Paratransit Cost-Allocation Model Adjustments to Promote Agency Ridesharing and Vehicle Timesharing
Paratransit: Shaping the Flexible Transport Future
ISBN: 978-1-78635-226-2, eISBN: 978-1-78635-225-5
Publication date: 28 September 2016
Abstract
Purpose
This chapter applies the Consortium for Advanced Management, International (CAM-I) Activity-Based Cost Management (ABC/M) tool to paratransit. The intent is to enable agencies sponsoring rides to save money through sharing rides and vehicle-time.
Design/methodology/approach
Several paratransit cost-allocation models from Transit Cooperative Research Program (TCRP) and other sources are reviewed and one is adapted to the ABC/M methodology, based upon the author’s previous work proportionately allocating ride time among sponsoring agencies at a consolidated human service transportation agency and the price sheets used in contracted operations to minimize financial risk.
Findings
Through application of the principles of ABC/M, paratransit providers can properly allocate costs, determine the costs of providing proposed new services, plan for future vehicle acquisitions, and motivate their customers to tailor their transportation needs in a manner that will save them money and boost efficiency.
Research limitations/implications
University-based transportation studies programs may be motivated to apply these strategies to urban and rural paratransit providers that serve several customer agencies.
Practical implications
If agencies sponsoring paratransit rides understand that funds can purchase more rides during off-peak hours or if rides are shared with clients of other agencies, then paratransit resources can be used more efficiently and to the benefit of more individuals.
Social implications
By enabling the provision of more rides, a greater number of riders will be enabled to reach necessary services and participate in community life.
Originality/value
This is the first application of the ABC/M methodology to paratransit (and transit) and possibly to social services.
Keywords
Acknowledgements
Acknowledgments
Jon Burkhardt’s review and comments enabled me to substantially improve the draft of this chapter. Applying the ABC/M concepts, as explained by Gary Cokins, to the excellent base of work by Jon and others, enabled me to explain cost control strategies employed over the years at FASTRAN. With practical incentives, agencies sponsoring paratransit rides will be motivated to change their requirements – the cost drivers – to enable provision of more rides within available financial resources.
Citation
Yaffe, S. (2016), "Paratransit Cost-Allocation Model Adjustments to Promote Agency Ridesharing and Vehicle Timesharing", Paratransit: Shaping the Flexible Transport Future (Transport and Sustainability, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 127-152. https://doi.org/10.1108/S2044-994120160000008007
Publisher
:Emerald Group Publishing Limited
Copyright © 2016 Emerald Group Publishing Limited