Fare capping

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Advertisement for fare capping on the Los Angeles Metro system, beginning in July 2023 TAP Fare Capping Ad.jpg
Advertisement for fare capping on the Los Angeles Metro system, beginning in July 2023

Fare capping is a feature of public transport fare collection systems. In its most common form, fare capping credits the cost of individual transport fares towards the cost of an unlimited pass.

Contents

Some trials and proposals of fare capping were conducted in the early 2000s, with the first large implementation in London in 2005. Limited numbers of large transport operators began introducing fare capping in the 2010s, using proprietary technologies. As of 2023, fare capping is being implemented by smaller transport operators, using widely-available technology, with back-end systems in the cloud.

Concept

Fare capping enables public transport passengers to pay the lowest possible fare for their trips over a period of time. Passengers pay a single-ride fare for each trip they take. Depending on the public transport system, this may be with a proprietary stored-value card, or passengers may use their own credit or debit card. The passenger pays the full fare for each trip within a period, such as a day or a week, until a certain threshold is met. This threshold may be a certain number of trips, or a monetary value. After the threshold is met, all rides for the rest of the period are free or discounted. [1] : 5  This cap is often equivalent to the price of the comparable unlimited pass. [2] : 380 

Fare capping is often presented in contrast to unlimited-ride passes, which are offered by many transport operators. Passes are favored by commuters and other frequent public transport users, who benefit from having unlimited access to public transport services. Infrequent users of public transport services may not know if they will ride enough to need a pass, and some frequent riders may not be able to afford the upfront cost. [3] : 9 

Fare capping eliminates the need to purchase passes in advance, and offers passengers the best price on their trips regardless of how often they ride. This benefits passengers, who have the opportunity to save money on fares. Fare capping also benefits transport operators, who can simplify the way they sell tickets and passes. [1] [3] : 8 

History

Card reader for the short-lived Tripperpas system in Groningen Tripperpas-2.JPG
Card reader for the short-lived Tripperpas system in Groningen

An early implementation of fare capping was launched in 2000 in Groningen, the Netherlands, on Arriva buses. The Tripperpas used contactless smart card technology from Motorola and ERG Group, and introduced a number of new features. The Tripperpas was set up as a line of credit, where passengers were billed for the rides they took at the end of every month. Fare capping on the Tripperpas was advertised as the "best price guarantee," billing passengers for only up to the cost of the equivalent Sterabonnement season ticket. [4] [5]

At the conclusion of its 2-year trial, the Tripperpas system was shut down, with only 4,000 cards in use, of the 11,000 cards planned to be issued. [5] The fare capping feature was not advertised well, and some passengers believed that fares would actually be higher than the single-ride Strippenkaart tickets that the system sought to replace. [4] The successor to the Strippenkaart and Sterabonnement tickets, the OV-chipkaart, was introduced in 2005 without fare capping. [6]

The Washington Metropolitan Area Transit Authority in Washington, D.C. proposed a fare capping program in 2003, shortly after the introduction of the SmarTrip fare card. WMATA concluded that it could implement fare capping on Metrobus services, which charge a flat fare, but that the distance-based fares of the Washington Metro posed a larger challenge. The technology and marketing for Washington Metro fare capping were both deemed to be too complex, and the proposal was abandoned. [3] : 11 

The first large-scale implementation of fare capping was in 2005, by Transport for London. [2] : 377  At its introduction, fare capping in London was available for Oyster card users only, and was valid on local services including the Underground and buses. The price cap for Oyster card users was set at the price of an equivalent one-day, unlimited-ride Travelcard. [7] TfL has expanded its fare capping system since its introduction, adding 7-day caps and contactless bank card support in 2014. [3] : 11 

Another early implementation of fare capping in Europe is in Dublin, starting in 2012. The Dublin fare capping system, using the TFI Leap Card, was expanded to the entire Dublin transport network beginning in 2013. Trips on Dublin Bus, Luas, and Iarnród Éireann services are covered. [8] [3] : 11 

In the United States, two early examples are AC Transit and the Santa Clara Valley Transportation Authority, both in the San Francisco Bay Area, in 2012 and 2014 respectively. [2] : 379  AC Transit and VTA operate in the same region, and both use the Clipper card, but their fares and fare caps are separate. [9]

