Zach6668
Active Member
The City has just published "briefing notes' on PRESTO inspectors:
• Inspection rate with current staff = 3.2 % (243K inspections/7,480K riders/month)
• Inspection rate with proposed staffing = 4.6 % (343K inspections/7,480K riders/month)
• Lack of proper enforcement of our fare policies will lead to the growth of fare evasion and the resulting risk to revenue. - 2 - BN# 41 – Jan 18
• The addition of the 20 Fare Inspection positions will reduce the risk to the proper collection of fares.
• Each 1% increment of non-pass fares represents approximately 2.2 million rides which approaches $6 million in lost revenue.
• Industry Standard for Fare Inspection – 4-5% of ridership should be inspected, balancing customer perception of harassment and due diligence.
See: http://www.toronto.ca/legdocs/mmis/2016/bu/bgrd/backgroundfile-87865.pdf
So this makes for an easy expected value calculation.
3.2% = 1 in 31.25 chance at being inspected
At $3.25 fares, the penalty for being caught without POP would need to be at least $101.56 for the transit agency to expect to "break even" on POP - That is, fare evasion losses = fine revenue.
At "industry standard" $4 or $5, it would need to be $81.25 and $65.00 respectively.
I would imagine the fine is higher than all of those, but I have no clue what the penalty actually is.
You always see these reports talking about lost fares, but you never see the associated fine revenue. If you set the numbers right, and inspect the correct proportion of riders, you can set yourself up for net gains.