Employer-Sponsored Transit A TDM Strategy for Encouraging Transit Ridership CUTA 2009 Conference and Trans-Expo  November ...
Outline <ul><li>Background: TDM and Smart Commute </li></ul><ul><li>TDM Benefits for Transit </li></ul><ul><li>Employer-sp...
Background: Transportation Demand Management (TDM) and Smart Commute
Definition of TDM <ul><li>The use of policies, programs, services and products to influence  whether ,  why ,  when ,  whe...
TDM Goals <ul><li>Save time, money and the environment by: </li></ul><ul><ul><li>reducing traffic congestion </li></ul></u...
<ul><li>mode shift    </li></ul><ul><ul><li>auto to non-auto, SOV to HOV </li></ul></ul><ul><li>trip elimination  </li></u...
What is Smart Commute?  <ul><li>Greater Toronto and Hamilton Area (GTHA) TDM program </li></ul><ul><li>Workplace-based com...
<ul><li>A network of ten Local Smart Commutes (TMAs) </li></ul><ul><li>Regional development and coordination by Metrolinx ...
<ul><li>Incorporated nonprofit organization </li></ul><ul><li>Funded by: </li></ul><ul><ul><li>The City of Mississauga </l...
TDM Supports for Transit
TDM Supports for Transit <ul><li>Employer and Commuter Research Data </li></ul><ul><ul><li>Workplace site assessments and ...
Employer-sponsored  Transit
Employer-sponsored   VS.  Volume Incentive (bulk) Discounts <ul><li>Volume incentive purchase (VIP) or bulk discount: </li...
Employer-sponsored   VS.  Volume Incentive (bulk) Discounts <ul><li>Employer subsidy: </li></ul><ul><ul><li>employer pays ...
GTHA Precedents <ul><li>Municipalities in the GTHA have led the way, offering sponsored transit passes to their employees ...
Mississauga  Discount Transit Pilot Project <ul><li>City of Mississauga provides matching transit discounts to Smart Commu...
Why Discount Transit Passes? <ul><li>Only 9% of employees in the city regularly use public transit as their primary commut...
Why Discount Transit Passes? <ul><li>Mississauga Transit Ridership Growth Strategy   </li></ul><ul><ul><li>Target to incre...
Discounting Schedule Employer Paid Discount City of Miss. Matching Discount Total Discount to Employee Less than 15% No Ma...
Operational Details <ul><li>SC-Miss has an agreement with the City of Mississauga </li></ul><ul><li>Legal agreements with ...
Transit Zone <ul><li>www.transitzone.ca </li></ul><ul><li>web-based administration tool developed by Metrolinx  </li></ul>...
 
Marketing Campaign <ul><li>Two waves </li></ul><ul><ul><li>3 weeks in June  </li></ul></ul><ul><ul><li>3 weeks in Septembe...
Results to Date <ul><li>Two employers participating </li></ul><ul><ul><li>City of Mississauga  </li></ul></ul><ul><ul><li>...
Lessons Learned and Expected Results
Challenges <ul><li>Requiring employers to invest is a significant barrier for many employers </li></ul><ul><ul><li>“ It’s ...
Expected Results <ul><li>Individual : significant commute savings </li></ul><ul><li>Employer : increase access, employee r...
Thank You [email_address] (905) 896-5941 [email_address] (416) 874-5934
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Employer-Sponsored Transit: A TDM Strategy for Encouraging Transit Ridership

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Presented by: Catherine Habel, BSC, MES (Planning) and Glenn Gumulka, MES, MBA
Presented at: Canadian Urban Transit Association (CUTA) 2009 Conference, Montreal, November 2009

Published in: Automotive
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Employer-Sponsored Transit: A TDM Strategy for Encouraging Transit Ridership

  1. 1. Employer-Sponsored Transit A TDM Strategy for Encouraging Transit Ridership CUTA 2009 Conference and Trans-Expo November 7-11, 2009
  2. 2. Outline <ul><li>Background: TDM and Smart Commute </li></ul><ul><li>TDM Benefits for Transit </li></ul><ul><li>Employer-sponsored Transit </li></ul><ul><li>Mississauga Discount Transit Pilot Project </li></ul><ul><li>Lessons Learned and Expected Results </li></ul>Catherine Habel Senior Program Advisor, TDM Metrolinx Glenn Gumulka Executive Director Smart Commute Mississauga
  3. 3. Background: Transportation Demand Management (TDM) and Smart Commute
  4. 4. Definition of TDM <ul><li>The use of policies, programs, services and products to influence whether , why , when , where and how people travel. </li></ul>Smart Commute works with various stakeholders to relieve traffic congestion, improve air quality and health, and reduce emissions that cause climate change.
