|
TO: |
Board of Trustees |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Monica Howe, Fares Director |
|
|
Jordan Eves, Manager of Fare Strategy |
TITLE:
title
Promotional Fare Request: 2025 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, 2025.
BACKGROUND:
UTA On Demand Service was launched in 2019 with various promotions approved and implemented to build awareness and ridership. All promotions have ended except the multi-rider fare promotion. This promotion allows UTA On Demand customers to book a ride for more than one rider at no additional cost. Earlier this year, the UTA Board of Trustees authorized the Executive Director to extend the multi-rider fare promotion through December 2024.
Over the years, UTA has implemented various fare promotions and discounts as part of marketing and communications strategies to attract and retain customers using On Demand Service. The multi-rider fare promotion has been renewed each year because of limitations with the UTA On Demand App. This promotion overcomes those limitations by improving service efficiencies and creating a better experience for the customer.
DISCUSSION:
UTA On Demand Service has grown from one to four zones. As service and ridership continue to grow, the impact of the fare promotion on revenue is increasing. During 2025 staff will form an internal working group and propose options that support payment of multi-rider trips. In addition, staff will work with Via Transportation to implement approved technology and end the promotion.
For 2025, staff recommends extending the Multi-Rider Fare Promotion for one (1) additional year through December 31, 2025. In doing so, On Demand will continue to improve service efficiencies and create a better experience for the customer.
Total foregone revenue in 2025 is estimated between $220,000 and $260,000.
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 2025 is estimated to be between $220,000 and $260,000. This increase will be driven by the increase in On-Demand service that will be implemented in 2025.
ATTACHMENTS:
none