$40 a seat - the high price of the Illawarra's on demand bus trial

The service works similar to an Uber, with passengers booking a ride in a Toyota HiAce from their door via an app.

Unlike an Uber, passengers can only book a ride to a transport hub - such as a bus interchange or train station.

The fare charged is between $2.90 and $6, depending on the distance the passenger travels.

The Illawarra trial started in three locations - Thirroul, Shellharbour and Figtree - in January 2018.

"It's an innovative way to use public transport resources and public funds," then Parliamentary Secretary for the Illawarra Gareth Ward said.

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A year later the Figtree service was scrapped due to low use and the vehicle relocated to the Shellharbour area, where on demand buses are the most popular.

The on demand service is provided by Premier Illawarra under a government contract.

As of June 30 this year, the bus company had been paid $1.3 million to operate the service - a figure which included the cancelled Figtree run.

A Transport for NSW spokeswoman said the buses had carried 32,102 passengers since the trial began - around 58 trips a day.

Given the $1.3 million contract to date, that's a $40 cost for each trip.

The most a passenger is asked to pay is $6, which means the taxpayer subsidises each on demand trip to the tune of at least $34.

The Transport for NSW trial will continue until January 1 next year but a decision on whether the service becomes permanent is expected to be made later this year.

"The overarching objective of the on demand pilots is to improve our understanding of how different models could improve customer outcomes," a Transport for NSW spokeswoman said.

"Data from each pilot will be used to inform improvements across the entire network."