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Bad News for Auto Makers but Good News for Sustainable Transportation

Although Ad Age is a surprising source for public transit information, their recent article about a transformative transportation trend highlighted research that has powerful implications for the future of buses, trains, and automobiles One quick snippet: In 1978, 75% of American 17-year-olds had drivers licenses. 30 years later fewer than half were licensed to drive.

As Ad Age indicates, there is a sea change in behavior among young people that suggests fewer cars on the road and more bus and train riders in the years to come:

The automobile, once a rite of passage for American youth, is becoming less relevant to a growing number of people under 30. And that could have broad implications for marketers in industries far beyond insurance, gasoline and retail.

In fact, the trend extends to overall driving behavior among those 30 or younger who accounted for just 13.7% of miles driven in 2009 versus 20.8% in 1995–that’s an astonishing drop of 34%.

The phenomenon apparently springs from the new digital culture in which young people are so attached to smart phones and other electronic devices that they will readily swap the freedom of car driving for the luxury of interacting with their smart phones, games or more recently, their iPads.

In addition, young people value their time and find that they can work during a public transit commute but not in their cars on the freeway. And, there is also a fair degree of sensitivity to issues of transportation sustainability.

Fewer Drivers Mean More Trains May Be on the Way

Today, only 30 of the 100 metropolitan areas that account for 75% of American population have trains, but, pressure is intensifying to build more.  For example, Denver, Charlotte, N.C., and Portland, Ore., are developing systems while Cincinnati is debating the development of a streetcar system that would link its downtown with uptown neighborhoods increasingly popular with young professionals.

The bottom line: The shift away from young folks’ passion for automobiles represents a long-term trend and not a blip on the radar screen. It suggests that there will be a greater aggregation of population in urban centers and a concomitant need for more reliable public transportation.

More than $12,000/year in San Francisco and $9,000 in Washington, DC

Public transportation riders can save on average $9,242 annually based on the January 11, 2010 national average gas price and the national unreserved monthly parking rate.  Of course, they also miss traffic jams—and when NextBus is available as in San Francisco and Washington, DC, they can travel quickly and reliably, too.

Compared to last year at this time, the average cost per gallon of gas was $1.79 which is nearly $1 less than the current price of gas at $2.75 per gallon.  This increase in cost equates to an additional $600 in savings per year for transit commuters as compared to last year’s savings amount at this same time.

“The Transit Savings Report” released monthly by the American Public Transportation Association (APTA) calculates the average annual and monthly savings for public transit users.  The report examines how an individual in a two-person household can save money by taking public transportation and living with one less car.

Transit riders can save on average $770 per month.  The savings amount is based on the cost of the national averages for parking and driving, as well as the January 11 national average gas price of $2.75 per gallon for self-serve regular gasoline as reported by AAA.

Taking public transportation provides a safe and affordable way for individuals and families to cut costs, according to APTA.  In addition, local public transit offers a travel option that has an immediate positive impact in reducing an individual’s overall carbon footprint while helping reduce America’s dependence on foreign oil.

The national average for a monthly unreserved parking space in a downtown business district is $154.23, according to the 2009 Colliers International Parking Rate Study.  Over the course of a year, parking costs for a vehicle can amount to an average of $1,850.

The top 20 cities with the highest transit ridership are ranked in order of their transit savings based on the purchase of a monthly public transit pass and factoring in local gas prices for January 11, 2010 and the local monthly unreserved parking rate.*

 

Top Twenty Cities – Transit Savings Report

	City	Monthly Savings	Annual Savings
1	New York	$ 1,147	$ 13,765
2	Boston	$ 1,030	$ 12,362
3	San Francisco	$ 1,013	$ 12,156
4	Chicago	$  946	$ 11,357
5	Seattle	$ 932	$ 11,185
6	Philadelphia	$ 927	$ 11,121
7	Honolulu	$ 887	$ 10,639
8	Los Angeles	$ 838	$ 10,052
9	San Diego	$ 824	$ 9,894
10	Minneapolis	$ 824	$ 9,884
11	Cleveland	$ 803	$ 9,639
12	Portland	$ 798	$  9,581
13	Denver	$ 795	$ 9,539
14	Baltimore	$ 782	$ 9,383
15	Miami	$ 752	$ 9,022
16	Washington, DC	$ 751	$ 9,015
17	Dallas	$730	$ 8,756
18	Atlanta	$722	$ 8,658
19	Las Vegas	$716	$ 8,591
20	Pittsburgh	$ 680	$ 8,162

 *Based on gasoline prices as reported by AAA on 1/11/10.

The System Run in Partnership with the U. of North Carolina Has Leveraged NextBus Technology Since 2006.

Chapel Hill won top honors in the category for cities with populations of under 100,000 for creating the fare-free transit program.

