Archive for MetroCard

The Citizens Budget Commission believes a high cap on unlimited MetroCards could alleviate some of the MTA’s budgetary woes. (Source: CBC)

I love my Unlimited MetroCard. I’ve been using one for years, and it makes using the subway essentially free. I pay once per month — in my case, on a pre-tax basis — and get a card that simply tells me to “Go.” I can swipe in at Grand Army Plaza and take a 2 or 3 to Franklin Ave. without thinking about the cost or a subsequent card purchase. I can hop on a bus without a thought, and in fact, the more I ride, the better a deal I get from my unlimited card.

In a very real sense, as I wrote half a decade ago, the Unlimited MetroCards ushered in a revolution in New York City transit history. As then-Gov. George Pataki noted in the late 1990s, ”The goal” with these MetroCards “was very simply to empower the rider. Empower the person who takes the subway and the person who takes the bus by giving them the broadest possible range of options as to how they want to choose to use the mass transit system.”

And it worked. The average cost per ride a subway rider must pay declined precipitously, and only recently, through aggressive fare hikes, has the MTA clawed back revenue it lost to these unlimited cards. Still, the MTA drew in more in inflation-adjusted dollars in 1996 before unlimited ride cards were introduced than it does today. Furthermore, ridership has spiked — to over 6 million per day at times during peak ridership seasons last fall — and the MTA’s fare discounts push ridership.

But has the unlimited ride card outlived its useful life? That’s the question New York City’s Citizens Budget Commission posed recently. The independent group argues that, with ridership up and demand greater than subway supply, the MTA could incrementally rollback the incentives from the unlimited ride cards. After all, in the 1990s, the agency had to incentivize riders to return to a restored system, but today, the system sells itself. By capping unlimited ride cards at levels beyond the reach of all but the power users, the MTA could, they argue, draw in an additional $93 million a year.

Here’s their take:

The need for increased fare revenue need not be met exclusively through current practices of raising base fares and adjusting discounted prices. The MTA can generate revenue by capping the number of rides permitted on the 7-day and 30-day passes. Unlike recent fare increases hitting nearly every straphanger, the caps would provide needed revenue while affecting fewer riders, many who now enjoy very deep discounts, and would still retain heavily discounted fares.

Based on data provided by the MTA for October 2013, riders used 7-day passes for 45 million rides per month and 30-day passes for 66 million rides per month. These rides can be attributed to an estimated 2.8 million 7-day passes and 1.1 million 30-day passes. At a price of $30 the break-even number of rides for a 7-day pass was 13; for a 30-day pass at $112 the number was 48 rides. (Both calculations use the $2.38 fare available with a volume discount.) Rides above these numbers are effectively “free” for the pass holder.

Each “free” ride represented $2.38 in foregone revenue assuming the unlimited passes were eliminated and passengers purchased volume discount rides instead. The monthly number of “free” rides on the unlimited passes is estimated at 28.4 million. This equals about $67 million in foregone revenue monthly, or $807 million annually. Since a significant share of unlimited pass purchasers does not actually use the cards enough to reach the break-even point, these “unused” rides are extra revenue for the MTA. If this extra revenue was also foregone, the net gain from eliminating the unlimited passes would be $619 million annually. But eliminating unlimited passes would be a radical change, causing hardship for many straphangers and undermining the sense of convenient mobility the passes are intended to promote. A fairer strategy is to cap the number of rides on these passes at a number above the break-even point.

The CBC acknowledges that the MTA hasn’t made enough information available to assess the proper cut-off for unlimited ride cards, but they assume a hair over three swipes per day, an exceedingly high volume of rides. Limiting pay-per-rides to 22 swipes per 7 days or 92 per 30 days could lead to eliminating nearly 4 million rides that are free — that is, they are taken after the breakeven point on MetroCards. The unlimited ride cards would still be a great deal, but the MTA would capitalize on very high volume users (and those who try to defraud the system by selling swipes) to the tune of $7.8 million a month.

