Resources 14 March 2019

Challenges Facing Municipal, Regional and National Transit Agencies

News Photo 111 1143

“Challenges Facing Municipal, Regional and National Transit Agencies” is the second in a multi-part series of reports based on an October 2018 survey of 2,052 US consumers and 103 US transit operators.

Our survey found several key challenges, both new and old, including outdated procurement processes, buyer silos affecting the implementation of new technology solutions, and a lack of mobile apps making ticketing and payments inconvenient for all riders.

Solutions to these challenges require creating cost, operational and technology efficiencies while improving rider experience. Transit apps, mobile ticketing, streamlined payments and a focus on meeting riders’ needs can help operators overcome their most common challenges.

Most fare collection and payment systems (44%) are developed in-house, while a quarter (25%) are contracted with third-party suppliers without a formal procurement process, and 17% are dictated by a parent company or agency. These arrangements allow very little opportunity for competition among technology vendors or even more flexible partnerships between the public and private sectors.

Other key findings include:

  • More than a quarter (26%) of US transit operators say rising costs are their biggest challenge.
  • About a quarter (23%) of national operators and 24% of large transit organizations (1k-10k employees) say that implementing mobile technology is their single biggest challenge.
  • Customer acquisition is the second-most common challenge in US transportation, cited by 23% national, 33% regional, and 17% of private operators.
  • Only 17% of transit operators responsible for payment/ticketing cite rising costs as their biggest organizational challenge, versus 31% of those in IT, and 29% in project management.

What will US ground transportation operators learn from this report and others in our multi-part series?

  • Why ticketing and payments are major pain points for ground transportation riders.
  • Which features in a transit app are most important for riders today.
  • The critical importance of alternative payment methods (APMs) for mass transit.
  • How mobility-as-a-service affects rider habits and preferences and operator revenue.

Download the report now to learn how ground transportation providers in the US can leverage the mobile channel to increase usage, meet riders’ expectations, improve the passenger experience, and ultimately boost revenue and profitability.