Today, Waymo is excited to announce our transit rewards program, which we will initially offer in the San Francisco Bay Area, with future cities to follow. This first-of-its-kind initiative rewards riders with Waymo…

258 points•raybb•8 days ago•346 comments•

346 comments

dcrazy8 days ago
Meanwhile, the 47 Muni bus that connects the Van Ness transit corridor to Caltrain has been “suspended” since 2020, and the extension of Caltrain to the transit center is still unfunded.

I appreciate solutions that meet us where we are, but it’s depressing that we don’t seem to actually have the will to make a sustainable, integrated mass transit plan.

8f2ab37a-ed6c8 days ago
In the Bay Area it's easier to create AGI than reliable, consistent, clean public transit.
femiagbabiaka8 days ago
The Bay Area has reliable, clean, consistent public transit right now, it's just not evenly distributed
mixdup8 days ago
> The program applies to all 27 San Francisco Bay Area transit agencies that accept contactless Visa tap-to-pay.

Probably has something to do with that. Why on Earth are there 27 different transit agencies in the Bay Area? Probably should be a single digit, no?

mitxela8 days ago
They haven't created AGI either, they're just applying the CADT development model to money.
zitterbewegung8 days ago
One of these doesn't require a multi-decade approval process for good reason. (Figuring out the logistics and civil engineering planning is a real thing and building it out isn't trivial) . Of course this could change
ihsw8 days ago
It is a plain fact that there would be more interest in public transit if it was as clean, as safe, and as reliable (if not cleaner, safer, and more reliable) than driving using personal vehicles.
tristanj8 days ago
The reason there's not more public transit is because the economics are terrible. Looking at the financials:

  Cost per passenger trip:
    BART: $1.07B operating expenses / 59.5M trips = $16.92
    SF Muni: $1.13B / 160M trips = $7.06
    Caltrain: $225M / 9.1M trips = $24.73

  Passenger Fare collected per trip:
    BART: $259M / 59.5M trips = $4.35
    SF Muni: $111M / 160M trips = $0.69
    Caltrain: $58.7M / 9.1M trips = $6.45

  Subsidy per trip:
    BART: $12.57
    SF Muni: $6.37
    Caltrain: $18.27

  Cost per passenger mile:
    BART: $1.07B / 892.5M passenger miles = $1.20/mile
    SF Muni: $1.13B / 312M = $3.62/mile
    Caltrain: $225M / 177.5M = $1.27/mile

  Subsidy per passenger mile:
    BART: $1.07B / 892.5M passenger miles = $0.84/mile
    SF Muni: $1.13B / 312M = $3.26/mile
    Caltrain: $225M / 177.5M = $0.94/mile
Every single ride requires a $6 to $18 subsidy, paid for by tax dollars.

For comparison, federal spending for the interstate highway system is about 2-3 cents per passenger mile.

jcranmer8 days ago
> The reason there's not more public transit is because the economics are terrible.

The reason we don't have roads is because the economics are terrible. The government gets $0 per trip [1], but it costs billions of dollars a year in operating expenses.

Wait, that's not how it works.

[1] Federal gas taxes don't count, because those go to the Highway Trust Fund which funds road construction, which is not an operating expense. State gas taxes may vary. Although toll roads also properly charge people user fees, although for some reason, lots of drivers complain about how expensive tolls are...

anewhnaccount28 days ago
Infrastructure for cars is massively subsidised too. Since tansport is infrastructure it it interacts with everything else (eg less cars in the city => less spending on car infra) and has a lot of positive externalities. The investment pays back in positive outcomes which can also be quantified in terms of money of you like. It's like you've got a balance sheet but you're filtering it to only look at two items.
skew-aberration8 days ago
Yes, but public transit does create value - the question is who captures it.

BART likely created huge profits for people who owned land in the areas it services - house prices and rents would have increased substantially. Public investment, private profits. Subsidies in the form of low-cost fares like this are just further welfare for the landowners.

Interestingly, about a third of BART's cost was acquiring land - if/when that same land is cleared and sold on market, the project would have operated at an enormous profit. Certainly, BART's current assets would far exceed 'total fares collected'.

milesskorpen8 days ago
Cars are also subsidized (roads) - isn't that what taxes are for?

If we could go back to pre-pandemic ridership levels, the subsidy rate would be inverted (fares covered 70% versus 30% now). Public Transit struggles with low utilization. It'll take 10+ years to get back to that ridership level though.

tyre8 days ago
iirc the NYC subway is only about 40% subsidized by fares. I’m happy to pay more in taxis for it to exist and subsidize lower income residents. There are huge economic benefits to the city that you’re not factoring in.

Not everything has to be directly money making.

If anything, the Bay Area needs significantly more public transit. BART in particular is mostly useful between cities, in my experience. You can’t go from the mission to cow hollow or dog patch to north beach, let alone anywhere to the ocean.

