Effectiveness of electronic ticketing system in improving fare revenue collection of Public Transport in Kigali City. Case study: Kigali Bus Services Ltd

Abstract

Electronic ticketing system is critical factor in public transport fare collection. KBS ltd started using Tap and Go card in 2016, replacing the old method of cash payment which much of liquid cash used to get lost. The aim of the study is to assess whether e-ticketing system brings any improving in fare collection of KBS Ltd. This study is primarily based on both primary and secondary data. Primary data was mainly collected from 392 surveyed KBS commuters through close-ended multiple questionnaire and three interviews of KBS directors. The secondary data obtained from financial reports of KBS ltd submitted to RURA. Inferential and descriptive statistics were used. The responses have been analyzed using SPSS and the findings were presented thereof using frequencies, corresponding percentages, tables, charts and diagrams. To justify the sensitivity of e-ticketing system to fare revenue collection improvement, the chi-square test was used and the researcher determined that there is a significant relationship between e-ticketing system and fare revenue collection improvement in KBS with an asymptomatic significance which is less than the p-value of 0.05 and this was confirmed by result from reported fare collected analysis which is almost the doubling of overall growth rate at 15.5% in post e ticketing compared to overall growth rate of 8% in pre e-ticketing system. The managing director of KBS confirmed this during an interview that the fare revenue collected has increased in great extent since they started to use e-system in fare collection. However, persistent long queuing in bus stations and stops during peak hours is still a challenge; Some bus driver’s behaviour to take cash in hand, high cost of tap and go card, no refund when erroneously taped on validator machine, lack of POS agents to new roads and there is no interoperability. The researcher recommended KBS and public transport stakeholders to introduce of Dedicated Public Transport Lanes to improve the speed in public transport services during peak hours and eliminating persistent long queue; clear plan of trips. AC group must update tap & go system to become most efficient in service delivery and multipurpose in payment of goods and other services that can become a means of COVID-19 preventive measures, AC group must reduce or remove the cost of tap and go card and having a possibility to refund when erroneously taped; RURA must put a tap & go regulation, increase inspection, enforcement and punitive measures to discourage cash fare payment.