The subsidy continues

Stuff reports:

Auckland Transport’s $1.3 million rideshare experiment in upmarket Devonport is the city’s most heavily-subsidised public transport service, needing a top-up of $11.72 per trip.
The council agency has decided to extend the 12-month trial for a further six months, declining a management recommendation that it become permanent.

Auckland has huge public transport needs. But what it doesn’t need is a Council loss making Uber style service. There are multiple ride sharing companies competing in Auckland.

Fare revenue is just under half the $187,200 annual forecast, due to the “introductory” $2.50 fare never being raised to $3, and only 36,533 trips taken versus the 62,400 forecast used in estimates.

So the number of trips is half forecast. They’d be bankrupt if not owned by ratepayers.

AT said the service had replaced 10,750 private vehicle trips, although 48 per cent of the electric shuttles’ trips have been with just one passenger.
The service has also been attracting people who previously walked, cycled or caught a bus to the ferry.

If there were 36,000 trips and it replaced 11,000 vehicle trips, then the conclusion is that 26,000 of those trips were people who would have been walking, cycling or busing.

It is highly likely that it has led to more congestion, more greenhouse gas emissions and had made a loss. A lose-lose-lose.