Buses, this mode of transportation we use every day, have you ever wondered why the fare is so cheap?

A ticket price of one or two yuan, compared to the tens or even hundreds of yuan that taxis and private cars charge, it's almost like giving it away for free! But do you really think that with just one or two yuan, it can support itself?

Today, let's explore the little-known secrets behind the low bus fares and uncover this long-standing mystery.

What is the operating cost of a bus?

Imagine if you were to run a bus company, and you had to support a huge "army of wheels" every day, what would you do? First of all, buying a brand new bus is not cheap, it can cost hundreds of thousands to millions of yuan, comparable to the cost of a small apartment!

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According to statistics, the average price of a new bus is about 500,000 yuan. Taking a city with 1,000 buses as an example, just the cost of purchasing vehicles requires a huge investment of 500 million yuan, equivalent to a year's fiscal revenue of a small city.

But the purchase cost is just the "initial investment" of the "army of wheels", what really makes the bus company headache is the daily "maintenance cost" of the vehicles. Buses have to run several round trips every day, and with long-term high-intensity "travel", it is inevitable that there will be faults and wear and tear.

To ensure the safe operation of the vehicles, regular inspections and maintenance are essential. This is not a small expense! Calculated at a monthly maintenance cost of 2,000 yuan for a bus, the annual maintenance cost for 1,000 vehicles is as high as 24 million yuan. Vehicle maintenance is like a bottomless pit, constantly devouring the funds of the bus company.In addition to the "iron lumps," the public transportation company also has to support a large group of "public rice eaters," the bus drivers. It is understood that the monthly salary of a bus driver generally ranges from 4,000 to 8,000 yuan, averaging about 60,000 yuan per person per year.

If a city has 2,000 drivers, then the public transportation company would have to spend 120 million yuan a year just on employee salaries! This expenditure is enough to buy a high-end office building in a second-tier city.

After talking about the personnel, let's look at the cost of "eating." A bus needs to run about 100 kilometers a day, and at a fuel cost of 1 yuan per kilometer, the fuel cost for 1,000 buses a year is as high as 36 million yuan.

This is just for conventional diesel vehicles, if it is a more environmentally friendly new energy electric vehicle, the charging cost will not be much lower. In addition, the tires, spare parts, and other consumables of the bus are also a considerable expense. The more vehicles there are, and the longer the distance they travel, the higher the cost of these "daily necessities."

It turns out that there is such a high operating cost behind the bus!

According to the research report of the World Bank, the vehicle purchase and depreciation account for about 30% of the operating cost of a city's public transportation system, personnel salary expenditure accounts for as high as 50%, and fuel and maintenance costs account for 15%-20%. These three expenses account for more than 95% of the total operating cost. With such a huge expenditure, if it relies entirely on the ticket income of one or two yuan, the public transportation company would probably have been in the red and faced the embarrassing situation of bankruptcy and closure.

So, how do they achieve a balance between income and expenditure and maintain normal operation under the meager ticket income?

How can the ticket price of one or two yuan maintain the operation of the public transportation company?The operating costs of buses can easily run into hundreds of millions of yuan, while passengers only spend one or two yuan for a ticket, which is like trying to move a mountain with a toothpick! However, this seemingly impossible task, bus companies have a unique secret, relying on the "three-axe plan" to achieve a balance of income and expenditure under the meager ticket revenue.

The "first axe" of the bus company is to "ask for money" from the government. Yes, as an urban infrastructure, the bus system, like roads, water supply, and power grids, requires a large amount of financial support from the government. This is like a "giant baby" that never grows up, relying on the "parents" to raise it from birth.

According to statistics, more than 70% of the investment in China's bus industry currently comes from government subsidies, amounting to tens of billions of yuan each year.

Taking Beijing as an example, in 2022, the city's bus system received more than 20 billion yuan in financial subsidies, accounting for more than 60% of the total operating costs. It can be said that without the "blood transfusion" from the government, the bus company would have been "bleeding to death" long ago.

But relying solely on the government, the bus company is not willing to be a "parasite". They also need to learn to be self-reliant and "earn extra money."

This brings us to the "second axe" of the bus company - advertising revenue. When you ride a bus, you must have seen the colorful advertising images on the body of the bus, or the commercial advertisements that are broadcast on the TV in the carriage. These are all "money trees"!

It is understood that the annual advertising revenue of a bus body can reach 100,000 to 200,000 yuan, and the advertising revenue of new media such as on-board TV is not less than 50,000 yuan. If you count the rent of advertising spaces in places like bus stations and ticket halls, the advertising revenue of 1,000 buses each year can reach at least 200 million yuan.

