King County Metro Transit’s vanpool program has finally become operationally self-sufficient. According to the National Transit Database, King County Metro’s vanpool program cost $10,658,554 to operate in 2013. Yet vanpool revenues more than made up for that – users paid about $11.5 million.

That’s a vanpool farebox recovery rate of 107%. Other transit agencies in the Puget Sound region have improved their cost-recovery as well, but have yet to reach operational self-sufficiency. Community Transit officials in Snohomish County recover about 70% of operating costs from vanpool users. Pierce Transit officials recover about 73%.

Not only does the Metro vanpool program pay for itself (excluding capital costs), it’s cheaper to hop on a vanpool today than it was in 1996, the first year data are available from the federal database. In 1996, it cost $3.10 to carry a vanpool passenger, or $4.60 after adjusting for inflation. Today it costs $3.02.

Much of the reduced cost has come from a sharp increase in vanpool demand as ridership has nearly doubled on Metro vanpools since 1996. In addition, vanpool drivers are not paid by transit agencies to operate the vehicles, saving taxpayer money on wages, salaries and benefits.

Even though King County Metro Transit officials have had success in covering the cost of vanpool operations, they should still work to phase in full cost recovery of capital expenses and continue to grow the vanpool program to saturate the market. Other local transit agencies should follow King County Metro’s lead. Vanpools are a much more cost-efficient option than light rail or commuter rail for suburban to urban trips and hold significant advantages over commuter buses for intercity transit.

The region’s agencies should also work toward a full cost recovery model that would allow private vanpool operators the chance to compete in the Puget Sound region as vanpool demand continues to surge.  See our Vanpool study for more information on how vanpools contribute to moving the most people at the least cost.