Industry Analysis & Industry Trends
Participants in the Public Transportation industry operate passenger transit systems over fixed-routes and regular schedules within a metropolitan area. Due to the high capital cost associated with running a large public transportation system, industry operators rely heavily on government subsidies, and over the past five years government stimulus programs have fuelled industry revenue growth. In addition, ridership rates have been positively affected over the past five years by several key trends, including a rise in the price of oil and a lower unemployment rate. In the next five years, IBISWorld expects both government funding and ridership rates to continue to increase... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Public Transportation industry are high. In order to compete in the industry, an operator must construct, or have access to, large areas of tracks and infrastructure. Infrastructure can cost billions of dollars, representing a significant barrier for most potential entrants. Further raising barriers is the composition of participants. The main players in the industry are government-subsidized transit systems, such as the Toronto Transit Commission. Due to their subsidized nature, many players do not rely solely on fare revenue to fund operations. As a result, operators subsidized by the government are able to offer fares at a significantly lower rate than nonsubsidized companies.
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