Using Technology to Expand Customer Mobility Options through Integrated Fare Payment at UTA: Technical and Organizational Considerations

Transcription

1 Using Technology to Expand Customer Mobility Options through Integrated Fare Payment at UTA: Technical and Organizational Considerations Transit ITS Best Practices Workshop November 12, 2015 Jennifer K. McGrath and David Snyder Utah Transit Authority

2 UTA : Agency and Service Info UTA Operates- Fixed Fleet Service 105 Bus Routes; 16 Flex-Bus Routes; 6,250 Active Bus Stops 478 Buses Light Rail/ Street Car 4 Lines; 46.8 Miles of Track; 58 Stations; 114 TRAX Vehicles Commuter Rail 89 Miles of Track; 15 Stations; 18 Locomotives; 53 Passenger Cars Paratransit and Vanpool 11 Office/Operations Facilities and more than 2,400 acres of property Wasatch Front Service Area 7 Counties; 85 Cities; 1,400 Sq. Miles; 100 Miles in length Serves 2 MPOs Wasatch Front Regional Council (WFRC) & Mountainland Association of Governments (MAG) More than 85% of the total population of Utah live along the Wasatch Front More than 1 million people will be added to our region by 2040 (current population 2.2 million) Vehicle miles traveled are anticipated to increase by 70% and average weekly delays will increase by 120% Geographically constrained landscape limits construction of more roadways

3 A Blueprint for UTA s Future Payment Integration Supports UTA Board Goals Develop recommendations for a comprehensive First/Last Mile Strategy by 2014 Increased Ridership Goals Support 2015 Customer and Stakeholder Satisfaction Goal

4

5 First/Last Mile Strategy Recommendations Way-finding and Information Bicycle Network Improvements Pedestrian Network Improvement Bike Share Stations Car Share Stations Access Connections Crossing Treatments Rail and Bus Stop Enhancements Shuttles (including current UTA shuttle programs - Van pool, Vanpool Shuttles, Ridevan Plus)

6 Payment Integration Research and Development into Multi-Modal Transportation Payment System Convergence

7 SLC Annual Survey INCREASES PHYSICAL ACTIVITY 45% reported walking more often. 53% got more exercise, IN ADDITION TO their GREENbike trips. GREENbike Partnership PUBLIC TRANSPORTATION AIR QUALITY 62% are more likely to use other public transit because of GREENbike. 79% said that the GREENbike inspired them to take FEWER TRIPS in their personal vehicle IN ADDITION TO THEIR GREENbike TRIPS. 96% agree that GREENbike is an enhancement to transit.

8 Why Integration Matters

9 Payment Convergence Transit Holy Grail Modes of People Moving ; Payment Opportunities; Price Points and Service Provider all using the same payment media Transit Bus; Light rail; Commuter Rail Toll Parking Off-street; On Street; Airport Bike Share Car Share Van Pool Ride Share Uber; Lyft; Taxi PUBLIC PRIVATE

10 Business Challenge to Drive Convergence Jerry Maguire -1996

11 Business Decision Drivers for Payment Convergence A.K.A REQUIREMENTS Universal Account or Universal Account Token Merchant $$$$$$$ Who holds the common funds? Who disperse the common funds? How do funds get transferred? How is the universal account created? How does customer get and add funds to the universal account? Merchant Transaction Risk Tolerance vs. Customer Ease of Use Transit $x.xx Bike $x,xxx.xx Car Rental $xx,xxx.xx + gov t license + insurance Business Arrangements Shared Vision, Policy and Concept of Operations of participating members Contracts and agreements between participating members

12 Business Decision Drivers for Payment Convergence A.K.A. REQUIREMENTS Joint Operational Business Model for Customer Service Who gets called for what and when? Customer Viewpoint Additional value and benefit vs. what customer does currently Customer Education Customer value and acceptance will a customer use it? Additional Value to the Merchant or Provider Will additional benefits hold value when compare to the additional costs?

13 Technology Convergence Today s Solutions Common Media Required How can all merchants utilize the same media to access their services? Card becomes a token for merchant for an account and access mechanism to a device Merchant Backend System Account based systems a requirement where transactions and payments can be associated to a token account # Processor System Provides a means for common transaction and settlement between parties Integration of Systems Cost of development, likely single highest cost factor

14 Technology Alternatives to Investigate Once Business Rules Defined Leverage an existing common merchant payment model Banks cards; PayPal; Apple / Android Pay Possible issues with low income - under /unbanked 3 rd Party Closed Loop Card Product or Service Reloadable gift/private label card operated by a Program Manager - InComm 3 rd Party Open/Closed Loop Card Product or Service Mobile Payments for Municipal Transportation - PASSPORT Custom Solutions Among Partners Need to clearly define development, operational and long-term support costs

15 Questions!!!

16 THANK YOU!!! Utah Transit Authority Jennifer K. McGrath, Strategic Planner III , David Snyder, Development Manager ,