The TTC will consider a proposal next month that would do away with the current monthly pass and replace it with a system known as fare capping.
Under the proposal, the $156 monthly unlimited-ride pass would be scrapped and in its place, a system that would make rides free after reaching a monthly threshold would be introduced.
The report suggests three options for fare capping: 47 rides, 44 rides or 40 rides per month.
Under the first option, the TTC expects to lose $10 million in revenue but anticipates gaining 3.6 million more riders. Fare capping after 44 rides would see a $19 million loss but a gain of more than seven million rides, while the 40 ride fare capping option would result in a $35 million loss but see a gain of almost 17 million more riders.
At present, a TTC rider would have to take approximately 48 trips per month in order to get the full value of the monthly pass.
“Fare capping provides customers the same price certainty as a monthly pass without the often-substantial barrier of an up-front cost,” reads the proposal. “Customers will always receive the best price and will no longer need to worry about overpaying and not using a monthly pass to its full value.”
The report says an increase to the $3.35 single-ride cash fare would only generate an additional $2.2 million; however, an increase of 10 cents to all fares, including PRESTO, would generate almost $33 million in additional revenue, which would help offset the losses of the 40-ride cap.
“TTC fares have been frozen since April 2023 despite an approximately 4.5 per cent increase in inflation over the past two years, making it challenging to introduce new initiatives and improvements unless additional funding is secured from funding partners,” the report states.
As well, a single cash fare would help reduce fare evasion and continue with the TTC’s plan to phase out concession cash fares at stations, which was first directed by the Board back in July 2024.
Coun. Josh Matlow is in favour of doing away with the “outdated monthly pass system.”
“I’m calling for fare capping because it’s an important way to make life more affordable for Torontonians – and to help your monthly budget be more predictable. No penalty for an extra trip to the grocery store or if an appointment runs long,” he said in a social media post.
“Fare capping would also dramatically increase ridership – a cap at 40 trips would boost ridership by an estimated 16.8 million annually. It will save you money, decrease traffic congestion and ensure we get the most value out of our transit infrastructure.”
The transit advocacy group TTCriders calls fare capping a “big win for riders,” highlighting its potential to make transit more affordable, especially for low-income riders.
“We hear constantly from transit users that they find a monthly pass prohibitively expensive. Oftentimes, people choose not to purchase a pass on the first of the month because they need to pay their rent instead,” said Andrew Pulsifer, Executive Director of TTCriders.
The proposal also goes on to recommend that the City consider implementing rideshare levies in order to generate sustainable sources of income and help reduce traffic congestion, which in turn would help public transit.
“Rideshare levies can serve as an additional source of sustainable municipal revenue, with precedents ranging from approximately CA$25M annual revenue in Washington, DC to …~CA$55M in Chicago,” the report states.
As well, a 2024 study found that a significant portion of rideshare trips compete with public transit for users and that if those trips were not available, public transit could see an increase of between 5 to 7 per cent in weekly ridership.
