Abstract
Transit agency use of innovative private-sector strategies is examined based on a study of eight transit agencies in eight diverse metropolitan areas, all with some significant private-sector activity in commuter transportation. The reasons these agencies have or have not adopted these strategies are identified, and the major barriers to their more widespread use are specified. The initial incentive to consider nontraditional approaches comes from fiscal and service pressures that require some change in the status quo, but whether private-sector strategies are actually used depends largely on four factors: (a) management interest in nontraditional approaches, (b) analyses that demonstrate the utility of innovative approaches, (c) discretionary rather than dedicated local subsidies, and (d) the ability of local government officials to influence the transit agency’s service and budget decisions. The main barriers to innovation are traditional management orientation, labor constraints posed by federal legislation or local union contracts, and subsidy and decision-making arrangements that give the agency no strong incentive to improve the cost-effectiveness of its different types of services.