In accordance with a decree by Governor of Ulaanbaatar, public transportation service provider companies Bus-1, Bus-3 and the city's electric bus company have been closed down.

City owned Passenger Transport Unit has begun the merging of the bus companies into a single unit in order to improve public transportation, service culture, accountability, and to reduce operating costs.

Deputy Mayor of Ulaanbaatar in charge of Finance and Economic Issues N.Bataa approved the organizational and staff structure for the new unit.

Passenger Transport Unit will operate with 1,658 employees and launch a new public services, including a digital bus pass, in spring. Everyone who uses public transportation will be expected to use the new digital bus pass in place of paper tickets.

Seniors, people with disabilities, and students will be able to use the bus passes with state compensation.