Part of me hates this idea. The psychological benefits of a true unlimited ride card encourage transit use at a time when New York City’s transit advocates should do all they can to keep residents out of private automobiles. It cuts against the grain of environmental advocacy, congestion pricing proponents and Vision Zero efforts to add any new psychological barrier, albeit a small one, to transit use.

But on the other hand, it’s hard to deny that revenue is revenue. The CBC estimates that only 60,000 30-day card users and around 415,000 7-day card users would exceed their lofty cap, and those figures are only 15 percent of all 7-day card users and 5 percent of 30-day users, relatively small percentages overall. It’s an idea that warrants some debate and discussion. As the CBC says, “Unlike general fare increases affecting nearly every straphanger, the caps would provide financial benefits while affecting only the relatively few riders who use their 7-day and 30-day passes most heavily and would still benefit from discounted fares.”

Categories : MetroCard, MTA Economics
Comments (44)
The MTA's latest projections for the rollout of the fare-payment system that will replace the MetroCard.

The MTA’s latest projections for the rollout of the fare-payment system that will replace the MetroCard.

Now that the MTA Board committee materials officially recognize that the 7 line extension won’t open until at least the 2nd quarter of 2015 (something we knew last month), we can move onto another project that is oft- and again-delayed: the MetroCard replacement. According to the latest Capital Program Oversight Committee materials, the MTA’s next-gen fare payment system won’t be ready until 2020 if all goes according to plan. Systemwide rollout won’t wrap until 2022 under the current schedule.

I’ve often said that the MTA’s latest technological advances are always five years away. Through the right circumstances, we finally get to enjoy countdown clocks on the A Division trains and BusTime through the city, but it seems that the MTA keeps promising B Division countdown clocks in “3-5 years” and has been for longer than 3-5 years. The MetroCard replacement meanwhile has been five years away from nigh on five years now. And the clock is ticking.

With the current MetroCard technology, now well over 20 years, the MTA faces a sunset date. After or around 2019, the cost of maintain the current MetroCard infrastructure will spike as maintenance contracts expire and parts grow harder to find. Thus, there has been some urgency surrounding the 2019 deadline for the introduction of a new fare payment technology. Various stops and starts, driven, in part, by rapid turnover atop the MTA, have delayed the project, but as Michael DeVitto discussed at my Problem Solvers session last March, the MTA is on track to do, well, something within a few years. Now, however, the timeline is slipping.

According to the latest Board documents, the MTA is gearing up to pass a major milestone in its efforts to find a replacement for the MetroCard that can serve for the next few decades. The new solution has to be integrated and adaptable with a contact-less payment system and a new backend for payment processing. By the end of next month, the MTA expects to wrap the business requirements development contract and will issue an RFP in late winter. The MTA expects to award a contract in mid-2016, and a deployment timeline takes shape from there.

According to the MTA docs, system design will run for 13 months and back-end development for two years. Contactless readers will then be installed in buses and subways over the following 21 months before vending machines are outfitted throughout the system. Much like the MetroCard’s initial rollout, the MTA expects to bring the entire system online within three calendar years at a cost of $450 million. But we know how reliable those cost estimates have been in the past.

These are positive concrete steps, but the problem is that Transit has to keep the current MetroCard system up and running until system-wide rollout is complete. In essence, the agency has to run and maintain two systems — one three decades old and one brand new — at the same time, and since the new system is now scheduled to be online after 2019, the MTA’s costs are going to jump. In fact, an Indepdent Engineering Consultant notes that the budget “may not be adequate” when considering the costs of maintain the MetroCard system in a state of good repair beyond 2019 and through 2023.

So where exactly does this leave us? The MTA is still five years away from a replacement for the MetroCard, and it seems nearly definite that they’ll miss their own 2019 deadline by a considerable margin even if all goes according to plan. This is unfortunately a common theme with technological upgrades and a challenge the MTA faces in convincing politicians it deserves $32 billion to improve the system. They need to deliver something at some point, but five years away is a frustratingly shifting target that seems to remain perennially five years away.

