CATS gets federal funding to launch transit on demand service

CHARLOTTE — The Federal Transit Administration is giving the Charlotte Area Transit System money to develop a transit-on-demand program. Under the program, in some cases, instead of waiting for a bus to pick you up, you would be able to hail the ride on your phone like an Uber or Lyft.

The microtransit service may replace some routes in the future, according to the FTA. The FTA is providing CATS with $750,000 to develop the program. The funding comes from the American Rescue Plan Act.

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“Travel time is the single strongest factor for a person’s odds of climbing out of poverty,” Paul Kincaid of the FTA said. “The longer the travel time, the worse the chances of moving up the economic ladder.”

CATS said the funding will allow them to develop the program and educate the public about it. CATS will operate the on-demand services, and look to partner with rideshare companies and bike and scooter shares.

Transit-on-demand is a lot like Uber or Lyft. The FTA said riders will be able to catch a transit van or other service in less than 15 minutes, instead of waiting longer for the bus or light rail to show up.

“Making them able to take advantage of all that the Queen City has to offer, including jobs, health care and access to fresh fruit at grocery stores,” Kincaid said.

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CATS hopes to start work on the service in the next fiscal year, which starts in July.

Full statement from CATS:

“The FTA’s grant will provide CATS the funding to fully develop a Microtransit program. The main focus of the effort will be to integrate on demand services that CATS will operate as well as seek partnerships with rideshare companies like Uber and Lyft. Additionally CATS will develop strategies to incorporate bike and scooter share services. The overall goal is to create a true hub that connects riders to our rapid transit system and high frequency bus routes. Part of the grant will be used to educate the public on Microtransit, electrifying our fleet and much more. The goal is to start this work in fiscal year 2023 and work within our current operational structure.”

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