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Incorporating mobility-on-demand into public transit in suburban areas: A comparative cost-effectiveness evaluation

Cai, M., Ashour, L. A., Shen, Q., & Chen, C. (2025). Incorporating mobility-on-demand into public transit in suburban areas: A comparative cost-effectiveness evaluation. Transportation Research. Part D, Transport and Environment, 144, Article 104775. https://doi.org/10.1016/j.trd.2025.104775

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Abstract

Transit Incorporating Mobility-on-Demand (TIMOD) represents the public–private partnerships in which transit agencies incorporate MOD services to supplement fixed-route transit. This study evaluates the cost-effectiveness of TIMOD compared to buses, driving, and ride-hailing in suburban settings. For each alternative, it estimates the marginal costs for travelers, service providers, and transportation externalities, which constitute the marginal social cost. In the study cases, TIMOD is the least cost-effective option, with marginal social cost approximately 20% higher than TNCs and over three times higher than driving. For travelers, TIMOD costs more than driving but less than buses and ride-hailing when considering time value and fare. The cost of TIMOD declines as population density increases. Suburbs with less bus services and higher income residents benefit more from TIMOD, realizing greater reductions in time costs compared to buses. Transit agencies should explore alternative ways to improve mobility for disadvantaged suburban residents by offsetting driving costs and subsidizing TNCs fares.

Keywords

Transit Incorporating Mobility-On-Demand (TIMOD); Public transit; Transportation simulation; Suburban areas; Marginal social cost of travel