Jersey City leaders are considering scaling back a popular microtransit service — or scrapping it entirely — as they grapple with a $255 million budget shortfall.

Mayor James Solomon’s administration notified the City Council last month that it intends to cut the Via Jersey City service to potentially save $8 million annually.

“Ending the Via contract is a necessary step as we work to address Jersey City’s budget deficit responsibly,” Nathaniel Styer, a spokesperson for Solomon, said in a statement.

Via Jersey City has served transit deserts around the city since it was launched in 2020. It’s a city-subsidized on-demand service operated by the publicly traded, New York-based Via. Riders book trips on a dedicated app, choosing their pickup and drop-off locations.

Riders are directed to designated pickup locations to make driving around the city more efficient for drivers. The app suggests public transit alternatives for trips the service can’t make.

A single Via ride costs its users a base fare of $2.00 for rides between the designated central zone and out zone, with rides between two points in the outer zone costing an additional 50 cents per mile. The city subsidizes the rest.

Each trip in 2025 cost an average of $15.80, including the rider’s portion, according to the city’s calculation. But Via says that over the lifetime of the program, the cost per ride is closer to $11.

Via operates similar services around New Jersey, including a program with Passaic County serving Clifton and Passaic, a recently launched pilot with NJ Transit in Bergen County and Monmouth County, and a trial in Newark.

Via Jersey City has provided more than 3.3 million rides, according to the company, which estimates more than 60% of riders use the service to get to work, school or healthcare visits. About 80% of riders are people of color. Via’s fleet includes vehicles that can accommodate wheelchair users.

Two city officials – Director of Infrastructure Andy Kaplan and Corporation Counsel Sarah Levine – sent a memo to the City Council on April 2 laying out the Solomon administration’s reasons for cutting the service. They said that the cost was never properly budgeted for by then-Mayor Steve Fulop.

The service brings transit to parts of Jersey City without public transit, said Gabby McCaig, a Via spokesperson, who noted that 90% of Via’s Jersey City trips lack public transit alternatives.

“For every dollar the city spends, Via Jersey City costs roughly one penny. That penny delivers 14,000-plus critical rides per week to communities that are disproportionately low-income, minorities, seniors and people with disabilities,” McCaig said. “We are deeply committed to this service and we’re eager to work with city officials to find a way to maintain this vital transportation solution.”

Solomon joined a unanimous vote to award the program’s contract to Via in 2019 and voted to award the company a second contract last year while serving on the City Council. But Solomon’s transit platform while campaigning for mayor did not mention Via Jersey City – he instead promised to push higher authorities for improved bus, light rail and PATH train services.

Styer said city officials are evaluating options to augment or replace Via Jersey City, including fixed-route bus service.

“Once we stabilize the City’s finances, we fully intend to revisit expanded transit options for our community,” Styer said.

Negotiations between Via and city officials are ongoing. Solomon will need the City Council’s approval to cancel or amend the Via contract. The council awarded Via a second contract for the service last year, with an initial two-year term and a city option to extend another three years.

Some are hoping to scale back Via service rather than eliminating it, including Frank Gilmore, a councilmember whose ward includes the Bergen-Lafayette section of Jersey City.

“A lot of things are going to be scaled back,” Gilmore said. “It’s not a particular attack, if you will, on Via. I just think given the financial decisions that are before this council and this administration, it is incumbent upon us to cut back on services.”