What Happened?
San Francisco recently signed a deal with Google that will charge the private tech company $100,000 annually for the use of the city’s bus stops. Google offers its employees private transportation options as a perk, and San Francisco has found a way to profit off of the arrangement.
The Goal
The impact of San Francisco’s ground-breaking deal could extend beyond bus stop fees. The city has, essentially, determined the price of curb space in San Francisco that could be applied to taxis, ride-sharing programs and other similar private transit options. If public bus stops are able to be rented out for a fee, these companies could use bus stops similar to the way public transit operates throughout the city.
San Francisco already charges a market rate for street parking spots in certain districts with high congestion that negatively impacts foot traffic to commercial businesses. It may prove to be more efficient and profitable for a city to charge for curb space by selling curb permits rather than sustain the market for parking permits.
Economics of Curb Space
The Atlantic Cities article argues the San Francisco bus stop deal could open up conversations in other major cities looking to profit from thriving private entities. If cities were to charge for curb space more funding could be generated to support infrastructure maintenance and transit capital investments.
Because law enforcement already use cameras to monitor traffic and parking violations, a similar automated system could be implemented with surveillance cameras to capture violators and trigger ticket notifications.
The bus stop fee program will pilot for 18 months and cost private bus shuttles about $1 per stop daily. The required permits will only grant shuttle companies access to city bus stops, with the exception of the bus stops that receive the most traffic. The city has approved 200 of its 2,500 bus stops for the pilot program.
According to California state law, the fees charged to private shuttle companies can only cover the cost of pilot program with a cap at $1.5 million. The fees will pay for expenses such as program design, bus stop improvements and signage to alert drivers and riders.
Street Parking for A Price
San Francisco already proved itself as a pioneer in transit innovation with its SFpark parking management system funded by a $20 million federal grant. The platform aids residents in finding parking throughout the congested city. The program called for new meters, sensors and a demand-responsive pricing platform that works to eliminate congestion by opening up parking spots when demand is high. The mobile-friendly solution generates updates for users looking for a spot.
Similarly, Seattle created its SeaPark system to respond to parking demand on a smaller scale. The city prices parking based on need in different districts based on public data. The reduced congestion benefits quality of life for residents as well as commercial success for businesses.
New Breed of Buses
Gov1 has followed developments in public transit including the adoption of eco-friendly vehicles as well as unit tracking technology.