Shanghai Pilots On-Demand Smart Buses for Public Transit

Shanghai has launched a pilot program for on-demand smart buses in its Lujiazui Financial City, shifting from traditional fixed-route, fixed-schedule buses to a dynamic service where passengers book rides through a mobile app and the system optimizes routes in real time. The program, which officially launched on January 9, 2026, and received a major upgrade in July 2026, represents a significant step in China’s push to modernize public transit using digital technology.

Context: Solving the Empty Bus Problem

The pilot targets a persistent challenge in urban transit: during off-peak hours, conventional buses often run largely empty, wasting fuel and capacity. According to CCTV News, about one-third of conventional bus capacity operates empty. Lujiazui was chosen because it experiences heavy “tidal” commuting—dense crowds during morning and evening peaks but sharp drops in ridership during midday hours. The area’s population of young, tech-savvy white-collar workers also showed high acceptance of app-based booking during early trials, The Paper reported.

How the On-Demand Service Works

Passengers book rides using the “浦交行” (Pujiaoxing) mini-program, available on WeChat and Alipay. The system requires a minimum of three passengers heading in the same direction to complete a booking. Once confirmed, the smart dispatch platform merges same-direction orders, dynamically plans an optimized route, and sends navigation instructions directly to the driver’s terminal. Passengers receive real-time vehicle tracking and arrival predictions with an error margin of under two minutes.

Jiang Yi, Deputy General Manager of Shanghai Pudong New Area Public Transport Co., Ltd., explained the system’s efficiency in an interview with CCTV: “About one-third of conventional bus capacity is actually running empty. Through the backend dispatch system, we can pool same-direction trips and dynamically adjust capacity.” He noted that the system is projected to save approximately 80,000 kilometers of low-efficiency mileage annually.

Service Details and Upgrade

Initially launched with a single vehicle serving 21 stations from one waiting point, the service operated on weekdays from 8:00 to 14:00. Following a major upgrade on July 18, 2026, the fleet expanded to four vehicles, stations increased to 29, and waiting points grew to three, according to the Shanghai Municipal Government. The operating hours were adjusted to 10:00 to 15:00 to better align with midday demand peaks.

After successful booking, passengers typically board within 10–15 minutes, Xinmin Evening News reported. The service area now covers Lujiazui’s major office towers, metro stations, tourist attractions, and shopping centers. The fare remains a flat 1 yuan (approximately 14 US cents), making it highly affordable. After the upgrade, daily passenger flow reached four times the volume recorded during the free trial period.

Chen Wei, Business Manager at Pudong Yanggao Public Transport Company, stated that the system allows passengers to “say goodbye to timed waiting and stop-by-stop stops,” enabling point-to-point direct travel.

Earlier Precedent: Custom Bus Success

The on-demand pilot builds on an earlier custom bus line (浦东DZ1线) launched in Pudong in January 2025. That service, also booked through the “浦交行” mini-program, served 450,000 passengers over two years and achieved approximately 40% travel time savings compared to regular buses, demonstrating strong demand for flexible transit options.

Passengers have responded positively to the new model. Wang Xin, a white-collar worker in Lujiazui, told The Paper: “I come out for a walk at noon, take the bus for lunch, and ride back the same way — very convenient.”

Broader Smart Transit Trends

The Shanghai pilot is part of a nationwide push by Chinese cities to modernize public transit through digital technology. The same CCTV News report highlighted parallel initiatives, including a Chengdu-Chongqing express bus service covering 300 kilometers with 50 yuan tickets and over 90% occupancy, and customized free shuttle routes for construction workers in Hangzhou serving over 600 workers daily. These projects reflect a broader transformation of China’s public transport sector, leveraging digital platforms and data-driven optimization to improve efficiency and rider experience.

Looking Ahead

Pudong officials plan to expand the on-demand model to large residential communities, industrial parks, and rural areas with tidal commuting patterns. The long-term vision is a multi-tier public transport system combining conventional buses, on-demand buses, micro-circulation buses, and customized buses — creating a seamless, responsive network that adapts to real-time demand. As Jiang Yi noted, the goal is to transform urban mobility, shifting from “people waiting for buses” to “buses finding people” in one of the world’s busiest financial districts.