Quito, the capital of Ecuador, has a population of 2.6 million and the population density is 19,000 residents per square mile. Quito has seen strong and steady growth throughout the years, and its job and educational opportunities, as well as its history, culture, and attractions will continue to attract new residents to this bustling city.
Ecuador’s economy depends upon its oil reserves. The government has major stakes in oil businesses as debts and public wages are paid through it. However, the fuel price hike totally affects the economy of Ecuador.
Government cut spending disrupted transport nationwide
4 Oct 2019 BBC News
Ecuador’s government has declared a state of emergency after protesters opposed to a fuel price hike disrupted transport nationwide.
Diesel and petrol prices are expected to more than double.
The fuel subsidies cost the government $1.3bn (£1bn) annually.
Students and the transport sector led a national strike. Taxi, bus and truck drivers blocked roads and bridges in the capital Quito.
“The lack of transport affects us all, but equally the rise in gasoline prices will affect us,” Quito-based business owner Cesar Lopez told Reuters news agency.
The government has an agreement with the IMF, signed in March 2019, that allows Ecuador to borrow $4.2bn (£3.4bn).
Private transportation is hardest for a ride
There are 3 independent public systems of buses like trolley or metro bus. People can use a monthly bus pass for these BRT buses.
However, there are other buses provided by private companies and member cooperatives which is normally the hardest challenge for visitors. Private bus companies also have hundreds of lines that go all around the city. These buses have their destinations on a sign in the front window, so reading the sign well and consulting with the assistant who collects tickets is always recommended.
An opportunity to raise revenue
The GDP per capita in Ecuador was last recorded at $5185.09 in 2018 and it is equivalent to 41 percent of the world’s average. Although it is one of the highest in per capita income, the living standard cannot withstand the rise of fuel prices.
Why not apply a sustainable automatic fare collection (AFC) to raise the revenue of public vehicles such as private buses? AFC basically collects cash from general public and uses the money to invest in the bus system or infrastructure.
Operating as an AFC operator independent from the bus company, you can have a positive cash flow of investment over USD 1 million, and earn about USD 1 million every year for a population of a million passengers.
The writer is a frequency traveler. For more detail, please visit mobileafc.net.