The article explores how to make public transportation more sustainable in a globalized world. The focus is on improving the competitiveness of eco-friendly public transport to create smart cities. Studies show that efficient public transportation is crucial for sustainable city development. The European Commission is pushing for sustainable urban mobility plans to address city challenges. In Subotica, Serbia, modern technology is being used to monitor traffic and inform passengers in real-time. There is a gap between what people expect from public transport and the actual service quality. The research suggests reforms in transportation institutions, integrated policies for smart city development, and better education on sustainable consumption. To achieve these goals, funding, partnerships, and demand-responsive systems are needed.