Sharing the Ride: Expanding Transit Options in Your Community Phil Winters, Director, TDM Program 2015 FPTA/CTD Annual Training & EXPO October 27, 2015 Center for Urban Transportation Research | University of South Florida Learning Objectives • Learn how vanpooling works, what the benefits and issues are, and how others are promoting these services in their areas. • Describe carsharing (e.g., Zipcar, Enterprise Carshare, etc.), bikesharing, and ride hailing services (e.g., Uber, Lyft, etc.) 2 Vanpooling Types of Vanpool Programs • Owner-Operator Vans • Employer-Sponsored Vanpools • Private operators – vRide – Enterprise Rideshare • Public operators – Directly Operated – Purchased Transportation 4 Vanpooling and Transit • Reaches mid to long distance markets • Many transit systems directly operate or purchase service • High “farebox recovery” rates Vanpooling's Niche: Farther, Faster and (Nearly) Fatality Free Average Distance (miles) (2009) (a) Average Speed (mph) (2009) (a) 2001-2011 Average Fatalities per 100 million vehicle miles (b) Motor bus 4 13 4.0 Heavy rail 5 20 8.9 Light rail 5 15 28.5 Commuter rail 24 31 34.6 Vanpool 33 40 1.2 Mode Source: National Transportation Statistics, 2009 (Bureau of Transportation Statistics, 2011) (a) http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/index.html (b) http://transit-safety.volpe.dot.gov/Data/samis/default.aspx Vanpooling by State (NTD Reported Only) 3500 3000 2500 2011 2000 2012 1500 2013 1000 500 0 CA WA TX IL MI GA FL AZ UT CT CO NC NJ VA KY PA IA MN TN AK MS NV AL OR MO 7 Vanpooling in Florida Vehicles Operated in Maximum Service Year Agency 2008 Central Florida Regional Transportation Authority 62 Charlotte County Transit Division County of Volusia, dba: VOTRAN 27 Hillsborough Area Regional Transit Authority 35 Tampa Bay Area Regional Transportation Authority Lee County Transit 6 Miami Lakes - VPSI, Inc./vRide 198 Space Coast Area Transit 37 Grand Total 365 2009 2010 2011 2012 2013 64 67 70 25 24 27 70 6 12 88 8 9 30 30 99 6 223 42 467 93 11 212 48 452 91 11 231 50 488 6 202 36 363 6 209 38 374 8 Vanpool Driver Benefits Benefits • Reduces need to purchase a personal vehicle • Receives use of vehicle for personal trips • Obtains lower vehicle insurance rates • Reduces household's vehicle maintenance costs • Requires no long term commitment (typically 30-day lease) Concerns • Locating riders and back-up drivers • Collecting payments from riders • Maintaining list of back-up riders 9 Vanpool Riders Benefits Concerns • Reduces stress as employees arrive refreshed, relaxed and ready to work • Increases access to job markets • Reduces walking distance from parking lot to worksite (vanpools often enjoy preferential parking at employer sites) • Saves money on commute costs such as gasoline, and wear-andtear on personal vehicles • Encourages new friendships • Increases travel time (pick-up and drop-off) in areas without high occupancy facilities • Requires a fixed schedule (guaranteed ride home programs help overcome this concern) • Involves perceived high costs at the shorter trip (e.g., 15 to 20 miles) relative to what they perceive are their costs (outof-pocket) 10 Employers of Vanpoolers Benefits • Reduces the need for additional parking • Increases access to labor markets • Improves employee morale and employee relations • Increases productivity, reduces absenteeism and tardiness • Provides an effective, low-cost recruitment tool • Enhances employee benefits packages (tax-free subsidies allowed up to $130 per mo.) Concerns • Increases cost and administrative burden if employer runs own vanpool program • Impacts of employee adherence to van's schedule • Raises the potential loss of employees or proprietary information through networking with other riders 11 Community Benefits of Vanpooling • Serves