City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 25, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: LEAH RILEY, DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
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Consideration of a Resolution to Support Proposed Same-Day On-Demand Paratransit Pilot Application Through the Uber Transit Fund and Approve Fares for Rides Taken Under the Pilot Program. (Not a Public Hearing Item)
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ISSUE: Whether the City should seek grant funding from the Uber Transit Fund to pilot a same-day, on-demand paratransit service and charge a $2.00 fare for trips conducted under the pilot.
RECOMMENDATION: That the City Council:
1. Adopt the resolution (Attachment 1) to approve an application to the Uber Transit Fund for a $50,000 grant to pilot a same-day, on-demand paratransit program;
2. Authorize a $5,000 local match if the grant is awarded;
3. Authorize the City Manager or his designee to submit the proposal and enter into any necessary agreements with Uber Transit to accept and administer the funds; and
4. Authorize a $2.00 supplemental fare for same-day trips conducted under the pilot.
BACKGROUND: The City of Alexandria's paratransit program serves approximately 750 registered ADA-eligible riders. The program operates on an advance-reservation model, consistent with ADA paratransit requirements, which do not obligate agencies to provide same-day service. Currently, same-day capacity is limited to "rescue trips” situations where a rider missed a scheduled return trip or wishes to return home earlier than planned. This leaves a meaningful gap in flexible, spontaneous mobility for riders who experience unplanned needs during the day.
To address these exact types of service constraints nationwide, Uber Transit recently launched its $1 Million Innovation Fund. This initiative provides grants of up to $50,000 to 20 transit agencies and municipalities across the United States to pilot flexible, on-demand mobility solutions that lower operating costs while expanding rider freedom. Eligible projects focus on supplementing paratransit, filling first/last-mile gaps, or expanding coverage in transit deserts. To qualify for the funding, participating agencies are required to launch a real-world pilot program and provide a 10% local match of the awarded grant amount.
Through this program, Uber Transit offers a technology integration that routes same-day demand trips through Uber's on-demand network, allowing paratransit programs to offer last-minute trips efficiently and safely. Fortunately, the City's existing scheduling software vendor, Spare, already supports this integration at no additional software cost, positioning Alexandria as an ideal candidate to leverage this fund to bridge our local same-day mobility gap.
DISCUSSION: The City proposes to launch a Same-Day, On-Demand Paratransit Pilot to serve Alexandria's ADA-eligible riders. The pilot will be open to all 750 currently registered paratransit clients on a voluntary, opt-in basis, with no cap on overall participation numbers. Per Uber’s grant terms, all funded activities must be completed by December 31, 2026. To accommodate potential variables in grant notification and system scaling, the City will utilize a flexible timeline, running the pilot for a duration of up to four months winding down on December 31, 2026, or for however long the $50,000 funding allocation permits.
Riders will request same-day trips through the City's existing paratransit intake process. Eligible trips will then be automatically routed to available Uber vehicles via the pre-existing Spare-Transit software integration.
According to Federal Transit Administration Circulator 4710.1, same-day trips are considered “premium” trips. Charging a fee for all same-day trips collected under the pilot program would be necessary to help offset program expenditures for these premium trips. Resultingly, staff propose implementing a $2.00 surcharge on top of the City's existing zone-based fare structure for all same-day trips conducted during the pilot, which would be collected directly as a part of rider fares.
Throughout the pilot period, staff will closely track key performance indicators, including trip data, rider satisfaction, average wait times, and cost-per-trip metrics. Upon the conclusion of the pilot on December 31, 2026, staff will compile and analyze this data to evaluate the program's cost-efficiency and community impact. This comprehensive evaluation will determine the feasibility of establishing a permanent, structurally integrated same-day paratransit program.
Operational and Cost Benefits
- Cost Efficiency: Utilizing an on-demand network leverages existing regional driver supply, bypassing the significantly higher fully loaded cost of dispatching a dedicated ADA vehicle for single, last-minute requests.
- Reduced Wait Times: Uber's on-demand availability has the potential to significantly reduce the 60-90 minute wait windows common in scheduled paratransit rescue service.
- Extended Service Capability: Riders who currently have no same-day option beyond emergency rescue trips will have access to reliable, flexible transportation for unplanned needs.
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- Equity and Inclusion Benefits
- Same-day mobility directly supports independence and quality of life. Many ADA-eligible riders encounter unplanned needs - unexpected medical appointments, caregiving obligations, or changes in daily plans - that the advance-reservation model cannot accommodate. Expanding same-day access, even on a pilot basis, ensures that disability does not limit a rider's ability to respond to the ordinary unpredictability of daily life. This pilot will also generate empirical data on TNC-paratransit integration that Virginia currently lacks at this scale, and findings will be shared with peer agencies and state DOTs to inform future program design.
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- FISCAL IMPACT: The total gross cost to operate the pilot is estimated at $55,000. This is based on facilitating approximately 2,750 trips at a regional average gross Uber trip cost of $20.00 per ride.
- The funding structure for the $55,000 program expense is broken down as follows:
- Uber Transit Fund Grant: $50,000 (Requested)
- City of Alexandria Local Match: $5,000 (Existing Paratransit Budget)
The City’s $5,000 local match investment will be funded using existing resources within the DOT Paratransit Program budget. A $2.00 per-trip fare will be collected from riders and deposited directly into the City’s General Fund. While these fare revenues are not reallocated to the program within the current fiscal year, they will ultimately provide up to $5,500 in cost recovery to the General Fund based on full pilot utilization.
A successful pilot will position the City to pursue larger federal or state grants to sustain and expand on-demand mobility programming beyond the pilot period.
ATTACHMENTS:
Attachment 1: Resolution
STAFF:
Emily A. Baker, P.E., Deputy City Manager
Hillary Orr, Deputy Director, Transportation Planning & Mobility, T&ES
Katye North, Division Chief, Mobility Services, T&ES
Owen Albrecht, Senior Manager, Accessible Transportation Programs, T&ES