A Canadian town is using Uber as a public transport system.

The town of Innisfil subsidises all trips taken on the ridesharing service at a flat rate, and further subsidises trips taken between transport "hubs".

The town's planning manager Tim Cane told Mike Hosking it's working well, and cheaper than what a bus service would cost them.

He says a fixed bus route would only serve a small number of people, so would cost more per person to run.

However town authorities say they have now spent more on Uber than the bus service they were considering.