What Will Public Transportation Look Like After 2020?
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As part of our commitment to putting the voice of your customers right at your fingertips, Suzy will provide continual updates on consumer sentiment and behavior during the ongoing Coronavirus crisis. Check out our COVID-19 Consumer Insights hub for more stats, webinars, and more.
Whether you measure it by distance traveled, number of riders, or number of vehicles in circulation, it’s no contest: New York has the biggest, most widely used public transportation system of any city in the United States. Last year, the 5,927 NYC buses carried about 2.2 million passengers every weekday — more than the next three largest bus systems combined. Meanwhile, over 6,000 subway cars took a total of 1.698 billion riders across 365 million miles in just 2019 alone. And that’s not even counting all the commuter railways, ferries, and other ways that commuters get in and out of the city on a daily basis.
Of course, that was before the global COVID-19 outbreak brought everything to a screeching halt. Ridership decreased 80% in buses and 90% in subways this April as official Stay-at-Home orders went into effect across the state, and now the MTA faces massive financial losses — up to $800M a month, according to some estimates.
As tensions continue to rise over mask requirements and service-disrupting cleaning sessions, it may be a while until the city’s public transit feels truly safe for many patrons. According to Suzy’s own research from our screened, verified audience panel, city dwellers are currently feeling “uncomfortable” (41%), “stressed” (39%, and “fearful” (31%) of public transit. 68% of them are also likely to invest in their own personal vehicles to avoid public transportation; more specifically, 67% might buy or lease a car in the next three months. But more cars on city roads isn’t a workable solution in the long-term — for one thing, it often leads to less space, more traffic congestion, and a huge increase in pollution. So what’s the alternative?
For some cities, offering other alternatives has already proven popular, particularly with older residents. In 2019 the Seattle-based e-bike company Rad Power Bikes reported that people aged 45 to 84 make up 82% of their customer base, and during the 15 years between 1995 and 2009, the number of 60-79 year-olds who bike increased by 320%. As people seek less crowded above-ground ways to get around, demand for rentable electronic personal transportation will only increase (provided that these companies are able to verify the safety and hygiene of their vehicles, of course). Electronic equipment doesn’t even need to be a necessary factor for success, either; Citi Bike now has 12,000 shareable bicycles distributed across the five boroughs and Jersey City, serving a customer base of 130,000 subscribers.
But in the meantime, companies that previously relied on public transit to bring customers to them will need to accommodate for the fact that so many people have stopped commuting to shop and instead purchase online. Some might do that by pivoting to a DTC model, like the non-alcoholic beverage brand Ghia did, or by creating much more experiential shopper journeys, like the flagship Canada Goose store in Toronto that features a “cold room” to test their coats in. “There has been a pretty healthy flow of traffic of people going through the experience,” Chief Executive Dani Reiss told CNBS. “It’s kind of a break from the insanity of the world today. I think it has done really well.”
Either way, physical stores aren’t going away for good, and neither is the subway — but until the dust settles, urban businesses will just have to get creative.
To learn more, access the full recording of our “State of Consumer: The Future of NYC” webinar, or contact us to launch your own questions with Suzy.