Bundled Mobility Passes in Chicago: Consumer Preference and Revenue Implications

TitleBundled Mobility Passes in Chicago: Consumer Preference and Revenue Implications
Publication TypeConference Paper
Year of Publication2020
AuthorsApaar Bansal, Jinhua Zhao
Conference NameTransportation Research Board 99th Annual Meeting
Conference LocationWashington, D.C.

Competition provided by “new” mobility services to public transit has often soured the relationship between the two transportation players. This paper proposes bundled mobility passes between public transit, bikesharing, and Transportation Network Companies (TNCs), as a potential framework in which the popularity of new mobility can be tapped to increase public transit revenue and pass sales while at the same time enabling public institutions to regulate these services more effectively. 1467 employees in the Chicago area answered a stated preference (SP) survey to gauge preferences towards a hypothetical bundled “Superpass” offered by the Chicago Transit Authority (CTA). The bundled mobility pass would include a CTA bus and rail pass, a bikeshare pass, a fixed number of shared ridehail rides per month, and could potentially be added on to an existing commuter rail pass for a discounted price. A discrete choice model was created to estimate Superpass demand under different scenarios. This analysis found that the CTA, bikeshare operator, and TNC operator can all increase either the number of passes they sell or the number of rides they provide to the market. They can all also increase their revenue or at least remain revenue neutral. This result shows that there is room for mutual benefit across all stakeholders through partnership in mobility bundles. This paper ends with five key recommendations for policymakers regarding bundled fare products, including the need to conduct innovative fare policy pilots.