User-Side Subsidies for Taxis and Buses in Montgomery, Alabama
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1983-02-01
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By Charles River Associates ...
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Abstract:The Montgomery User-Side Subsidy Demonstration began operation in August 1977. This was one of four demonstrations of the user-side subsidy concept conducted under the UMTA Service and Management Demonstration Program, and involved the provision of reduced fare shared-ride taxi and fixed-route bus service to the elderly and handicapped with the primary objective of increasing their mobility. Eligible individuals who registered with the subsidy program were able to obtain a 50 percent discount on taxi rides through the use of vouchers, and could use tickets to ride buses for free during off-peak hours and for half fare during the peak hours. After vouchers and tickets were used by registrants to pay for rides, service providers redeemed them with the city for full value. This report summarizes the findings of an independent evaluation of the Montgomery project that was sponsored by the U.S. Department of Transportation. User-side subsidies were found to be generally feasible, although a number of specific design and implementation problems were identified, and are described in this report. Project subsidies were utilized principally by the most mobility-disadvantaged segments of the eligible population. These individuals, who typically had low incomes and/or few travel alternatives, used the project to increase slightly their frequency of total tripmaking, and to make some trips that otherwise would have been made by less preferred means. Overall, the Montgomery project provides evidence that user-side subsidies can be a viable and practical technique for facilitating the mobility of the elderly and handicapped.
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