Re:Paris Will Make Public Transportation Free for Kids
by arcticbull on Sunday January 20, 2019 @10:36PM
(#18957437)
That would dramatically increase prices to the end user; some of the lowest firebox recovery rates in the world are here in the Bay Area. The VTA only takes in 10% of it's operating expenses from ridership, so we'd have to raise a one-way adult fare on the VTA to $22.50 (neglecting the demand curve). bart, though, would go up "only" 30% -- while Muni rides would go up to $6.50 [1]
Like highways, these are infrastructure. The goal isn't to recover 100% of revenue from the farebox because it generates revenue indirectly. Without roads you wouldn't have trucks. With a $6.50 Muni ride you wouldn't have much of a downtown core.
There are some notable examples like Hong Kong MTR which generates 125% of operating expenses from the farebox, though their density helps and their creative business model (allowing MTR to own surface rights above stations it constructs [2]) help that out an awful lot. I'm sure if Muni/Bart/Caltrain were gifted the land on top of each station we'd see fares come down real quick.
Like highways, these are infrastructure. The goal isn't to recover 100% of revenue from the farebox because it generates revenue indirectly. Without roads you wouldn't have trucks. With a $6.50 Muni ride you wouldn't have much of a downtown core.
There are some notable examples like Hong Kong MTR which generates 125% of operating expenses from the farebox, though their density helps and their creative business model (allowing MTR to own surface rights above stations it constructs [2]) help that out an awful lot. I'm sure if Muni/Bart/Caltrain were gifted the land on top of each station we'd see fares come down real quick.
[1] https://en.wikipedia.org/wiki/Farebox_recovery_ratio
[2] https://www.scmp.com/news/hong-kong/politics/article/2154424...