You can get a sense for what falls into what category by asking: is this something every little hamlet needs, or is it an urban luxury?
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The ideal form of ridership transit is something like a (grade-separated!) train.
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The difference between the two has to do with the sort of networks they run on. The one uses a road system, the other uses dedicated tracks.
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A vehicle on roads stops at most junctions, whenever it needs to change its route. A vehicle on dedicated tracks *only* stops for riders.
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A bus or trolley that operates in mixed transit, by the way, is the worst of both worlds. It stops for every light AND for every stop.
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This has some implications for transit provision: where ridership is too low to justify commercial transit, stick to ensuring coverage.
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On the other hand, where ridership makes commercial transit viable, take all possible steps to ensure dedicated ROW, whether or not on rails
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Coverage transit, which cannot possibly turn a profit, should be provided by the state, as part of a social safety net.
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Commercial transit, however, should aim for privatization and keep costs in line with revenue.
End of conversation
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