Also, subways don’t have much (if any) marginal cost per passenger. The issue isn’t cost but ridership. Ridership will increase with utility, which requires political will, which does not exist.

SF could be so much more.

Gigachad8 days ago
I wonder if something like this could improve the economics of public transport though. Passengers do the bulk of their travel on the well used train line, and then the last part of their trip is covered by waymo which could be more cost effective than running mostly empty busses.
tristanj8 days ago
The best formula for public transit is the Rail plus Property business model. In Hong Kong, the MTR Corporation buys up land adjacent to a planned future station, then builds the station afterwards. Then makes money from renting out the properties adjacent to the station.

JR East in Japan operates in the same way: it makes the majority of its profit from the real estate, malls, and hotels it operates adjacent to its train stations.

Arkhaine_kupo8 days ago
> unning mostly empty busses.

I always like being the person that points out that cars have on avg 1.5 passangers.

Meaning a bus (avg size of 2 medium cars) with just 4 people is already a better use of space on the road.

So while well utilised infrastructure might look prettier, the current misuse of infra is so vast that even minor use of public transit would already bring benefits.

Vinnl8 days ago
This is why the main train company in the Netherlands has dirt cheap bike rentals at most train stations. Saves a bunch of last-mile headaches, as a traveller.
ButlerianJihad8 days ago
Taxis are not efficient or cost-effective for short trips, so they’re not an ideal last-mile solution. I’d rather rent a scooter, personally.

However, if I need to make an appointment on time, or just reduce morning hassles, I take a Waymo, but afterwards, I may be inclined to take public transit in the return direction. Same distance, similar route, but distinct criteria for budgeting time, money, and mental health.

simiones8 days ago
The problem is that personal vehicles inevitably leads to unsustainable traffic. Now, for low traffic areas, driverless cars might be an acceptable solution. But for busy areas, the geometry of transporting 1M people in cars vs buses is simply inescapable.
redwood8 days ago
For completeness isn't there a Muni (streetcar) line that covers this route?
novia8 days ago
Waymo pays you $2.85 in Waymo credit to take the train

(Waymo takes $2.85 off your next ride if you take the train)

I live in East Bay, and I often take gratuitous Waymo trips all the way across the city to Embarcadero Station to ride BART back home. I do this because I like seeing the pretty skyscrapers and the bustling city and the pretty townhomes painted interesting colors. They may want to rethink their reward structure a bit to avoid paying out to people like me.

aix18 days ago
> They may want to rethink their reward structure a bit to avoid paying out to people like me.

Maybe, but who is Waymo to decide whether your trip was gratuitous? Perhaps you had brief business in Embarcadero and chose the particular mix of modalities for one reason or another (timing; or had to carry something heavy one way but not the other etc).

globular-toast8 days ago
Indeed. Most people travelling around by taxi or public transport could be considered gratuitous anyway. You're probably not carrying a load of tools to do any work. You're more likely going to a bullshit job, going to meet friends, going to a concert or buying shit you don't need etc.
evmar8 days ago
A trick I learned from an east bay friend is that (when possible) the bus across the bridge is way nicer than the BART under the bay, especially around sunset.
HaloZero8 days ago
The NL and other transbay buses are so fantastic. They do get stuck in bridge traffic though.
novia8 days ago
Yeah but then you're on a bus...
Animats8 days ago
> Waymo pays you $2.85 in Waymo credit to take the train

After you "link your Visa card", yet the reward is in "Waymo cash", which expires in 90 days and can only be used for Waymo. That's just something on your Waymo account, not real money. They must want access to your Visa card data.

brainwad8 days ago
It sounds like Visa is coordinating the transfer data between agencies, and Waymo has just signed up to the existing program as if it were a transit agency.
saturn86018 days ago
What would they be able to get by linking the card? I thought that would just facilitate immediate charges/refunds to the card since the card is stored.
lxgr8 days ago
The target audience of this offer presumably takes Waymo at least occasionally, so how is a Waymo credit "not real money"? And what does transaction data have to do with this?
ThePowerOfFuet8 days ago
They want to reduce the friction for next time: then you'll already have a card linked.

OR, if it's Visa only, it's a comarketing stunt.

vasco8 days ago
Google probably has the most credit card data already. Maybe even more than Visa since they work with multiple payment networks.
mahboi8 days ago
What's wrong with paying out to you for this, the fact that you'd do it even without this promo?
novia8 days ago
Oh, I think it's a great idea to reward people for taking transit because it will help reduce traffic on the road and allow the Waymos to operate in tighter loops, increasing availability to other passengers, and possibly even bringing costs down as a result.

