Tube prices increase 50% 'to deter cash users'

**n5gooner** · 5 October 2005, 07:28

but apparently if everyone got one of these cards he would then be loosing money. I can see the reason behind a card that you can top up, but prehaps the way he is go to make people use it is wrong....

**BoredBloke** · 5 October 2005, 08:35

Why would it lose money? There would be obvious cost savings when going down the cashless route. The underground would not have to pay people to go around emptying the machines of coins - I'd imaginge they fill up pretty quick at peak times. They wouldn't have to pay for have the huge quantities of coins taken to the bank. Also they would be carrying out fewer (and larger) cash transactions per day meaning less banking and easier accounting.

It is similar to why supermarkets give cash back on transactons. It reduces their overall cash take and means that their banking costs reduce.

**Rebecca Loos** · 5 October 2005, 08:53

Note how they didn't decrease the price of tickets for people using Oyster cards - they increase prices instead for cash users. Typical rip-off Britain attitude for a tube network that is already at least twice as expensive as the next most expensive tube in Europe.

**TwoWolves** · 5 October 2005, 08:56

The top-up Oyster Cards give London Transport an interest-free loan.

Obvious really.

**Mailman** · 5 October 2005, 22:38

And once everyone is using pre paid cards the Mayor can then raise prices to match cash prices and cover his short fall!

This is what I want to see start happening. Fairs go up by 10% then efficiency of public transport also go up by 10%. Failing that no price incrase!

Mailman

**Not So Wise** · 6 October 2005, 02:34

Originally posted by Mailman

This is what I want to see start happening. Fairs go up by 10% then efficiency of public transport also go up by 10%. Failing that no price incrase!

Yes thats what we all would like to see, sadly though experience tells us that the opasite happens, aka prices go up by X and the efficiency goes down by the same amount.

If anything prices for card users should be falling while cash users stay the same, London already has one of the most expencive, if not the most expensive public transport systems in the world.

**milanbenes** · 6 October 2005, 06:38

but that's ok cos Laaaandaners can afford it cos in laaaandan everyone's a millionaire init

Milan.

**n5gooner** · 6 October 2005, 07:02

Originally posted by milanbenes

but that's ok cos Laaaandaners can afford it cos in laaaandan everyone's a millionaire init

Milan.

....and the streets are paved with gold.....

**The Lone Gunman** · 6 October 2005, 07:06

Funny init, red ken tells us how he is concerned about the number of laandaners who live below the poverty line, how many of them live in the cash economy working in the grey sector.

He then specifically targets them with a huge increase in their travelling costs.

Tube prices increase 50% 'to deter cash users'