communities not served by transit (bus and rail) • Requires fewer passengers than a bus • Increases federal and state funds to transit • Provides a lower cost alternative of serving midrange and long-distance commuters than transit • Provides most, if not all, operating costs from “fare-box” thus lowering need for local government subsidies 12 Community Benefits of Vanpooling • Reduces rush-hour congestion – each 15-passenger van can reduce up to 14 vehicles. • FHWA estimates vanpool programs reduces work trip vehicle miles of travel by 1 percent to 8 percent. • Improves air quality - The average car emits a quarterpound of pollutants each mile it is driven. On a one hundred-mile commute, a single car can release 25 pounds of pollutants into the air. • Reduces dependence on fossil fuels • Provides option for other groups (e.g., Welfare to Work) 13 Community Concerns with Vanpooling • Locating source of start-up funds and marketing • Continuing turnover in ridership • Reconciling vanpool pricing structure with transit fares to avoid unintentional cannibalization • Interjurisdictional travel – is one county subsidizing the trips of non-residents? • Susceptible to changes in policy (e.g., lower tax free qualified transportation fringe benefit from $250 to $130) 14 WHO SHARES A RIDE TO WORK? 15 Who Carpools – Ability to Speak English Within the Mode Language Transit/ Bike/ Walk Drives alone Carpools Total Yes, speaks only English 72.7% 81.7% 68.5% 79.1% Yes, speaks very well 14.3% 11.1% 13.9% 11.9% Yes, speaks well 5.5% 3.9% 6.9% 4.4% Yes, but not well Does not speak English 5.2% 2.3% 2.5% 0.7% 7.3% 3.4% 3.4% 1.2% 100.0% 100.0% 100.0% 100.0% Total 16 Who Carpools – Ability to Speak English By Ability to Speak English Language Transit/ Bike/ Walk Drives alone Carpools Total Yes, speaks only English 14.6% 77.3% 8.2% 100.0% Yes, speaks very well 19.1% 69.9% 11.0% 100.0% Yes, speaks well 19.7% 65.5% 14.7% 100.0% Yes, but not well 24.2% 55.6% 20.3% 100.0% Does not speak English 30.2% 43.9% 26.0% 100.0% Total 15.8% 74.7% 9.4% 100.0% 17 Carpool Share by Age Gen - Y Source: Phil Winters, CUTR from data from Census, ACS 2010 18 Conditions Favorable for Vanpooling • Subsidy schemes • SOV parking disincentives • Time saving measures such as preferential parking and HOV lanes 19 Summary Of Traditional And Creative Financing Techniques To Start Or Expand A Vanpool Program 1. 2. 3. 4. 5. 6. 7. 8. Capital Cost of Contracting Capital Leasing Toll Revenue Credits for Local Match Congestion Mitigation Air Quality Funds Conditional Sale Municipal Lease Purchase Take Over Existing EmployerOperated Vanpool Program Customer Financing – State Tax Incentives: Individual 9. 10. 11. 12. 13. 14. 15. 16. 17. Customer Financing – State Tax Incentives: Employer Customer Financing – Federal Tax Incentives: Employer Advertising Revenue Timesharing Resource Sharing Use State Contracts to Purchase Financial Matching Program Rent it Prepayment Inducements Source: Vanpool Pricing and Financing Guide (CUTR) 20 How to Grow a Vanpool Program • Penetrate the current market with current offering – Increase employer outreach efforts – Advertise • Develop new services for current markets – Establish a frequent “rider” program – Offer discounts • Increase retention rates • Acquire existing vanpool fleets – Take over an employer’s vanpool program 21 Employer Support for Vanpooling via Qualified Transportation Fringe Benefits • Permits employers to subsidize employees’ parking, transit, and vanpool costs and reimburse bicycling commuting tax free • Allows commuters to use pre-tax dollars to pay for parking, transit and vanpool costs (but not bicycle commuting) • Requires employer involvement • Takes a tax deduction, NOT a tax credit! 