On May 17, 2017, the City Commission discussed on-demand transportation service to low-demand areas as a first mile/last mile solution. As a result of the discussion, the Mayor and City Commission directed the Administration to pursue the service at no cost to the City.

In response to the City Commission's direction, a Request for Letters of Interest (“RFLI”) for On-Demand Transit Service was issued in February 2018. The goal was to explore a partnership with a vendor that would, at no cost to the City, provide first mile/last mile on-demand transportation service to areas underserved by Miami-Dade County bus service and not served by the City's trolley service. Three (3) firms submitted responses to the RFLI on March 2, 2018; however, none of the proposers could provide the service at no charge to passengers or without a City subsidy as required by the RFLI; thus, all three firms were deemed non-responsive.

During FY 2019, the Transportation and Mobility Department identified funding for a four-month on-demand transit service pilot program. On May 29, 2019, pursuant to a competitive solicitation, the City and Beefree, LLC d/b/a Freebee (“Freebee”) executed a Professional Services Agreement for the City of Miami Beach On-Demand Transit Service Pilot Program (“Pilot Program”) in Middle Beach. The Pilot Program launched on May 31, 2019, and was well-received in the Mid-Beach community.

On December 11, 2019, the City Commission adopted Resolution No. 2019-31110, waiving, by 5/7th vote, the formal competitive bidding requirement in Section 2-367(e) and approving an extension of the term of the Agreement for an additional three (3) years, commencing on January 1, 2020, and expiring on December 31, 2022.

The Agreement was subsequently amended several times to address various mobility needs, including providing service for eligible elderly residents living in affordable housing facilities throughout the City or participating in elderly programs for essential trips to the closest Publix supermarket or pharmacy.

On November 16, 2022, the City Commission adopted Resolution No. 2022-32400, waiving, by 5/7th vote, the formal competitive bidding requirement in Section 2-367(e) and directing the Administration to enter into a new five (5) year Agreement with Freebee to provide for the continuation of the on-demand transit services in the City.

The current Agreement with Freebee, which commenced on January 1, 2023 and expires on December 31, 2027, includes the following key terms:

• Five (5) year term;
• Four (4)-vehicle fleet (plus two (2) spare vehicles);
• Two (2) on-demand programs: Mid-Beach On-Demand Transit Service and On-Demand Transit Service for Seniors (2 vehicles per on-demand program);
• 50/50 revenue share from advertising sales on the exterior of the vehicles to offset the operating cost to the City;
• Provides option, at the City's discretion, for replacing two (2) Gem e6 (golf cart-type) electric vehicles with two (2) Tesla Model X vehicles for the Mid-Beach On-Demand Transit Service program to increase service efficiency; and
• No extensions or renewals.

Current operating hours:

• Mid-Beach On-Demand Transit Service:
• Monday - Friday: 6:30 a.m. - 10 p.m. (14 billable hours)
• Saturday: 8 a.m. - 10 p.m. (12.5 billable hours)
• Sunday: 8 a.m. - 8 p.m. (10.5 billable hours)

• On-Demand Transit Service for Seniors:
• Monday - Sunday: 7 a.m. - 5:30 p.m. (9.75 billable hours)

Current performance metrics:

1. Average monthly ridership (FY 2023):

• Mid-Beach On-Demand Transit Service: 2,162 passengers
•  On-Demand Transit Service for Seniors: 4,033 passengers

2. Average passenger wait time (for completed rides): 18 minutes

3. Percent of completed rides by wait times: 

• 0 - 10 minutes: 43.9%
• 10 - 15 minutes: 17.1%
• 15 - 20 minutes: 11.9%
• 20 - 30 minutes: 14.6%
• 30+ minutes: 12.5%

Based on a review of the current service level, the average passenger wait time is under 20 minutes, with 73% of all rides being completed under 20 minutes. Currently, however, one (1) out of every two (2) requests for Freebee service in the City is canceled by the user due to various reasons, with the most common being the wait time.

The Administration is working with Freebee to improve the efficiency of the Mid-Beach on-demand transit service and reduce passenger wait times, especially during peak hours and daily shift changes.

