For Struggling Legacy Transit Systems, New Mobility Options Present Challenges and Opportunities - F

Despite decades of ridership and revenue growth, the country’s busiest transit systems have struggled in recent years both at the turnstile and in the farebox, even as operating costs and unmet capital needs continue to grow. Metropolitan transit agencies serving New York, Chicago, Washington, DC, Boston and San Francisco, the country’s five largest systems, have all seen ridership declines in each of the last three years, and only the Massachusetts Bay Transportation Authority (MBTA) saw revenues increase, according to financial disclosures.

Some of the decline can be attributed to service quality. But these systems are also challenged by competition from ride-hailing services like Uber and Lyft, bike-share programs and the ever-polarizing electric scooter phenomenon.

For many systems, the declines aren’t evenly distributed. In Chicago, New York and DC, weekday and rush hour demand remains strong amid steep late-night and weekend declines.

With farebox revenue from optional trips falling, the systems have struggled to support high peak volumes without imposing service cuts elsewhere or draconian fare hikes that could further impact ridership.

But ride hailing apps and other new mobility options also create the potential for growth by extending the reach of bus and rail networks, with Uber and Lyft providing “last-mile” service to areas underserved by public transit.

The technologies that make new mobility options possible are also improving access to legacy transit. Smartphone apps allow riders to track when their next bus will arrive, and many transit agencies will roll out mobile pay options in the coming years, two developments with the potential to significantly improve the efficiency and predictability of bus service. Pilot programs that leverage mobile technology to provide new service options promise to further change the public transit landscape going forward.

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