Subsidized ridesourcing for the first/last mile: How valuable for whom?

Abstract

Many transit agencies partner with ridesourcing companies to offer subsidized first/last mile services. Ridership, however, has been low in many cases. Complementing popular operational explanations for low ridership, we explore two conceptual ones: using ridesourcing for the first/last mile adds an additional transfer and costs to the overall transit trip. We quantify both hypotheses simulating commuting trips in three structurally different regions currently piloting first/last mile services: Seattle, Pinellas County (FL) and Marin County (CA). Our results show that even low transfer penalties of 5 (15) minutes exceed travel time savings for 40% (92%) of all trips in urban and 10-15% (68-80%) in suburban areas. Surcharges under the three most common subsidy schemes (USD 5 flat-fee discount, 20% reduction on trip cost and USD 1.75 fixed price) exceed the value of travel time savings for most trips of low-income households. Our findings not only help explain low ridership on current subsidized first/last mile ridesourcing services but also elucidate why a significant and substantive positive relationship between ridesourcing and transit ridership has not yet been found. They challenge the frequent view that driverless taxis could complement transit on the first/last mile as a transfer penalty will persist for all vehicle-based first/last mile services. Our methodology relies entirely on open data, enabling transit agencies to assess the potential of first/last mile partnerships and social equity of different subsidy schemes in their locality.