In April 2023, Freebee will replace the two (2) golf cart-type electric vehicles being used in the Mid-Beach on-demand transit service with new Tesla Model X SUV vehicles. This vehicle upgrade is expected to result in several benefits to the current service, including:

• Longer vehicle range: Tesla Model X is an electric vehicle with a longer driving range without needing to recharge as compared to the golf-cart type cars. This means that the vehicle is more efficient and can travel further on a single charge, allowing it to cover more distance and serve more passengers without frequent charging.
• Improved safety: Tesla Model X is equipped with advanced safety features, such as autopilot and collision avoidance systems, that can help reduce the risk of accidents and enhance passenger safety.
• Comfort and convenience: Tesla Model X offers a comfortable and luxurious ride, with features like a panoramic windshield, falcon-wing doors, and advanced climate control systems. This can provide passengers with a more enjoyable and convenient travel experience, which can help attract more riders and improve customer satisfaction.

Another operational improvement proposed by the Administration, which Freebee will implement as part of the service upgrade, is changing the location where vehicles are charged to reduce the downtime associated with recharging. The Administration believes these changes will improve overall service efficiency and reliability and result in greater passenger demand.

Based on the experience of other cities in Miami-Dade County that currently provide on-demand transit service through Freebee and that have replaced the golf-cart vehicles with Tesla vehicles, the City Administration expects user demand and ridership to increase by approximately 50%. Given the anticipated increase in vehicle utilization as a result of the recent service upgrades, the Administration recommends increasing the number of Freebee vehicles in operation for the Mid-Beach on-demand transit service from two (2) to four (4) through the FY 2024 budget process. By doubling the vehicles in service, passenger wait times are expected to decrease to approximately 15 minutes or less, and the overall performance and reliability of the service would be maintained.

FINANCIAL IMPACT:

Based on the Agreement with Freebee, the total annual operating cost for on-demand transit services in the City is currently $540,100 and is comprised of:

• Mid-Beach On-Demand Transit Service (2 vehicles – Tesla Model X): $324,100

• On-Demand Transit Service for Seniors (2 vehicles – Gem e6): $216,000

Pursuant to the Agreement, 50% of the revenue generated from advertising on the exterior of Freebee vehicles used for the City’s on-demand services is used to offset the operating cost to the City. Average annual revenue to the City is approximately $65,000.

The hourly operating rates stipulated in the Agreement are $26.25 for the Gem e6 (golf-cart type) vehicle and $29.33 for the Tesla Model X vehicle. Assuming the current operating hours for the Mid-Beach on-demand transit service, the following scenarios for augmented services are outlined below:

• Two (2) additional Tesla Model X vehicles are placed in service (for a total of four (4) vehicles), the additional operating cost to the City would be $324,100 annually ($162,050 per vehicle annually), or a total cost of $648,200 annually.
• Six (6) Tesla Model X vehicles are added to the service (for a total of 8 vehicles), it would result in an additional annual operating cost to the City of $972,300 ($162,050 per vehicle annually), or a total cost of approximately $1.3 million annually.
• Six (6) Gem e6 vehicles are added to the service, the additional operating cost would be $765,528 ($127,588 per vehicle annually), or a total cost of approximately $1.1 million annually.
• Three (3) Tesla Model X vehicles and three (3) Gem e6 vehicles are added, the cost increase would be $868,914 annually, or a total cost of approximately $1.2 million annually.

The Mid-Beach on-demand transit service is a valuable service for the Mid-Beach community that provides first/last mile connectivity to the Miami Beach Trolley and Miami-Dade County bus services. Currently, the average passenger wait time for completed trips is 18 minutes; however, one out of every two requests for Freebee service in the City is canceled by the user due to various reasons, with the most common being the wait time.

Given the recent service upgrades to the Mid-Beach on-demand transit service, including the replacement of the two (2) golf cart-type electric vehicles with new Tesla Model X SUV vehicles, user demand and vehicle utilization (i.e. ridership) is expected to increase. To improve the efficiency of the service and reduce passenger wait times, the Administration recommends adding two (2) Tesla Model X vehicles to the Mid-Beach on-demand transit service fleet, subject to the FY 2024 budget process. This would allow for a total of four (4) Tesla Model X vehicles in operation. It is anticipated that this enhancement would result in passenger wait times of 15 minutes or less and would help the Mid-Beach on-demand transit service remain competitive and more effectively meet the needs of the users. The additional annual operating cost to the City associated with this enhancement would be $324,100, or a total cost of $648,200 annually.