Staff Report #9
October 19, 2026
To All Commissioners
Re: Fare Payment Options Review
Recommendation
That the Commission:
- DIRECT Administration include an initiative to undertake the required work in order to bring forward a Business Case and related Implementation Plan for Additional Fare Payment Options on the 2027 Annual Work Program, with timelines that allow for consideration as part of the 2028-2031 Multi-Year Budget; and
- the report be RECEIVED for information.
Background
The 2026 Work Program included an initiative to undertake a review of additional fare payment options that could be implemented going forward, including but not limited to open payment onboard (debit/credit tap). Prior to issuing the RFP for consultant services for this review, recommendations stemming from the City of London Rapid Transit Readiness Review were forwarded to the Commission, one of which was to give consideration to all-door boarding on Rapid Transit services. The scope of the RFP was expanded to include this review, as the two paths forward would need to be linked in order for a smooth implementation.
Left Turn Right Turn Ltd. completed a review and prepared a 2026 Fare Strategy Report (see Enclosure I, dated October 19, 2026) which includes a recommended path forward for each of the areas of review. The remainder of this report provides a high-level summary of the recommendations noting representatives from Left turn Right Turn Ltd. will provide a presentation at the meeting and will be available to answer any questions from the Commission.
Fare Strategy
The purpose of the Fare Strategy review included the need to develop a plan for the replacement of the current on-board fareboxes given they have reached the end of their useful life, chart a course for the future giving consideration of intelligent fare payment systems and ultimately to develop a strategy for fare collection moving forward. The review included an assessment of industry trends and best practices, and assessed a number of scenarios, all of which are explained in detail in Enclosure I.
The final recommendations relating to fare collection are that LTC should:
- undertake a phased replacement of the current on-board fareboxes with gravity fareboxes;
- implement an open payment and mobile e-ticketing system; and
- consider transitioning away from the current smart card system based on uptake of the new fare payment options.
This approach integrates emergent technologies through a balanced approach, providing for a smooth transition that will minimize customer disruptions.
As set out in the Enclosure, the estimated capital costs associated with this approach are $6.0 million with an additional estimated $1.4 million in annual operating costs. As set out in the report recommendation, the recommended approach will have both operating and capital budget implications and as such Administration is recommending that the Commission provide direction to undertake the required work associated with the preparation of the relevant business cases to move forward with this direction for consideration as part of the 2028-2031 Multi-Year Budget process.
All Door Boarding Assessment
Included in the scope of this study was the assessment of all door boarding on rapid transit services. This scope was added as the result of a recommendation stemming from the City of London Rapid Transit Operational Readiness Review. The assessment considered peer Canadian transit systems with similar operating conditions as will be in place in London (RT service and other conventional routes both utilizing RT stations).
The basis for the recommendation in the City of London review was that all-door boarding would speed up the overall boarding process and reduce dwell time on the RT routes. While schedule adherence is an important factor for the RT service, reductions in dwell time will only be achieved when excessive passenger boardings occur at each station. High levels of passenger boardings are anticipated once the ridership levels grow, however this is not anticipated in the initial years of operation.
This assessment considered the potential dwell time savings of all door boardings against the costs associated with moving in that direction for the RT services. All door boarding requires the use of fare inspectors in order to ensure that riders boarding through the back doors have paid a fare as well as additional fare payment equipment installed on each RT bus. The other critical factor considered was customer convenience, noting that all door boarding would only be an option for RT services. As the RT stations in London will be utilized for both RT services and other conventional routes, confusion with respect to which buses allow for all-door boarding was identified as a significant concern. The peer review confirmed that this concern was also shared in Brampton.
The estimated costs associated with a move to all door boarding for the RT service (East and South legs only) is $0.300 million for onboard equipment and $1.0 million in annual operating costs for fare inspection
The recommendation relating to all door boarding on the RT services is that LTC should not proceed at this time. This does not preclude a move to this option in the future as ridership grows to the point where dwell time is becoming a concern on RT routes. The assessment of this option will be incorporated into the report that will go the Strategic Policy and Priorities Committee in response to the recommendations stemming from the City of London Rapid Transit Operational Readiness Review.
Enclosure
Recommended by:
Mike Gregor, Director of Finance
David Butler, Director of Operations – Conventional
Shawn Wilson, Director of Operations – Specialized
Katie Burns, Director of Planning
Concurred in by:
Kelly S. Paleczny, General Manager