Yerevan, the capital of Armenia, has an estimated population of 1.07 million. The population growth rate of 0.28% and 36% of the population is in the capital city.  It has a high demand for public transportation in the city such as Yerevan for the people to work and school.

Public Bus

Marshrutkas (Minivan)

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Marshrutkas are run by private companies and individuals.  

Disadvantages

Drivers are underpaid and work in poor conditions, many vehicles are obsolete.  It is not recommended to travel by marshrutkas in Yerevan as many vehicles are overloaded and in dangerous conditions.

Trolleybus

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Buses, trolleybuses are run by public companies.  

Payment

All payments in cash. Pay the driver when leaving the vehicle and please make sure the changes are ready.

Drivers go on strike for the low profit of minivan

10 Feb 2020 news.am

The drivers of passenger vans serving about a dozen public transport routes in Yerevan went on strike.  They demand from the government to find a solution for low taxes or lower the cost of gas.

How to manage public buses in a profitable manner

Implement Automatic Fare Collection (AFC) System as a crowdfunding tool.

The AFC system can bring good cash flow to the public transportation system as there are a deposit and unused value on each passenger card. Every million passengers will contribute over US$ 1 million in cash flows based on our study.  

Besides stopping fake money and driver’s fraud, the AFC system will bring in recurrent income from transaction fees. Every million passengers will bring US$ 5 million in income per year if the transaction fee is 5% based on our study.

Sustainable growth in public transportation development can be easily achieved.

Business Opportunity

Although GDP per capita in Armenia is expected to reach US$ 4,760 and exceed neighboring Azerbaijan’s and Georgia’s in 2020,  there is a high demand for public transportation especially in Yerevan with a 1.07 million population.

An AFC may be possible to help to make the trip safe as the vehicle owners will have more advance profit and more budget to pursue safety. This will avoid the manipulation of the fare collectors as well.

Sustainable growth in public transportation development can be easily achieved with the implementation of an AFC System.

However, most AFC systems are very expensive with comprehensive software for account-based and financial clearance.

A low cost and effective AFC system suitable for Yerevan has to be used. 

The writer is a frequency traveler.  For more detail, please visit autofare.net.

Post Author: GCSharing

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