Fare capping is a feature ofpublic transport fare collection systems, which allows passengers to earn anunlimited-ride pass by paying single-ride fares. Typically, passengers pay a single-ride fare each time they use public transport, using asmart card or their owncredit ordebit card. Anautomated fare collection system tracks the payments, and awards the passenger an unlimited-ride pass after they have paid the equivalent value in single-ride fares.
Some trials and proposals of fare capping were conducted in the early 2000s, with the first large implementation inLondon in 2005. Limited numbers of large transport operators began introducing fare capping in the 2010s, using proprietary technologies. As of 2023, fare capping is being implemented by smaller transport operators, using widely-available technology, with back-end systems inthe cloud.
Fare capping enables public transport passengers to pay the lowest possible fare for their trips over a period of time. Passengers pay a single-ride fare for each trip they take. Depending on the public transport system, this may be with a proprietarystored-value card, or passengers may use their own credit or debit card. The passenger pays the full fare for each trip within a period, such as a day or a week, until a certain threshold is met. This threshold may be a certain number of trips, or a monetary value. After the threshold is met, all rides for the rest of the period are free or discounted.[1]: 5 This cap is often equivalent to the price of the comparable unlimited pass.[2]: 380
Fare capping is often presented in contrast to unlimited-ride passes, which are offered by many transport operators. Passes are favored bycommuters and other frequent public transport users, who benefit from having unlimited access to public transport services. Infrequent users of public transport services may not know if they will ride enough to need a pass, and some frequent riders may not be able to afford the upfront cost.[3]: 9
Fare capping eliminates the need to purchase passes in advance, and offers passengers the best price on their trips regardless of how often they ride. This benefits infrequent passengers, who may be incentivized to make more trips using public transport because they will always pay the lowest price. Fare capping also benefits transport operators, who can simplify the way they sell tickets and passes.[1][3]: 8
An early implementation of fare capping was launched in 2000 inGroningen,the Netherlands, onArriva buses. The Tripperpas usedcontactless smart card technology fromMotorola andERG Group, and introduced a number of new features. The Tripperpas was set up as a line of credit, where passengers were billed for the rides they took at the end of every month. Fare capping on the Tripperpas was advertised as the "best price guarantee," billing passengers for only up to the cost of the equivalentSterabonnement season ticket.[4][5]
At the conclusion of its 2-year trial, the Tripperpas system was shut down, with only 4,000 cards in use, of the 11,000 cards planned to be issued.[5] The fare capping feature was not advertised well, and some passengers believed that fares would actually be higher than the single-rideStrippenkaart tickets that the system sought to replace.[4] The successor to theStrippenkaart andSterabonnement tickets, theOV-chipkaart, was introduced in 2005 without fare capping.[6]
TheWashington Metropolitan Area Transit Authority inWashington, D.C. proposed a fare capping program in 2003, shortly after the introduction of theSmarTrip fare card. WMATA concluded that it could implement fare capping onMetrobus services, which charge a flat fare, but that the distance-based fares of theWashington Metro posed a larger challenge. The technology and marketing for Washington Metro fare capping were both deemed to be too complex, and the proposal was abandoned.[3]: 11
The first large-scale implementation of fare capping was in 2005, byTransport for London.[2]: 377 At its introduction, fare capping in London was available forOyster card users only, and was valid on local services including theUnderground andbuses. The price cap for Oyster card users was set at the price of an equivalent one-day, unlimited-rideTravelcard.[7] TfL has expanded its fare capping system since its introduction, adding 7-day caps andcontactless bank card support in 2014.[3]: 11
Another early implementation of fare capping in Europe is inDublin, starting in 2012. The Dublin fare capping system, using theTFI Leap Card, was expanded to the entire Dublin transport network beginning in 2013. Trips onDublin Bus,Luas, andIarnród Éireann services are covered.[8][3]: 11
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In the United States, two early examples areAC Transit and theSanta Clara Valley Transportation Authority, both in theSan Francisco Bay Area, in 2012 and 2014 respectively.[2]: 379 AC Transit and VTA operate in the same region, and both use theClipper card, but their fares and fare caps are separate.[9]
In the early 2020s, fare capping has been introduced by the two largest transit agencies in the United States,[10] theNew York MTA andLos Angeles Metro. In New York, a weekly fare cap is available forOMNY and contactless bank card users, for trips on theSubway and mostMTA buses.[11][12] In Los Angeles, a daily and weekly fare cap is available exclusively forTAP card users onMetro Bus andMetro Rail services.[13]
Fare capping takes advantage of the advanced capabilities ofautomated fare collection systems. Since the first major implementation of fare capping in London in 2005, technology has matured significantly, leading to reduced costs.[2]: 377 This maturity has allowed the expansion of fare capping to smaller operators, usingmobile apps in addition to contactless smart cards.[14]
The Oyster card, the first major implementation of fare capping, usesMIFARE smart cards with proprietary programming, with equipment connected to proprietary back-office systems. The Oyster card began to support fare capping in 2005, 7 years after the system's initial design began in 1998.[15]
In contrast, contemporary payment systems supporting fare capping are available ascommercial off-the-shelf systems. These systems provide multiple components of an integrated fare payment system, including mobile apps, smart cards, card readers, and payment processing services. Multiple vendors provide these types of systems aswhite-label products, which have the transport operator's own branding applied. Examples of such systems include Umo byCubic Transportation Systems,[16] Justride byMasabi,[17] and MOBILEvario byINIT.[18]
An example of this technology's maturity is the installation of a new fare system on theMilwaukee County Transit System inWisconsin, USA. The WisGo payment system, powered by Cubic's Umo, was implemented in under two years, despite delays.[19]
Fare capping is frequently cited as a method to improve thesocial equity of transport fares.[20][3]: 9 A 2022 poll of United States transport operators concluded that in addition to improving equity in transit fares, fare capping can also reduce transport operators' expenses in handling cash, and can contribute to an easier experience for passengers.[3]: 42
Fares, and fare capping, can be used by transport operators to influence their passengers' behavior, and therefore theridership of their services. A 2020behavioral economics analysis inVancouver, British Columbia argued that transport operators must carefully consider their messaging around fare capping, as it can have significant positive or negative impacts on behavior.[21]
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