  We tackle the problem of evaluating the impact of different operation
policies on the performance of a microtransit service. This study is the first
empirical application using the stable matching modeling framework to evaluate
different operation cost allocation and pricing mechanisms on microtransit
service. We extend the deterministic stable matching model to a stochastic
reliability-based one to consider user's heterogeneous perceptions of utility
on the service routes. The proposed model is applied to the evaluation of
Kussbus microtransit service in Luxembourg. We found that the current Kussbus
operation is not a stable outcome. By reducing their route operating costs of
50%, it is expected to increase the ridership of 10%. If Kussbus can reduce
in-vehicle travel time on their own by 20%, they can significantly increase
profit several folds from the baseline.