Categories : MetroCard
Comments (42)

When I first launched the “Problem Solvers” series with the Transit Museum, I knew that I wanted to focus a session on the future of the MetroCard. For a few years, I’ve tried to schedule a sit-down with the right someone at the MTA to discuss the agency’s next-generation fare payment plans and the prognosis for the familiar piece of plastic New Yorkers carry with themselves 24-7.

At first, I couldn’t get anyone because the MTA didn’t really know what it was going to do replace the MetroCard; it knew only that by 2019 it would be too expensive to maintain the current system. But now I have some exciting news: The next “Problem Solvers” Q-and-A session, set for March 19, will focus on the MetroCard’s future. Joining me at 6:30 p.m. at the Transit Museum in Brooklyn will be Michael DeVitto, Vice President and Program Executive for fare payment programs at NYC Transit. We will discuss the future of the MetroCard, current initiatives on new fare technology, and all that goes into designing a fare system for the city’s transit network. We will, of course, talk about progress toward a new fare payment system.

“Problem Solvers” is a free event hosted by the Transit Museum, and this session is slated for Wednesday, March 19th at 6:30 p.m. (with doors at 6). Please RSVP here and join me for what should be an illuminating and informative conversation on a topic I’ve followed closely over the past seven and a half years.

Comments (3)

I’ve been sitting on a bunch of open tabs for a little while and thought it would be a good idea to get around to sharing these. These are stories I found interesting or newsworthy but just haven’t had an opportunity to post here.

$500 million from unused MetroCards

I’ve talked a bit about the MTA’s new green fee and the money realized from unused MetroCards, and a recent piece in The Times put those dollars into context. Throughout the first decade of the 21st century, the MTA collected half a billion dollars from unused fares. Since straphangers have to pre-pay for MetroCards, dollars that are left on the cards long after their expiration dates remain with the MTA, and on an annual basis, the money is a small, but important, part of the agency’s annual budget.

Unused fares isn’t something that’s come about because of the MetroCard era. Back in the day, New Yorkers would buy tokens and never use them. They would get lost, get forgotten, get overlooked, and the MTA could collect those fares. But today with uneven bonuses that make the math of a free fare more difficult, more dollars are left on cards that expire, and the $1 fee for new MetroCards means revenue as well.

As the MTA phases out the MetroCard — the topic of my March 19 Problem Solvers session — these unused fares may diminish a bit. The next system may well be a pay-as-you-go set-up that doesn’t focus around any proprietary fare collection system. While the MTA will lose the money from unused fares, it will also drastically reduce the amount it has to spend to collect fares. That’s a win for the customers, and a win for the transit agency as well.

Send the 3 to the Bronx

As New York City subways go, the 3 train runs an odd route. It stretches deep into Brooklyn but then stops short of anything in Manhattan. It terminates at 148th St. near the Lenox Yard and goes no further north. In a piece at Welcome2TheBronx, Richard Garey argues for extending the train to the Bronx. With the need for some cross-Bronx subway service and the incoming soccer facility near Yankee Stadium, the time may be right to look at some subway extension options.

Garey’s post focuses on the 3 train as a way to serve neighborhoods that once enjoyed streetcar service and now don’t, but I think he has the routing wrong. The 3 shouldn’t end up as another north-south route in the Bronx but could instead cut across the borough, serving areas that don’t have good cross-Bronx transit options while boosting subway service. It is, after all, a fast ride downtown on the IRT express. Without a massive infusion of cash, we’re just dreaming, but it’s an intriguing proposition after all.

Unhappiness at 149th Street

For years, I’ve been using the 149th Street-Grand Concourse subway stop as a transfer point on the way to Yankee Stadium, and for years, it has been one disgusting station. The walls were marred by leaking pipes, and on the way home from a World Series game in 2001, my sister and I saw squirrel-sized rats on the uptown 2/5 platform. It was very, very unpleasant.

