As the population in Egypt is ever expanding, it is reflected in the increase of the number of vehicles on the road. Public transportation is the solution and the number of available buses can cover a significant amount of the population demand. However, the outdated state of the transportation infrastructure, the static nature of the lines and indistinct schedules create a confounding and unappealing user experience which prompts the users to stray to cars for their needs. So, an Intelligent Urban Transportation System (IUTS) is a must. IUTS is a multi-layered system which provides the solution for most of these problems. It operates on different layers starting from a real time vehicle tracking for transparent and efficient management of assets, cash-less ticketing done through RFID cards, vehicle health and diagnostic data for creation of automated maintenance schedules and a friendly interactive driver interface. In this paper an approach based on combining all these technologies is discussed where the hardware component is implemented based on System-on-Chip technology with custom hardware to interface with the vehicle. The data collected from the on-board unit is sent to the cloud, and with the help of machine learning algorithms the dynamic responsiveness of the system is guaranteed. The proposed system outperforms other existing ones through the dynamic and optimized routing feature for the bus navigation to optimize the operating cost but still satisfy the passengers' demand.