5 Lessons U.S. Transit Systems Should Learn from London

Public transportation in London achieves the sort of financial efficiency that most U.S. transit agencies can only dream of matching. Last year, Transport for London (TfL) spent 6.8 billion pounds operating its bus, rail, and metro systems, and generated 4.8 billion pounds in revenue (mostly through fares). In the parlance of transit wonks, that's a recovery rate of roughly 70 percent. In general terms, it means riders pay for most TfL operations, leaving taxpayers on the hook for only a slice.

The agency isn't stopping there. By the end of this decade, TfL expects to break even across its entire system—meaning it won't need any public subsidies for operations at all. (It will still require public support for major capital projects and some periodic maintenance.) TfL even plans to cover the cost of routes and services that lose money but provide valuable public services.