Canadian Legislative Issues

An interesting experiment is happening in a small Ontario town that, if successful, could have major implications for transport and for public fleets in the future.

Innisfil, a city of fewer than 40,000 people, has struck a deal with Uber Canada for the popular (though still mostly urban) ridesharing platform to provide subsidized public transport to its citizens. Lacking the density and economies of scale available to bigger cities that have robust public transit systems, Innisfil is conducting a time-limited experiment to determine whether Uber can meet the transport needs of its people, and is allocating significant public resources to subsidizing fares for local users of the platform.

 

Though still in early stages, if this process is deemed successful – and financially viable – by the town, the idea could quickly spread to more, and larger, cities in Ontario and beyond. The implications for fleet managers, particularly those on the public transport side of the industry, are potentially profound. If the model is successful, it could represent further competition in the future as more cities and towns adopt the model in their own jurisdictions.

For now, the idea remains just that: an idea. Even in Innisfil – Ground Zero in the world of Uber-as-sole-public-transportation-provider – it is still too early to know if the idea can work in the real world. Will citizens make use of the service? Will costs remain affordable for cash-strapped small towns? Once established, will Uber take advantage of the natural monopoly the model encourages to increase prices and therefore the burden on the taxpayer?

It is impossible to answer any of these questions definitively at this time. But what remains today a single small-town experiment could one day grow into a revolution for public transport fleets as we have come to know them.