Upgrades To Mid/Pen Transit

Update March 19th 2026: Councils in both Midland and Penetanguishene have passed the staff recommendations to migrate to a hybrid (fixed route AND on-demand) transit system in 2026. See news coverage here: https://www.midlandtoday.ca/local-news/midland-council-votes-to-keep-the-wheels-on-the-bus-going-round-12029096

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Note: At no point have we, or are we considering eliminating transit service to our communities. Our committement to public transit is steadfast and we know how much our communities rely on this service. Our only goals are to enhance the service and to keep it sustainable. As a result of our research and listening to community feedback we have the following to share with you.

Recommendation

That Staff Report CSR-2026-31, Midland On Demand Microtransit dated March 18, 2026, be received; and

1. That Council approve the implementation of the Hybrid Mixed Microtransit Solution as described in this Report as a replacement to the existing transit system with a target launch date of Summer 2026; and
   
2. That Council direct Staff to complete final contract negotiations with the recommended vendor and delegate the Mayor and Clerk to execute the contract.

Background

The Town of Midland currently operates a conventional fixed-route transit system both Midland and Penetanguishene. As part of ongoing transit reviews, opportunities were identified to improve efficiency, expand coverage, and enhance user experience through alternative service models, including on-demand transit.

The existing transit system in Midland operates Monday to Friday from 7am to 6pm and Saturdays from 9am to 5pm. Both transit systems do not operate on statutory holidays.

The current rider fares are $3.25 for regular riders, $2.75 for students and $1.75 for qualified seniors. Children under the age of 6, support people and people with CNIB cards all currently ride for free.

In July 2025, the Town of Midland with the Town of Penetanguishene issued a competitive Request for Proposals (RFP) for the delivery of a fully on-demand Microtransit service to replace the existing fixed-route model.

Public Consultation meetings were held in Midland in October 2025 to provide general information to public and to receive feedback from the public.

The objective of the RFP was to evaluate qualified vendors capable of providing a modern, flexible, and cost-effective system that leverages technology to improve service quality while maintaining or reducing operating costs.

Analysis

Operation of the existing fixed route transit system for both the Town of Midland and the Town of Penetanguishene has become more difficult each year that it operates. The largest challenge recently has been the insolvency of the bus manufacturer which has led to extreme difficulty with mechanical repairs. At times staff have seen back order delays of over 5 months for critical parts to repairs buses. At times Staff have had no choice but to resort to sourcing parts from all over the world which add significant delays.

The current fleet of buses is intended to be a total of (4) buses, (2) Midland and (2) Penetanguishene buses. However, when the last Penetanguishene bus was replaced Staff forecasted the manufacturer issues coming and decided to keep the 5th bus as an additional backup. This decision has proven to be beneficial over the last year or so as this 5th bus has been utilized more than it has not. While we currently have 5 buses in the fleet, it is common to only have 2 or 3 buses in running condition. This has allowed Staff to keep the transit system operating however at many times without redundancy which is not ideal for business continuity.

Microtransit has evolved over the last several years from a novel concept into a mainstream tool for many Canadian Municipalities. There are currently at least 50 municipalities in the province operating some type of Microtransit in some or all of their network in 2026. More and more municipalities are looking to Microtransit to right size transit services and enhance service quality to better meet the local needs.

Our communities would get 6 of these 11-passenger vans that can be re-configured based on needs. This new bus service is not intented to replace the accessible transit contract with Community Reach in Midland and they will continue to operate Midland’s accessible transit program in tandem with our conventional new micro-transit.

By implementing Microtransit in both Penetanguishene and Midland the following benefits can be provided.

• Removing the risks associated with the ownership of high cost transit fleets;
• Microtransit turnkey solutions can be launched quickly and continuously adapt to the changing transit and technology landscapes;
• Significant reduction in staff resources to manage, operate and maintain the system;
• Microtransit is easily scalable and can easily modified to expand service demands.

To address the general concerns brought forward from the existing transit users regarding the potential loss of the existing fixed route, a hybrid fixed route/Microtransit (Mixed Solution) option was reviewed by the evaluation team. The Mixed Solution would include the use of a traditional transit route that would operate in a similar fashion to the existing transit system where a vehicle would follow a set route between Midland and Penetanguishene. This fixed route would be supplemented by the on-demand Microtransit service that would capture the remaining transit ridership demand that is no longer serviced by the fixed route. This option provides familiarity of the exiting transit service while providing efficiency, flexibility and service coverage of the Microtransit system.

A map showing the proposed Mixed Solution hybrid fixed route is shown below for better clarity. This route capture most of the high volume stops within Midland and Penetanguishene while still providing a one-hour service frequency. The use of the hybrid solution is recommended by Staff as it provides the familiarity of the existing fixed route system while still incorporating the benefits of Microtransit in the areas not serviced by the fixed route. This solution can be modified as ridership data is collected over the first year of the program. These changes can be implement quickly and would be driven by data analytics.

When comparing the existing transit budget, the proposed pricing provided through the RFP is well within the existing Transit Operating Budget. Introducing Microtransit does not guarantee that the system will be profit generating or cost neutral however it appears that it will reduce costs. It is important to remember that transit is a service that is provided to a community and very seldom do
municipal run systems generate a profit.

To review the entire staff report that will be considered at our meeting on Wednesday March 18th, click here.