In an effort to expand revenues, OC Transpo is looking at adopting several creative options, including OC merchandise, coffee kiosks and parcel delivery.
A report to be presented to the city’s transit commission on June 12 highlights several revenue sources the agency is looking at to introduce more revenue to address Transpo’s staggering $120 million shortfall but also appeal to transit riders on the go.
Under the plan, OC Transpo would add $2.3 million in annual non-fare revenues.
In 2024, advertising only accounted for 2.5 per cent of OC Transpo’s total revenues.
Transit Commission Chair Glen Gower said with several LRT stations open and expansion underway, they’re becoming “high-traffic stations,” which is an opportunity for the city to look into more advertising revenues.
The proposal outlines three priorities in order of how city staff plan look into the opportunities.
“Priority 1” would be a plan to expand billboard advertisements, installing more vending machines and a retail program expansion, which includes coffee kiosks and “pop-ups”.
Currently, Happy Goat Coffee is the only “retail option” for transit riders, available at Tunney’s Pasture, Hurdman, and Blair stations.
“I often pick up the coffee at Happy Goat at Tunney’s Pasture station on my way into work,” said Gower, who is councillor for Stittsville. He also spoke of ideas of bringing in small grocery stores and convenience stores for people looking to get meals on their way in and out of the city.
“As more people use transit, there’s more of a market, and maybe, there’s some interest there,” Gower said.
Third-party parcel delivery, which is considered a “Priority 2”, includes assessing a project to set up lockers at busy transit stations. Gower says this could be a convenient opportunity for people to pick up and drop off parcels and mail during transit hours.
“It’s just trying to find some creative use of the stations and meet people where it’s convenient,” he said.
“Priority 2” also looks at monetizing non-commercial spaces and reviewing the rates and expansion of the Bus Charter Program.
“Priority 3” focuses on introducing transit merchandise, including gifts and collectibles, and renting out Park and Ride spaces when they are not in use, which has been used in the past for events like farmers markets and local events.
Gower said the inspiration for OC Transpo merchandise comes from assessing what other cities worldwide have done, such as Vancouver, Toronto, New York and London, U.K.
“In Ottawa, I’ve had people ask if there’s anywhere they can get a toy bus for their child or grandchild,” Gower said. “Beyond revenue, merchandizing could help promote the (transit) system a little bit more.”
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