And I highly recommend you read it. He’s been investigating this industry for decades.
Though the article is specific to Toronto, I know that there are middle people and archaic policies governing the taxi industries in many other cities around the world.
Here it revolves around taxi licenses issued by the city (known as “plates”), which are expensive and almost impossible to get. Last year the average price of a plate was $118,235 (2014).
The way it works is that people – typically non-drivers – buy/inherit/get these plates and then charge rent on them to drivers who want to use them. The result is a taxi cartel:
In fact, Toronto’s taxi plate system is anything but free enterprise. Instead, it is based on the artificial restriction of a natural market, and the granting of licences to a fixed number of participants. Even those who paid top dollar for a plate used to enjoy an annual return of more than 12 per cent. And for those who inherited plates, the return was manna from heaven.
So it shouldn’t come as a surprise that the taxi industry is grouchy about companies like Uber. But the cost structure of the incumbents is going to need to change if they want to stay in business.
Jeff Bezos of Amazon is famous for saying, “Your margin is my opportunity.” And that’s exactly what is happening here. A bloated legacy cost structure is being quickly supplanted by better/cheaper.
Today on Architect This City, we have a guest post by Darren Davis, who is a transport planner in Auckland, New Zealand. He’s a regular commenter on this blog, and I know he’s been following the Gardiner East debate quite closely – as many urbanists around the world are. I appreciate him offering and taking the time to write this piece. Thank you.
——————————–
The decision this month on whether to demolish the Gardiner East Expressway and replace it with a surface boulevard or to rebuild it with a similar elevated structure will be a watershed moment for Toronto, akin to the decision not to have freeways in the urban core of Vancouver in the late 1970s.
There are numerous good reasons why removing the Gardiner East elevated structure is the right move for Toronto, covered previously by The Globe and Mail and in the Council for Canadian Urbanism’s
And I highly recommend you read it. He’s been investigating this industry for decades.
Though the article is specific to Toronto, I know that there are middle people and archaic policies governing the taxi industries in many other cities around the world.
Here it revolves around taxi licenses issued by the city (known as “plates”), which are expensive and almost impossible to get. Last year the average price of a plate was $118,235 (2014).
The way it works is that people – typically non-drivers – buy/inherit/get these plates and then charge rent on them to drivers who want to use them. The result is a taxi cartel:
In fact, Toronto’s taxi plate system is anything but free enterprise. Instead, it is based on the artificial restriction of a natural market, and the granting of licences to a fixed number of participants. Even those who paid top dollar for a plate used to enjoy an annual return of more than 12 per cent. And for those who inherited plates, the return was manna from heaven.
So it shouldn’t come as a surprise that the taxi industry is grouchy about companies like Uber. But the cost structure of the incumbents is going to need to change if they want to stay in business.
Jeff Bezos of Amazon is famous for saying, “Your margin is my opportunity.” And that’s exactly what is happening here. A bloated legacy cost structure is being quickly supplanted by better/cheaper.
Today on Architect This City, we have a guest post by Darren Davis, who is a transport planner in Auckland, New Zealand. He’s a regular commenter on this blog, and I know he’s been following the Gardiner East debate quite closely – as many urbanists around the world are. I appreciate him offering and taking the time to write this piece. Thank you.
——————————–
The decision this month on whether to demolish the Gardiner East Expressway and replace it with a surface boulevard or to rebuild it with a similar elevated structure will be a watershed moment for Toronto, akin to the decision not to have freeways in the urban core of Vancouver in the late 1970s.
There are numerous good reasons why removing the Gardiner East elevated structure is the right move for Toronto, covered previously by The Globe and Mail and in the Council for Canadian Urbanism’s
Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
“This will be a game changer and will establish Toronto as a leader in running a truly smart city.” - John Tory, Mayor of the City of Toronto
Yesterday I registered for a hackathon called TrafficJam that’s taking place this October 2 - 4, 2015 here in Toronto. It’s being organized by Evergreen CityWorks and the City of Toronto, with the goal of fixing Toronto’s traffic troubles.
Tickets are free, but going fast. If you’re interested in this sort of thing, I would encourage you to sign up today. And if you do register or are already registered, drop me on a line so we can connect. I’m excited to see what kind of solutions we’re all able to come up with over the course of a weekend.
But as I was registering and reading through the website, I couldn’t help but think about some of the traffic problems that we won’t be solving over the hackathon weekend, namely the politicization of transportation planning in this city.
SmartTrack is the transit platform that Mayor John Tory ran on last year. And this post explains why it is unlikely to achieve its pitch promises.
open letter to Toronto City Council
. If you aren’t aware of these, I strongly recommend reading them.
