Canadian Town Offers Cheap Uber Rides Instead of BusesInstead of running a bus service at $270,000 a year, the town will subsidize Uber rides.

A small town in Canada is turning to Uber to solve its public transportation problem.

According to theToronto Star, the town of Innisfil, Ontario, is partnering with the app-based car service to offer people subsidized rides to and from certain destinations around town.

Mayor Gord Wauchope said the town was facing pressure to offer public transportation, so it conducted a feasibility study in 2015 and found that running a bus service with just one vehicle would cost about $270,000 a year. A deal with Uber will cost the town $100,000 this year and $125,000 next year. The service is expected to launch on May 1.

"This was a transit system that people can get from anywhere in the town of Innisfil, and use it for a reasonable price," Wauchope said, according to the report.

Residents will pay between $3 to $5 for trips to and from selected areas. Uber will also provide iPads in select locations across Innisfil so those without a smartphone can still hail a ride.

Innisfil is the first in Canada to do this but an Uber Canada spokesperson, in a statement to theToronto Star, suggested that similar partnerships with other Canadian towns may be on the way.

Here in the U.S., the town of Summit, N.J., last yearsubsidized Uber ridesfor residents traveling to and from the local train station.