22 What Exactly are QTFB (aka Commuter Benefits)? • Qualified transportation fringe benefits under 26 U.S. Code Section 132 – Employers may offer workers a tax-free benefit for transit or van pools up to $130 per month – Parking is tax-free up to $250 per month – Exceptions • No benefit for carpools and pedestrians • Some groups excluded – Bicycle – reimburse up to $20 per month 23 Commuter Highway Vehicle • A highway vehicle with a seating capacity of at least 6 adults (excluding the driver) and at least 80 percent of the vehicle’s mileage for a year is reasonably expected to be— – For transporting employees in connection with travel between home and work and – On trips during which the number of employees transported for commuting is at least one-half of the adult seating capacity of the vehicle (excluding the driver). 24 Introduction to Shared Mobility Carsharing, Bikesharing and RideHailing Center for Urban Transportation Research | University of South Florida 26 Benefits of Carsharing • Reduces demand for parking – One carsharing car serves 40-50 members • Reduces need for personal vehicle ownership – more disposable income – more transit use • Provides for better health – more walking and less dependency on vehicle 27 28 Ways a Communities Might Foster Widespread Car Sharing • Unbundle parking from rent or allow people to lease their residential parking spots • Designate on-street parking spaces for cars that are part of a car-sharing program • Subsidize or require car-sharing programs in new multi-unit developments • Legalize off-street parking spots for cars that are part of a car-sharing program Source: http://www.shareable.net/blog/policies-for-a-shareable-city-1-car-sharing-and-parking-sharing 29 Bike Sharing • Citibank $41 million sponsors • MasterCard $6.5 million sponsor http://citibikenyc.com/ 30 31 32 How it works 33 Bikesharing Benefits Provides solution for first mile/last mile access to transit Offers health benefits Expands access to the community Ways a Community Might Foster Widespread Bike Sharing • Encourage biking by improving bicycle infrastructure • Adopt or subsidize a city-wide bike-sharing program • Tinker with the helmet laws • Support expanding bike sharing as a qualified transportation fringe benefit so employers can provide tax-free benefit 35 Lessons Learned from Bike Share programs • People bike more after joining bike share, even if they own a bike. • Big systems work, small systems don’t. • Bike sharing works best in dense places. • Bike share stations need to be close together. • Theft and vandalism aren't major concerns. 36 RIDEHAILING 37 Ride Hailing • Transportation Network Companies • Ridesharing • Ride sourcing 38 Example RideHailing 39 How They Work – Lyft example • Drivers are screened with DMV and background checks • $1M per occurrence excess liability insurance policy • Once a ride is complete, passengers are prompted to donate seamlessly through the app • Drivers rate passengers after every ride. Riders can see driver’s rating before accepting a pick up. • Every passenger also signs up for Lyft using Facebook and provides valid credit card information for identity purposes. • Community drivers get 80% of the total donations received from passengers. Money is deposited into driver’s account each week. 40 What Vehicle Types Are Available Uber • • • • uberBLACK The classic black car option is the default. uberX The convenience of Uber at a lower price with hybrid and mid-range cars in a variety of colors. Seats up to 4 people. uberSUV More than four people, request only SUVs, for a higher rate. Seats up to 6 people. UberSelect Luxury car like BMW HOW DO UBERSELECT RATES COMPARE? (ORLANDO) Base Fare Per Minute Per Mile Minimum Fare Safe Rides Fee uberX $1.00 $0.13 $0.75 $4.00 $1.00 uberXL $3.00 $0.25 $1.45 $7.00 $1.00 SELECT $3.00 $0.30 $2.00 $10.00 $1.00 41 Lyft Pricing – Tampa Bay