Urban Transit Systems
Companies in this industry operate buses, trains, and other local and suburban passenger transit systems within cities and adjacent nonurban areas. Major companies include Beijing Subway, East Japan Railway (Tokyo), Metropolitan Transportation Authority (New York), Mexico City Metro, Moscow Metro, MTR Corporation (Hong Kong), Paris Metro, and Seoul Metro.
The global urban transit industry is largely concentrated in Asia and Europe. Population growth and urbanization are among the forces driving global demand for metropolitan transit services. Worldwide, mass transit systems carried 53 billion passengers in 2017, an increase of about 9 billion passengers since 2012, with most of the growth occurring in Asia and the Middle East-North Africa region, according to the International Association of Public Transport. Transit systems in Asia carry more than 26 billion passengers a year; European lines carry more than 10 billion passengers; Latin America nearly six billion and North America just 3.7 billion.
The US urban transit system industry includes about 800 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4 billion. Government agencies in the US that provide urban transit are discussed in this profile, but they are not included in the revenue and company figures. In addition to the Metropolitan Transportation Authority, leading US providers include Chicago's Regional Transportation Authority, Los Angeles County Metropolitan Transportation Authority, Transdev North America, and Washington Metropolitan Area Transit Authority.
Demand is driven by population and employment growth in metropolitan areas. The profitability of individual companies depends on efficient operations. The US industry is highly concentrated: the 50 largest companies generate about 90% of the industry's revenue.
The rising popularity of ride-sharing services coincides with declining ridership on public transportation in the US, suggesting that companies such as Uber and Lyft are winning customers from public transit systems. Ridership on public mass transit is declining in nearly every major US city, including New York (which recorded its first ridership dip since 2009 in 2017), Los Angeles, San Francisco, Austin (down 12%), and Washington, DC (down 10%), according to Governing magazine. However, app-based ride-sharing services can also complement public-transit options by extending their reach and filling gaps in public transit systems, encouraging some commuters to ditch their cars and rely on public transportation for at least part of the trip. A number of transit agencies in the US have entered into partnerships with Uber, Lyft, and other ride-service operators to explore ways of working together.
Products, Operations & Technology
The urban transit system industry includes companies that provide commuter rail, urban and suburban bus, and mixed mode transportation services. It includes
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms