Examining the influence of multidestination service orientation on transit service productivity: a multivariate analysis

Between 1990 and 2000, U.S. transit agencies added service and increased ridership, but the ridership increase failed to keep pace with the service increase. The result was a decline in service effectiveness (or productivity). This marks the continuation of a long-running and often-studied trend. The scholarly literature attributes this phenomenon, at least in part, to transit agency decisions to decentralize their service rather than focus on serving the traditional CBD market. Many scholars argue that a decentralized service orientation is both ineffective and inefficient because it attracts few riders and requires large per-rider subsidies. This research tests whether a non-traditional, decentralized service orientation, called multidestination service, results in reduced service productivity. Contrary to what the literature suggests, we find that MSAs whose transit agencies pursued a multidestination service orientation did not experience lower productivity. These results indicate that policies that have encouraged the growth of decentralized transit services have not necessarily been detrimental to the industry.