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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Nichol Bourdeaux, Chief Planning and Engagement Officer |
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PRESENTER(S): |
Jaron Robertson, Director Innovative Mobility Solutions |
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Monica Morton, Fares Director |
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Andrea Packer, Communications Director |
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TITLE:
title
Promotional Fare Request: UTA On Demand by Via
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Approve the use of promotional fares for UTA on Demand by Via and authorize the Executive Director to strategically implement fare promotions as needed between August 8, 2021 and December 31, 2022.
BACKGROUND:
UTA’s microtransit pilot (UTA on Demand by Via) began in November 2019. The microtransit pilot has performed similarly to other modes and enjoyed broad support from customers and stakeholders both before and during the COVID-19 pandemic. UTA on Demand by Via is planned to become a permanent service during the August 2021 Change Day (Change Day) as part of several planned service changes. This change will increase coverage and accessibility throughout the microtransit service area and is supported by the Agency’s Five-Year Service Plan.
UTA has previously established microtransit fares and transfer rules as part of the pilot. These fares and transfer rules will continue with no change as the pilot becomes a permanent service. In addition, during the pilot, UTA and Via developed innovative electronic fare collection solutions designed to improve fare collections beyond traditional validators and cash collection boxes. These enhancements include the integration of all UTA electronic pass products and media as payment methods within the Via Mobile App. Cash is the only UTA fare payment method that is not accepted with the microtransit service. As an alternative to cash payments, customers can use the reloadable UTA FAREPAY card. Customers may also book and pay for trips using the Via customer service center if they do not have a smart phone.
During the pilot phase, the Board of Trustees approved the use of various fare promotions and discounts as part of marketing strategies to attract and build microtransit ridership. During the next 18 months, promotional and marketing efforts will continue in order to attract and retain new microtransit ridership. Fare promotions and discounts are a valuable tool to support these efforts.
DISCUSSION:
Fare Payment & Media
UTA on Demand by VIA accepts all forms of fare payment through the mobile phone app, including credit card, debit card, electronic pass products, and UTA paper pass products which are visually validated by drivers. Due to limited technology, safety, and security reasons, cash is the only fare payment method not accepted on the microtransit service. If a customer does not have a mobile phone, they can call Via Customer Service and make payment arrangements.
Fares
• Standard Fare One-Way Trip: $2.50
• Reduced Fare One-Way Trip: $1.25
Transfers
Transfers are the same as those outlined in the Utah Transit Authority Fare Transfer Rules document. The transfer time is based on the pick-up time plus 2 hours and 30 minutes. Transfers are not allowed between two consecutive microtransit trips.
Fare Promotions & Discounts
UTA is planning to implement various fare promotions and discounts between Change Day and December 31, 2022 as part of marketing and communications strategies to attract and retain customers on the microtransit service. In addition, UTA plans to offer promotional discounts to keep riders engaged and encourage them to refer other riders. Below is a list of sample promotions and discounts that were offered during the pilot phase. The project team requests flexibility to design and implement other fare promotions and discounts that support planned and future marketing strategies.
Example Fare Promotions and Discounts
• One-Way Trip Fare ($1.00)
• Reduced Fare One-Way Trip ($0.50)
• Weekly Pass ($9.50)
• New Rider (First 2 Rides Free)
• Referrals ($5.00 Ride Credit)
• Referrals Contest (10 Rides Free)
• Churn (50% Next 3 Rides)
• Engagement (1 Ride Free)
ALTERNATIVES:
Do not approve the promotional fare request and require the project team to develop all marketing and promotions of the microtransit service without the use of fare promotions and discounts.
FISCAL IMPACT:
The impact of fare promotions and discounts was approximately 2% of total fare revenue received for the microtransit service based upon 2020 data. As ridership and fare revenue increases throughout 2022, an estimated impact of 3% - 4% may be more likely.
Microtransit Revenue 2020
ATTACHMENTS:
None