Fare Capping Policy Financial & Equity Analysis

Charlotte Area Transit System (CATS) introduced a fare capping policy to make transit more affordable and accessible, particularly for customers who cannot afford the upfront cost of a monthly pass. Under this policy, riders using the CATS-Pass mobile app automatically receive a monthly pass once they have paid the equivalent amount in eligible fares.

During the initial six-month pilot, Benesch conducted a financial analysis to estimate both customer savings and the potential impact on fare revenue. The study also included an equity assessment to evaluate how the policy affects minority and low-income populations, in compliance with Federal Transit Administration requirements.

The analysis found that fewer than 1% of CATS-Pass users exceeded the $88 fare cap, resulting in an average monthly savings of $17 per eligible customer with minimal impact on overall fare revenue. Survey data indicated that minority customers were more likely to purchase lower-cost one-way tickets rather than higher-cost multi-trip passes, meaning the fare capping policy provided them with greater financial benefits by eliminating the barrier of an upfront monthly fare.

By analyzing financial data and customer usage patterns, Benesch provided CATS with a detailed assessment of the policy’s impact. These findings helped CATS evaluate the policy’s effectiveness and its role in making transit more accessible and affordable.