Shanghai has an extensive public transportation system, largely based on buses, and a rapidly expanding metro system. For a city of Shanghai's size, road traffic is fairly smooth and convenient.

Shanghai has the world's most extensive bus system with nearly one thousand bus lines. The Shanghai Metro (subway and elevated light rail) has five lines (numbers 1, 2, 3, 4, 5) at present. According to the development schedule of the municipal government, by the year 2010, another 8 lines will be built in Shanghai. Bus and metro fares run from Line 1 to Line 4 depending on distance (or between 12 to 50 US cents).

Taxis in Shanghai are plentiful and market competition has driven taxi fare down to affordable prices for the average resident (RMB 11 or a little over one US dollar for 3 km).

Before the 1990s, bicycling was the most ubiquitous form of transportation in Shanghai, but the city has since banned bicycles on many of the city's main roads to ease congestion. However, many streets have bicycle lanes and intersections are monitored by "Traffic Assistants" who help provide for safe crossing. Further, most motorists in China were raised riding bikes and so are fairly careful of them. Further, the city government has pledged to add 180 km of cycling lanes over the next few years.

With rising disposable incomes, private car ownership in Shanghai has also been rapidly increasing in recent years. The number of cars is limited, however, by the number of available number plates available at public auction.

Shanghai itself has six toll-free elevated expressways (skyways) in the urban core and 18 municipal expressways (prefixed with "A"). There are ambitious plans to build expressways connecting Shanghai's Chongming Island with the urban core.