Within DOT, FTA is responsible for providing grants that support the  development of safe, comprehensive, and coordinated public  transportation systems, among other things. Identifying any federal requirements that could impact the ability to  provide on-demand mobility services offered through partnerships. Partnerships Seek Various Service Efficiencies, but Their Full Impacts are Unknown

		Most Selected Projects’ On-Demand Services Aimed to Increase Transit Ridership

As shown in figure 3 below, local transit agencies nationwide are pursuing  partnerships to offer a variety of on-demand services that aim to make  access to public transportation more efficient and convenient. The private  mobility companies involved in selected partnerships include some well- known companies such as Uber and Lyft, and some lesser-known types  of companies such as a bike-share company and technology companies  focused on transportation. Selected local transit agencies most  frequently partnered with ridesourcing companies (11 projects), while 8  partnership projects included more than one type of private partner. Most selected projects (14 of 22) involved on-demand first- and last-mile  transportation connections, through which respective local transit  agencies aim to increase ridership on their transit systems (see table 1). Long-Term Sustainability and Effects on Transit Ridership, Costs, and Communities Have Not Yet Been Determined

Most of the selected projects have not yet been evaluated to determine  whether they achieved intended outcomes. Since first announcing the selected 11  MOD Sandbox projects to receive funding in October 2016, FTA has  supported the program through various efforts, and most (10 of 16)  selected local transit agencies in our review expressed positive views on  the program. Most Selected Transit Agencies Wanted Additional Information Describing How Transit Partnerships Have Met Federal Requirements

Since initiating the MOD Sandbox program, FTA has gathered  information from grantees about federal requirements that may pose  challenges to implementing transit partnerships. As FTA has gained more knowledge about such partnerships, the agency  has sought to clarify how some of these requirements apply to such  partnerships. Gathering information from those local transit agencies  would provide FTA with more information about how partnerships are  meeting federal requirements. Finally, additional information on  these partnerships would better position FTA to respond to changes in  the transit industry that could impact its own efforts and goals, such as  planning for future MOD grants and improving the efficiency of transit  services overall. Selected Transit Agencies Reported Confusion about Whether and How On- Demand Project Data Should Be Entered into the National Transit Database

To track its progress toward achieving its goals, such as increasing the  efficiency of public transit services, FTA can use data from NTD. Additionally, according to FTA officials, FTA uses certain NTD data to  apportion certain grant funds to local transit agencies nationwide,  including data on passenger miles traveled and vehicle revenue miles. According to FTA officials, some data that local transit agencies would  need to report on-demand project data into NTD and to measure project  outcomes—such as whether the targeted riders are using the on-demand  rides to get to and from transit stations—would be tracked by the private  mobility companies involved in the project. Considerations Impacting the Future Prevalence of Transit Partnerships Include Industry Changes, Available Funding for Local Transit, and Access to Services, Among Others Roles of Local Transit Agencies and Private Mobility Companies Could Change as the Broader Transportation Industry Evolves

The transportation industry as a whole is rapidly evolving, with more on- demand services being offered, which could increase the use of transit  partnerships. (Recommendation 1)
Determine which on-demand services qualify as “public  transportation” based on the statutory definition and disseminate  information to clarify whether and how to report data from such  services into NTD. (Recommendation 2)
Gather and publically share information on transit partnerships,  including those that were not part of the MOD Sandbox program, to  include: information on how the local transit agencies and their private  mobility company partners are facilitating data sharing, and minimum  data needed from a private partner to facilitate NTD reporting. DOT concurred with our three recommendations.
Why GAO Did This Study

The public transit landscape is changing, as advances in technology have enabled more on-demand mobility services, such as ridesourcing and bike-share services. In response, some transit agencies have started to partner with private mobility companies with the aim of offering public transit riders more efficient and convenient options through on-demand services. FTA supports public transportation systems through a variety of federal grant programs.
GAO was asked to review various issues related to such partnerships. This report examines, among other things: (1) the types of partnership projects that selected transit agencies have initiated with private mobility companies and (2) how DOT's efforts and funding and federal requirements may impact such partnerships. GAO interviewed DOT officials and reviewed DOT documents; interviewed 16 local transit agencies and 13 private mobility companies involved in transit partnerships; and reviewed 22 projects initiated by the selected partners, including 5 funded by the Mobility on Demand Sandbox grant program. GAO selected these partners to represent a range of service types and geographic locations; the results are non-generalizable.

What GAO Found

Some local transit agencies are pursuing partnerships with private mobility companies—including car-share and "ridesourcing" companies such as Lyft and Uber, which provide access to a shared vehicle “on demand”—with the aim of offering public transit riders more efficient and convenient service options. Most of the transit partnership projects that GAO selected (14 of 22) involved private partners providing on-demand transportation for the “first- and last-mile” connections to or from public transit stations (see figure). Local transit agencies use first- and last-mile connections to increase their public transit ridership. Other services provided through selected projects included filling transit service gaps in under-served areas. Most selected projects have not yet been evaluated to determine whether they achieved intended outcomes.
The Department of Transportation's (DOT) efforts, especially the Federal Transit Administration's (FTA) initiation of the Mobility on Demand Sandbox program, have facilitated partnerships, but confusion about how to meet some requirements and how to report data pose challenges to implementing projects. In October 2016, FTA announced the selection of 11 projects to receive grants and has since provided assistance to the grantees. FTA also issued clarifications about how certain federal requirements—such as those related to the Americans with Disabilities Act of 1990 (ADA)—apply to transit partnerships. However, most selected local transit agencies (14 of 16) said that additional information beyond what FTA has already disseminated, including how agencies have successfully structured partnerships and met federal requirements, would be helpful. Collecting and disseminating such information could help FTA be better positioned to respond to changes in the transit industry that could impact its own efforts and goals, such as planning for future Mobility on Demand grants. In addition, most selected local transit agencies reported confusion related to reporting information about their on-demand projects into the FTA's National Transit Database, including confusion about which on-demand project data would qualify for entry. This confusion has led to possible reporting inconsistencies by some local transit agencies. Ensuring that data contained in the National Transit Database are complete and accurate is important, since according to FTA officials, FTA uses these data (1) to apportion certain grant funds to local transit agencies based on factors such as passenger miles traveled, and (2) to track its progress in achieving goals such as promoting efficient transportation systems, among other things.

What GAO Recommends

GAO is making three recommendations including that FTA disseminate information about how partnership projects met federal requirements and how data on partnerships should be entered into the National Transit Database. DOT concurred with the recommendations.