Law enforcement investigate a pedestrian accident involving a UTA bus at the intersection of 400 South and 200 East in Salt Lake City, Tuesday morning, Feb. 21, 2012.
Shara Park, Deseret News
On April 1st, UTA raised its one-way fare from $2.25 to $2.35. I can't help but lament yet another missed opportunity. Somewhere, MBA marketing professors are crying. The bus I ride (Route 228 from Foothill down to The Gateway) has approximately 39 seats. At its peak, my bus has at most 20 riders.
An extra 10 cents from each rider gets UTA an additional $1.90. That is generous, since some of the riders are University of Utah students who pay by the semester. Instead, shouldn't UTA market to increase their customer base? Why not let people know that as gas prices increase this summer, UTA fares will stay at $2.25, increasing the value customers receive.
Don't you think with gas headed upward that ridership could increase dramatically? Just one more paying customer on Route 228 at $2.25 for the one-way fare would outstrip the revenue generated by the 10 cents increase by 35 cents.
If UTA filled Route 228 to capacity at $2.25 it would be an extra $47.25 per trip. UTA has excess capacity, but it doesn't market effectively to fill it. I know gas prices are up for UTA too, but wouldn't that extra $47.25 more than cover it? Raise the prices once you hit capacity. Until then, market to increase ridership.
Brent Pace
Salt Lake City
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UTA is left wing socialism at its worst. It claims to be a public service, but its only real service is lining the pockets of its high-salaried executives.
The nonsensical pricing system condemned by this letter is exactly what happens More..
This letter illustrates a basic economic principle. One way to increase revenues is to lower the unit price, and you can make more money from more volume. When a retail store wants to make more money they have a sale. They lower prices but more More..
Re: "It is time to make UTA live by the same economic rules as everyone else."
Hear, hear!
And, if it were required to "live" by the same rules as everyone else, it would quickly die a much-belated, but merciful More..