A detailed analysis is presented of the operation, ridership and financial performance of the first phase of the Solihull dial-bus service. The service operated from December 1975 to July 1977 and employed a maximum of 4 buses between 0620 and 2345 from Monday to Saturday. An average of just over 1000 passengers were carried each day, over one-third of whom were children. Although 30 percent of all trips were linked with a rail journey, the service generated little additional rail travel and its presence had no significant effect on car commuting. The findings indicate that, once the demand had been established, the service was Å“2,900 per week, 7 percent of which was covered by farebox revenue. If allowance is made for special features of the service which increased the costs, and all sources of revenue are credited, the service covered about 12 percent of its costs. In part, the poor financial performance may have resulted from the small scale of the service, the service has now been extended