The Economics of DRT: Cost Models for Public Agencies

The answer depends not only on budget but on the goals of the service—accessibility, sustainability, integration—and the cost of not improving mobility options in underserved areas. Let’s break down the real economics of DRT.

Lower Operating Costs Than Fixed Lines

In low-density areas, running a fixed bus line—even with minimal frequency—often results in high cost per passenger due to low ridership. With DRT, vehicles only move when needed, and can adapt routes to actual demand in real time.

This dramatically reduces:

  • Empty kilometers
  • Fuel or energy use
  • Driver hours on underused routes

The result: more rides per euro, with better service coverage.

CapEx vs OpEx

Unlike traditional transport investments that require heavy upfront capital—buses, depots, fixed stops—DRT uses existing vehicles and requires minimal infrastructure. Most costs fall into operational expenses (OpEx), which are easier to adjust and scale.

This makes DRT ideal for pilots, seasonal services, or areas with uncertain long-term demand.

Cost-Sharing Opportunities

DRT models can also attract co-funding from various sources:

  • Corporate campuses or industrial zones contributing to workforce mobility
  • Tourism boards or hotel associations funding seasonal services
  • Healthcare providers supporting access to hospitals and clinics

Shotl supports multistakeholder models with shared dashboards, booking permissions, and reporting for transparency.

Public Value Beyond the Balance Sheet

While costs are measurable, benefits are often broader:

  • Reduced car dependence
  • Social inclusion for non-drivers
  • Better air quality and lower emissions
  • Increased public satisfaction with local government

These outcomes translate into long-term economic gains, even if they don’t appear immediately on an invoice.

Flexible Cost Structures

DRT Platform provider Shotl, offers a Software-as-a-Service (SaaS) model with adaptable pricing to suit various operational needs. The cost structure includes:

  • Platform license (monthly or annually)
  • Usage fees based on per-vehicle or per-hour rates
  • Optional support services: custom branding, call center integration, analytics dashboards

This flexibility allows public authorities to scale services according to demand, helping to minimize unnecessary costs.

Conclusion

DRT isn’t a cost center—it’s a smart investment. With flexible pricing, lower per-passenger costs, and measurable community value, it helps agencies do more with less—and do it better.

Get in touch to request a tailored cost simulation for your region.

Popular posts

Read more

23.10.23

Meet Shotl at Smart City Expo 2023

Shotl will be attending the upcoming Smart City Expo World Congress 2023 in Barcelona, from the 7th to the 9th of November.


Sílvia Coronado
Read more

29.11.21

On-demand mobility goes one step further in the Alps

In conjunction with transport company mybuxi, Shotl launches a new Demand Responsive Transportation (DRT) operation in the Swiss Alps.


Osvald Martret
Read more

25.11.18

"Cannibalism" in Mobility

In today’s world, models of transportation have multiplied and diversified, from individual modes to collective systems. The most dominant personal modes are still the private car and the motorbike, followed by bicycles and taxis.


Darian Heim
;
Subscribe to our Newsletter