Literature on the New York City Subway promoting fare capping with OMNY, making a humorous comparison between fare capping users and "commitment phobes" MTA Launches OMNY Help Desk on First Day of Fare-Capping Pilot (51910049018).jpg
Literature on the New York City Subway promoting fare capping with OMNY, making a humorous comparison between fare capping users and "commitment phobes"

In the early 2020s, fare capping has been introduced by the two largest transit agencies in the United States, [10] the New York MTA and Los Angeles Metro. In New York, a weekly fare cap is available for OMNY and contactless bank card users, for trips on the Subway and most MTA buses. [11] [12] In Los Angeles, a daily and weekly fare cap is available exclusively for TAP card users on Metro Bus and Metro Rail services. [13]

Technology

Fare capping takes advantage of the advanced capabilities of automated fare collection systems. Since the first major implementation of fare capping in London in 2005, technology has matured significantly, leading to reduced costs. [2] : 377  This maturity has allowed the expansion of fare capping to smaller operators, using mobile apps in addition to contactless smart cards. [14]

The Oyster card, the first major implementation of fare capping, uses MIFARE smart cards with proprietary programming, with equipment connected to proprietary back-office systems. The Oyster card began to support fare capping in 2005, 7 years after the system's initial design began in 1998. [15]

In contrast, contemporary payment systems supporting fare capping are available as commercial off-the-shelf systems. These systems provide multiple components of an integrated fare payment system, including mobile apps, smart cards, card readers, and back-office systems. Multiple vendors provide these types of systems, which are sold to transport operators on a white-label basis, with branding supplied by the transport operator. Examples of such systems include Umo by Cubic Transportation Systems, [16] Justride by Masabi, [17] and MOBILEvario by INIT. [18]

An example of this technology's maturity is the installation of a new fare system on the Milwaukee County Transit System in Wisconsin, USA. The WisGo payment system, powered by Cubic's Umo, was implemented in under two years, despite delays. [19]

Impacts

Fare capping is frequently cited as a method to improve the social equity of transport fares. [20] [3] : 9  A 2022 poll of United States transport operators concluded that in addition to improving equity in transit fares, fare capping can also reduce transport operators' expenses in handling cash, and can contribute to an easier experience for passengers. [3] : 42 

Fares, and fare capping, can be used by transport operators to influence their passengers' behavior, and therefore the ridership of their services. A 2020 behavioral economics analysis in Vancouver, British Columbia argued that transport operators must carefully consider their messaging around fare capping, as it can have significant positive or negative impacts on behavior. [21]

Related Research Articles

<span class="mw-page-title-main">MetroCard</span> Public transit payment system in the New York City area

The MetroCard is a magnetic stripe card used for fare payment on transportation in the New York City area. It is a payment method for the New York City Subway, New York City Transit buses and MTA buses. The MetroCard is also accepted by several partner agencies: Nassau Inter-County Express (NICE), the PATH train system, the Roosevelt Island Tramway, AirTrain JFK, and Westchester County's Bee-Line Bus System.

<span class="mw-page-title-main">Oyster card</span> Payment method for public transport in London

The Oyster card is a payment method for public transport in London, England, United Kingdom. A standard Oyster card is a blue credit-card-sized stored-value contactless smart card. It is promoted by Transport for London (TfL) and can be used on as part of London's integrated transport network on travel modes including London Buses, London Underground, the Docklands Light Railway (DLR), London Overground, Tramlink, some river boat services, and most National Rail services within the London fare zones. Since its introduction in June 2003, more than 86 million cards have been used.

<span class="mw-page-title-main">SmarTrip</span> Contactless transit card system used in the Washington, D.C. metro area

SmarTrip is a contactless stored-value smart card payment system managed by the Washington Metropolitan Area Transit Authority (WMATA). The Maryland Transit Administration (MTA) uses a compatible payment system called CharmCard. A reciprocity agreement between the MTA and WMATA allows either card to be used for travel on any of the participating transit systems in the Baltimore-Washington metropolitan area. Unlike traditional paper farecards or bus passes, SmarTrip/CharmCard is designed to be permanent and reloadable; the term "SmarTrip" may refer to both payment systems unless otherwise noted.

<span class="mw-page-title-main">Yikatong</span>

The Beijing Municipal Administration & Communication Card, more commonly known as the Yikatong, is a stored-value contactless smart card used in Beijing, China, for public transportation and related uses. It is similar to Hong Kong's Octopus card, Singapore's CEPAS, the OMNY Card in New York City, United States, or the Oyster card used by Transport for London in London, England.

