These societies are formed to provide the services of transport to its member at lower rates. Welfare bus scheme is an example of this type of society. A pass is handed over to the member for traveling on approved routes.
While relatively few in number, cooperatives in the transportation sector encompass a broad range of functionality. The cooperatives may be organized to meet the demand for services in lower-density rural areas, or in areas that cross geographic jurisdictional boundaries. The cooperative may be created to meet specialized transport requirements of school districts or those with limited mobility.
Cooperatives are also organized to offer transportation alternatives that reduce the number of car trips in an effort to address environmental and sustainability issues that accompany the heavy traffic demands of urban areas.
Depending on the type of goods and services being provided, the transportation sector contains several different types of cooperative organization.
Because the provision of transportation services exists in the realm of the public good, many transportation cooperatives are organized on a non-profit basis, and are collaborations between non-profit, businesses, or public transportation entities to provide services or to develop trip reduction programs.
Non-profit status may make collaboration with governmental agencies more straightforward, thus making the cooperatives eligible for grants and donations, and promoting a broader educational mission that can reach more members.
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