  5. 5. TDM Goals <ul><li>Save time, money and the environment by: </li></ul><ul><ul><li>reducing traffic congestion </li></ul></ul><ul><ul><li>improving the movement of people, goods and services </li></ul></ul><ul><ul><li>increasing productivity </li></ul></ul><ul><ul><li>reducing greenhouse gas emissions </li></ul></ul><ul><ul><li>improving air quality </li></ul></ul>
  6. 6. <ul><li>mode shift </li></ul><ul><ul><li>auto to non-auto, SOV to HOV </li></ul></ul><ul><li>trip elimination </li></ul><ul><ul><li>telework </li></ul></ul><ul><li>trip reduction </li></ul><ul><ul><li>trip chaining </li></ul></ul><ul><li>peak spreading </li></ul><ul><ul><li>flexible work hours </li></ul></ul>TDM Strategies
  7. 7. What is Smart Commute? <ul><li>Greater Toronto and Hamilton Area (GTHA) TDM program </li></ul><ul><li>Workplace-based commuter options program to encourage: </li></ul><ul><ul><li>transit use </li></ul></ul><ul><ul><li>walking and cycling </li></ul></ul><ul><ul><li>carpooling and vanpooling </li></ul></ul><ul><ul><li>telework & alternative work hours </li></ul></ul><ul><li>Partners – government, business community, NGOs, transit agencies, universities </li></ul>
  8. 8. <ul><li>A network of ten Local Smart Commutes (TMAs) </li></ul><ul><li>Regional development and coordination by Metrolinx </li></ul><ul><li>Local implementation by TMAs </li></ul>
  9. 9. <ul><li>Incorporated nonprofit organization </li></ul><ul><li>Funded by: </li></ul><ul><ul><li>The City of Mississauga </li></ul></ul><ul><ul><li>The Region of Peel </li></ul></ul><ul><ul><li>Matching funding from Metrolinx </li></ul></ul><ul><ul><li>Corporate memberships </li></ul></ul><ul><li>Partnerships with: </li></ul><ul><ul><li>Mississauga Cycling Advisory Committee </li></ul></ul><ul><ul><li>Mississauga Environmental Advisory Committee </li></ul></ul><ul><ul><li>TRCA Partners in Project Green </li></ul></ul><ul><ul><li>Mississauga Arts Council </li></ul></ul>About Smart Commute Mississauga
  10. 10. TDM Supports for Transit
  11. 11. TDM Supports for Transit <ul><li>Employer and Commuter Research Data </li></ul><ul><ul><li>Workplace site assessments and commuter surveys </li></ul></ul><ul><li>Commute Counselling </li></ul><ul><ul><li>route planning </li></ul></ul><ul><li>Incentives and Supportive Measures </li></ul><ul><ul><li>Transit Pass Subsidies </li></ul></ul><ul><ul><li>Emergency Ride Home </li></ul></ul><ul><ul><li>Trip-End Improvements: </li></ul></ul><ul><ul><ul><li>improved walking connections to transit stop </li></ul></ul></ul><ul><ul><ul><li>schedule and route information </li></ul></ul></ul><ul><ul><ul><li>on site transit ticket sale </li></ul></ul></ul><ul><ul><li>Flex Time </li></ul></ul><ul><ul><li>other incentives and special promotions </li></ul></ul><ul><li>Marketing and Outreach </li></ul>
  12. 12. Employer-sponsored Transit
  13. 13. Employer-sponsored VS. Volume Incentive (bulk) Discounts <ul><li>Volume incentive purchase (VIP) or bulk discount: </li></ul><ul><ul><li>transit agency provides discounted passes to employers </li></ul></ul><ul><ul><li>employer sells discounted transit passes back to employees </li></ul></ul><ul><ul><li>employer commits to purchasing/selling a minimum number of passes per month in order to receive the discount </li></ul></ul>