Recently, the station underwent a renovation, but a few area residents are unhappy. One transit buff took a video tour of the station post-renovation and discovered some subpar work. Meanwhile, another group of residents wants to restore elevator service that was shuttered 40 years ago. As best as I can tell, the elevator in question went from the 2/5 platform to street level. The MTA has no money, and protestors hope Mayor de Blasio can help out. I wouldn’t hold me breath.

Countdown clocks for the SIR

Thanks to an infusion of funds from Council member Vincent Ignizio, four stations along the Staten Island Railway — Great Kills, Eltingville, Annadale and Huguenot — now have countdown clocks. The work is part of a $675,000 initiative funded by Ignizio’s office that will eventually include a Subway Time component that will add these SIR stations to the MTA’s tracking app. For now, the information is available on the St. George-bound side, but Tottenville-bound service will have its time in the sun as well. If you pay for it, it will come.

Twenty years ago, Rudy Giuliani was our mayor, Bill Clinton the president and Mike Gallego the Yankees’ starting short stop. Twenty years ago also marked the day the MetroCard made its New York City debut. On January 6, 1994, at two stations in Lower Manhattan, the MetroCard made its debut as riders at the IRT’s City Hall stop and the BMT’s Whitehall St. station could swipe in with the blue-and-yellow pieces of plastic.

Those first cards deducted $1.25 per swipe and MTA officials spoke of the ways in which this new payment system would change the fare structure throughout the city. “It’s a new era for our customers,” then-MTA Chairman Peter E. Stangl said. “It opens up the possibility for fare structures that over time will help us increase our ridership, which is why we’re in business.”

Three years later, in 1997, every station was equipped with MetroCard-ready turnstiles, and the MTA could begin offering unlimited ride cards thus realizing Stangl’s words. Those unlimited fare cards revolutionized transit and lead to a massive increase in ridership. The costs are higher today, but the bulk discount options remain a good deal for daily riders.

Over the years, the MetroCard has had its ups, downs and “please swipe again at this turnstile” moments. It took nearly 19 years for display screens to show the expiration dates for unlimited cards, and lately, both the fronts and backs of the cards have been for sale. I’ve always loved my unlimited MetroCard though through thick and thin.

In commemorating today’s anniversary, the MTA put out a brief release on the MetroCard’s two decades. “You can’t think of New York City without thinking of the MetroCard,” Carmen Bianco, President of MTA New York City Transit, said. “After two decades, it still serves millions of bus and subway riders daily offering a great transportation value. Of course, we are well on our way to developing the next generation of fare payment, part of our effort to upgrade and modernize the City’s mass transit system.”

Echoing Bianco’s line, the MTA says the agency is “working on something even better,” but we still don’t know what that will be. The replacement project had foundered over the past six or seven years and seemed rudderless last February. But the MTA knows that the costs of maintaining the twenty-year old system are continuing to creep upward, and a replacement is on tap. (That too is the top of my March 19 Problem Solvers session.)

Today, we’ll tip our caps to that ubiquitous piece of plastic. Please, swipe again.

Categories : MetroCard
Comments (41)

I have, I must confess, a problem. I can’t throw out MetroCards any longer. I receive my 30-day card through a WageWorks, and I don’t pay the $1 surcharge each month. Still, at the end of the month, I can’t bring myself to throw out the empty card; it’s like flushing a dollar down the toilet each month.

The MTA’s $1 surcharge is something of a new creation. Discussed for years, it arrived in February with some fanfare. Initial coverage indicated that the MTA had made more money than expected as New Yorkers grew accustomed to reusing their empty MetroCards, and litter around turnstiles seemed to vanish as well. By August, the MTA estimated that the total impact on its bottom line would be a net gain of a hair under $20 million as the total from fare media liability — the industry term for unused but prepaid MetroCard balances declined.