This is equivalent to each passenger "contributing" an advertising fee of 20 yuan to the bus company invisibly. The bus company is like a "moving billboard," running where there are more people, not only serving passengers but also serving the vast number of "big bosses."

In addition to advertising, the bus company also has a "killer move," which is to flexibly adjust the ticket prices. Do you think the bus ticket price has always been one or two yuan? That would be a big mistake! Bus companies can implement differentiated pricing according to different periods, different routes, and different models.For example, the fare for air-conditioned buses in Beijing is 50% higher than that of regular buses, and during peak hours in the morning and evening, passengers also need to pay a congestion surcharge. According to estimates, for every 10% increase in bus fares, the operating revenue of the bus company can increase by about 8%.

In some suburban areas with lower passenger flow, bus companies will introduce various preferential tickets to encourage more citizens to take public transport. Flexible pricing strategies allow bus companies to ensure basic revenue while also appropriately "harvesting leeks."

It turns out that government subsidies, advertising revenue, and differentiated fares, these "three axes" work together to support the operation of the bus company!

According to statistics from the World Bank, in developed countries, bus fare revenue generally only accounts for 30%-40% of the total operating costs, while government subsidies and other income such as advertising account for 60%-70%. Cities like Shanghai and Guangzhou in our country have basically achieved this ratio.

It can be seen that even if each ticket only sells for one or two yuan, the bus company is not "making a loss to attract attention." It has a diversified blood-making function, and under the seemingly meager profit, it can also achieve its own good development.

The social significance behind the low fare

The bus fare of one or two yuan seems insignificant, but it contains far-reaching social significance.

It is not only a traffic ticket but also a "happiness ticket" to a good life.

For ordinary citizens, the bus is like a "good friend" who is always available, whether it is going to work, shopping, or traveling and visiting relatives, as long as one or two yuan can travel all over the country. This is simply a "welfare" for those who do not have private cars or have lower incomes.According to statistics, nearly 80% of urban residents in our country choose buses as the main mode of daily transportation. Taking Beijing as an example, with a population of more than 10 million, more than 12 million people take the bus every day.

It can be said that buses carry the travel dreams of hundreds of millions of people, offering the most people-friendly prices, giving everyone the opportunity and confidence to "go out".

The low ticket price of buses not only gives the wallets of the citizens a "sigh of relief", but also gives the city's traffic a "sigh of relief". Let's imagine, if there were no buses, those who originally traveled by bus would turn to driving private cars or taking taxis.

The road occupancy area of a private car is equivalent to 11 buses, and the cost of taking a taxi is more than ten times that of a bus. In this way, the already congested urban roads will become even more impassable, and the traffic system will collapse.

Taking Beijing as an example, if the 12 million bus passengers in the city switch to driving private cars, it will increase the number of motor vehicles on the road by nearly a million, equivalent to a quarter of the existing number of vehicles.

According to calculations, for every 1 passenger transported 1 kilometer by a bus, it can reduce the consumption of about 0.5 liters of gasoline. The bus travel of 12 million people can save 6 million liters of fuel for the city every day, reducing emissions by 1,500 tons of carbon dioxide.

It can be seen that the low ticket price has encouraged more people to take the bus, not only alleviating traffic pressure, but also making an important contribution to the city's energy conservation and emission reduction.

From a longer-term perspective, a well-developed bus system and low ticket prices are crucial for the sustainable development of a city. It can not only improve the urban environment, alleviate traffic congestion, but also enhance the city's image and attract more talents and investments.According to research by the World Bank, there is a positive correlation between a city's public transportation level and its economic development. The more developed the public transportation system, the higher the per capita GDP, and the more livable the city becomes.

Take Hong Kong as an example. Despite its small size, over 90% of its residents choose public transportation, and the number of times per capita taking the bus ranks among the top in the world. As a result, Hong Kong has become one of the wealthiest and most competitive cities globally.

It is evident that low-priced buses not only meet the travel needs of citizens but also carry the future development of the city.

Someone once said that the level of civilization of a city can be seen from its public toilets and public transportation system. The low ticket price of the bus not only allows citizens to enjoy tangible benefits but also brings valuable development momentum to the city.

It exchanges a price of one or two yuan for the happiness and sense of gain of hundreds of millions of people, and also adds wings to the sustainable development of the city. This is the social significance behind the low ticket price of the bus.

From the meager ticket price of the bus, we see the astonishing operating costs behind it and also see the unique secret to maintaining a balance of income and expenditure. More importantly, we see the huge welfare that the bus brings to urban development and the lives of citizens.

It exchanges a price of one or two yuan for the convenient travel of hundreds of millions of people and also adds wings to the green development of the city. These seemingly simple numbers carry the hard work of the bus people and also condense the beautiful vision of the city.