  14. 14. Employer-sponsored VS. Volume Incentive (bulk) Discounts <ul><li>Employer subsidy: </li></ul><ul><ul><li>employer pays for all or part of employee transit pass </li></ul></ul><ul><ul><li>usually administered through payroll deduction </li></ul></ul><ul><ul><li>employer can choose to provide a subsidy in addition to or instead of a transit-agency-provided bulk discount </li></ul></ul><ul><li>Success factors: </li></ul><ul><ul><li>good transit service </li></ul></ul><ul><ul><li>paid parking or parking shortage </li></ul></ul><ul><ul><li>strong employer endorsement </li></ul></ul>
  15. 15. GTHA Precedents <ul><li>Municipalities in the GTHA have led the way, offering sponsored transit passes to their employees </li></ul><ul><li>TTC Volume Incentive Purchase (VIP) program </li></ul><ul><li>York Region RideSaver pilot project </li></ul><ul><li>City of Brampton Employee Annual Pass Program </li></ul><ul><li>Hamilton – HSR Employee Commuter Pass </li></ul>
  16. 16. Mississauga Discount Transit Pilot Project <ul><li>City of Mississauga provides matching transit discounts to Smart Commute Member employers who discount monthly passes for their employees </li></ul><ul><ul><li>Maximum of 15% when an employer discounts by 25% </li></ul></ul><ul><li>18 month pilot program </li></ul><ul><ul><li>Evaluate after 12 months based on: </li></ul></ul><ul><ul><ul><li>Mode shift and fare switching (survey) </li></ul></ul></ul><ul><ul><ul><li>Stop counts - tbd </li></ul></ul></ul><ul><ul><ul><li>Pass sales </li></ul></ul></ul><ul><ul><ul><li>Employer and employee satisfaction surveys </li></ul></ul></ul><ul><ul><li>6 months to develop & implement evaluation recommendations </li></ul></ul><ul><li>Smart Commute Mississauga exclusive selling agent </li></ul><ul><ul><li>Market the program to corporate members </li></ul></ul><ul><ul><li>Collect an Agent fee to cover program management (1.5%) </li></ul></ul><ul><li>All participants automatically registered in Emergency Ride Home program </li></ul>
  17. 17. Why Discount Transit Passes? <ul><li>Only 9% of employees in the city regularly use public transit as their primary commute mode </li></ul><ul><li>Our surveys (over 5,000 employees) suggest: </li></ul><ul><ul><li>14% are definitely willing to try public transit </li></ul></ul><ul><ul><li>19% are probably willing to try public transit </li></ul></ul><ul><li>Potential demand </li></ul><ul><ul><li>52,000 business to distribute passes </li></ul></ul><ul><ul><li>425,000 employees </li></ul></ul><ul><li>What would encourage commuters to try transit? </li></ul><ul><ul><li>35% lower fares </li></ul></ul><ul><ul><li>25% tickets for sale at my place of employment </li></ul></ul><ul><ul><li>33% a ride home in case of an emergency </li></ul></ul>
  18. 18. Why Discount Transit Passes? <ul><li>Mississauga Transit Ridership Growth Strategy </li></ul><ul><ul><li>Target to increase ridership by 25% over five years </li></ul></ul><ul><ul><li>Fare incentives including transit fare discounts are a key objective of the Ridership Growth Strategy </li></ul></ul><ul><li>City of Mississauga Strategic Plan </li></ul><ul><ul><li>Goal of doubling transit modal split in the next 40 years </li></ul></ul><ul><li>Proven strategy for growing ridership </li></ul><ul><ul><li>TTC V.I.P. (10% - 12% discounts) 220,000 passes sold in 2005 </li></ul></ul><ul><ul><li>Winnipeg (EcoPass) – City provides 10% match on discounts of 30% or more </li></ul></ul><ul><ul><ul><li>45% increase in ridership among participating employers with a similar program </li></ul></ul></ul><ul><ul><ul><li>Net monthly transit revenue increase of 30% </li></ul></ul></ul>
