Uber expands higher-margin U.S. transit software business with three new agencies

Denver’s Regional Transportation District, Cecil County Transit in Maryland and the transit agency of Central California’s Porterville will use Uber’s software to operate their transit or paratransit service, the company said.

Passengers in those cities can book transit or wheelchair-friendly rides through the Uber app, but unlike regular ride-hail trips, transportation will be provided through the transit agencies’ drivers and vehicles.

The tech-based agreements are separate from Uber’s other transit service, which allow agencies to replace some fixed-line bus routes with on-demand ride-hail trips in lower-density areas or at off-peak hours.

Uber has gradually deepened its collaboration with agencies over recent years and last year acquired transit software provider Routematch, at the time saying the deal would allow it to rapidly expand its transit agency customer base.