Pri¢ing

(defining)

Terms

You've probably seen many phrases being thrown out there. Many of them don't seem super obvious. Let's use the information below to understand these terms better.

Mobility

Pricing

this is a really broad term that's used to refer to different things

Transit Fares

fuel costs

parking fees

car / bike share fees

road / bridge tolls

car insurance

ride-hailing / taxi fares

congestion pricing

these terms refer to all the ways a user would pay to get around

Charging vehicles a fee for using the road network

This important concept...

...goes by many names that are often used interchangeably

Congestion Pricing

Road Pricing

Transport Pricing

Mobility

Pricing

no matter what we call it, this concept is based on the User-Pays Principle.

User-Pays

Principle?

This is a principle within Mobility Pricing that relates to how we pay/price. A user pays for how much they use the mobility network.

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This can be applied through a blunt mechanism (e.g. 3 zone transit fares, annual insurance costs, fuel costs), or in ways where the price is more reflective of the use (e.g. distance-based insurance and transit fares, road usage charges).

Why do we price mobility?

- Pay for Operations + Maintenance

- Raise revenue

- Generate Profit (private sector)

- Manage the mobility system

Issues with Existing Pricing Methods

01

In recent years, we have separated how much we use from how much we pay. That is, our usage is not as reflective of the costs, as it once was. Sometimes, we use blunt mechanisms to price mobility.

Let's look at an example of this

zone 1

zone 2

Say you were on the SkyTrain going from Station A to Station B

stn

A

5 km

stn

B

$$

Since you crossed the zone boundary, you would be charged a two-zone fare of $4.25 (cash) or $3.45 (Compass card), even though you only travelled one stop.

zone 1

$

stn

A