Sponsored by Waste Management, Inc., and the U.S. Conference of Mayors, the City Livability Award Program recognizes mayors for exemplary leadership in developing and implementing programs that improve the quality of life in their cities.

Since Chapel Hill Transit became fare free in 2002, it has become the second-largest transit system in North Carolina. Since that time, ridership has risen from 3 million riders a year to over 7 million riders annually projected for 2009.

This program is unique in that while some university transit systems provide fare free service for university students, faculty and staff, very few communities provide free transit service to all riders. The commitment in this community went beyond the University to all citizens in the community in an effort to encourage greater usage of public transportation and reduction of reliance on the single occupancy automobile.

“The Chapel Hill Public Transit system is the foundation of our sustainable future,” said Mayor Foy. “This bus system makes Chapel Hill continue to be the kind of place people love; for us it is an investment and it has paid off big time.”

The University is a full financial partner in the transit system which operates a total of 31 routes with 83 buses and 11 lift equipped vans.

The Chapel Hill community has long encouraged the use of transit over automobile use in central areas of Chapel Hill, including the University. 

Since 2006, the system has employed NextBus technology to simplify operations and improve service for all riders throughout the community.

US House Passes H.R. 2746 to Permit Broader Use for 5307 Funds for Communities of All Sizes

A push by more than 70 house members sparked action in the US House of Representatives that has resulted in legislation that could help cash-strapped public transit agencies nationwide.

The group, led by Representatives Russ Carnahan (D-MO), Doris Matsui (D-CA), and Dan Lipinski (D-IL), wrote a letter in May 2009 to leaders of the House Transportation & Infrastructure Committee that outlined the difficulties transit agencies are having covering their operating costs, and proposed the expanded use of transit funds for operating expenses in the upcoming authorization as a practical solution. The letter was signed by over 70 House Members.

In response to this broad push for action, H.R. 2746 was passed June 11, 2009 that amends the 5307 program providing Urbanized Area Formula Grants funds. Among its provisions:

• communities of all sizes can use a portion of those funds for operating expenses
• higher percentage benefits go to smaller communities
• incentive grants to enhance state and local transit investments
• incentive grants to reduce greenhouse gases and energy use

The sponsors of this legislation are seeking to make this a part of the surface transportation authorization bill.  It has been endorsed by both the Amalgamated Transit Union and T4 America.

Mike Shares Secrets of NextBus Round-the-Clock Automated Predictions and The Productive Partnership with SF Muni

Muni Diaries is an example of blogging at its best. This is how the blog team describes themselves: We are a ragtag group of San Franciscans who love the ups and the downs, the good and the bad stories in and around the buses and light-rail cars in our city. But we can’t emphasize enough that we want Muni Diaries to be a user-generated exercise in storytelling.

Not only do they tell great stories but their obvious love of and concern for San Francisco’s public transportation system shines through their wide range of articles.  Their extensive Q&A with Mike Smith will help you understand how tough transportation challenges can be managed effectively when the vendor and the transit system work together to deliver continually improved operations.

To give you a flavor of the interview and of Muni Diaries, here are brief excerpts on the topics of real-time info and partnering with SF Muni from the March 6, 2009 interview:

MD: Does somebody just sit there and manage this information, as it comes in? How does that part work?
Smith: The system is pretty much all automated, and that’s how it can run 24 hours a day. Basically all of the generated information is based on the GPS information, and that comes in real time. And also, we use historic information. We know from gathering data how long it typically takes a bus to go from one stop to another, and that’s based on time of day, and all sorts of different conditions. So the system really runs on its own. The main thing that we do is monitor to make sure it’s working and deal with configuration changes. Muni and other transit agencies, they typically make changes once every three months; sometimes there are changes in between that. Those configuration changes are always a good amount of work.

MD: You mentioned that it’s a partnership between NextBus and Muni to ensure this works properly. How often do you chat and what are some of the latest things you’ve discussed to make sure it does indeed run smoothly?
Smith: We definitely talk to them every day. It takes quite a bit of effort to make sure the trackers are working and that the configuration is correct. We also get feedback from passengers, and sometimes it’s issues we can deal with, sometimes it’s issues we need to pass on to Muni, and so we’re always doing that. And, of course, Muni passes us information, too. It’s not like you can buy a NextBus system, plug it in and expect it to work. There’s just an amazing number of complexities that happen every day. And so we always have to be monitoring to make sure the system is working.

To read all of this in-depth interview, including information on a new texting capability now being tested by NextBus, click here: Muni Diaries

Intelligent Transportation Technologies Eligible Under 2009 Economic Stimulus Plan

There is finally some good funding news for transit systems in the United States. Pervasive budget cutbacks have made it difficult to run, let alone improve, public bus and rail systems. That’s about to change because of transit provisions in the stimulus plan.