<span class="mw-page-title-main">Go-To card</span> Public transit ticketing system in Minnesota, United States

The Go-To card is a contactless smart card used to pay fares for bus, light rail, and commuter rail lines operated by Metro Transit and other transit agencies in the Twin Cities area of Minnesota. The system has significantly sped up boardings on area buses while alleviating wear and tear on existing ticket machines and fare boxes. The old magnetic strip reading machines were weather sensitive and could not be placed out in the elements like at the Hiawatha Line light rail stations.

<span class="mw-page-title-main">Presto card</span> Contactless smart card fare system in Ontario, Canada

The Presto card is a contactless smart card automated fare collection system used on participating public transit systems in the province of Ontario, Canada, specifically in Greater Toronto, Hamilton, and Ottawa. Presto card readers were implemented on a trial basis from 25 June 2007 to 30 September 2008. Full implementation began in November 2009 and it was rolled out across rapid transit stations, railway stations, bus stops and terminals, and transit vehicles on eleven different transit systems.

<span class="mw-page-title-main">CharlieCard</span> Public transit smart card used in Boston

The CharlieCard is a contactless smart card used for fare payment for transportation in the Boston area. It is the primary payment method for the Massachusetts Bay Transportation Authority (MBTA) and several regional public transport systems in the U.S. state of Massachusetts. It is used on the MBTA's subway and bus services, but is not currently accepted on the MBTA Commuter Rail and ferries.

<span class="mw-page-title-main">Milwaukee County Transit System</span> Public transit authority of Milwaukee County, Wisconsin

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<span class="mw-page-title-main">Fares and ticketing on the Mass Rapid Transit (Singapore)</span>

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The London Underground and Docklands Light Railway (DLR) metro systems of London, England uses a mix of paper and electronic smart-card ticketing.

<span class="mw-page-title-main">ORCA card</span> Proximity smart card for public transit in the Puget Sound region of Washington state

The ORCA card is a contactless, stored-value smart card system for public transit in the Puget Sound region of Washington, United States. The card is valid on most transit systems in the Seattle metropolitan area, including Sound Transit, local bus agencies, Washington State Ferries, the King County Water Taxi, and Kitsap Fast Ferries. It was launched in 2009 and is managed by the Central Puget Sound Regional Fare Coordination Project, a board composed of local transit agencies.

<span class="mw-page-title-main">Transit pass</span> Transit ticket for multiple trips

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<span class="mw-page-title-main">Transit Access Pass</span> Physical and electronic public transit smart card used in Los Angeles

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<span class="mw-page-title-main">Easy Card</span> Public transit smart card used in the Miami, Florida Metropolitan Area

The Easy Card is a contactless smartcard system for public transit fares in the Miami metropolitan area. The Easy Card is valid on Metrobus and Metrorail services in Miami-Dade County, and on Tri-Rail services throughout the region. Easy Card payments were introduced in 2009 on Miami-Dade Transit services, and expanded to Tri-Rail in 2011. The card functions as a stored-value card, and can also be loaded with unlimited-ride passes. Reduced-fare and zero-fare versions of the Easy Card are available for eligible customers, including seniors and individuals with disabilities.

Cubic Corporation is an American multinational defense and public transportation equipment manufacturer. It operates two business segments: Cubic Transportation Systems (CTS) and Cubic Mission and Performance Solutions (CMPS).

<span class="mw-page-title-main">Automated fare collection</span> Ticketing system

An automated fare collection (AFC) system is the collection of components that automate the ticketing system of a public transportation network – an automated version of manual fare collection. An AFC system is usually the basis for integrated ticketing.

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<span class="mw-page-title-main">National Common Mobility Card</span> Indian interoperable transport card

National Common Mobility Card (NCMC) is an open-loop, inter-operable transport card conceived by the Ministry of Housing and Urban Affairs under Prime Minister Narendra Modi's ‘One Nation, One Card' vision. It was launched on 4 March 2019. The transport card enables the user to pay for travel, toll tax, retail shopping and withdraw money.

OMNY is a contactless fare payment system, currently being implemented for use on public transit in the New York metropolitan area. OMNY can currently be used to pay fares at all New York City Subway and Staten Island Railway stations, on all MTA buses, AirTrain JFK, Metro North's Hudson Rail Link, and on the Roosevelt Island Tram; when completely rolled out, it will also replace the MetroCard on Bee-Line buses, and NICE buses. OMNY will also expand beyond the current scope of the MetroCard to include the Long Island Rail Road and Metro-North Railroad.