So how’s it doing? Based on the numbers available, everything seems to be on target, but that’s not, surprisingly, the gist of this post from the IBO. Doug Turetsky of the city’s Independent Budget Office offers up his take on the perception of a decline in fare media liability and the overall impact of the $1 surcharge. He writes:

Last year, the jar was pretty full since it held more than $95 million—an unusually large amount that resulted from transit riders stocking up on MetroCards prior to the December 2010 fare increase and then some of those cards expiring with funds left unused…But the jar may not be nearly as full in the future. The reason is that in March New York City Transit started to charge riders $1 every time they bought a new card rather than refill the one they already had (at least until that card expires and you can then get a free replacement). The transit agency expects fare media liability will drop to the more typical amount of about $52 million this year and, with a full year of the replacement fee in place, fall to $41 million in 2014.

…as the transit agency’s financial plan anticipates, there will still be a stash of unspent change on expired MetroCards. Some of that will come from tourists and other short-term or occasional riders who buy a card and wind up not using all of the money placed on it.

Many everyday riders also will contribute to the ongoing accumulation of fare media liability. The transit agency’s method of providing discounts ensures this…Many cards are likely to be lost or forgotten before the 5 percent bonus adds up to a ride or they will expire with an odd amount left on them. Although the transit agency gives riders two years to replace an expired card and have the funds on it transferred to a new one, many old cards are also likely to slip away with unused value.

These findings from the IBO aren’t a surprise. Since unveiling the so-called green fee in 2011, the agency has made clear that fare media liability would be likely to decline by around 20 percent while the fees and savings in MetroCard production costs would more than off-set the revenue loss. Whether it’s more honest to balance the books on a $1 surcharge or the expectation of unspent MetroCard swipes is a question I’ll leave up to you.

Meanwhile, I have 11 MetroCards accumulating all over the place. I’ve used one or two of them as pay-per-ride spares to be broken out in the event of an emergency, but otherwise, I guess I’ll sit on them until the expiration date on the back. Eventually, the MetroCard with its artificial expiration date and prickly magnetic strip will be a thing of the past, but for now, that $1 fee seems to be doing exactly what it was intended to do.

Categories : MetroCard
Comments (17)

After years of starts and stops, seemingly endless pilot programs, a clean slate and a vow to move forward with something by 2020, the MTA’s plan to replace the MetroCard with a next-generation fare payment technology may finally be moving forward. In what can best be described as baby steps, the MTA, in a document to be presented to the Board’s Capital Program Oversight Committee later this week, has unveiled some thoughts on the MetroCard’s eventual replacement. It will be an account-based system relying on open architecture and contactless technology based upon payment industry standards, and it should arrive some time around 2020.

The document presents the MTA’s strategic framework and approach to new fare payment media and is the culmination of efforts that started in January when the agency admitted that it needed a plan. Their current projections for the MetroCard system say the technology will become prohibitively expensive to maintain by the end of the decade, and their current plan for a next gen fare payment system involves systemwide use by 2020.

First, the MTA has its sights set on a contactless fare payment technology — similar to those in place the world over and even in Chicago, to mixed reviews, and in the late planning stages in Philadelphia. The MTA also notes that the technology will support multiple forms of payment media. This means that the agency is eying a system that includes mobile payment capabilities, smart chips embedded in credit and debit cards and a “transit only” tap and ride available for those who don’t have or want to use one of the other options.

Next, the agency addresses technological implementation. The goal here is to reduce reliance on vending machines, which are “relatively costly to procure, operate and maintain” while making “minimal changes to fare arrays.” In other words, turnstiles aren’t going to be replaced by entry gates any time soon, and the MTA wants to outfit existing infrastructure with new card reader technology instead. On buses — which, as part of the BusTime installations, already have the technology infrastructure to accept a mobile payment system — fare readers would likely be adjacent to, but not integrated with, the farebox.

The other two pieces to the puzzle concern back-end support rather than customer-facing technology. Ideally, the new system will be account-based in which value would be stored on an account rather than on a card. This would require a significant investment in station infrastructure, but the MTA believes it can tap into Help Point intercoms, On The Go consoles and the Transit Wireless network to assist in this area. Finally, the new fare system would integrate across the MTA’s internal agencies so that the same account can be used to buy the equivalent of a 30-day MetroCard and LIRR or Metro-North tickets as well.

