Industry Analysis & Industry Trends
In the past five years, demand for public transportation has been driven by rising fuel costs and more Americans moving away from rural areas into urban centers, forcing many people to switch from commuting with their cars to cheaper public transportation. Additionally, higher government funding has allowed for the expansion of energy-efficient transportation services. Over the next five years, industry growth will be driven by a couple factors, including continued increases in government funding for transportation and a rise in domestic trips taken by US residents. These trends will ultimately lead to a rise in ridership, helping to increase fare-generated revenue for industry operators... purchase to read more
Industry Report - Starting a New Business Chapter
The Public Transportation industry has a high level of barriers to entry. State and local governments are responsible for the provision of public transportation systems. Nearly all systems within the industry are government owned, although in some instances governments may tender out services to the private sector (although outsourcing is currently minimal). On average, fare revenue earned by the major urban transportation systems makes up about a third of spending needs, so the majority of costs are met by public sector subsidies. Local, state and Federal governments all contribute to meet current and all capital spending needs.
There are severe resource constraints for public transportation systems which are reliant upon fixed guide ways such as rail lines... purchase to read more