The Routing Company (TRC) released its inaugural State of On-Demand Transit Report, an in-depth analysis of the key trends and technologies transforming public transit globally.

The comprehensive report looks at progress made during the year of 2024 and offers insights for all stakeholders in the public transit industry.

With the global on-demand transportation market projected to grow from $184.9 billion in 2023 to $770.8 billion by 2032, the report shows why this shift represents an opportunity for transit agencies to rethink their operations.

The ability of on-demand transit to drive operational efficiency, lower cost per ride, and adapt to changing demands makes it a pivotal tool for modernizing transit systems. With its capacity for rapid deployment, on-demand transit offers agencies a faster, more scalable alternative to fixed-route solutions.

“Public transit is at a pivotal moment,” said James Cox, CEO of The Routing Company. “As rider expectations evolve and operators look to increase the utilization of their assets, cities and communities must embrace new strategies to provide efficient, flexible, and equitable transit. This report not only captures the progress being made but also equips leaders with the knowledge to shape the future of mobility. The adoption of on-demand transit is still in its early days, and we’re doing everything we can to empower agencies in understanding, assessing, and deploying integrated transit solutions.”

The report highlights on-demand transit as an effective solution for diverse communities, addressing challenges like service equity, operational efficiency, and accessibility in both urban and rural environments.

The One Transit operational model integrates on-demand, fixed-route, and paratransit services to further underscore this vision by breaking down traditional silos to create a seamless rider experience across all modes.

Agencies can improve connectivity in low-density areas, enhance accessibility in urban centers, and maximize resource efficiency with One Transit. Communities implementing the model are experiencing increased service equity, reduced costs, and the flexibility to adapt to real-time rider demand, setting a new standard for modern public transit systems.

Findings of the Report

In the report, an unprecedented market growth was observed globally, with the on-demand transportation market expected to grow by over 300% by 2032. This growth is fueled by urbanization, technological advancements, and the need for more sustainable transit solutions.

It was also found that agencies adopting on-demand transit models have reported significant increases in efficiency, including shorter wait times, better seat and resource utilization, and reduced operational costs in both urban and rural settings.

Communities in North America, Europe, and beyond are integrating flexible services with traditional fixed-route systems, enabling transit networks to deliver greater coverage and equity.

Increased federal and state funding is helping to accelerate these innovations, with programs like the U.S. Department of transportation’s $100 million SMART grant and the $120 million ATTAIN grant initiatives. In addition, recent American ballot measure results underscore the widespread support of transit in America, with voters demonstrating a 87% approval rate for public transit initiatives.

With on-demand transit solutions able to be deployed in a matter of weeks, agencies can respond quickly to changing demands and launch efficient, flexible services with minimal downtime.

From improving service coverage in rural areas to reducing operational costs in dense urban hubs, the findings highlight how flexible transit can reshape mobility across a wide spectrum of geographies.

The report can be found here.