Motivations and impediments to service contracting, consolidations, and strategic alliances in public transit organizations

This article uses survey data to determine motivations and impediments to c ollaboration (Lc., contracting, merger/consolidation. and strategic allianc e) among public transit systems in the United States. The results suggest t hat transit systems are more likely to contract out passenger service if th ey are involved in the initiation of the collaboration effort and if they a re motivated by the possibility of increased resources and by government pr essure. The impediments To contracting include resistance from other agenci es and government funding agency restrictions. Mergers are motivated by cos t savings and government initiatives (or pressure). Strategic alliances are motivated by the promise of increased service effectiveness bur not so muc h by service quality, cost savings, or increased resources. An impediment t o the formation of strategic alliances is size of required capital investme nt (cost of vehicles, equipment, and facilities). The article also examines the policy implications of these results.