As I read through the presentation, I couldn’t help but think that it doesn’t say that much. In a sense, it’s talking in circles around aspects of a plan that have been on the table for years, and it still seems like the MTA is spinning its wheels a bit. It shouldn’t have taken this long to get this point, and it’s hard to say if this latest represents significant forward progress from the May 2011 white paper on the MetroCard replacement.

This time around, the MTA hopes to award a design contract by early 2014 and seems committed to developing a solution from 2015-2020. We’ve been down this road before though, and it still seems as though the MTA is trying too hard to reinvent the wheel. Maybe they need to, but without real forward progress, the costs to maintain the current MetroCard system will simply continue to climb.

Categories : MetroCard
Comments (77)

Special edition Metrocards commemorate the post-Sandy comeback. Photo: Marc A. Hermann/MTA New York City Transit

With the anniversary of Sandy looming on the horizon, Governor Andrew Cuomo has turned to the MTA for help with two commemorative projects. First up is a new tourism campaign called “Come See the Comeback” that uses a fully-wrapped Shuttle train and special edition Metrocards to promote areas that were ravaged by the storm. The Metrocards feature the iconic “I Love NY” logo and tidbits about various destinations, including the Rockaways, Staten Island, Coney Island, Long Beach and Howard Beach, that have reopened after Sandy.

“Nearly one year after Superstorm Sandy, our ‘Come See the Comeback’ campaign captures the spirit of New Yorkers who in the face of any challenge will work together to come back better than before,” Cuomo said in a statement. “We want New Yorkers and visitors to come see the progress that these communities have made and breathe new life into the local tourism industry.”


For Metrocard hounds, the neatest part of this promotion will be the new cards. There will be 300,000 of these cards for sale in Metrocard Vending Machines beginning on Tuesday, and it’ll be worth the $1 surcharge to find one. I’d imagine eBay will have quite a few come mid-November as well.

Meanwhile, the Governor has announced that R train riders in Brooklyn and A train riders in the Rockaways will ride for free on Tuesday. For those entering stations on the A line between Howard Beach and the Rockaway Peninsula and stations on the R line between Bay Ridge-95th Street and Court Street on the one-year anniversary of the storm, all fares will be waived.

“On the one year anniversary of Superstorm Sandy we want to thank New Yorkers who made it through the storm with both resilience and good spirits,” Governor Cuomo said. “Superstorm Sandy was particularly difficult for New York City and Long Island, but the patience, the kindness, and good nature of New Yorkers helped our state in the immediate aftermath and over the past year as we have been rebuilding our communities. These free rides are a thank you to the MTA riders in the Rockaways in Queens and those who use the R train in Brooklyn for taking the hardships of the storm in stride and for their understanding in the months since.”

The governor’s press release noted that a combined 95,000 riders per day use these two lines along the free segments, but there’s no indication whether riders at, say, Court St., Atlantic Ave.-Barclays Center or 4th Ave.-9th Sts. will be charged. These transfer points see significantly more riders heading to other lines than to the R train, and the free rides could expand drastically. The MTA referred my inquiries on this point to the governor’s office.

Anyway, despite these logistical challenges, it’s a nice gesture for a day. I’ll have more on the MTA’s ongoing efforts to repair and protect the transit system on Sunday night.

Comments (3)

Let me tell you a little secret: Tonight, I took the G train from 7th Ave. to 15th Street. It’s not a particularly long ride, and I probably waited for a train longer than I was on it. But I just didn’t feel like walking, and I knew that it was early enough that the F or G were both still running pretty frequently. So with a flick of the MetroCard, I saved myself from walking about 6/10 of a mile. It was lazy, and it was glorious.

What made my little indulgence possible was, of course, my 30-day unlimited MetroCard. It didn’t cost me anything to swipe in at 7th Ave., and in fact, I was able to make use of what is in effect a sunk cost. Every month, I pay for a pre-tax 30-day unlimited ride card, and I have a certain number of rides to make the purchase a good investment. For those who pay full price, the break-even point is 48 rides, and after that, every swipe just makes that 30-day card a better deal.