References

  1. 1 2 Chalabianlou, Reza; Lawrence, Adam; Baxter, Brian (2015). A review and assessment of fare capping as a passenger incentive mechanism for Australia and New Zealand (PDF). Australasian Transport Research Forum.
  2. 1 2 3 4 Hightower, Ashley; Ziedan, Abubakr; Crossland, Cassidy; Brakewood, Candace (2022-10-01). "Current Practices and Potential Rider Benefits of Fare Capping Policies in the U.S.A." Transportation Research Record. 2676 (10): 376–390. doi: 10.1177/03611981221089572 . ISSN   0361-1981 . Retrieved 2023-12-24.
  3. 1 2 3 4 5 6 7 Pettine, Amy; Rosenblum, Eryn; Manford, Brian (2022-02-25). Fare Capping: Balancing Revenue and Equity Impacts. TCRP Synthesis 160. Washington, D.C.: Transportation Research Board. doi: 10.17226/26510 . Retrieved 2023-12-24.
  4. 1 2 Cheung, Francis (2004-01-01). "Tripperpas Smart Card Project: Lessons from the Netherlands". Transportation Research Record. 1887 (1): 147–152. doi: 10.3141/1887-17 . ISSN   0361-1981 . Retrieved 2023-12-27.
  5. 1 2 "Motorola to test smart card in Netherlands". ATM Marketplace. 1999-07-12. Retrieved 2023-12-27.
  6. ↑ Balaban, Dan (2023-01-27). "Dutch National Rail Operator to Launch Open-Loop Payments as Part of Nationwide Rollout in Netherlands". Mobility Payments. Retrieved 2023-12-27.
  7. ↑ "World first as daily price capping on Oyster Pre Pay brings benefits to passengers" (Press release). Transport for London. 2005-02-16. Retrieved 2023-12-24.
  8. ↑ "Determination order for the introduction of Leap card multi-operator (Dublin Bus, Iarnród Éireann and Luas) daily and weekly capping rates" (PDF). National Transport Authority. 2013. Retrieved 2023-12-26.
  9. ↑ Fleisher, Arielle (2019-05-07). "Solving the Bay Area's Fare Policy Problem" (PDF). SPUR . p. 35. Retrieved 2023-12-26.
  10. ↑ "2022 Public Transportation Fact Book" (PDF). American Public Transportation Association. January 2023. p. 32.
  11. ↑ "Frequently Asked Questions: Fare cap". OMNY. Retrieved 2023-12-26.
  12. ↑ Nessen, Stephen (2023-09-07). "MTA eases rules for 'fare capping' on NYC subways, buses". Gothamist. Retrieved 2023-12-26.
  13. ↑ "Our new simpler fares began July 1". The Source. Los Angeles Metro. 2023-06-01. Retrieved 2023-12-26.
  14. ↑ Descant, Skip (2023-08-07). "Fare Capping Is Being Adopted by Transit Agencies of All Sizes". Governing . Retrieved 2023-12-24.
  15. ↑ Balaban, Dan (2020-01-01). "Oyster Card Here to Stay Despite Strong Growth of Contactless Fare Payments in London". Mobility Payments. Retrieved 2023-12-29.
  16. ↑ "About Umo Fare Capping". Umo Rider Help Center. Cubic Transportation Systems. 2023-11-27. Retrieved 2023-12-29.
  17. ↑ "Justride: The Platform Your Riders Will Love". Masabi. Retrieved 2023-12-29.
  18. ↑ Scharff, Julie (2022-08-15). "Fare Capping Is Ushering in the Future of Commuting". Metro Magazine. Retrieved 2023-12-29.
  19. ↑ Bentley, Drake (2023-04-01). "Here is how the new MCTS fare system works — called WisGo". Milwaukee Journal Sentinel. Retrieved 2024-01-13.
  20. ↑ Higashide, Steven (2019). Better Buses, Better Cities: How to Plan, Run, and Win the Fight for Effective Transit. Washington, DC: Island Press. pp. 83–85. ISBN   978-1-64283-015-6.
  21. ↑ Byfuglien, Andrea (2020). "Encouraging sustainable transportation through behavioural insights". UBC Sustainability Scholars Reports. Retrieved 2023-12-26.
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