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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Kensey Kunkel, Manager Fare Strategy |
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Shaina Quinn, IMS Program Manager |
TITLE:
title
Promotional Fare Request: 2024 UTA On Demand Service Multi-Rider Fare
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve and authorize the Executive Director to extend the Multi-rider Fare Promotion on UTA On Demand Service through December 31, 2024.
BACKGROUND:
Earlier this year, the UTA Board of Trustees authorized the Executive Director to extend fare promotions and discounts on UTA On Demand Services through December 2023. This included the extension of the Multi-rider Pilot Fare, wherein a customer can book a ride for more than one rider at no additional cost. The purpose of this promotion is to improve service efficiencies and the user experience. For background:
UTA On-demand fare is $2.50 per rider. If a group is travelling to the same destination, there is no ability to charge each individual rider separately when booking a trip. As a result, multiple vehicles may be dispatched despite the group’s intention to travel together. The multi-rider promotion ensures that the group can travel together.
This promotion will expire at the end of this year and staff recommends extending one additional year through December 31, 2024.
DISCUSSION:
Staff recommends extending the Multi-rider Fare Promotion for one (1) additional year through December 31, 2024. In doing so, On Demand will continue to improve service efficiencies and create a better experience for the customer.
Total foregone revenue in 2023 is estimated to be about $ 80,500. However, this was offset by $138,000 in service efficiencies savings.
The Multi-rider Pilot Fare has increased service efficiencies by seventy-one percent (71%) and saved the agency an estimated $276,000 in total cost per ride since the fare’s implementation in January 2022.
ALTERNATIVES:
Do not approve the promotional fare request and require riders wishing to split fare payment to request and pay for their trip separately.
FISCAL IMPACT:
• Foregone fare revenue in 2024 is estimated to be between $100,000 and $130,000. This increase will largely be driven by the increase in On-Demand service that will be implemented in 2024.
ATTACHMENTS:
None