The age of automated vehicles (AVs) opens new opportunities to improve accessibility, particularly in low-density suburbs where traditional public transportation often fails to deliver an adequate service. However, the characteristics of automated vehicles may adversely affect transport equilibria by decreasing demand and service levels as a result of a reduction in public transport frequency. In this research, we aim to maximize the positive externalities due to AVs, such as mobility for under-served populations, whilst minimizing potential negative externalities such as congestion, in order to ensure an equitable and inclusive transportation system. We develop a stylized suburban neighborhood model that is connected to a central business district. We compare the market structure results to an optimal social welfare outcome and derive subsidies and congestion charges. The results suggest that a duopoly market structure leads to reasonable service levels at a relatively low cost, which is close to the social optimum but requires subsidies for AV services. Second-best solutions implications are also discussed. The findings may aid policymakers in developing regulatory tools that generate equitable transport equilibria outcomes.