Fares are a small part of the bill.
At the average U.S. transit agency, fares paid 13% of operating costs in 2024, and 6% at the median one. Taxes and grants pay most of the cost of a bus ride already. That gap is why a sponsor, an employer or an advertiser can make a real difference to what a rider pays.
Free brings riders.
Where fares went away, ridership rose by about half on average, and service tended to grow rather than shrink. It’s the strongest evidence so far for the idea behind Vugo’s analysis of free transportation: take the fare away and people ride.
Somebody still pays.
Lost fares were replaced by outside money, and Kansas City’s return to fares in 2026 shows that funding has to last. Vugo’s argument is that advertising is one of those sources, and it already pays for sponsored rides, where a brand covers the fare and the rider sees who paid.