Plus Pricing (large car w/up to 6 passengers) Lyft Pricing • • • • • • Base Charge Cancel Penalty Cost Minimum Cost Per Mile Cost Per Minute Trust And Safety Fee $1.25 $5.00 $4.00 $1.20 $0.13 $1.50 • • • • • • Base Charge Cancel Penalty Cost Minimum Cost Per Mile Cost Per Minute Trust And Safety Fee $1.87 $5.00 $6.00 $1.80 $0.19 $1.50 At times of high demand fares may be subject to a ‘Prime Time’ multiplier to keep vehicles available. The multiplier, if any, will be communicated to customer at the time of ride request. Applicable tolls and surcharges may also be added to fare. 42 Trip Purpose – Comparison in SF Taxis Ride Hailing Avoid parking Other (Medical,) No transit School Medical Shopping/errands Car not available Other business To/from transit Work To/from airport Shopping/errands Work To/from airport Social/leisure Going out at night 0% 20% 40% 60% 80% 0% 20% 40% Rayle, Shaheen, Chan, Dai, and Cervero “Just another taxi? App-Based, On-Demand Ride Services: Comparing Taxi and Ridesourcing Trips and User Characteristics in San Francisco (2015) 60% 80% 43 Top 2 Reasons for Using Lyft/Uber/Sidecar Reasons Ease of payment Short wait time Fastest way to get there Easy to call car Didn't want to drive after drinking Don't need to park Reliable Comfort/safety Cost (cheaper than alternatives) No public transit option Could not get taxi Other 0% 5% 10% 15% 20% 25% 30% Rayle, Shaheen, Chan, Dai, and Cervero “Just another taxi? App-Based, On-Demand Ride Services: Comparing Taxi and Ridesourcing Trips and User Characteristics in San Francisco (2015) 35% 40% 44 How long would the same trip have taken by public transit? • Ridehailing viewed quicker nearly all the time (10 minutes on average) • 86% trips that are at least 50% longer by public transit • 66% trips that are at least twice as long by public transit Rayle, Shaheen, Chan, Dai, and Cervero “Just another taxi? App-Based, On-Demand Ride Services: Comparing Taxi and Ridesourcing Trips and User Characteristics in San Francisco (2015) 45 Current Regulatory Challenges • • • • • Transportation of the disabled and blind Peak period pricing Driver background checks (e.g., fingerprinting) Service to economically disadvantage Use of curbside and staging areas at airport Source: Mandle and Box, Regulating Transportation Network Companies on Airports (2015) 46 Lyft Line (carpool to work) (limited areas but perhaps the future) • Customer opens the Lyft app and select ‘Line.’ Taps the ‘Request Line’ button. Enters de stination and then Lyft starts building your Line. • Pickups at “HotSpot” receive discounts ($5 fare) • Within minutes, Lyft matches customer with a ride. The price of your trip is fixed up-front. – If they don’t find another passenger, customer’s Line will remain the discounted rate. • Lyft will text passenger when your Line arrives. All customer needs to do is walk out the door and hop in. • Pays up to 60% less than Lyft basic service 47 Contact Information Phil Winters Director, TDM Program Center for Urban Transportation Research University of South Florida winters@cutr.usf.edu 813.974.9811 www.cutr.usf.edu MORE TRAINING: • Commuter Choice Certificate Program • Social Marketing and Transportation Certificate More info on both certificates can be found at www.commuterservices.com 48 First Mile/Last Mile uberX (Tampa Bay) Base fare Cost per mile Cost per minute minimum fare Safe Rides Fee Cancellation fee Miles 1 2 3 4 5 6 7 8 9 10 $ $ $ $ $ $ $ $ $ $ 10 5.00 5.96 7.94 9.92 11.90 13.88 15.86 17.84 19.82 21.80 $ 1.00 $1.20 $0.13 $ 4.00 $ 1.00 $ 5.00 $ $ $ $ $ $ $ $ $ $ Average Travel Speed 15 20 5.00 $ 5.00 5.44 $ 5.18 7.16 $ 6.77 8.88 $ 8.36 10.60 $ 9.95 12.32 $ 11.54 14.04 $ 13.13 15.76 $ 14.72 17.48 $ 16.31 19.20 $ 17.90 $ $ $ $ $ $ $ $ $ $ 25 5.00 5.02 6.54 8.05 9.56 11.07 12.58 14.10 15.61 17.12 49