[tfehring]

On-demand service is drastically less efficient than fixed-route service. That's the main reason Uber/Lyft is already several times more expensive than bus or train service for the same route, and it would be even more expensive if Uber/Lyft drivers made the same total comp per hour as bus drivers including benefits, fuel, vehicle depreciation/wear and tear, insurance, etc. Not to mention the additional congestion and pollution you'd get if you replaced every bus during rush hour with 25 cars or whatever.

[treis]

It does not really come out to be that much more. As an example, each unlinked trip costs $5 for my local system. Most trips will take a transfer so a realistic estimate of the per trip cost is $8-10. Looking back at my Lyft history most of my trips cost $8-15 so very comparable.

It looks dramatically different because buses are subsidized while Uber/Lyft is taxed and for profit. To continue using my city as an example, farebox recovery rate is ~30% and that doesn't include capital expenses. The difference is made up by tax revenue. On the other hand out of my fare, ~10% is sales tax, Uber/Lyft take another 20-40%, leaving 50-70% to go to paying the driver for the ride.

The problem ultimately is coverage. If you want to provide frequent service to all parts of the city you end up running a bunch of near empty buses. That kills the efficiency benefits of the buses and when you look at the system as a whole it ends up being about the same as on demand.