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Fare cappingis a feature ofpublic transportfare collection systems. Fare capping credits passengers'faresfor individual trips towards anunlimited pass,limiting the cost of fares that passengers pay.

Some trials and proposals of fare capping were conducted in the early 2000s, with the first large implementation inLondonin 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 inthe cloud.

Concept

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Literature on theNew York City Subwaypromoting fare capping withOMNY,making a humorous comparison between fare capping users and "commitment phobes"

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 make within a certain 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 bycommutersand other frequent public transport users for their convenience and cost savings, but they must be purchased in advance at a significant upfront cost. Fare capping eliminates the need to purchase passes in advance, which may be a significant burden for both passengers and transport operators.[1][3]: 8 

History

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Card reader for the short-lived Tripperpas system in Groningen

An early implementation of fare capping was launched in 2000 inGroningen,the Netherlands,onArrivabuses. The Tripperpas usedcontactless smart cardtechnology fromMotorolaandERG 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 equivalentSterabonnementseason 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-rideStrippenkaarttickets that the system sought to replace.[4]The successor to theStrippenkaartandSterabonnementtickets, theOV-chipkaart,was introduced in 2005 without fare capping.[6]

TheWashington Metropolitan Area Transit AuthorityinWashington, D.C.proposed a fare capping program in 2003, shortly after the introduction of theSmarTripfare card. WMATA concluded that it could implement fare capping onMetrobusservices, which charge a flat fare, but that the distance-based fares of theWashington Metroposed 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, byTransport for London.[2]: 377 At its introduction, fare capping in London was available forOyster cardusers only, and was valid on local services including theUndergroundandbuses.The price cap for Oyster card users was set at the price of an equivalent one-day, unlimited-rideTravelcard.[7]TfL has expanded its fare capping system since its introduction, adding 7-day caps andcontactless bank cardsupport in 2014.[3]: 11 

Another early implementation of fare capping in Europe is inDublin,starting in 2012. The Dublin fare capping system, using theTFI Leap Card,was expanded to the entire Dublin transport network beginning in 2013. Trips onDublin Bus,Luas,andIarnród Éireannservices are covered.[8][3]: 11 

Advertisement for fare capping on theLos Angeles Metrosystem, beginning in July 2023

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

More recently, fare capping was introduced by the two largest transit agencies in the United States,[10]theNew York MTAandLos Angeles Metro,in 2022 and 2023 respectively. In New York, a weekly fare cap is available forOMNYand contactless bank card users, for trips on theSubwayand mostMTA buses.[11][12]Los Angeles' daily and weekly fare cap is available exclusively forTAP cardusers, onMetro BusandMetro Railservices.[13]

Technology

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Fare capping takes advantage of the advanced capabilities ofautomated fare collectionsystems. 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, usingmobile appsin addition to contactless smart cards.[14]

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

In contrast, contemporary payment systems supporting fare capping are available ascommercial off-the-shelfsystems, integratingwhite-labelmobile apps, smart cards, card readers, and back-office systems. Examples of such systems include Umo byCubic Transportation Systems,[16]Justride byMasabi,[17]and MOBILEvario by INIT.[18]An example of this technology's maturity is the installation of a new fare system on theMilwaukee County Transit System,supporting fare capping. The WisGo payment system, powered by Cubic's Umo, was implemented in under two years, despite delays.[19]

Impacts

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Fare capping is frequently cited as a method to improve thesocial equityof transport fares.[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 theridershipof their services. A 2020behavioral economicsanalysis inVancouver, British Columbiaargued that transport operators must carefully consider their messaging around fare capping, as it can have significant positive or negative impacts on behavior.[20]

References

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  1. ^abChalabianlou, 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. ^abcdHightower, 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.ISSN0361-1981.Retrieved2023-12-24.
  3. ^abcdefPettine, Amy; Rosenblum, Eryn; Manford, Brian (2022-02-25).Fare Capping: Balancing Revenue and Equity Impacts.Washington, D.C.: Transportation Research Board.doi:10.17226/26510.Retrieved2023-12-24.
  4. ^abCheung, Francis (2004-01-01)."Tripperpas Smart Card Project: Lessons from the Netherlands".Transportation Research Record.1887(1): 147–152.doi:10.3141/1887-17.ISSN0361-1981.Retrieved2023-12-27.
  5. ^ab"Motorola to test smart card in Netherlands".ATM Marketplace.1999-07-12.Retrieved2023-12-27.
  6. ^Balaban, Dan (2023-01-27)."Dutch National Rail Operator to Launch Open-Loop Payments as Part of Nationwide Rollout in Netherlands".Mobility Payments.Retrieved2023-12-27.
  7. ^"World first as daily price capping on Oyster Pre Pay brings benefits to passengers"(Press release). Transport for London. 2005-02-16.Retrieved2023-12-24.
  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.Retrieved2023-12-26.
  9. ^Fleisher, Arielle (2019-05-07)."Solving the Bay Area's Fare Policy Problem"(PDF).SPUR.p. 35.Retrieved2023-12-26.
  10. ^"2022 Public Transportation Fact Book"(PDF).American Public Transportation Association.January 2023. p. 32.
  11. ^"Frequently Asked Questions: Fare cap".OMNY.Retrieved2023-12-26.
  12. ^Nessen, Stephen (2023-09-07)."MTA eases rules for 'fare capping' on NYC subways, buses".Gothamist.Retrieved2023-12-26.
  13. ^"Our new simpler fares began July 1".The Source.Los Angeles Metro. 2023-06-01.Retrieved2023-12-26.
  14. ^Descant, Skip (2023-08-07)."Fare Capping Is Being Adopted by Transit Agencies of All Sizes".Governing.Retrieved2023-12-24.
  15. ^Balaban, Dan (2020-01-01)."Oyster Card Here to Stay Despite Strong Growth of Contactless Fare Payments in London".Mobility Payments.Retrieved2023-12-29.
  16. ^"About Umo Fare Capping".Umo Rider Help Center.Cubic Transportation Systems. 2023-11-27.Retrieved2023-12-29.
  17. ^"Justride: The Platform Your Riders Will Love".Masabi.Retrieved2023-12-29.
  18. ^Scharff, Julie (2022-08-15)."Fare Capping Is Ushering in the Future of Commuting".Metro Magazine.Retrieved2023-12-29.
  19. ^Bentley, Drake (2023-04-01)."Here is how the new MCTS fare system works — called WisGo".Milwaukee Journal Sentinel.Retrieved2024-01-13.
  20. ^Byfuglien, Andrea (2020)."Encouraging sustainable transportation through behavioural insights".UBC Sustainability Scholars Reports.Retrieved2023-12-26.
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