On-demand services: VDV warns that "the seed is at risk of withering"

Making public transport more attractive through on-demand services is a success story – especially in rural areas and suburban locations, there are more and more offers. According to the Association of German Transport Companies (VDV), flexible minibuses can replace traditional scheduled buses during times of low demand. In 2021, the federal government created the possibility of permanent approval for an on-demand public transport service through a groundbreaking amendment to the Passenger Transport Act.

Gaps are being closed, offers are being intensified

The industry association VDV also highlights the crucial role that on-demand services can play in climate protection:

“One can genuinely say that the seeds sown by the federal government and the industry are bearing fruit – whether in cities, mid-sized centers, and especially in the countryside. At the beginning of 2019, we only had a handful of call bus services in Germany, a classic niche. Currently, we have more than 80 on-demand projects in the country, bringing public mobility to places where there often was none before. However, this seed is in danger of withering permanently because most app-bookable minibuses have been set up as additional pilot projects,” fears VDV Vice President Werner Overkamp.

The success model is threatened by a lack of funding

The industry association states – exacerbated by the cost situation in personnel, energy, fuels, and materials – that there is a lack of sustainable financial basis for regular operations. In its position paper titled "Demand-responsive transport: fit for the future, integrated and demand-driven – Why a public transport offensive in scheduled and demand-responsive transport is necessary," the VDV emphatically points out that transport companies are facing enormous difficulties in maintaining the new services, which need additional funding, in the market permanently during these times.

“Of course, it hurts, as we are receiving positive feedback from customers. Acceptance and demand for the flexible, small call buses are present,” says the VDV Vice President.

The association provides impressive data

According to an industry study, 380,000 on-demand buses would suffice to replace all second and third cars in Germany – around 12 million cars.

“This is, of course, the scenario without accompanying measures. It makes more sense to increase the on-demand offer and accompany it with push and pull measures, such as parking management, reduction of car spaces, car-sharing, priority switches for public transport, bicycle and pedestrian infrastructure, etc.” (Werner Overkamp)

The industry association points out that in the public transport cost assessment by the consultancy Roland Berger, “an increase from today's 400 to about 20,000 demand-responsive vehicles with a rising need from €110 million in 2023 to €3.8 billion annually from 2030 has been determined to achieve climate protection goals.”

“Demand-responsive transport is barrier-free, affordable, comfortable for users, and picks up passengers where they are at the desired time to take them where they want to go. It is integrated into public transport in all customer-relevant components: in informing, booking via app, and paying in the public transport tariff with or without a comfort surcharge. This is where we need to start for the desired mobility transition,” concludes Overkamp.

The VDV position paper "Demand-responsive transport: fit for the future, integrated and demand-driven – Why a public transport offensive in scheduled and demand-responsive transport is necessary" can be accessed at vdv.de/positionen or in the download section under this message.