Integrating on-demand transport into the public transport network: assessing the value for money of replacing fixed routes

On-demand transport (ODT), enabled by advancements in intelligent communication technology and digital platform, serves various roles, from feeding passengers to mass transit to providing point-to-point services and replacing fixed route buses in low-demand areas. However, ODT performance varies, often falling short of widespread acceptance. This paper explores the impact of ODT operational models and fleet size on bus demand and service standards using a novel stop-level modelling approach. It evaluates service efficiency, trade-offs and challenges, highlighting that ODT can enhance network integration and provide net consumer surplus. However, its benefits require careful implementation to avoid overstated claims and to truly enhance social equity. The findings support integrating ODT into broader transport networks and restructuring fixed bus routes rather than treating ODT as a standalone solution.