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Mobile Application Contract Extension, Token Transit
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DESCRIPTION: Authorization contract extension for mobile ticketing application software-as-a-service provider, Token Transit |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to extend the contract with Token Transit, RTA’s mobile ticketing application vendor, for a maximum term of 24 months for the total not-to-exceed amount of $1,200,000.
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ISSUE/BACKGROUND:
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RTA launched the Coordinated Fare Modernization Initiative (CFMI) in 2022 as a multi-Departmental effort to modernize all fare-related elements at RTA including marketing, sales, ticketing, collecting, validation, and accounting. One of the initial projects in CFMI was to identify and implement a replacement mobile ticketing solution after the unexpected decision of Transdev to sunset RTA’s previous mobile application, GoMobile in August 2022. Staff had 6 months to stand up a replacement in a process that typically takes 12-24 months.
RTA staff sought a solution that could reasonably deliver mobile applications by the end of July 2022 to ensure that the agency met the transition date of August 28, 2022. Moovit was selected for its off-the-shelf “white-label” app that has been RTA branded as “Le Pass”. Token Transit was selected to be integrated into Le Pass (and several other 3rd party applications) to provide the mobile ticketing component. “Le Pass” with the ticketing application, Token Transit, successfully launched. The initial one-year subscription to Token Transit began on June 30, 2022, and extended through June 30, 2025 via RTA Board approved resolution 23-054. Since its introduction in 2022, mobile ticketing, powered by Token Transit, as seen annual revenue increased from 28% of all fares sold to 48%, or $3.9M, in 2024.
Historic Performance
Token Transit fees are a percentage of mobile ticketing fare sales. As a result, as mobile ticketing sales increase due to their ease of use and convenience by riders, the fee RTA pays Token increases. A review of previous projections and actual fees shows the need to allocate additional funds to the upcoming renewal period. The initial 2022 Token Transit purchase order for $300,000.00 reflected the original GoMobile projected funds. The actual year fee total was $295,200.88. The 2023 - 2024 projected a two-year total of $800,000 with an actual of $912,931.85. Revenue has significantly exceeded projections with sales increasing 14.12% higher than mobile ticketing sales over the previous requisition in 2023.
Sales Fees 2023 - 2025
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Year Term |
Projection |
Actual |
Difference |
|
June 2022 - May 2023 |
$300,000 |
$295,000.88 |
-$4,999.12 |
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June 2023 - May 2024 |
$400,000 |
$421,297.46 |
+$21,297.46 |
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June 2024 - May 2025 |
$400,000 |
$491,634.39 |
+$91,634.39 |
Previous Improvements
During the initial three years of the agreement, staff worked with Token Transit and Le Pass vendor, Moovit, to identify and implement the following improvements:
|
Feature |
Outcome |
|
Integrate JP Transit Ticketing |
Purchase of JP Transit tickets using Token Transit displaying tickets in Le Pass as well as Regional Ride passes for a more integrated and seamless regional experience |
|
Pass Distribution Program |
Bulk ticket purchase for use by institutions for distribution for termed use, i.e. students per semester, team per event, employees per month, etc. |
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Opportunity Pass Program |
Zero-fare pilot program for eligible Orleans Parish residents aged 16 to 24. |
RTA seeks to extend the agreements for a term of up to 24 months to afford time to open for Requests for Proposals (RFP) and implementation of selected responses.
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DISCUSSION:
RTA staff seeks to renew the agreements for same to continue to meet and improve service delivery. As discussed in the previous section, a significant amount of effort has been put into standing up Token Transit and its seamless integration within Le Pass, and changing vendors is a major undertaking.
Using the monthly sales fee data for the 2024-2025 renewal term, RTA staff projected a ten percent increase over the course of the upcoming two-year period to comprise the projected costs for 2025 - 2027.
Fee Projection 2025 - 2026
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Year Term |
Projection |
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June 2025 - May 2026 |
$545,218.15 |
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June 2026 - May 2027 |
$599,739.96 |
Based on consistent growth over the past three years, RTA coupled with planned improvements projects higher revenue and requests total allocation of $1,200,000 for the requested two-year extension (2025-2027).
Upcoming Improvements:
A number of additional improvements are already well underway and several other new features are included in a contract extension for Moovit:
|
Feature |
Benefit |
Status |
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Cash app payment |
Allows un(der) banked users a means of payment in the app |
12-month pilot option proposed; added cost of $32,000.00 |
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Paratransit fares |
Allow paratransit rider to pay in app provide more cashless options |
Pending selection of new paratransit software (anticipated in late 2025) |
Given the level of investment already put into delivery, improvements, and marketing, staff seeks to extend the Token Transit contract for maximum of two years. The extension also includes other continuous improvements and upgrades listed above and the staff will continue to do rider outreach and education to improve app experience. To maintain the continuity of mobile application service, RTA staff seek to continue with Token Transit for an up to 24 month renewal for a total not to exceed $1,200,000.00.
FINANCIAL IMPACT:
The total cost to maintain the mobile ticketing application is not to exceed $1,200,000.00.
2025 - Token fees $545,218.15
2025 Cash App integration $32,000.00
2026 - Token fees $599,739.96
Contingency $23,041.89
20-24 month renewal total $1,200,000.00
Funding would be from local funds from account 01-2900-02-7140-151-82-00-00000.
NEXT STEPS:
Upon RTA Board Approval, staff will extend mobile ticketing application agreement for a maximum term of 24 months and award purchase order to Token Transit not to exceed $1,200,000.00.
ATTACHMENTS:
1. Resolution
2. Token Transit Agency Terms Final Draft
3. Token Transit - Cash App Pay - 050725
4. Token Transit Sales Fees
5. 2023 Token Transit Board Renewal
6. PO_914090
7. Requisition Routing Approval Form
Prepared By: Doris O’Sullivan, dosullivan@rtaforward.org
Title: Senior Project Manager of Information Technology
Reviewed By: Dwight Norton, dnorton@rtaforward.org
Title: Chief of Strategic Planning
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
7/18/2025
Lona Edwards Hankins Date
Chief Executive Officer