Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: transit

  • New York City rolls out contactless fare payment at every single subway station

    I’m late to the party here, but I was reading this morning about how New York City recently completed the rollout of its One Metro New York (OMNY) fare payment system. What this does is allow you to use contactless payment systems, like Apple Pay, to get on the subway. ONMY is now available across the five boroughs on every bus and at all 472 subway stations (feel free to impress your friends at virtual parties with this stat).

    Metrolinx here in Toronto is similarly piloting contactless payments on the Union Pearson Express. You now have the option of tapping a credit card, a phone, or a watch. Maybe this doesn’t seem like such a big deal, but I still remember when the PRESTO payment card was first rolled out — it felt late to me. Apple added near-field communication (NFC) to iPhone in 2014, and at that point I think it was fairly obvious that standalone payment cards wouldn’t be around much longer.

    That time has arrived for New York City and will be hopefully arriving shortly for Toronto. And I think it will be particularly useful for tourists who may not have a Metrocard (NYC) or PRESTO card (Toronto) and just want to jump on a train. I’ve only taken the subway a handful of times during this pandemic, but I’ll be back at it once the world fully resumes. And I definitely can’t wait to take the UP Express to the airport again (and to the Junction).

  • Vancouver is probably getting transport pricing

    Earlier this month, Vancouver City Council approved a plan that will have staff developing a “transport pricing” strategy for the city’s core. (Transport pricing is just another term for road pricing or congestion pricing.) The plan is for staff to go away and work on this and then report back to Council with a pricing strategy sometime in 2022. At that point Council will look to approve the plan and it will all get implemented by 2025. Or at least that’s the plan. I remain somewhat skeptical because Vancouver certainly isn’t the first Canadian city to look at pricing its roads and congestion. Toronto has tried and failed. And so if Vancouver does end up doing this, they’ll likely be the first city in the country.

    So why are they doing this, or least trying to do this? Well, if you’re a regular reader of this blog you’ll know that I’ve been a supporter of road pricing for many years. Lots of old posts over here. But in the case of Vancouver, their stated goals are really as follows: 1) They want to reduce congestion and encourage people to use other forms of mobility; 2) they want to reduce carbon emissions by 50% by 2030; and 3) they want another revenue stream that can be used to fund things like transit and active transport. Put differently, it’s about pricing/taxing the things that we want less of and then using that money to pay for the things we want more of.

    Some of you might be wondering whether this is a good idea at a time when the centralizing pull of cities is being called into question. But I think it’s important to keep in mind that Vancouver thinks it needs at least five years to implement its transport pricing. We’ll be living through the roaring twenties by then. I am also a firm believer that cities are going to snap back significantly faster than most people think.

  • The ride-hailing red herring

    There’s a lot of data/speculation out there about the impact of ride-hailing apps. Many dense urban centers are claiming that they have increased traffic (slowed average speeds) and pulled people away from public transit. The University of Toronto published this study last year. And the WSJ recently published this chart for Chicago:

    To be honest, I’m not sure how much of the above is a result of ride-hailing apps, overall urban growth, e-commerce deliveries, public transit disinvestment, or other factors. But what is clear is that ride-hailing is pretty convenient and most (if not all) cities are seeing massive growth in this space.

    But all of this feels to me like a bit of a red herring. People will obviously choose what is most convenient and relatively affordable. And congestion was a problem well before people started using these apps (demand > road supply). The only solution I have seen work is to price congestion/roads.

  • The 14th Street busway

    On October 3, New York City did something very similar to what Toronto did on King Street. It restricted through traffic on 14th Street to only trucks and buses, and turned the street into the city’s first “busway.”

    Under the new rules, cars, vans, and taxis are restricted every day of the week from 6am to 10pm, unless they’re dropping off or picking someone up, or entering into a parking garage (i.e. local traffic only). But after this, they need to make the first available right and turn off the street. Again, it’s pretty similar to the way things work here on King.

    https://twitter.com/travis_robert/status/1179813054235721728?s=20

    On the first day of the 18-month pilot program, the buses actually had to slow down in order to keep to their schedule. They were moving too quickly. Previously one of the slowest routes in the city, the M14 bus is now expected to increase its average speed by about 25%.

