The Boston Consulting Group Think Tank published a report on urban mobility. BCG sees on-demand transit as a middle path between the inflexibility of traditional, fixed stop public transport bus services, and the convenience of ride hailing, which is responsible for two-thirds of the increase in traffic congestion. The study shows that on-demand transit services paired with regulations to discourage personal car ownership, could reduce traffic in cities by 15 % to 30 %, and thus lower pollution and congestion. Furthermore, BCG states that on-demand transit services could operate on lower subsidies than public transport and enhance customer experience. In order to maximize the social and environmental benefits of on-demand transit, BCG recommends that cities and on-demand transit services experiment to create alternatives to fixed route public transport, and to use the new services to create more convenient connections to public transport hubs.
See the full report here.