The Towns of Midland and Penetanguishene have decided not to move forward with a proposed microtransit initiative after a comprehensive due diligence review raised concerns about the project's operational and financial viability.
The decision comes several months after both councils approved a hybrid transit model in March 2026 that would have combined traditional fixed-route bus service with an on-demand microtransit system. That approval was contingent on successful contract negotiations and operational planning following a joint Request for Proposals process.
Before signing a final agreement with the preferred proponent, staff from both municipalities completed an extensive review examining operational, service delivery, financial and workforce considerations.
According to the municipalities, the review identified several issues that could not be satisfactorily addressed. Staff concluded they could not be confident the proposed model would maintain existing transit service levels without creating unacceptable operational or financial risks.
"Council's goal has always been to ensure transit remains reliable, responsive, and sustainable," said Midland Mayor Bill Gordon in a news release.
"Based on the information gathered through due diligence, we determined that proceeding at this time would not be in the best interests of our communities. While disappointing, it is important that any future transit model meets the needs of our communities and delivers value for taxpayers."
Penetanguishene Mayor Doug Rawson said the decision underscores the importance of thoroughly reviewing major service changes before they are implemented.
"This decision reflects the importance of carefully evaluating major service changes before implementation," Rawson said.
"We remain committed to making informed and responsible decisions that protect service quality, support transit users, and deliver value for taxpayers."
Despite the decision, the municipalities say residents will not experience any disruption to existing Mid-Pen transit with no changes to routes, schedules, fares or current service levels.
