This study aims to assess public transportation fare estimation practices by the Ministry of Transportation and propose a more solid, fair and flexible fare estimation procedures. It also aims to identify the relationship between the fare and the number of public transportation units for a public transportation route. The developed ridership demand model forecasts the average daily number of passengers using public transportation modes. The results provide an estimation of the average monthly profit for the public transportation vehicles for a route, which gives an indication on route profitability and the potential to increase/decrease the public transportation units for a route. The West Bank northern governorates are selected as the case study, where a sample of external shared-taxi and bus routes linking towns and villages with the governorates centers are studied. The methodology followed in the study is based on quantitative and analytical methods using field surveys. Proper validation was conducted to ensure applicability of the resulting models. Analysis of the studied routes show that public transportation fare per kilometer depends mainly on the fixed cost, and to a less extent on variable cost, which is affected by fuel consumption rate and fuel price, average occupancy rate, and profit margin. Simple linear regression models are developed to estimate the total number of trips produced per household using public transportation considering fare and relevant socio-economic variables. The study results will assist to make decisions on proper fare of a route and number of public transportation vehicles that should be operated.