St. Pete Beach city officials are moving toward ending their nearly 7-year relationship with Freebee, the electric shuttle service that replaced PSTA buses and trolleys serving the Pass-a-Grille area, amid mounting cost and ridership concerns.

City commissioners directed staff Tuesday to begin exploring alternative transit vendors, as the Freebee contract could expire at the end of September.

A city presentation showed the service costs $536,700 annually, while only 15 percent of residents use it. Mayor Scott Tate said he favors opening the process to competition. “I would like to see us explore other options,” he said. “Let some of the more private operators come in and get involved.”

Ridership has dropped 45 percent since last October, when the city began charging non-residents $3 per ride. That fee, combined with advertising revenue, offsets the city’s costs by up to $10,000 per month, according to Resident Services Director Mandy Edmunds.

Not all residents are on board with the change. Christopher Hollands, who has not owned a car in eight years, said he uses Freebee up to five times a week and worries about losing the service — particularly for elderly and disabled riders. “It would be a real setback for me,” he said. “Look what it does for the community.”

The city plans to begin soliciting bids from alternative vendors next month. Freebee did not respond to a request for comment.

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