RSG159: David Zipper on Uber Transit

Over the past few months, Uber has been rapidly shedding cash-burning business units, like Elevate and self-driving cars. It’s part of a larger trend of consolidation since CEO Dara Khosrowshahi took over. However, one less-flashy segment has been booming: Uber Transit. In this episode, I’ll talk with David Zipper on Uber Transit, how it fits into the Uber picture, and a new report from the Uber Transit team.

Also, take a look at the Smarter Cars podcast! Michele Kyrouz releases her podcast in seasons, giving her audience something to look forward to. Her new season just premiered in January, and I really enjoyed the episode with Carl Vernesson from Voi. Find all the links to Smarter Cars below in our Show Notes.

Intro to David Zipper

3-time RSG podcast guest!
David Zipper’s perspective on cities and urban mobility is rooted in his experience in city hall, venture capitalism, policy research and more
He advises numerous startups, mayors and transit agencies
His writing has been published in The Atlantic, Slate, Newsweek and more
He focuses on the relationship between transit and ride hail services

Rideshare and Uber’s Transit Products

Since rideshare came out, has shown a negative impact on transit
A source of growing controversy among transit agencies
3 business products Uber Transit uses: Uber Rides for Transit, Uber Transit Software Solutions, Uber Maas Solutions

Uber Rides for Transit, Software

Uber offers point to point trips, argues transit services can save money instead of running bus service for fewer people
Problem with convenience – leads to induced demand
Concern is when transit agencies think providing subsidized trips in a suburban area is better than bus service
Makes sense for certain subsidized rides, however – paratransit, for example

Uber Maas Solutions

Better than using a variety of city transit apps?
First mile/last mile – it’s not working (only in limited circumstances)
Skeptical – what do transit agencies really gain? What data will transit agencies receive?
Some modes will never be available through the app (bikeshare, for example)

What is the Main Goal of Transit Agencies?: Future of Transit

Biggest problem right now: getting people to take transit after COVID!
As people return to travel, decisions may look different from pre-2020
Encourage transit agencies to be more like Starbucks – negotiate carefully
Not convinced this is actually happening – do they know they can negotiate?

Outro

Thanks to David for coming on the podcast and the lively discussion
David’s perspective is key – he’s passionate about what’s best for cities, transit but recognizes companies do offer some solutions that help
Curious to see the MaaS solution going forward