Public transit fares are skyrocketing across Canada, leaving many to wonder: Why are our cities struggling to keep transportation affordable? It’s a question that digs deep into the heart of urban planning, social equity, and economic sustainability. With cities like Calgary, Ottawa, Edmonton, Victoria, and Vancouver all raising fares, it’s clear this isn’t just a local issue—it’s a national crisis. But here’s where it gets controversial: while transit operators are hiking prices to stay afloat, these increases are pushing low-income riders further to the margins. Can we really call public transit a public service if it’s becoming unaffordable for those who need it most?
The rising costs aren’t just about nickel-and-diming riders. Transit systems are squeezed by soaring energy, maintenance, and labor expenses, while gas tax revenues—a key funding source—are dwindling thanks to the rise of electric and fuel-efficient vehicles. Add to that the lingering effects of the COVID-19 pandemic, which gutted ridership and fare revenues. Emergency funds have dried up, and ridership still hasn’t fully rebounded. According to Statistics Canada, April 2023 saw ridership at just 84.2% of pre-pandemic levels. And this is the part most people miss: the financial strain on transit systems is compounded by Canada’s unique challenges, like urban sprawl and low population densities, which make it harder to operate routes efficiently.
But why does this matter? Lawrence Frank, an urban studies professor at the University of California, San Diego, puts it bluntly: “Raising fares to boost revenue is the easy way out, but it’s socially destructive.” He argues that current funding models force transit operators to rely heavily on fares, which cover an average of 59% of public transit costs in Canada. Yet, higher fares risk reducing ridership and pricing out those who can least afford it—often low-income individuals with no other transportation options. Frank’s research highlights the broader benefits of transit, from reducing obesity to cutting air pollution, and calls for a new framework that values these social and health benefits alongside economic ones.
Here’s the kicker: What if the solution isn’t just about fares, but about how we fund transit altogether? Advocacy groups are urging governments to reframe public transit as an essential service, like healthcare or education, deserving of stable, dedicated funding. A 2024 Leading Mobility Canada report warns of a “downward spiral” in transit services without new revenue streams. But here’s the controversial part: implementing solutions like road tolls or higher taxes on corporations and the wealthy—as seen in cities like London, New York, and Singapore—is politically risky. Would Canadians accept such measures to save their transit systems?
Some cities are experimenting with bold ideas. Orangeville, Ontario, made transit free in 2024, seeing ridership soar by 150-160%. The mayor noted it helped residents afford basic necessities like bread and milk. Canmore, Alberta, has offered free transit since 2022. Even New York City’s mayor-elect has pledged free bus service, funded by taxing the wealthy. But could such models work in larger Canadian cities like Toronto or Vancouver? And should they?
Urban sprawl adds another layer of complexity. Thiago Carvalho, a PhD student at McGill University, explains that sparse transit systems are inherently more expensive to operate. In contrast, dense cities like Tokyo integrate transit with real estate development, creating revenue streams that sustain and expand services. Canadian cities could adopt similar strategies, but it would require a long-term vision and political will.
So, what’s the way forward? Experts agree that without a fundamental shift in how we view and fund public transit, fares will keep rising, and service will suffer. Transit isn’t—and shouldn’t be—a profit-driven enterprise. It’s a lifeline for millions, connecting people to jobs, healthcare, and community. But to ensure it remains accessible, we need secure, sustainable funding models. The question is: Are we willing to make the tough choices to get there?
What do you think? Should public transit be free, or should we explore other funding mechanisms like road tolls or corporate taxes? Let us know in the comments—this is a conversation Canada needs to have.