    Not surprisingly, a number of people were concerned that this new busway would hurt businesses along the route. This same concern has been an issue in Toronto. But this is New York. We’re talking about the US city with the highest percentage of households without a vehicle.

    The reality is that we need to get better at moving people around our cities without a car. This is one way to do it and we know it works. My prediction is that the 14th Street pilot will prove to be a success. It will then get replicated in other parts of Manhattan. Probably on other crosstown streets.

  • Transit investment & density (in San Francisco)

    This recent Streetsblog article about the possibility of turning the M Ocean View line in San Francisco into a kind of subway is a good reminder about the always important connection between transit investment and density. The question I always pose to myself is, “If I were a private company deciding where to spend the money on a new and expensive subway line, what would I look for?” Most of us recognize that population and employment densities would be near, if not at, the top of the list.

    Of course, if the company were fully private, then we would run the risk of low-density / unprofitable areas of the city not being serviced by transit. For a variety of reasons, that’s not an ideal outcome, which is why transit operators are mostly subsidized. The challenge is that the way we plan transit in most — or all? — cities has become so highly politicized today. That’s how we end up with the wrong transit technologies in areas that don’t have the density to properly support them.

    Now, I don’t know the specifics of the M Ocean View line. (Maybe some of you do and will provide those thoughts in the comments below.) So this is not a post about what may or may not be appropriate in this particular instance. But it is a commentary on the importance of fiscal prudence and sound transportation planning.

    Photo by Lance Anderson on Unsplash

  • Metrolinx to further optimize the Union Pearson Express train

    It was announced this week that Metrolinx will be making changes to the popular UPX train service that connects Union Station to Toronto’s Pearson International Airport. This is an interesting transit story. And as someone who will be moving to the Junction (adjacent to one of the stops along the way), I have a vested interest in this announcement.

    The UPX started out as a high-priced boutique train service to the airport. A one-way fare was $27.50 per person (without a PRESTO card). This was too much and I argued that here on the blog. If you looked at the math and compared it to the alternatives, such as taking an UberX, most people were not going to take this train.

    The fares were ultimately dropped — by a lot — and the service then took off not only as a link to Pearson but as an inner-city commuter service. I now sometimes call it the Union-Junction Express, because the actual train ride from Union to Bloor St (at Dundas West) is about 7 minutes once you’re on the train.

    The announcement this week merely solidifies the train’s evolution from high-priced boutique service (which didn’t work) to airport/commuter service (which is really working). The trains are expected to run more frequently now, some of which will continue to make the same stops as today and some of which will stop in new locations along the line.

    As transit-advocate Cameron MacLeod said in the Globe and Mail yesterday, “there’s both good and bad news here.” The good news is more frequent service. Even quicker trips in some instances. And better integration with the broader GO train network. The bad news is the award-winning UPX station at Union will no longer be needed. The service is expected to move to a new platform.

    Photo by Sean Thoman on Unsplash

  • Scooter trips surpassed bike share last year

    According to the National Association of City Transportation Officials (NACTO), scooter trips in the US surpassed station-based bike share trips for the first time in 2018. Here is a chart taken from Streetsblog:

    Dockless electric scooters have created a public nuisance in many of our cities, but what is clear is that the demand is there. Which perhaps isn’t all that surprising given that they require less effort than traditional cycling.

    The other interesting takeaway from NACTO’s analysis, which is likely also not that surprising, is that bike share trips are heavily concentrated in a select few cities.

    In 2018, there were about 36.5 million bike share trips across the US. And about 84% of them took place in just 6 cities: New York, Boston, Chicago, DC, Honolulu, and San Francisco.