Also of note are two things:
Just 3% of Downtown commuters drive on the Gardiner Expressway East, a tiny fraction of the 68% who arrive Downtown on public transit.
The “remove” option does not reduce traffic capacity over the “hybrid” option but could reduce travel speeds in uncongested conditions (read on for why I don’t think that this will happen in real life).
However, one element of this debate that has not got much airtime is the transportation modelling that claims an additional two to three minutes travel time with the “remove” option over the “hybrid” option which retains the elevated expressway in a slightly modified form.
Toronto Mayor John Tory has stated that "I didn’t get elected to make traffic worse. And let’s be clear, removing that piece of the Gardiner will almost certainly make traffic worse.” But is it in fact true that demolishing the Gardiner Expressway East will make traffic worse as the transportation modelling claims?
The key thing to understand is that transportation modelling, which tries to predict future travel times, is the product of a bunch of assumptions which may not in fact be borne out in real life.
For example, the effect of induced traffic, where additional traffic capacity leads to additional traffic being attracted to the route, is reasonably well known but generally not factored into transportation modelling. Induced traffic happens because increased travel speeds attracts traffic that would have otherwise avoided the route at congested times; attracts people to drive where they previously used other modes and encourages trips that would not otherwise have taken place. The effect of induced traffic is to quickly nullify the benefits of adding traffic capacity.
However, what is less well known is that the reverse happens where there is either a reduction in traffic capacity (not the case in Toronto as the “remove” option retains the same traffic capacity) or speed.
This is because in this situation, four things happen:
Some travel re-routes. The “remove” option with a widened Lakeshore Boulevard as part of the street grid simply gives more ability for traffic to re-route away from congestion over an elevated expressway structure where drivers are literally trapped until they reach their exit.
Some travel re-times. Some people will retime trips to avoid congested travel times, such as starting and/or finishing work at less congested times.
Some travel changes mode. Some people will be encouraged to change mode by the perceived worsening in traffic conditions.
Some travel is avoided entirely. Some people will choose not to travel at all in the peak of the peak. For example, this could take the form of working from home or shopping on the internet instead of by car.
Transportation models only take into account the first item but not the others. The modelling is also sensitive to traffic growth assumptions and assumed mode split and trip distribution. Often transportation models assume continued growth in car travel even though per capita kilometres travelled peaked about a decade ago.
While this may all sound well and good theory, does this actually happen in practice?
In Auckland city centre, we have extensive experience with the reallocation of road space away from general traffic. Many busy key city centre approach routes have had general vehicle lanes reduced to make way for bus lanes (which generally carry around 65-70% of the people moving capacity of the street).
This has involved up to a 50% reduction in private vehicle capacity (whereas in Toronto, the “remove” option retains the same traffic capacity but may slow throughput). Auckland has done two of these in the past twelve months – both involved converting a general traffic lane to a bus lane.
Don’t get me wrong: There is sometimes pain at implementation with about a three week period of congestion as car drivers adapt to the new reality - and most likely negative media coverage will accompany this. But after about a month, equilibrium will be restored and life will continue much as it did prior to the change.
Part of this is that there will be various “optimisations” during this introductory period where signal timings are adjusted and other tweaks made – the sort of tweaks that can only be fine-tuned in a real world situation. But a bigger part of this is that the four factors above - re–routing, re-timing, mode change and avoided travel - come into play.
I cannot overemphasise enough that life will return to normal surprisingly soon if the Gardiner East Expressway is demolished and replaced by a widened Lakeshore Boulevard.
My advice
When people talk about two to three minutes of extra travel time, take the foregoing into account and take those claims with the very big grains of salt that they deserve. If Toronto makes the right choice and chooses the “remove” option, my bet is that the biggest surprise of all will be how little difference it makes to peak travel times for the 3% of Downtown commuters who used to use the Gardiner Expressway East.
Disclaimer
The author of the above post is an employee of Auckland Transport, however, the views, or opinions expressed in this post are personal to the author and do not necessarily represent the views of Auckland Transport, its management or employees. Auckland Transport is not responsible for, and disclaims any and all liability for the content of the article.
Teaming up to fix Toronto’s traffic troubles
“This will be a game changer and will establish Toronto as a leader in running a truly smart city.” - John Tory, Mayor of the City of Toronto
Yesterday I registered for a hackathon called TrafficJam that’s taking place this October 2 - 4, 2015 here in Toronto. It’s being organized by Evergreen CityWorks and the City of Toronto, with the goal of fixing Toronto’s traffic troubles.
