, such as buses and trains. It also frequently serves as a first- and last-mile solution, bridging the gap between neighbourhoods and major transit hubs.

What Is Microtransit to the Passenger?

For passengers, microtransit is a more convenient and flexible option that can reduce travel time. It offers a reliable form of transport with the convenience of Uber at the cost of public transit, which is the best of both worlds. Services are often booked through an app-based platform, typically managed by a technology provider such as Liftango.

With microtransit, riders enjoy a more relaxed journey, as they can be confident they’re taking the fastest and most efficient route to their destination.

What Is Microtransit to a City or Transit Agency?

For cities and agencies, microtransit helps cover areas where buses aren’t practical, connects riders to major transit lines, and reduces the cost of running empty routes.

Traditionally, cities and transit agencies were limited by fixed-route models, especially in rural areas, leaving many without affordable transport options.

Microtransit uses Demand-Responsive Transport (DRT) feeder services, where vehicles can create temporary pick-up points within a service zone and connect riders to central hubs.

Unlike fixed-route feeders, this flexible model gives passengers more options to reach main transit lines, making it a practical tool for cities and transit agencies to improve coverage.

What Is Microtransit to a Bus Operator?

For bus operators, microtransit offers a way to run smaller vehicles on flexible, demand-driven routes instead of rigid schedules. This improves fleet utilisation by reducing idle time and optimising vehicle deployment.

Operators can respond dynamically to rider demand, navigate traffic more efficiently, and cover routes that would be impractical with traditional buses.

It also reduces operational stress, allowing for smoother daily management while expanding service to rural areas that were previously underserved.

Examples of Microtransit

Microtransit can take various forms, such as:

• On-Demand Shuttle Services: Flexible, longer routes between neighbourhoods, towns, and cities.

• Demand-Responsive Bus Services: Buses transport passengers from designated pickup points at scheduled times.

• First-Mile/Last-Mile Connections: Services linking commuters to major transit hubs like train stations or bus terminals.

• Corporate or University Shuttles: Shared transport for employees or students.

• Event or Festival Shuttles: Temporary microtransit solutions to handle large crowds.

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How Efficient Is Microtransit?

There are many benefits of microtransit, but its greatest advantage is its efficiency.

Imagine you’re catching a traditional bus. You grab some change or a pass, board, and squeeze in among a mix of passengers.

Or, worst-case scenario, with no seats available, stand awkwardly while trying not to make eye contact with the person sitting in front of you.

Let’s replay that scenario again, but instead, using microtransit.

You book your ride on your phone, meet at a virtual stop, and hop on. From there, you’re taken on the fastest route while efficiently picking up a small group of passengers along the way. The result is a quicker, smoother ride with less waiting, less crowding, and fewer unnecessary detours.

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“Users request shared vehicles through a tech-enabled application, and the vehicle will deviate from its route to somewhere within walking distance of the requester. Routes can be fully dynamic and adjusted in real time based on traffic and demand, or can change over the span of a few days.” - ENO Center for Transportation.

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Key Features of Microtransit Technology

Microtransit technology refers to the software, apps, and systems that make microtransit services possible by managing bookings, communicating with passengers, and more.

Key features of microtransit technology include

• App-Based Booking: Digital platforms allow riders to request trips through mobile apps or call centres, while the backend system manages scheduling and capacity.

• Dynamic Routing: Advanced algorithms automatically adjust routes based on passenger demand and traffic conditions.

• Live Updates: Real-time tracking systems provide passengers with accurate pick-up times, vehicle locations, and route changes, making the service more reliable and transparent.

Environmental Impact of Microtransit

Microtransit offers significant environmental benefits by reducing the public’s reliance on private vehicles.

In 2023, approximately 29% of the United Kingdom’s net greenhouse gas emissions were attributed to the domestic transport sector. To align with the International Energy Agency’s proposed net-zero targets, emissions from this sector must decrease by at least 20% by 2030.

Adopting microtransit can play a key role in this reduction, not just in the UK, but worldwide.

It addresses the first-mile/last-mile problem by lowering the need for short car trips, which contributes to a decrease in overall vehicle emissions.

Reducing the number of private cars on the road also eases the demand for parking infrastructure, helping cities avoid dedicating additional land to car parks and enabling more space-efficient urban planning.

By easing traffic congestion and limiting the number of single-occupancy vehicles on the road, microtransit contributes to more sustainable and environmentally conscious urban transport systems.

What Makes Microtransit Different?

Microtransit delivers transport on demand at an affordable price.

With the rise of Uber and similar ride-hailing services, booking a lift now requires only a click of a button. But with this capability at our fingertips, it’s easy to overlook the downsides of frequently booking solo trips.

While these services offer flexible travel, relying on single-passenger trips can increase road congestion, leading to longer travel times for everyone. Costs also accumulate quickly when paying for individual rides, even if you save on fuel and vehicle ownership.

