Last year, Palo Alto launched its ride-sharing service known as “Palo Alto Link,” but the operational costs have proven to be quite high. Recently, Tesla announced the introduction of its self-driving taxi service, sparking discussions between the city government and the company about the potential for testing in Palo Alto.
In an interview with Meghan Horrigan-Taylor, a spokesperson for the city government, she mentioned that if this partnership comes to fruition, Tesla’s autonomous taxis could complement existing taxi services. This dialogue coincides with the city’s reconsideration of options for providing affordable transportation to its community.
The free Palo Alto Shuttle, which previously operated on two fixed routes, ceased operations in 2020 amid the challenges posed by the Covid-19 pandemic, including significant declines in revenue and changes in commuting patterns.
Launched in March 2023, Palo Alto Link functions similarly to a more affordable Uber Pool, offering a more flexible and convenient alternative for residents. Although its operating hours and coverage are limited, the service provides low-cost transportation for those trying to get from one point in the city to another, and in some cases, even offers rides for free.
According to city transportation officials, Palo Alto Link has gained some momentum, with ridership increasing from 2.7 passengers per service hour at the start of the program to 3.1 passengers this past spring. However, the service now faces funding challenges. Initially supported by a $2 million, two-year grant from the Santa Clara Valley Transportation Authority, the city is now grappling with the loss of this funding as it comes to an end.
Currently, the Palo Alto City Council is willing to invest more resources to sustain this service. A proposal set for discussion on October 28 aims to extend the existing Palo Alto Link service through June 2025. The fare for a single ride will increase from $3.50 to $4, with discounted rates for children and seniors. Passengers will also have the option to purchase weekly passes for $40 (up from $20) and monthly passes for $130 (up from $65).