Twenty years ago, we didn’t have that option. We loaded up on tokens and had to carry them everywhere. We had no free transfers between buses and subways, and each ride had to be planned in advance. We may have walked more or resorted to cabs as they offered better value for the ride in the early 1990s than they do now. For New Yorkers who don’t know or remember the past, it was truly a different time. The subway wasn’t nearly as integrated into everyday life as it is today.

It’s hard to understate what the unlimited MetroCard did. It wasn’t easy to see the project through, and it took combined pressure from the mayor and governor to see the change through. Rudy Giuliani pushed on the philosophy of “one fare, one city,” and George Pataki applied the necessary pressure from Albany. By the late 1990s, the MTA has moved beyond the idea that one ride should cost one fare. “The goal here,” Pataki said in 1997, “was very simply to empower the rider. Empower the person who takes the subway and the person who takes the bus by giving them the broadest possible range of options as to how they want to choose to use the mass transit system.”

It’s worked, and it’s become something we all take for granted. Tokens have become museum pieces, and nearly a third of all subway riders use some form of unlimited card. Others still are able to take advantage of the subway/bus transfer that comes with a pay-per-ride swipe. Only a small percentage of riders buy single-ride cards — the 2013 equivalent of a token — and most of those are tourists.

Meanwhile, the subways have seen nearly unprecedented ridership growth since the late 1990s, and while a reduction of crime and investment of the system deserve some credit, so too do the MetroCards. It’s easier than ever to justify a subway ride, and it’s now cheap and convenient. Just swipe that card, enjoy the fact that dollars aren’t deducted, and go. That’s how to draw people to transit.

As the MetroCard and its technology nears the end of its shelf life, I wonder about what comes next. The MTA doesn’t seem to know yet what its next-generation fare payment technology will be, but it will come equipped with the same flexibility. We won’t have that yellow and blue piece of plastic, but it’ll always be with us, a key part of New York City’s transit history.

Categories : MetroCard
Comments (60)

I had to assist someone with a Metrocard purchase yesterday, and I nearly did a double-take when the vending machine alerted me to the $1 surcharge for new cards. As a WageWorks member, my new Metrocards come in the mail and without the MTA’s so-called green fee so I haven’t had a chance to go through the purchase process in a while. For many, of course, since March, the added charge for a new card has been a part of the routine process.

Now that the MTA has been collecting revenue from these purchases for a few months, the agency is in a better position to shed light on the economics behind the move, and according to a report in the Daily News today, it is paying dividends. Pete Donohue says the MTA has already collected $10 million in fees. He has more of a breakdown:

The MTA expects to print 60 million fewer MetroCards next year – so much plastic that, placed end-to-end, the cards would stretch 3,196 miles, the distance from New York City to Los Angeles and up the West Coast to San Francisco. It sold 101 million MetroCards last year, said MTA spokesman Adam Lisberg…

In its first four months, the green fee generated $10,841,000 for MTA coffers, said NYC Transit division budget director Aaron Stern. The MTA expects gross revenues to total nearly $24 million this year, and $28 million next year with a combined $3.8 million savings in production costs, said agency officials…

The green-fee windfall will be partially offset, officials said, by an estimated $11 million reduction in “fare media liability.” The MTA budget term is used to describe unused value riders leave on MetroCards: small change or trips paid for but not taken.

Initially, this is certainly good news for the MTA. Even though its fare media liability total is decreasing, it is saving significant costs by printing far fewer Metrocards, and the move has been environmentally friendly as well. I’m still a bit skeptical of the agency’s predictions of increased revenue from the fee next year though.

As I wrote in May, at a certain point, subway riders’ habits will change. Already Donohue easily found riders who have been using the same Metrocard since March, and that trend will continue. The MTA can save money on production costs, but will the revenue from the $1 fee continue to be as robust? Tourists will pay, but everyday riders will curtail their Metrocard purchases. For now, though, and until the Metrocard is finally phased out, the fee will remain.

Categories : MetroCard
Comments (33)