Tickets are free, but going fast. If you’re interested in this sort of thing, I would encourage you to sign up today. And if you do register or are already registered, drop me on a line so we can connect. I’m excited to see what kind of solutions we’re all able to come up with over the course of a weekend.
But as I was registering and reading through the website, I couldn’t help but think about some of the traffic problems that we won’t be solving over the hackathon weekend, namely the politicization of transportation planning in this city.
SmartTrack is the transit platform that Mayor John Tory ran on last year. And this post explains why it is unlikely to achieve its pitch promises.
open letter to Toronto City Council
. If you aren’t aware of these, I strongly recommend reading them.
Also of note are two things:
Just 3% of Downtown commuters drive on the Gardiner Expressway East, a tiny fraction of the 68% who arrive Downtown on public transit.
The “remove” option does not reduce traffic capacity over the “hybrid” option but could reduce travel speeds in uncongested conditions (read on for why I don’t think that this will happen in real life).
However, one element of this debate that has not got much airtime is the transportation modelling that claims an additional two to three minutes travel time with the “remove” option over the “hybrid” option which retains the elevated expressway in a slightly modified form.
Toronto Mayor John Tory has stated that "I didn’t get elected to make traffic worse. And let’s be clear, removing that piece of the Gardiner will almost certainly make traffic worse.” But is it in fact true that demolishing the Gardiner Expressway East will make traffic worse as the transportation modelling claims?
The key thing to understand is that transportation modelling, which tries to predict future travel times, is the product of a bunch of assumptions which may not in fact be borne out in real life.
For example, the effect of induced traffic, where additional traffic capacity leads to additional traffic being attracted to the route, is reasonably well known but generally not factored into transportation modelling. Induced traffic happens because increased travel speeds attracts traffic that would have otherwise avoided the route at congested times; attracts people to drive where they previously used other modes and encourages trips that would not otherwise have taken place. The effect of induced traffic is to quickly nullify the benefits of adding traffic capacity.
However, what is less well known is that the reverse happens where there is either a reduction in traffic capacity (not the case in Toronto as the “remove” option retains the same traffic capacity) or speed.
This is because in this situation, four things happen:
Some travel re-routes. The “remove” option with a widened Lakeshore Boulevard as part of the street grid simply gives more ability for traffic to re-route away from congestion over an elevated expressway structure where drivers are literally trapped until they reach their exit.
Some travel re-times. Some people will retime trips to avoid congested travel times, such as starting and/or finishing work at less congested times.
Some travel changes mode. Some people will be encouraged to change mode by the perceived worsening in traffic conditions.
Some travel is avoided entirely. Some people will choose not to travel at all in the peak of the peak. For example, this could take the form of working from home or shopping on the internet instead of by car.
Transportation models only take into account the first item but not the others. The modelling is also sensitive to traffic growth assumptions and assumed mode split and trip distribution. Often transportation models assume continued growth in car travel even though per capita kilometres travelled peaked about a decade ago.
While this may all sound well and good theory, does this actually happen in practice?
In Auckland city centre, we have extensive experience with the reallocation of road space away from general traffic. Many busy key city centre approach routes have had general vehicle lanes reduced to make way for bus lanes (which generally carry around 65-70% of the people moving capacity of the street).
This has involved up to a 50% reduction in private vehicle capacity (whereas in Toronto, the “remove” option retains the same traffic capacity but may slow throughput). Auckland has done two of these in the past twelve months – both involved converting a general traffic lane to a bus lane.
Don’t get me wrong: There is sometimes pain at implementation with about a three week period of congestion as car drivers adapt to the new reality - and most likely negative media coverage will accompany this. But after about a month, equilibrium will be restored and life will continue much as it did prior to the change.
Part of this is that there will be various “optimisations” during this introductory period where signal timings are adjusted and other tweaks made – the sort of tweaks that can only be fine-tuned in a real world situation. But a bigger part of this is that the four factors above - re–routing, re-timing, mode change and avoided travel - come into play.
I cannot overemphasise enough that life will return to normal surprisingly soon if the Gardiner East Expressway is demolished and replaced by a widened Lakeshore Boulevard.
My advice
When people talk about two to three minutes of extra travel time, take the foregoing into account and take those claims with the very big grains of salt that they deserve. If Toronto makes the right choice and chooses the “remove” option, my bet is that the biggest surprise of all will be how little difference it makes to peak travel times for the 3% of Downtown commuters who used to use the Gardiner Expressway East.
Disclaimer
The author of the above post is an employee of Auckland Transport, however, the views, or opinions expressed in this post are personal to the author and do not necessarily represent the views of Auckland Transport, its management or employees. Auckland Transport is not responsible for, and disclaims any and all liability for the content of the article.