A new, independent report out this month from global management consulting firm, L.E.K. Consulting, analyses the success of Cooee Busways — the joint venture among TransitTech provider Via, Australian transportation provider Busways, and Transport for NSW to bring on-demand transit to the community. “Five Key Steps to Deliver Successful On-Demand Transport” outlines what the team behind Cooee Busways did to achieve its rapid growth. The report then delivers an actionable framework for transportation providers wanting to implement a microtransit service that saves money and time, while giving riders the convenience and comfort of a rideshare service.
As the authors put it: “When transport agencies get the delivery model right the financial savings, social inclusion, accessibility options and environmental benefits can be significant.” Launched in May 2019, this first-mile-last-mile service has connected residents of Sydney’s suburbs to three Sydney train stations, and it’s already being touted as “the fastest growing OnDemand deployment in Australia.”
The report notes that “at the end of February 2020, in an area with 24,000 residents, the Cooee Busways app has more than 13,500 registered users. It has delivered more than 80,000 rides within nine months of launching in May 2019. Between June 2019 and February 2020, rides per day doubled from 265 to 540, utilisation increased from 5.3 to 10.2, and cost per ride before deducting fare revenue dropped from $15 to $7.40. This is much lower than most traditional low-volume route services, which can cost well over $15 per passenger.”
In addition to the socioeconomic benefits that come with wider mobility access, L.E.K. highlights the service’s efficacy when it comes to taking commuters out of private cars and bringing them to public transit instead. So, what’s the secret? The team at L.E.K. breaks the process down from service design to post-launch optimisation and shares exactly what it takes to build an on-demand service that shines.