A business model for a profitable transit system

Mass transit systems are vital to a city and the overall health of the economy. After all, if the NYC Subway shut down, 5.1 million people every day would either not be able to get to work, would be delayed in far-worsened traffic, and/or would have to spend significantly more money on transportation. This would have obvious effects on private business.

Metro systems, with massive passenger throughputs, low friction steel-on-steel rails, and electric propulsion, are tremendously efficient and are by far the greenest way to move about an urban area. However, the cost of building and maintaining complicated infrastructure such as metros is tremendous.

Is the idea of a profitable metro system just a pipe dream? Read on to find out more.

Hello

This blog was created for MBA 517 - Strategic Competitiveness.

Outside of my life at the IIT Institute of Design and Stuart School of Business in Chicago, where I am a dual-degree Master of Design/MBA candidate (class of 2012), I am a hobbyist urban sustainability and transportation enthusiast and advocate. I have prior experience working in public involvement and transportation planning for an urban planning and engineering firm in New York City.

Thoughout the semester, I will follow and analyze innovative business models and ideas in transportation from around the world. Afterwards, who knows what can happen?

- Max