KITCHENER - Transportation company Wroute Inc. has suspended all operations in the face of lower than anticipated ridership.

"Essentially it became apparent that the marketplace was just not present," president Jason Hammond said Friday. Thursday was the eight-month-old company's last day of service.

The Kitchener-based business launched in September with regular passenger service in a fleet of electric Tesla SUVs between Fairview Park mall and Guelph, later expanding service to Burlington. Wroute twice added stops in recent months while reducing the frequency of service; Hammond said customers prioritized access to additional destinations over frequency.

In February, the company was also forced to reduced staffing levels.

"In the end, while we had some dedicated regulars, we did not have the volume of passengers necessary to allow the company to be financially viable in the long term," Hammond said.

Wroute had 18 employees when it closed, and operated out of the former CAA building on Manitou Drive.

Hammond said he believed that the number of people travelling between Waterloo Region, Guelph and beyond on a daily basis - coupled with the fact that schedules for intercity public transportation can be infrequent or not ideal - meant Wroute's scheduled service would meet a need.

And that's why the struggle to grow ridership came as a bit of a surprise, he said. "That was a known problem we were looking to solve."

The promise of light rail transit service in Kitchener and Waterloo was instrumental in Wroute's selection of Fairview Park mall as its initial Kitchener station; the mall will be Ion's southern terminus.

But Hammond doesn't blame Ion delays for Wroute's closure. "It would have helped if it launched on schedule," he said. "But it's just another piece of the puzzle."

Hammond said he's grateful for the expressions of support that Wroute did receive from its customers and the community.

He also said he'd be open to partnerships that could revive the business, but he acknowledged that a significant investment would be required.

And while he's disappointed at the outcome, Hammond said he hopes Wroute's time in business has inspired others who are interested in providing alternatives to traditional transportation options.

"I think there's a lot of room for innovation," he said. "Having grown the company, built the company, delivered on the plan, and even closing it - that's all way better than not having tried."

bdavis@therecord.com

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Twitter: @DavisRecord