Quote:
Originally Posted by jmecklenborg
For-profit transit companies were profitable when they enjoyed monopolies and when the U.S. cities were more densely populated.
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They weren't that profitable either. They operated as public utilities, so the transit fares were regulated by city or state government. The transit fare was 5 cents for many years - this was profitable at first, but eventually inflation caught up to it. In the face of that inflation, politicians refused to allow a fare increase, so transit operators responded by slashing maintenance budgets. Eventually this lead to a death spiral of unreliable service and crumbling infrastructure, right as Detroit was gearing up to put a car in every household and the Feds were gearing up to string interstates across America.
At least with fully public transit agencies, politicians have to answer to the voters for both fare prices AND quality of service.
Fully private transit companies are insulated from political bullshit and can focus more on operations, but they might set fares that are out of reach for some members of the community.