Dolmus Operator Excess and Net Profit With Respect to Compared Mode

In the previous section cost of each passenger to dolmuş has been calculated for per km and total km values. By subtracting these values from ticket price of dolmuş the excess profit of dolmuş operator could be found. In here, as there are two different calculations made namely per km and total km, excess profit calculations will be made for the same two titles also. However, it is important to remember one more time that there are two different comparisons of dolmuş and dolmuş related modes.

First one was single mode comparison (Dolmus-Bus and Dolmus-Metro) and the second one was multimodal comparison (Dolmus+Bus-Bus+Bus and Dolmus+Metro-Bus+Metro). In excess and net profit calculations, the mean value, which is 8.9 km for dolmuş operations, could be used directly for single “Dolmus”

however; dolmuş transferred choices excess profit calculations should be made in a different way. As it is not possible to divide mean km travelled before and after transfers, similar to what is made before, the best way possible would be to divide the values of transferred choices into two.

6.5.1.1. Per km Calculations

In calculation of the formula for single mode comparison excess profit is;

Dolmuş Operator^'sExcess Profit Per km = Ticket Price-(Mean km*Cost Per Pax Per km)

Mean km (26)

Dolmuş Operator^'sExcess Profit Per km = 2.25-(8.9*0.174) 8.9

Dolmuş Operator^'s Excess Profit Per km = 0.0786 TL per km (Single Mode)

In calculation of the formula for multimodal mode comparison excess profit is;

172

Dolmus Operator^'s Excess Profit Per km = Ticket Price-(Half of Mean km*Cost Per Pax Per km)

Half of Mean km (27)

Dolmus Operator^'s Excess Profit Per km = 2.25-(4.45*0.174) 4.45

Dolmus Operator^'s Excess Profit Per km = 0.3316 TL per km (Multimodal)

The important point is that the dolmuş might expect that these costs are compensated and therefore, this issue may become important during a negotiation process between the dolmuş operators and the transit authority (in integrating dolmuş fares to the city’s integrated ticket system). However, there is another input, which should be included before the calculation of net profit of dolmuş operators. This input is the value of time saving that dolmuş operator provides. The question in here is, why it is so important to include travel time savings of dolmuş users? Rationally, if any public transport service provides a better, faster, reliable service compared with its competitors, it is not acceptable to charge it with the same price with the competitors.

It is contrary with the basic principle of the economics. Better-qualified supply should be priced with a price determined according to the advantage it provides. That is why; this travel time advantage of the dolmuş users should be added to the excess profit for the calculation of net profit. In that approach, net profit of dolmuş operator could give an idea about the possible ticket prices of dolmuş per km after ticket integration. In other words, a value between 0 profit and Net profit could be reduced from the existing ticket price of the survey period, which was 2.25 TL. Depending on the zone it operates, dolmuş price could be possibly re-arranged by UKOME, the transport coordination center of the Greater Municipality. It is obvious from the table below especially for transferred trips that the net profit of dolmuş is as high as 0.30 TL per km (See Table 31).

173

Table 31. Dolmus Operator’s Net Profit With Respect to Compared Mode (Per km)

*** Dolmus Operator's Net Profit Per KM = Dolmus Operator's Excess Profit Per KM - Time Saving Dolmus Service Provides Per KM with Respect to Compared Mode

These net profit values shown in the table above demonstrates that especially for the transferred choice a reasonable average price is possible for both dolmuş user and dolmuş operator. To give an example about how to decide the price of new ticketing after integration; a zone within Ankara can be chose. For example, this can be done for dolmuş users of Cayyolu, Umitkoy (12 km) zone with a view to determine a new ticket fare. This zone is chosen because, it is one of the most suitable lines for dolmuş feeder as it is on the same metro route like METU.

New Ticket Price=Old Ticket Price-(Net Profit per km*Half of Distance Travelled)+0 Profit

2 (28)

New Ticket Price=2.25-(0.2986*6)+0 Profit 2

New Ticket Price=1.35 TL per headway

For the explanation of the formula, as it is a transferred choice the half of the distance is used for the calculation of net profit for the whole trip. About the addition of net profit and 0 profit values; not reducing all net profit per km value is because if new ticket is determined by reducing all of the net profit of dolmuş operator then it would not be possible for the operators to get any profit and a negotiation may not be possible with that zero profit. Rather than cancelling out all net profit for the

174

negotiation, a reasonable new price could be charged. Additionally, it should not be forgotten that new public transport service distribution will change the whole carrying capacity of public transport. Possibly, some private car users’ would start to feel that public transport is a good option for commuting trips and finally passenger capacity in zones especially around the metro corridors will increase in significant amounts. Definitely, this passenger increase will reflect to the passenger number of feeder mode dolmuş. Additionally, it is important to indicate one more time that this is a pilot study and with a greater sample and much more aim specific survey design more significant and reliable results could be found.

6.5.1.2. Total km Calculations

In total km calculation the formula for single mode comparison excess profit is;

Dolmus Operator^'sExcess Profit Total km=Ticket Price-(Mean km*Cost Per Pax Per km) (29) Dolmus Operator^'s Excess Profit Total km=2.25-(8.9*0.174)

Dolmus Operator^'s Excess Profit Total km=0.70 TL total km (Single Mode)

In calculation the formula for multimodal mode comparison excess profit is;

Dolmus Operator^'s Excess Profit Total km = Ticket Price-(Half of Total km*Cost Per Pax Per km (30)

Dolmus Operator^'sExcess Profit Total km=2.25-(4.45*0.174)

Dolmus Operator^'s Excess Profit Total km=1.4757 TL Total km (Multimodal) In total km calculations too, excess profit calculations do not include the value of time saving that dolmuş operator provided. If again, net profit calculations is made the results could be seen below (See Table 32);

175

Table 32. Dolmus Operator’s Net Profit With Respect to Compared Mode (Total km)

*** Dolmus Operator's Net Profit Total KM = Dolmus Operator's Excess Profit Total KM - Time Saving Dolmus Service Provides Total KM with Respect to Compared Mode

These net profit values in the table above demonstrates an average value for excess profit. Differnet than per km values, as they are standardized according to mean km values, they are not as suitable as per km calculations. It could give an average price that could be used for all dolmuş integrations however, as can be seen from the table above, using the half of net profit from that deduction will not be beneficial because it creates a reduction equal to 0.50 TL, which is not acceptable for the users. Besides, negative results of fixed ticketing is mentioned and explained in detail in the previous chapters. That is why, it is better to use per km values for distance based pricing rather than proposing a fixed reduced price for all dolmuş operations.

6.6. Summary: Ticket Integration Proposal for Feeder Dolmuş