Summary of position paper: I support market based solutions and there are already many private transportation companies doing a good job.
A good example of a private sector local transportation company is the Supper Shuttle (airport) van service.
This company in competition to the many bus companies, taxis, cars etc. does an excellent job of bringing people from the airport to various destinations in the city. I would allow them and similar companies to compete with Muni in providing service also within San Francisco proper. Also I feel that Muni itself should have more pricing flexibility on its routes. As an example, we wouldn't expect an airline to charge the same fare for all destinations, in fact we all know that even on the same flight, there are many different fares charged. Why should it be any different on Muni? More specifically, I could imagine, a higher fare for the mostly tourist oriented Cable-Cars up to Nob Hill and lower fares for offpeak travel during the daytime on less used routes.
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