I'm very interested in the convergence of Lyft-Line/Uber-Pool service with bus service. It's easy to imagine Lyft and Uber running dynamically adjustable bus/van routes -- basically jitneys/peseros that take advantage of smart phones -- that are faster, more reliable, and cheaper than city buses. (Vans are super cheap per passenger if they are always full.) Lyft has taken small steps in this direction by asking Line…
This is basically what exists in third world countries with private mini buses. As cities become more wealthy they always transition to fixed routes with higher capacity buses because it's well known that it is more efficient.
No amount of ~machine learning algorithms~ is going to make mini buses driving random places more efficient than high capacity buses on fixed routes.