Autonomous driving will unlock profits for on-demand transit

Microtransit is one of many emerging mobility solutions that aims to support existing public transit networks. Commercial projects have rolled out slower than micromobility, car-sharing or other on-demand ride services, which have seen explosive growth in recent years.

In part, this may be due to the inherent challenges of running a shared transportation service with no fixed route, using vehicles with fewer seats than a conventional bus, and forking out on high driver wages. Estimates vary, but a driver can account for anywhere between 30% and 60% of the operating expenses (OpEx) of a traditional public bus. It can be done, but sustained success is hard to come by.

Automation makes a more compelling argument for microtransit. Without a human driver, vehicles can operate continuously, or at least as long as power remains in the battery. They also offer a whole new level of flexibility, serving