Wednesday, November 28, 2012

Public transit fares are inefficient

Dialogue with an Advocate and Former COPE Vancouver City Councillor: "Raising transit revenue though fare collection is a most inefficient way to raise revenue. For each fare dollar collected, a full 10 cents is spent collecting or accounting for that dollar — ticket dispensers, police, and now turnstiles. Buses spend a significant portion of time at a stand-still, especially during peak hours, as drivers collect fares and check identification. Translink pays for this wasted time in drivers’ salaries and other costs, while passengers are delayed in reaching their homes and workplaces. These costs, which economists call “friction costs,” make fare collection one of the most inefficient forms of raising revenue."

'via Blog this'

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