In Massachusetts, one of our regional transit providers found that eliminating fares:

• Saved time and maintenance
• Lowered rider complaints
• Eliminated conflict between drivers and riders
• Led to 60% higher ridership than pre-pandemic

This is while the nearby MBTA's ridership is down 36%.

https://mass.streetsblog.org/2025/02/06/meva-study-finds-benefits-of-axing-fares-far-exceed-lost-revenue

MeVa Study Finds Benefits of Axing Fares 'Far Exceed' Lost Revenue - Streetsblog Massachusetts

The MeVa Advisory Board voted on Thursday to adopt a "permanent" fare-free policy on all its routes.

@LilahTovMoon @SpaceLifeForm In MSP light rail we ended up with folks using it as a warm dry place to smoke various things. Fares back now, slow improvement.
@jgordon @LilahTovMoon @SpaceLifeForm it's Boston we have people smoking in the stations and in the trains anyway. There aren't enough inspectors.
@scribblesonnapkins @LilahTovMoon @SpaceLifeForm Good to know we have company!
@jgordon @LilahTovMoon @SpaceLifeForm Yeah but the point remains having the fare doesn't stop that. It's also the wrong way to stop it. More inspectors reduce other issues from people not following the rules.
@scribblesonnapkins @LilahTovMoon @SpaceLifeForm I think they are worried about inspectors being assaulted.
@jgordon @LilahTovMoon @SpaceLifeForm no I was there for the board meeting. It's just that inspectors cost less than "transit ambassadors"

@scribblesonnapkins @LilahTovMoon @SpaceLifeForm I meant in MSP. It isn’t spoken out loud because that would mess up recruitment. Here we are trying a combination of restoring fares and having ambassadors who cautiously engage (not worth getting shot over someone’s meth habit).

We will see it it works. The meth on the light rail has made it unusable.

@LilahTovMoon I take it that our taxes made up for it (i.e. no such thing as a free lunch)?

@madness832 @LilahTovMoon In certain cases, the logistics of collecting the fares costs more than the amount of fares paid. On the lower volume systems I wouldn't be surprised if that was the case, which would mean this actually made them cheaper to run...

The MBTA on the other hand makes a net-positive on fares, even if it does have a fairly abysmal recovery ratio compared to other transit systems (although the massive capital expenditure on the new fare system certainly doesn't help that math...) plus they're already facing potential budget shortfalls due to the legislature refusing the adequately fund them...

@madness832 Fares are often a tiny amount of a transit system's cost. With the MBTA, fare revenue is around 15%, but some of that is lost to the cost of collecting fares (the cost of the machines, electricity to run them, credit card fees, the cost of producing fare cards, the cost of maintaining all those systems working, the cost of staff for technical support, etc).

When fare recovery is such a tiny fraction of revenue and you want to encourage additional ridership (which will lower pollution, congestion, parking demands, road maintenance, etc), fares might not be the best policy.

And fares have hidden costs. If people drive more because of fares, that means more road maintenance costs. If there's more traffic from more drivers, that's people losing time from their lives. Collecting fares can slow boarding on busses requiring more fuel idling and more busses/drivers to service the routes.

In this case, they were getting $1.5M in fares, but got $2M in benefits from eliminating fares so it was a net win.

@madness832 @becomethewaifu In MeVa's case, fare revenue was 9% of their budget and 27% of fare revenue was lost to the cost of collecting the fares.

At that point, fares feel a bit ridiculous. It's such a tiny amount of money while making the system a lot worse for users.

Collecting fares meant passenger boarding time was twice as long making the bus trips worse for customers. The fares were a tiny part of the budget, but a meaningful amount to riders.

And, of course, eliminating fares offered $2M in financial benefits against $1.5M in fares so it was a net win to get rid of them.

The MBTA's fare recovery on busses is actually worse at 6%. We're making the busses slow and charging riders to cover 6%? That feels like such a waste of time and effort - especially since a large portion of that 6% might be lost to the cost of collecting the fares.

@madness832 @becomethewaifu I think one big thing is on the bus-driver side of things. It's hugely improved their morale.

They no longer have to be the fare police. They don't have to hear arguments from riders who don't have the fare or whose transfer didn't work correctly.

It means the MeVa can focus on driver training and safety rather than pushing drivers on fares. It also means that drivers can focus on driving and being happy to passengers.

There's serious benefits in there on the labor side of things where drivers reported vastly improved happiness about their jobs - at a time when it's hard to recruit bus drivers.

@madness832 @LilahTovMoon I can’t speak for this specific example but often improvements in public transport provide an economic benefit that increases tax revenue by more than the total cost of operating the public transport. Charging for it is frequently a net loss because handling the payments costs money, slows it down, and decreases the number of people using it to a degree that the cost outweighs the revenue.
What Transport Is Free in Luxembourg and Why So

Enjoy the convenience of free transport in Luxembourg with free bus, tram and train services. Learn how to get around this picturesque country using reliable and free public transport.

Luxtoday - Luxembourg news and media
@LilahTovMoon
It's the classic story of path dependence. We charge fares on public transit because we always have, not because it makes financial sense. If transit had always been free, nobody would think about adding fares because they're too much effort for not enough return.
@LilahTovMoon This is a great article that looks at what public transit is really FOR. Lowering congestion and getting more cars off of the street, increasing harmony among commuters, lowering the complexities involved in running public infrastructure, these all seem like good things!
@LilahTovMoon According to the article, they also doubled bus service in Lawrence and extended evening hours throughout the system. They also report that many of the new bus trips replaced taxis.
It sounds like the increased ridership is mostly due to the better service, not the free fares. Generally, from what I've seen, transit riders prefer more frequent service and longer hours to free fares.
@LilahTovMoon This reminds me of a study that reveals EV riders were better behaved when in CA the charging stations usage was FREE, at no cost (that was in the first EV sales and deployment years). Users rarely "leeched" at the station and were more courteous.