SALEM – Through a combination of newly acquired one-time funding and service changes, the Salem Skipper – the City’s on-demand ride-share service – is able to be extended through September 30, 2026, as opposed to early August as previously announced.
“The Salem Skipper has been an important local transportation service since its launch, demonstrating that on-demand rideshare is a viable and beneficial program,” said Mayor Dominick Pangallo. “The Skipper originated through Salem For All Ages, our age-friendly city initiative, which I was proud to co-chair alongside Patricia Zaido for many years. So, like many here in Salem, I want to see this type of service remain in place, permanently. Staff have been working to develop plans on how to more sustainably operate the service.”
The cost to operate the Salem Skipper varies between $2.5 million and $3 million per year, depending on the level of service and ridership. While riders only pay $1 or $2 per ride, the cost to the City is between $15 and $20 per ride, meaning the balance is subsidized through City funding.
When the Skipper started in December 2020, it was funded through some grants, as well as 1% of gross sales from local cannabis retailers, agreed to by the companies through their Host Community Agreements. Those cannabis payments provided a sustainable funding source for the service, but they were no longer available after the state legislature changed cannabis laws in 2022. Since then, the City’s funding for the Skipper has been derived from a number of one-time state and federal grants.
As those grants come to an end this summer, funding for the current version of the service does so, as well. Changes to the current service will go into effect at the end of June, helping to keep the Skipper operational through the end of September.
Service to Beverly and Danvers will still conclude on June 30th, as originally announced, with the conclusion of the one-time federal funding that enabled that regional pilot expansion. Effective July 1st, portions of Vinnin Square, not located in Salem, will no longer be served by the Skipper service. Additionally, service on Monday – Saturday will end at 9pm, and there will no longer be service on Sundays.
City staff continue to work to identify ongoing sources of funding and will do so even after the service concludes in September.
The September 30th date also coincides with the conclusion of the City’s current contract with Via, the operator of the Skipper service. As such, the City is required to put out a Request for Proposals (RFP) for any future version of the service anyway. We are hoping to identify funding such that there will be no interruption of the service, however it is likely that a pause will be necessary as sustainable funding sources are established.
“While the current version of the Skipper will end in September with the expiration of funding and the current contract with Via, City staff will continue to work to – hopefully – put us in a position to be able to issue a new RFP for a future contract with ongoing, sustainable funding,” said Mayor Pangallo. “It may not happen immediately, but we see the value of the Skipper and want to do what we can to keep this type of transportation option available here in our community.”
