A $41 a trip subsidy

Stuff reports:

An Uber-style rideshare trial is running nearly 200 per cent over its projected cost per trip, prompting a local board member to label “financially irresponsible to continue”.
AT Local, operating in Devonport on Auckland’s North Shore, is an on-demand service aimed at reducing congestion in the harbourside suburb. Residents use an app to request a pick-up by one of five dedicated electric vehicles, which then takes them home or to a nearby ferry wharf.

The residents could of course just use Uber or a taxi or Super Shuttle or numerous transport companies.

“We were originally told that this ride share would be subsidised by $14 per ride,” he said.
“Four months into the trial the figures have come out that the true subsidy to date is $41.48 per ride – it is financially irresponsible for [Auckland Transport] to continue this trial.”

So ratepayers are paying a subsidy of $41 a trip!! A typical Uber trip is around $15 so the level of waste is huge.

“This is a test and learn trial and we are making changes based on public feedback – for instance, we have changed the booking procedure slightly after requests from our customers.
“We have also added more meeting points to reduce the maximum distance anyone has to walk from 250 metres to 200.”

With Uber the maximum you have to walk is around 10 metres. They pick you up from anywhere and deliver you anywhere. So this costs more and is less useful.

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