3 days ago
OC Transpo eyes vending machines in O-Train stations, selling merchandise to help boost revenue
OC Transpo is looking at installing vending machines in O-Train stations, expanding retail operations at stations along Lines 1 and 2 and selling OC Transpo hats and collectibles as part of a plan to boost non-fare revenue for the city's transit service.
During the 2025 budget debate, council directed staff to develop a plan to increase revenue from rentals, retail leases, advertising and sponsorships by 10 per cent in 2025 and another 10 per cent in 2026. In 2024, OC Transpo generated $1.95 million in revenue through advertising on buses, in O-Train stations and on the Transitway, and another $2.5 million in revenue though advertising on digital and printed transit shelter advertising.
A report for the June 12 Transit Committee meeting outlines a new 'Non-Fare Revenue Strategy,' with plans to increase revenues within the next five years, including new digital screens and advertising installations and expanding retail opportunities.. Under the proposed plan, OC Transpo expects to add $2.3 million in annual non-fare revenues, bringing the total to $6.8 million a year.
'Priority 1' for the plan includes piloting vending machines in O-Train Line 1 stations, adding new retail locations in select O-Train stations and temporary retail opportunities and pop-ups, expanding billboard advertising and accelerating the digitization of transit shelters for advertisements.
Only three O-Train stations currently have a retail option for transit riders, according to OC Transpo. Happy Goat Coffee has kiosks at Tunney's Pasture, Hurdman and Blair stations.
'Priority 2' for the 'Non-Fare Revenue Strategy' includes assessing a pilot project to set up lockers as a 'last-mile partner' for third-party delivery services, looking for opportunities to monetize non-commercial spaces on transit properties and exploring the expansion of the 'Bus Charter Program' to lease out buses. The third priority includes renting out Park and Ride lots when they aren't being fully used and selling OC Transpo merchandise, gifts and collectibles.
'While revenues generated from non-fare activities are relatively small compared to the transit operating budget, they will remain a consistent source of revenue that can be reinvested in the transit system, contribute to offsetting potential fare increases, provide OC Transpo and the City of Ottawa with highly valuable in-kind advertising space, and moreover, provide other benefits for transit customers and OC Transpo,' OC Transpo says.
'New digital screens and advertising installations will showcase products, services and events to our customers, as well as provide another way for OC Transpo and the City of Ottawa to inform residents about services. Retail spaces and vending provide shopping and convenience amenities for customers as well as safety benefits from passive surveillance.'
The report says OC Transpo will dedicate a team within Transit Services to focus on boosting non-fare revenues through sponsorships, advertising and rentals. There is currently no team at OC Transpo focusing on overseeing and pursue new non-fare revenue activities.
Staff say the city does not anticipate meeting council's direction to increase non-fare revenues by 10 per cent in 2025 and 2026.
OC Transpo is looking to boost revenue as it faces a shortfall in transit fares. OC Transpo posted a $1.7 million budget deficit in the January to March period.