    Almost half of the 36.5 million trips were on NYC’s Citi Bike network.

  • Manhattan is getting a congestion pricing zone

    About a year ago I wrote about how NYC is considering a congestion charge on vehicles entering Manhattan below 60th street. Well it looks like that plan could be adopted as early as April 1 (however the fees won’t start until 2021).

    Here’s a map of the proposed congestion pricing zone from the NY Times:

    I have written extensively on road pricing over the years and so I won’t repeat myself here today. Suffice to say that I think creating a sustainable funding source for transit and other mobility options is a positive step forward.

  • Tenji blocks

    Today, Google’s daily Doodle celebrates the work of Japanese inventor Seiichi Miyake. See above screenshot. (I wonder who at Google is responsible for coming up with these. Imagine having to post something new every day.)

    I am sure that most of you have come across these tactile paving blocks before in the subway or in some other public space. But I for one wasn’t familiar with their origin.

    Invented by Seiichi Miyake on his own dime after a close friend started becoming visually impaired, they were first introduced in 1967 on a street in Okayama City (Japan) next to a school for the blind.

    Since then, these tactile blocks — or Tenji blocks — have been adopted all around the world as a way to help the visually impaired navigate our cities and public spaces.

    There are two main types of blocks: ones with bars and ones with dots (which are kind of like domes with their tops cut off). The bars indicate a safe path of travel. And the dots tell you when to stop (such as at the edge of a subway platform).

    The idea is that these different kinds of blocks can be detected with either a cane or through your feet as you walk over them. It’s a pretty simple idea, but it clearly seems to work.

    All of this reminds me of a recent community meeting I was at where I heard a lady — who was visually impaired — speak eloquently about the importance of thoughtful materiality in our public spaces. I think she may have been an architect or designer.

    One of her comments was that echoey spaces can be overwhelming for people with limited vision. That makes perfect sense to me. Unfortunately, I think it can be hard to fully appreciate some of these design subtleties unless you’re living it.

    But as Seiichi demonstrated, maybe all you need is a close friend who is living it.

  • To invest or not invest

    We used Uber to get pretty much everywhere when we were in Rio de Janeiro. For reasons of convenience, cost, and safety, it just made the most sense. I can tell you that it felt a lot more valuable in place where you don’t speak the language and you’re acutely aware of being in the wrong place at the wrong time.

    And since Uber is going public later this year (along with Lyft), it got me thinking about whether or not it is a stock that I would want to own. Are they destined for monopoly profits? Do they have a defensible business model? How powerful are their network effects? Having first-mover advantage doesn’t guarantee anything.

    My initial thoughts are that the network effects for their core offering – single rides – don’t feel that strong. Sure you need a critical mass of drivers so you’re not waiting around too long, but at a certain point the response time is likely good enough. Rides are a commodity.

    This arguably changes as you get into services like Uber Pool and Uber Commute, because more users on the network in close proximity to you can mean lower costs and higher service levels. But is there any sort of lock-in effect?

    Many passengers and drivers seem to “multi-tenant.” In other words, many (or maybe most) people have multiple ridesharing apps installed on their phone and they will switch back and forth when it makes sense to do so. I do that when prices are surging. And drivers appear to be doing the same based on the Uber and Lyft emblems in their cars.

    For a long time, Uber was the only show in town here in Toronto. Hailo only lasted about two years or so. But as soon as Lyft entered the market, both companies moved to aggressively discount their rates, and that is still going on to this day. This suggests certain things to me.

    Among other things, it is a reminder that the demand for (commoditized) transportation services is highly elastic. We are price sensitive. We will use whatever is cheaper. So one way to win is to obviously create a cost structure advantage. Hence the current autonomous vehicles “arms race.” 

    Lyft is also trying to establish itself as a multimodal transportation solution. (When are scooters coming to Toronto?) Perhaps that will make them less of a commodity. But again, how defensible is that approach? I suppose the market will tell us what it thinks later this year.