The city of Sugar Land is adding an eighth vehicle to its microtransit fleet as demand from the program grows.
Zooming in
At a March 3 meeting, Sugar Land City Council unanimously approved a $2.92 million agreement—including $1.43 million in new funds—with the Houston-Galveston Area Council for the Sugar Land On-Demand microtransit pilot program, extending the agreement through Feb. 28, 2027.
Council also unanimously approved a $1.74 million contract with River North Transit LLC, renewing their contract as the vehicle’s operators through March 17, 2027.
The agreement with H-GAC requires a 20% local match by the city, an amount that would total $895,632 over three years, according to agenda documents.
Diving in deeper
The microtransit program launched March 18, 2025, within an 18-square-mile area, later expanding west and south May 26 and north and east Oct. 13, said Melanie Beaman, Sugar Land’s transportation and mobility manager.
The Sugar Land On-Demand microtransit program last expanded its service area in October. (Courtesy city of Sugar Land)Since its launch, the service has completed 34,285 trips, with January seeing peak ridership at 5,454. In February, 73% of the service’s users were repeat riders.
As ridership increases, the cost per trip has dipped to $21 per ride, approaching the $20 goal the city set and a significant decrease from the May 2025 cost of $94 per ride, Beaman said.
Now, after a first year that cost $1.53 million, the project will add another service vehicle, which will put in 4,400 hours annually, Beaman said. About $100,000 of that funding will come from surplus from the program’s first year.
What’s next
Beaman said an expansion for the program is not feasible at this time, as it would require about 15-20 vehicles.
The city may also look toward other sources—including advertising on cars—to get more funding for the program, Beaman said.
“Public transit is typically not self-sustainable,” she said. “We want to keep the fares low so people can afford to use it and it’s accessible.”