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The article speaks of a “wildly unprofitable” street car system, yet neglects to mention LA Metro has about a 20% Fare Box Recovery Rate. That’s the term used b
by CodeWriter23 4y ago
The article speaks of a “wildly unprofitable” street car system, yet neglects to mention LA Metro has about a 20% Fare Box Recovery Rate. That’s the term used by insiders to describe how much of the total expense of the system is covered by passenger fares.
- jhbadger 4y agoThe difference is that the LA Metro is a public transit system, which is not expected to support itself but is supported by government to provide a public good, reduce congestion, pollution, etc. The classic Pacific Electric Red Cars were not public transit but were owned by a private company (that's why it could be purchased and shut down). While sometimes presented as a "conspiracy", it's important to realize that the Red Cars were built by a company that developed suburbs and were using the Red Cars to sell land there as in the early 20th century before automobiles were common, transit to and from the suburb was a big benefit. Once the land was sold, the Red Cars were just a net loss for the company.