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Originally Posted by jamesinclair
Id note that if gas prices were higher, than Lyft/Uber would be more expensive, so theyre certainly intertwined.
One aspect that keep getting ignored is pricing. Gas prices have fallen over the past decade, but most transit agencies hike their fares every 2 years. Some cities are charging $3 for a bus ride. That's insane to me.
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All transit agencies operate at a loss, some of them substantial as fares don't even cover 20 percent of operating costs. That's by design of course. Transit isn't meant to be profitable, but sometimes the operating subsidy is so too large or lacks political support for the city to fill, so they rely on an increase in fares instead.
Gas prices aren't the main cost driver. Look at the breakdown of any budget and at least 70% of the operating costs will be attributable to salaries and fringe benefits. Basic cost of living raises every year, let alone any service expansions, will lead to higher operating costs and possibly hire fares if no other source of revenue. Fuel is probably only 5 to 10% of the operating costs, with the rest being maintenance.
Anyone have access to hard numbers of their transit agencies budget?