My selfish trip all the way across the city instead of to the nearest convenient transit station makes things worse for everyone except for me :)

To make it more clear why this would be the case, imagine that everyone in the city behaved as I did, all taking Waymos to this same train station, even if it was far out of their way. Almost all the Waymos would start at that train station after dropping other people off, and they would have to drive to get the next person, so you can think of each trip as a loop. Some of the loops would be very small and fast, for people who happen to be close to that train station, while others would be very long, for the people who started all the way across town. Less cars are needed to accommodate the short loop trips than to accommodate the long loop trips, and since there are a limited amount of cars, people will have to wait longer to complete their trips.

If instead you imagine that each Waymo that's driving around initializes on a grid around the city, with, idk, 10 blocks between each of them, and the people who want a ride, also equally distributed, all instead get a ride to their nearest transit station, the loops are shorter, which means more people can receive service.

asimovDev8 days ago
I sometimes take the slower and older commuter train back home from the office during "green months" as I call them (May to September) to enjoy the scenery and the ambient clickclacks of the train wheels.
upofadown8 days ago
Once you are in the Waymo, why bother getting out just to get on a bus?

In New York, increases in the use of ride services like Uber mostly came from bus and subway riders[1]. If we are being charitable to Google, we might assume that this initiative is intended to reduce the same sort of trend. If we are not being charitable, we might assume that this initiative is intended to encourage current bus riders to expose themselves to the product.

[1] https://www.6sqft.com/mta-says-uber-use-is-the-cause-of-nyc-...

Normal_gaussian8 days ago
The answer to both of your points is that mass transit is used for most of the travel and the last mile is taxi equivalent. Being unable to do the last mile is a common reason not to take mass transit, so more usable taxi equivalents tends to increase mass transit use. And most directly, taxi equivalents are often significantly more expensive or significantly than mass transit at crossing cities.
Rebelgecko7 days ago
Maybe just an artifact of where I live (Los Angeles), but whenever Ive considered taking Waymo to the train station, it's usually easier and often cheaper to take it all the way to my destination. eg right now a Waymo to the train station is $16, then you wait 0-15 minutes to hop on the train, paying an additional $3.50 round trip. I'm pretty pro-transit, but I can't deny that the ipace is a much more pleasant experience than the train (I can play my music, don't have to listen to other people, guaranteed seating, guaranteed AC, fewer undesired encounters with strangers).

Meanwhile, a waymo to a stadium on that same train line is $26. If you're with 1-3 other people, taking Waymo all the way is a no-brainer.

skybrian8 days ago
It makes a lot more sense for Bart. You can go places that don’t even have Waymo service.
infecto8 days ago
Last mile simplicity? Yes absolutely it incentives both ways. People taking mass transit and not Waymo and folks taking Waymo only. That’s ideal imo.
tgsovlerkhgsel8 days ago
Cost, presumably?
nunez8 days ago
Oh man this is brilliant.

Amongst other reasons, I use Waymo for covering the last mile of a trip made by bus or light rail in my city (Houston, TX). Our public transit service is very reasonably priced but it would be awesome to get a discount!

ec9658 days ago
I use my commuter benefit debit card to pay for public transit. Notably this does not include rideshares like Waymo. In order to claim the transit reward I could use a personal card to pay for both transit and Waymo, but that leads to considerable friction where I need to collect receipts and submit claims to use my commuter benefit. Most companies in SF must offer a commuter benefit so it doesn't seem like many people will be getting this Waymo transit reward.
dotancohen8 days ago

  > rideshares like Waymo
I don't live in California, so maybe I'm misunderstanding something. Uber and Lyft were ostensibly originally meant for people already travelling from point A to point B to share the ride with someone and make some money - and still could be used that way. But Waymo had always been a car-for-hire service with no pretension. So why is it grouped together with "rideshare" and not taxis?
theamk8 days ago
Probably because of UX?

At least in the US, the traditional taxis were terrible - only way to order is via phone call, you have no idea when your car will arrive, nor how much your trip will cost, there is no easy way to send feedback to driver, and there was a good chance for an generally unpleasant experience...

Uber/Lyft changed this all and actually made the car-for-hire services usable. In my circles, this was the real reason why everyone simply stopped using taxis completely the moment any alternatives appeared.

And Waymo has a nice app and clean experience, and won't take you long way so it can charge you more, hence people group it with rideshares, despite it technically being closer to taxi.

(I understand that in other countries, taxis were much better. Before Lyft, I always felt envious while reading about their taxi systems)

theokrueger8 days ago
waymo, uber, lyft, etc. are akin to a classic black cab service where you call a number to make a sort of ride appointment. these never needed taxi licenses, as taxis are specifically hailable from the street at will rather than prebooked.
roncesvalles8 days ago
I think calling them "rideshare" was always a legal euphemism.
mitxela8 days ago
"rideshare" means "taxis" now

Read the full thread on Hacker News →

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