Cool idea. What does this have to do with Public Transit though? It seems to me that a better description would be "Uber meets /Private/ Transit"
More like "dollar vans with an app".
<a href="http://en.wikipedia.org/wiki/Dollar_van" rel="nofollow">http://en.wikipedia.org/wiki/Dollar_van</a>
Somewhat related solution in Finland, bus-on-demand: <a href="http://www.goodnewsfinland.com/archive/news/call-a-bus-to-your-nearest-bus-stop-in-helsinki/" rel="nofollow">http://www.goodnewsfinland.com/archive/news/call-a-bus-to-yo...</a>
It's crazy nobody did this before. Using passenger location data to create the most effective transportation routes is something that should've caught on by now.