  19. 19. Discounting Schedule Employer Paid Discount City of Miss. Matching Discount Total Discount to Employee Less than 15% No Matching Employer Discount 15% 5% 20% 25% 15% 40% More than 25% 15% Employer Discount + 15%
  20. 20. Operational Details <ul><li>SC-Miss has an agreement with the City of Mississauga </li></ul><ul><li>Legal agreements with participating organizations and SC-Miss </li></ul><ul><ul><li>Agree to participate for 12 consecutive months </li></ul></ul><ul><ul><li>Employees agree to participate for 12 consecutive months </li></ul></ul><ul><ul><ul><li>Cancellation results in 6 month participation ban </li></ul></ul></ul><ul><li>Organizations register with SC-Miss </li></ul><ul><li>Individual participants register online using TransitZone.ca </li></ul><ul><ul><li>Admin access for SC-Miss, transit agency and employer admin </li></ul></ul>
  21. 21. Transit Zone <ul><li>www.transitzone.ca </li></ul><ul><li>web-based administration tool developed by Metrolinx </li></ul><ul><li>interim site being tested through Mississauga pilot project </li></ul><ul><li>will become part of the suite of SC TDM Online Services </li></ul><ul><li>Transit Zone is designed to work in other SC jurisdictions with similar programs </li></ul>
  22. 23. Marketing Campaign <ul><li>Two waves </li></ul><ul><ul><li>3 weeks in June </li></ul></ul><ul><ul><li>3 weeks in September </li></ul></ul><ul><li>Elements </li></ul><ul><ul><li>Bus tail ads </li></ul></ul><ul><ul><li>In-bus advertising </li></ul></ul><ul><ul><li>Transit terminal poster </li></ul></ul><ul><ul><li>In-transit brochures </li></ul></ul><ul><ul><li>Banner stands </li></ul></ul><ul><ul><li>Brochures </li></ul></ul><ul><ul><li>Outdoor signs </li></ul></ul>
  23. 24. Results to Date <ul><li>Two employers participating </li></ul><ul><ul><li>City of Mississauga </li></ul></ul><ul><ul><li>McCormick Rankin / Ecoplans </li></ul></ul><ul><li>In negotiations with several other employers </li></ul>
  24. 25. Lessons Learned and Expected Results
  25. 26. Challenges <ul><li>Requiring employers to invest is a significant barrier for many employers </li></ul><ul><ul><li>“ It’s the employees responsibility” </li></ul></ul><ul><ul><li>May contradict fair and equitable policies </li></ul></ul><ul><li>Managing the program through payroll deductions is a barrier for many employers </li></ul><ul><ul><li>Difficult to get payroll to buy-in </li></ul></ul><ul><ul><li>May not have the capability </li></ul></ul><ul><li>Smart Commute membership as a condition of participation is a barrier for many employers especially smaller employers. </li></ul><ul><li>Restricting access to employers from within the City of Mississauga limits participation </li></ul><ul><li>12 month commitment for employers and employees is a barrier to participation </li></ul>
  26. 27. Expected Results <ul><li>Individual : significant commute savings </li></ul><ul><li>Employer : increase access, employee retention, save on parking </li></ul><ul><li>Smart Commute : engage employers, incite commuters, generate revenue from agent fees </li></ul><ul><li>Transit : increase ridership and loyalty, generate revenue, support infrastructure and service improvements, marketing </li></ul>
  27. 28. Thank You [email_address] (905) 896-5941 [email_address] (416) 874-5934

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