National Post

Experiment with Uber is working, town says

- Alicja Siekierska

The town of Innisfil, Ont., is hailing its two-month old experiment to subsidize Uber as the lone form of public transit as a success, with nearly 5,000 trips taken since the pilot project began in May.

Innisfil — located just south of Barrie and home to about 36,000 people — has paid $ 26,462.41, or an average of $ 5.43 per trip, for 4,868 Uber rides taken in the two months since launching the unique- to- Canada project on May 15.

“We are really pleased we did go this route,” said Paul Pentikaine­n, a senior policy adviser with the town. “This partnershi­p with Uber had definitely proven to be a lot more cost effective for us, being able to provide this level of service to our residents.”

“You don’t need to be within walking distance to a bus stop or a bus route, so it’s something that works for us for sure.”

Last summer, Innisfil’s city council was at a crossroads. Creating additional transporta­tion options across the sprawling area was declared a key priority in t he community’s strategic plan, but council found that a fixed- route bus service would be too costly, with a price tag of $ 270,000 per year for one bus, and $610,000 for two.

Instead, the town decided to partner with global ridesharin­g giant Uber to launch a partnershi­p to provide on- demand transit service to Innisfil residents that is partially subsidized by the municipali­ty. Passengers pay between $ 3 and $ 5 for set routes within Innisfil, such as to Town Hall and the GO train station, and the town pays $ 5 for all other rides within town.

Pentikaine­n and Tim Cane, Innisil’s manager of land- use planning, will provide city council with a twomonth update on the pilot project on Wednesday.

So far, demand is keeping pace with the budget for the project. Innisfil’s council committed $100,000 for the first six to nine months, and an additional $ 125,000 next year.

While Pentikaine­n said there are certain times during week days where meeting demand has been an i ssue, he said Uber said people that have been requesting trips have been able to get trips “most of the time.”

“As a 24/ 7 service, we’re quite pleased with that,” Pentikaine­n said, adding that using Uber as an on-demand public transit option appears to be the best option for the town for the foreseeabl­e future.

“With our l arge geography, the distance between settlement­s, getting bus routes to provide the same level of service would be way too expensive,” he said. “Maybe decades into the future when we have a much higher population we may look at other options, but I think right now this is work- ing for us.”

Pentikaine­n added that, in the short term, the town will look at ways to tweak the service to make it more efficient and convenient for users, as well as surveying residents about the Uber system.

Uber spokespers­on Susie Heath said the ride- sharing company is pleased with the results of the report that was released Tuesday and will be presented on Wednesday.

“Since we launched this exciting public transit partnershi­p in May, it has been great to see Innisfil residents access affordable, ondemand rides to get around their community and connect with local transit hubs,” Heath said in an emailed statement.

“We look forward to continued dialogue with other jurisdicti­ons and transit authoritie­s across Canada to explore similar partnershi­ps.”

The past several months have proven to be a turbulent time for the ride sharing company. In June, chief executive Travis Kalanick resigned after a lengthy investigat­ion that was prompted after a former engineer publicly accused the company of sexual harassment and discrimina­tion. The report, conducted by former U. S. Attorney General Eric Holder, had many recommenda­tions, including that Kalanick’s authority should be reduced.

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