Portland transportation officials terminate app contract that cost city $299K

PORTLAND, Ore. (KOIN) — Portland transportation officials have ended their contract with the software development company that cost the city $299,000 in funds that can’t be reimbursed.

In 2022, the Portland Bureau of Transportation announced that it’d be collaborating with software developers at RideShark to launch an app for the city’s Transportation Wallet program.

Launched in 2017, the program offers credits and other perks to residents who choose to walk, bike, roll, or use public transit instead of driving.

The proposed app would have helped the Northwest and Central Eastside Parking Advisory Committees streamline the Transportation Wallet program. But as first reported by Willamette Week, PBOT notified the committees of the terminated RideShark contract on Monday.

According to the letter, the software development company failed to meet transportation officials’ needs “on numerous occasions during key milestones of the project.” PBOT claimed the app would’ve hindered the city’s ability to deliver Transportation Wallet services reliably and consistently.

“Additionally, after review of the full realized cost of using customized software, the ongoing annual maintenance fees associated with using a proprietary software solution exceeded our long-term financial projections,” Active Transportation and Safety Division Manager Renata Tirta wrote.

Tirta also said that terminating the contract before the app debuted to the public would save money for PBOT and its parking districts. Both the Northwest and Central Eastside parking districts had already paid $100,000 each for the project, while the city covered the remaining costs.

In a statement, RideShark added that its contract with PBOT solely included custom development and configuration costs. The company said the bureau’s payment covered less than 25% of total project expenses.

“Our dedication to this initiative stemmed from a vision to help PBOT in the delivery of a ground-breaking, innovative, citizen-centric transportation solution in Portland which would be easily extensible to other municipalities and transit agencies globally to address evolving community transportation needs,” RideShark Chief Technology Officer Tom Lewinson wrote in an email.

“We express regret over the unexpected end to the project, however we do understand the post-Covid financial constraints cities are facing,” he added.

According to RideShark, the app would have been ready to launch in January 2024. The software development company said it’s ‘eager’ to introduce its project to other cities, and it welcomes any future opportunities to collaborate with PBOT.

Bureau Communications Director Hannah Schafer explained that staff will continue to manually conduct Transportation Wallet services.