Why There’s No Such Thing as a Free Bus

Just like there’s no such thing as a free lunch, free buses also have a cost.

But they could be worth it.

Free Buses

The people that support free bus initiatives cite Iowa City.

Because of its free bus pilot program, Iowa City reported that emissions and traffic congestion went down while stores enjoyed a boost in business from shoppers that had an extra $31 (from canceled bus fares) each month. In the bus, the hassle and delays decreased when drivers no longer requested transfers and passengers no longer had to search for their fare money. Even pricier public parking rates had the upside of increasing the incentive to ride the bus and generating more municipal revenue. Similarly, higher utility taxes could have reduced emissions as they too created municipal funds. And, one former driver said the trip to the city was no longer stressful.

It all added up to 18 percent extra ridership and an extension of the two year trial that started during August 2023.

Not everyone though is onboard.

Opponents have been especially concerned that New York’s new mayor plans to eliminate the city’s bus fares. They point out that Iowa City, with 1.6 million bus rides is much smaller than New York’s 400 million. As for revenue, one dollar a ride was a small slice of Iowa City’s funding pie. New York, though, needs the fare revenue for the bonds it secures and for the public transit it funds. In addition, some studies of larger cities like Santiago, Chile indicate minimal car reduction where walkers and bike riders switched to the bus but not the drivers. Others add that “free” might not be enough to compensate for the comfort and speed of your own vehicle and “free” eliminates the price that signals value.

Our Bottom Line: Tradeoffs

For New York and elsewhere, there is never a free lunch. We just have to decide when the benefit exceeds the cost.

My sources and more: The NY Times had the facts on Iowa City’s buses. From there, for the follow up, we had two paths. We went to NYC and opponents of its free bus proposal. But also, it took us to past posts on “free” parking.