You community will now have the opportunity to implement intelligent transportation technologies, such as real-time passenger information from NextBus. These solutions will enable you to serve increasing passenger loads with optimum operational and fiscal efficiency. And, we can move quickly to help you implement money-saving NextBus solutions.

Exactly how will NextBus customers benefit from investing federal stimulus dollars? 

They improve their operational productivity, reduce their need to buy new buses, and provide a service to their passengers that empowers them to better manage their time. 

Larger communities have deployed NextBus technology to reduce traffic congestion by increasing public ridership, to reduce emissions by taking cars off the road, and to help us become energy independent. 

In fact, dozens of successful implementations are delivering tangible improvements in transit systems across the country.

Passengers can view this real-time arrival information on signs at stops, at terminals, on the Web, on their cell phones, using text messaging, or through dialing a telephone for an automated response. NextBus allows passengers to reduce their overall travel time, reduce perceived waiting time, and reduce exposure to bad weather and/or crime.

In fact, not a week goes by without emails from happy transit passengers who tell us: “I love NextBus”.

Large, medium, and small transit systems rely on NextBus 

NextBus, is the North American leader in utilizing GPS and GIS technology to provide Real-Time Passenger Information, including accurate predicted arrival times and expected delays or service interruptions, to transit riders.

Three of the top ten transit systems in North America utilize NextBus and we have 50%  of the market for those universities/colleges that have implemented a real-time passenger information solution.

Our customers include such diverse organizations as San Francisco MUNI, WMATA (Washington, D.C.), the Massachusetts Institute of Technology, AC Transit, Georgia Tech, and the Pennsylvania Hospital. Toronto Transit, the 3rd largest transit system in North America recently chose NextBus to encourage ridership and increase transit productivity.
To see just how our system works(in real-time), here are links to two live, real-time arrival predictions:
AC Transit Prediction

Rutgers University Prediction

Learn exactly how NextBus can make your operation more productive while increasing rider satisfaction. Simply, email our Director of Business Development, Larry Rosenshein, at larryr@nextbus.com or call him at 973-768-3606.

And, They Can Prove it to Themselves!

Riders can save enough to pay for their annual food budget–and then some!

Figures from APTA and a helpful calculator prove that public transit is still a bargain even with a late 2008 drop in fuel prices.

Even though the price of gas has continued to drop public transportation riders still enjoy a significant economic savings.  A person can achieve an average annual savings of $8,416 per year by taking public transportation instead of driving, based on today’s gas prices and the average unreserved parking rate, according to the American Public Transportation Association’s (APTA) “Transit Savings Report.”  The report is a monthly analysis that shows the average annual savings represents almost a third more than the average amount a household pays for food in a year, according to the Food Institute ($6,111).

Public Transit K.O.’s Cars with Killer Cost Savings According to APTA

City	Monthly Savings	Annual Savings
New York	$1,041	$12,492
Boston	$1,033	$12,396
San Francisco	$948	$11,376
Chicago	$865	$10,380
Philadelphia	$860	$10,320
Honolulu	$846	$10,152
Seattle	$844	$10,128
Washington, DC	$794	$9,528
Minneapolis	$758	$9,096

Your citizens can calculate their own savings with this great tool.

To get a more precise idea of how much money commuter would save by swapping their car for your bus or rail system, click on this link to the PublicTransit.org Calculator.  The image to the left shows a San Francisco Bay area commute with gas at $2/gallon.  In this hypothetical scenario, the commuter saves $5645/year vs. traveling by car. Even this commuter decides to go from a 2 car to a single car household, another $11,000 in savings ensue.

Our Director of Engineering Points the Way to the Future of Public Transportation

 

If your community is trying to lessen its dependence on automobiles to improve the collective quality of life, you may be able to adapt this insightful presentation that Mike Smith delivered at the “2008 Towards Carfree Cities” conference in Portland Oregon.

He emphasized that technology needs to be part of the public transit solution–with real-time information at the heart of 21st century bus and rail systems.

Enjoy and share Mike’s presentation below:

The transit industry is experiencing an unprecedented combination of factors that seriously affect transit service provision.  Rising fuel costs have driven many commuters to use public transit as their primary method of transportation to and from work.   To make matters worse, motor fuel tax revenues are down as Americans traveled 3.3% fewer miles during the second quarter of 2008.  The bottom line is that transit agencies are attempting to do much more with much less. That’s where ITS solutions from NextBus come in.

Read more

We have just completed a research study among municipal transit executives designed to determine key trends and technologies as of August 2008. The study covers a broad range of transit systems from very large to very small.

Here are key findings:

• 37% have seen more than a 10% increase in ridership over the past six months
• 32% operate more than 100 transit vehicles
• 68% carry more than one million passengers annually
• Only 4% have seen any decrease in ridership
• 34% are outsourcing transit operations
• 38% have more than 25 bus routes
• 53% have 250 or more bus stops

Read more

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