Microtransit is a better, lower-cost alternative. Riders gain the convenience of on-demand travel while paying prices that are closer to traditional transport options. But, unlike catching a train or bus, where you’ll follow a slower, predetermined path, with microtransit, you can reach your destination faster and without unnecessary delays.

Why Should the Community Switch to Microtransit?

Traditional transport solutions have tried to address urban mobility in various ways, but each comes with limitations.

Fixed-route buses, for example, cover major areas but often leave gaps in underserved neighbourhoods, forcing residents to rely on private cars or long walks. Carpooling initiatives reduce some traffic but require coordination and commitment.

Microtransit addresses these gaps by combining shared travel with dynamic routing. Vehicles pick up multiple passengers along adaptable paths, expanding coverage to areas that fixed routes cannot efficiently serve.

Improving access to reliable transit also helps workers reach jobs without the need for personal vehicles while supporting local businesses through increased foot traffic. More people can easily reach shopping districts, restaurants, and service providers without worrying about parking or long commutes.

Microtransit fills the gaps left by traditional transport options, delivering a system that is more responsive, inclusive, and beneficial to a community's overall well-being.

From Car Ownership to Shared Mobility

Private car ownership is often considered the best way to travel, but it brings with it traffic congestion, high parking demand, and infrastructure strain.

Microtransit reduces the need for each individual to own a car, helping communities cut overall vehicle numbers, free up urban space, and improve travel efficiency.

How Microtransit Addresses Cost Concerns

Owning a personal vehicle can also be extremely expensive when considering fuel, maintenance, insurance, and parking costs.

The option of microtransit allows residents to access reliable transport without the heavy financial commitment of private vehicle ownership.

Microtransit vs Other Transport Modes

Here’s a summary of how microtransit stacks up against other forms of transport:

• Microtransit vs Taxis and Ubers: Shared rides lower passenger costs and reduce congestion by grouping trips.

• Microtransit vs Buses and Trains: Unlike fixed-route transit, microtransit adjusts to passenger demand, serving areas and times that traditional schedules may overlook, while also offering more direct connections to main transit lines.

• Microtransit vs Personal Car Use: Although many citizens can afford cars, seniors, students, and those with disabilities often face barriers to driving. Microtransit provides an inclusive option, allowing anyone to travel independently.

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Funding and Policy Support for Microtransit

In the UK, funding for microtransit often comes through government-backed grants, local authority budgets, and partnerships with private operators.

Programs such as the Department for Transport’s Rural Mobility Fund have already piloted demand-responsive transport services across smaller towns and rural areas.

Policy support is also growing as local councils are increasingly inclined to integrate microtransit into wider transport strategies to improve accessibility and meet net-zero goals.

Aligning with priorities such as cutting carbon emissions or encouraging increased public transport use will help communities secure funding and gain political support for microtransit options.

Future Trends in Microtransit

Emerging trends point to microtransit becoming an integral part of modern transportation networks.

Cities are increasingly exploring using them as first—and last-mile connectors to existing transit hubs, helping passengers more easily reach trains, buses, or metro services.

Services also expand into low-density and historically underserved communities, filling gaps where fixed-route transit has struggled to remain viable.

Technology continues to drive progress as well. AI-powered planning tools enable more accurate demand forecasting, more intelligent routing, and better fleet allocation.

With the successful utilisation of AI and other advanced technologies, microtransit services can increasingly improve passenger satisfaction and cost-effectiveness.

Microtransit is expected to replace or complement underused fixed-route bus or train services. Its flexibility makes it attractive for cities that want to expand coverage and improve equity without committing to the heavy investment of new rail or large-scale bus infrastructure.

Explore More About Microtransit

Microtransit and paratransit represent the next step in building more convenient, sustainable, and connected travel systems.

At Liftango, we help regions and organisations design, launch, and scale shared mobility projects with proven expertise in algorithms, data science, user experience, app development, and global project delivery.

Are you interested in contributing to the future of shared mobility? Our team can offer their expertise and help you find the best solution for your community or organisation.

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Contact us today to learn more about Liftango, explore tailored solutions, or schedule a product demo.

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Microtransit FAQs

Find out more about microtransit with these answers to frequently asked questions:

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Is Microtransit Cheaper Than Ride-hailing Services Like Uber?

Microtransit typically offers lower fares than solo ride-hailing trips because rides are shared among multiple passengers.

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Does Microtransit Operate on a Fixed Schedule or Fully On-Demand?

Microtransit is usually flexible and demand-responsive. Unlike fixed-route buses, it dynamically adjusts routes instantly based on rider requests, allowing for more direct trips and shorter wait times.

How Can My City or Community Implement Microtransit Services?

Cities often start with pilot programs and partnerships to test, refine, and scale service. After that, full implementation involves assessing local transit needs and defining performance metrics before full rollout, ensuring the routes and schedules meet the community’s needs.