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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Nichol Bourdeaux, Chief Planning and Engagement Officer |
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PRESENTER(S): |
Jaron Robertson, Acting Planning Director |
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Shaina Quinn, IMS Program Manager |
TITLE:
title
Promotional Fare Request: 2023 UTA On Demand Service
end
AGENDA ITEM TYPE:
Service or Fare Approval
RECOMMENDATION:
Requesting the Board of Trustees authorize the Executive Director to strategically implement fare promotions and discounts (as outlined below) for UTA On Demand services to acquire new customers in South Davis County and Tooele County zones and stabilize growth and improve service quality in southern Salt Lake County and SLC Westside zones between January 1, 2023 and December 31, 2023.
BACKGROUND:
UTA operates four microtransit zones - Southern Salt Lake County (SSL County), Salt Lake City Westside (SLC Westside), South Davis County, and Tooele County. Promotional and discount fare opportunities support UTA On Demand growth efforts by increasing ridership, building brand recognition, and creating community awareness for new service modes.
2022 fare promotions and discounts have been successful marketing tools for increasing ridership and attracting new users in the SSL County and SLC Westside zones. These UTA On Demand zones are currently experiencing record-breaking trip demand growth and exceeding monthly ridership targets. Innovative Mobility Solutions (IMS) does not anticipate providing fare promotions for these zones in 2023. However, the newly launched UTA On Demand zones, South Davis County and Tooele County, can benefit from continued fare promotions and discounts to attract and retain new ridership.
Example 2022 Fare Promotions and Discounts
• New Rider (First 10 Rides Free)
• Referrals ($5.00 Ride Credit)
Multi-rider Trial Fare (+1s)
In January 2022, IMS in collaboration with the Fares team implemented a UTA On Demand +1 additional rider discount fare pilot to improve family/group booking experiences and service efficiencies. The multi-rider trial allows a user to book a ride for more than one person at no additional cost to improve service efficiencies and the user experience.
DISCUSSION:
The IMS department, in collaboration with the Communications team, is developing marketing strategies for 2023 with the following objectives:
• Acquire new customers in South Davis and Tooele Counties with New Rider Promotions
• Stabilize growth and prioritize sustainable, quality service in southern Salt Lake County and SLC Westside zones
• Maintain simplified booking for 2 or more riders with Multi-rider fare trial in all zones
• Continue rewarding customer advocates with referral credits in all zones
Fare promotions and discounts such as multi-rider +1 trial, referral credits, and new rider promos (in South Davis and Tooele County zones) are being considered as part of a comprehensive marketing strategy for UTA On Demand services in 2023, the type of fare promotion or discount offered to riders will be dependent upon a microtransit zone’s current ridership and service quality KPIs. Staff estimates the financial impact of the proposed fare promotions to be about $60,000 in fare revenue.
The IMS and Communications teams request flexibility within the outlined parameters to use promotions and discounts to achieve the stated objectives for on demand service. Staff will come back to the board to 1) periodically report on how the promotional efforts are going, and 2) make requests beyond the outlined parameters when needed.
UTA staff will provide an overview of the following:
• UTA On Demand fare structure and usage by type
• 2022 fare promotions
• Service growth in relation to fare promotions
• Fiscal impact of 2022 fare promotions
• 2023 planned fare promotions and fiscal impacts
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:
• 2022 Fare Promotions: $92,619 estimated
• 2022 Multi-rider Trial: $19,278 estimated
• 2023 Estimated Impact Fare Promotions: $27,786 (-70%)
• 2023 Estimated Impact Multi-rider Trial: $28,918 (+50%)
ATTACHMENTS:
None