ST. PETE BEACH — City commissioners have directed staff to seek proposals from other microtransit companies, hoping to find a cheaper alternative to Freebee before the city’s contract with the on-demand ride service expires Sept. 30.
The program costs the city $536,700 a year, and a $3 surcharge imposed on non-resident riders last fall has cut ridership sharply, according to a staff review presented to commissioners.
Mandy Edmunds, the city’s resident services director, said Freebee completed 2,300 rides a month from October through January, carrying 4,200 passengers. Gross monthly cost to the city runs about $44,000, offset partly by advertising and the non-resident fare, which brings in $9,000 to $10,000. More than 1,300 residents are registered with the Freebee app, and 30% of riders use the service more than once. Visitors account for most current ridership, Edmunds said.
Ridership fell between 18% and 45% month-over-month after the surcharge took effect in October. Edmunds initially attributed the drop to “variability and seasonality.”
When Commissioner Jon Maldonado pressed her on the 45% decline, she acknowledged the fare was likely the cause.
“We did have that $3 per non-resident user, per ride, implementation in October,” Edmunds said. “The ridership would be down because of the fare.”
Maldonado said Freebee drivers have told him the surcharge is “very, very expensive,” and they blame much of the decline on it.
Trips are concentrated along the Gulf Boulevard corridor, at resort areas and beach access points, and near Upham Beach, County Park, the Pass-a-Grille business district and Corey Avenue, Edmunds said.
City Manager Frances Robustelli told commissioners staff needs direction before building the 2027 budget.
“Half a million dollars isn’t necessarily a small number for this community,” Robustelli said. “Do you want us to hold the half million and proceed with similar services you’re going to have to subsidize? Do you have other ideas you’d like us to include in the RFP? By the time we finish the RFP, the budget will be too far along to pivot that quickly on a half-million-dollar shift.”
Mayor Scott Tate said he wants to see what else is out there.
“I would love to explore Freebee and other options to see if there are other options that could be more cost effective,” Tate said. “There’s some value in providing this service. It’s timely, reliable, professional, courteous. But I don’t know that it has to be at the cost we’re seeing.”
Vice Mayor Lisa Robinson said she also wants the city to consider partnership models, and raised concerns about Freebee using city contact information to solicit public support.
“I’ve got to express my concern on Freebee using what I would consider our database to send out a letter to lobby for support,” Robinson said. “That’s what we got all in our emails.”
Commissioner Karen Marriott said the program is popular but questioned whether the city should be in the ride-hailing business at all.
“From a philosophical level, I have a little bit of a problem with any government entity being involved in something that private industry can provide,” Marriott said. “Government’s job should be to do the things that are for the health, safety and welfare of their residents that private industry can’t do.”
Marriott said she could support a scaled-down, subsidized version given the program’s origins. St. Pete Beach launched microtransit after residents objected to Pinellas Suncoast Transit Authority buses running through Pass-a-Grille; the city ended its PSTA contract and redirected the funds to Freebee.
“There is some value in getting people from the main business areas into Pass-a-Grille,” Marriott said. “We should be able to do it on a smaller scale at a more reasonable cost.”
Commissioners agreed staff should solicit proposals from local microtransit operators and approach the larger resorts about sharing costs.