Study recommends two-zone pilot for Laredo microtransit; consultants flag costs and marketing needs

LAREDO, May 21 — Consultants from the Goodman Corporation on Wednesday presented a microtransit feasibility study to the Laredo Metropolitan Planning Organization Policy Committee and recommended a two-zone pilot that would pair with El Metro’s fixed-route and paratransit services.

The study, presented by Manisha Scribe of Goodman Corporation, concluded that “microtransit would be another transit mode that would complement these services,” and recommended piloting Zone 1 (North Laredo) and Zone 3 (West Laredo) before wider rollout.

Why it matters: Committee members and El Metro officials framed microtransit as a tool to expand coverage in lower-ridership areas, serve developing neighborhoods and reduce “coverage gaps” that fixed routes do not reach. The consultant emphasized that microtransit is flexible to change, but initial service design, marketing and transfer policies will shape whether riders adopt it.

Key findings and recommendations - Goodman developed five candidate service zones by analyzing low-performing fixed routes (the three circulators C1–C3 and route 8) and local land uses. The firm recommended keeping zones generally under 10 square miles to manage wait times and ensuring each zone connects to the broader El Metro system. - Pilot recommendation: launch two zones (Zone 1 in North Laredo and Zone 3 on the west side) so El Metro can test vehicle deployment, marketing and transfer arrangements. The consultant recommended running microtransit concurrently for a transition period if a circulator route is eliminated. - Cost and ridership: the study used El Metro’s operating benchmark of $109.19 per revenue hour for modeling. Goodman projected first-year costs in the “about $1 million” range for most single-zone pilots, with Zone 3 approximately half that figure and Zone 5 (the largest southern zone) roughly three times larger. A citywide late-night option modeled as two concurrent large zones had a first-year cost slightly above $2 million. Ridership projections depend heavily on wait-time assumptions and zone size. - Service design and equity: microtransit trips must start and end within a zone; trips between zones would require transfers to fixed route. Vehicles could range from ADA-accessible minivans to small buses; some vehicles and non-CDL drivers are available in-house at El Metro, but union and vehicle decisions will require negotiation. The consultant stressed that accessible pickup by phone (not only an app) is important.

Public engagement and data limitations - Goodman said the study included a public meeting at the downtown transit center, phone interviews with seven peer agencies (four in Texas, three border communities) and a 14-question rider survey that received 30 responses. The consultants noted broad interest in microtransit but said El Metro lacks stop-level boardings data needed to fully diagnose why some routes underperform.

Funding and operations - The presentation noted FTA guidance: microtransit is treated as a demand-response service and can use existing federal transit funding streams for capital and some operating support. The consultant and El Metro staff discussed pilot funding options including federal grants, local matching funds and possible MOUs with private providers for specific hours. El Metro’s transit director, RJ Gottsuff, told the committee the agency’s intention is to avoid increasing the agency’s baseline budget by shifting service from low-performing fixed routes to microtransit where possible.

Committee concerns and next steps - Several committee members pressed for service levels, sustained marketing and clear metrics before removing any fixed routes. One member said an underpowered pilot could yield low ridership and premature cuts. The consultants responded that shorter wait times increase costs and that marketing, travel training and employer outreach (for trucking areas) would be critical to adoption. - El Metro staff and Goodman recommended a phased rollout with post-pilot evaluation before extending microtransit to Zone 5 or citywide late-night service. El Metro said it has spare vehicles to start a pilot and will return with implementation options and costs.

What’s next: Goodman said it will finalize and distribute the full report and a summary of public feedback. El Metro indicated it will prepare an action plan and budget options for committee review before any service changes.

Speakers quoted in this article include only those listed in the transcript and speaker list.