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We absolutely support the program and understand why a ride-share service is a worthwhile service for a community to provide… It makes it easier to get to and from appointments, stores, restaurant or work.
The real effort is ensuring that the Village is getting the best possible deal for the taxpayer and for riders.
Relax and get comfortable while we look at the facts.
As in any transaction competition - what makes the service better and more affordable should be the deciding factor.
Islamorada has offered ride share services since 2019 using Freebee – but until 2026 we have not selected through a legally required competitive bid process.
Currently, the service is free to Islamorada residents and visitors.
Up until now, the cost, has been split 50 – 50 between Village property owners
via property tax revenue and the Florida Department of Revenue’s transit grant.
The Village plans to add a small charge of $2/ride to help reduce taxpayer cost.
At the May 28, 2026 Ride-share workshop, Jason Spiegel, CEO and Co-Founder of Freebee began his presentation with this introduction:
“The contract for us is really not a profitable contract. We’re not here to make money on this contract. We operate because we truly care about this community. We love this place, we understand it and we’ve demonstrated that through the service we’ve provided since 2018.”
He also indicated their new proposal would actually reduce the cost.
Let’s see.
The $2 rider charge certainly seemed intent on reducing costs to taxpayers. And yet, Freebee’s income would increase by over 20% with their proposal - from $553,330 to $688,330. Islamorada taxpayer cost would be reduced by less than half that percentage, with just $23,330 reduction guaranteed.
The purpose was not to dramatically increase what Islamorada pays Freebee or any other vendor. After all, the proposed service requested by the Village is just a continuation of the same service we’ve had with no changes required.
Our taxpayers should benefit significantly when riders pay just a small amount per ride.
Did someone on our staff do the numbers before they decided on $2/ride in the RFP?
In 2025 Freebee documented 55,806 riders = $111,612 if we had charged $2/ride
Yet with the $2 fee Freebee’s cost proposal reduces our guaranteed taxpayer cost by just $23,330.
Do the math as to the take-home income for Freebee:
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$530,000 from the Village, only a $23,330 guaranteed reduction
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$75,000 in the $2 fees from 37,500 riders/yr
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$60,000 for income for ads on the vehicles (that the staff says violates Florida law)
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Total income for Freebee - $665,000, a $111,670, 20.2% increase
The winner is – Freebee with a 20.2% increase in income with their current proposal.
It is important for the Council to remember that the FDOT grant is not guaranteed. And is available for this one final year, yet we are offering a 2-year Ride Share contract.
To be eligible for future FDOT grant funding we would need to expand the service.
It appears the Freebee CEO was in error in telling the Village that Freebee is not in Islamorada to make money!
What do other communities in South Florida pay for Freebee services?
Seems logical to check on the Village of Key Biscayne. They are very much like Islamorada in geographic size and income levels; A small island community, though with double the population of Islamorada at 14,000, a popular tourist community, one way off their island, directly into the congestion of downtown Miami, problems with traffic congestion and limited parking, wealthy community.
Key Biscayne’s most recent competitive bidding was in 2023, providing a 3-year contract to Freebee, that was extended for 1 year, on March 26, 2026, with the same 2023 terms.
Because they negotiate an hourly charge instead of a fixed price, with Key Biscayne’s lower hourly cost, they can have 17% more Freebee service hours than Islamorada while paying 9.1% less than Islamorada. And they have significant flexibility in order to increase vehicles used during peak hours.
Does Key Biscayne have a better contract? Take a look.
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