The Bay of Plenty Regional Council plans to increase fares for the Baybus OnDemand service in 2025, despite its early success.

According to the council, feedback from passengers indicates that most users would still be willing to use the service even with higher fare prices.

As a result, the adult full fare is set to rise to $5, while the Bee Card fare will increase to $4. These adjustments are aimed at ensuring the long-term sustainability of the service, which is currently operating at a loss.

The Baybus OnDemand trial, which launched in March 2024 in Tauranga South, has been well-received by the community. Designed as a more flexible, rideshare-style alternative to traditional fixed routes, the service has exceeded expectations at its six-month milestone.

The Baybus OnDemand trial in Tauranga South has offered the community a fresh approach to public transport, said Toi Moana Bay of Plenty Regional Council in a statement on Wednesday.

“Designed to explore how rideshare services can complement or replace traditional fixed routes; the trial has delivered promising results and highlighted opportunities for improvement at its six-month milestone,” a spokesperson said.

The service has already carried 18,798 passengers, representing a 536% increase compared to the fixed Route 51 service it replaced. In addition, customer satisfaction is high, with 93% of riders who have embraced the service giving it a five-star rating, with 92% agreeing that the current fares offer good value for money.

One of the key features of Baybus OnDemand is its flexibility. The service now offers 1600 virtual stops, a significant increase from the 150 stops available on the previous fixed-route bus system.

This has made the service more accessible and convenient for users, especially those with mobility challenges. One who found the service transformative said “This service has changed my life for the better. It’s opened up so many more options in my life.”

Community feedback has been overwhelmingly positive as customers have praised the service, with many highlighting the personal benefits.

One customer described it as “a fantastic service that has allowed our family to access more things, like taking my son to swimming lessons.”

Another shared, “I used it today. Brilliant service. It’s not just for seniors”, underscoring the service’s broad appeal.

The Baybus OnDemand trial launched in March 2024, in Tauranga South. Photo/Supplied

Councillor Andrew von Dadelszen, chair of the public transport committee, said Baybus OnDemand is reshaping the way Tauranga residents view public transport.

“Public transport isn’t just about moving people; it’s about meeting them where they are and providing smarter solutions to modern challenges.

“The community’s positive response shows the potential of this approach, and we’re learning valuable lessons for the future.”

Operating a high-quality flexible service like Baybus OnDemand comes with unique financial challenges.

Despite its success in attracting riders, the service’s operating costs are higher than traditional bus routes. While operating costs are within projections, fare revenues for the most recent quarter (July to September 2024) recovered only 6.2% of costs.

To address this, Oliver Haycock, public transport director for the Bay of Plenty Regional Council, explained that fare increases are necessary to maintain the service’s viability while balancing affordability for riders, in order for the service to remain sustainable.

“This service is about creating better connections, but we also need to make it financially viable. To test how customers respond to pricing changes, we’re proposing fare adjustments that balance affordability and sustainability,” he said.

The council plans to implement these changes in 2025 to gather more valuable data on market reactions and ensure the service can continue to grow while being financially sustainable and remaining accessible.

The Baybus OnDemand trial is set to run until September 2025, with further reviews at the 12-month and 18-month marks.

The data collected over the coming months will help inform decisions about the service’s long-term future and potential.