{"id":84757,"date":"2022-11-23T16:25:45","date_gmt":"2022-11-23T16:25:45","guid":{"rendered":"https:\/\/uzurv.com\/?p=84757"},"modified":"2026-05-13T09:20:04","modified_gmt":"2026-05-13T14:20:04","slug":"revenue-hour-billing","status":"publish","type":"post","link":"https:\/\/uzurv.com\/revenue-hour-billing\/","title":{"rendered":"Revenue Hour Billing and Non-Dedicated Service Providers (NDSPs) in ADA Paratransit."},"content":{"rendered":"

[vc_row][vc_column width=”1\/1″][vc_single_image media=”84782″ media_width_percent=”100″ uncode_shortcode_id=”180983″][vc_custom_heading uncode_shortcode_id=”278511″]How Do You Fit an NDSP into a Revenue Hour Billing Model?[\/vc_custom_heading][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ uncode_shortcode_id=”151854″]Ideally, You Don\u2019t. Here\u2019s Why (and One Way to Set Up Billing)[\/vc_custom_heading][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″][vc_column_text uncode_shortcode_id=”166011″]<\/p>\n

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Rather than shoehorning NDSP billing into a revenue hour model – innovative agencies and transportation management companies have carved out, or set aside, a portion of the total paratransit budget appropriate for the amount and nature of the rides they want to assign to UZURV.<\/h3>\n<\/div>\n

The revenue hour pricing model, typical for contracted paratransit service, makes a lot of sense for agencies managing the costs, and the productivity of operating a dedicated fleet of vehicles. This is the model used for most large, multi-year contracts for programs that provide hundreds of thousands to even millions of rides annually.<\/p>\n

Grossly oversimplified: revenue hour billing essentially is the billed cost for every hour a vehicle is in service transporting riders.<\/p>\n

For rail\/subway, bus transit, and paratransit systems, the revenue hour model, paired with how many passengers are transported \u201cproductivity\u201d in that hour, provides a reasonable measurement of the cost-effectiveness of those systems. This is a \u201cproductivity\u201d measurement that gets to a reasonable measurement of a per ride cost.<\/p>\n

The revenue hour pricing model, paired with productivity targets, enables contracting agencies to measure and manage its per-trip costs. One of the best ways to hit revenue hour goals in traditional paratransit (meaning dedicated fleets operated by hourly-wage drivers) is to \u201cmulti-load\u201d as many rides as is practical without negatively affecting on-time percentage rates. That\u2019s because the revenue hour is the same if a vehicle transports 1, 3, or 5 paratransit riders.<\/p>\n

So for paratransit programs, one way agencies measure the cost-effectiveness of paratransit is to look at a per-trip cost.<\/p>\n

Here’s an example:[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ back_color=”color-gyho” overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”103778″ shape_dividers=”” back_color_type=”uncode-palette”][vc_column column_width_percent=”100″ align_horizontal=”align_center” gutter_size=”3″ override_padding=”yes” column_padding=”0″ back_color=”color-gyho” overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1\/1″ uncode_shortcode_id=”536713″ back_color_type=”uncode-palette”][vc_custom_heading text_color=”color-210407″ heading_semantic=”p” uncode_shortcode_id=”110372″ text_color_type=”uncode-palette”]Revenue Hour Model[\/vc_custom_heading][vc_single_image media=”84768″ media_width_percent=”100″ alignment=”center” uncode_shortcode_id=”166976″][\/vc_column][\/vc_row][vc_row auto_text=”” text_lead=”” text_color=”” css_animation=”” animation_speed=”” animation_delay=”” parallax_intensity=”1″ parallax_centered=”” uncode_shortcode_id=”148044″ text_color_gradient=””][vc_column width=”1\/1″][vc_column_text uncode_shortcode_id=”853090″]A contract with a transit agency provides for $50 per revenue hour. Its fleet averages 1.3 rides per hour (productivity) – so divide the $50 per revenue hour cost by that 1.3 rides (this is a national average) and that means the system has a $38.46 per trip cost.<\/p>\n

Now let\u2019s look at using that model for a NDSP like UZURV, the Adaptive TNC.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ back_color=”color-gyho” overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ uncode_shortcode_id=”383797″ back_color_type=”uncode-palette” shape_dividers=””][vc_column column_width_percent=”100″ gutter_size=”3″ override_padding=”yes” column_padding=”0″ back_color=”color-gyho” overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1\/1″ uncode_shortcode_id=”603391″ back_color_type=”uncode-palette”][vc_single_image media=”80674″ media_width_use_pixel=”yes” alignment=”center” uncode_shortcode_id=”162540″ media_width_pixel=”250″][vc_single_image media=”84769″ media_width_percent=”100″ alignment=”center” uncode_shortcode_id=”497642″][\/vc_column][\/vc_row][vc_row row_height_percent=”0″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″ auto_text=”” text_lead=”” text_color=”” css_animation=”” animation_speed=”” animation_delay=”” parallax_intensity=”1″ parallax_centered=”” uncode_shortcode_id=”203715″ text_color_gradient=”” shape_dividers=””][vc_column column_width_percent=”100″ gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1\/1″ uncode_shortcode_id=”191532″][vc_column_text uncode_shortcode_id=”128481″]UZURV bills literally per trip, and so each trip equals one ride \u2013 and for the sake of simplicity, it\u2019s one paratransit rider per trip.<\/p>\n

The same transit agency assigns three rides of varying lengths to UZURV. Between the three trips, the combined time it takes our drivers to complete those trips is about an hour. We then bill the following:[\/vc_column_text][vc_column_text uncode_shortcode_id=”728877″]Trip A: $30
\nTrip B: $25
\nTrip C: $15<\/p>\n

Our total bill to the agency or Transit Management Company (TMC) would equal $70 for an hour of active time it took our vehicles to complete the rides – yikes! Who is going to eat the $20 difference between our costs per \u201crevenue hour\u201d and the contracted $50 per revenue hour?!<\/p>\n

Nobody actually will. In fact, everyone is typically saving money. And you can see why, look at our productivity – (the rides per hour – it\u2019s 3). Take that $70 we billed and divide that by the three trips – and the literal per-trip cost (not a revenue hour divided by aggregated average productivity across a whole fleet – but the actual average cost of the three trips) – it\u2019s $23.33.[\/vc_column_text][vc_column_text uncode_shortcode_id=”563032″]This is a crude example, but when TransPro analyzed more than 4.6 million paratransit trips and compared our productivity and costs as compared to traditional paratransit programs it found that UZURV was 57% more productive and resulted in a 30% per trip cost savings.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″][vc_column_text uncode_shortcode_id=”132111″]<\/p>\n

How to Set-Up Billing for Non-Dedicated Service Providers<\/b><\/h3>\n

The bottom line is that the revenue hour billing model boxes out the savings inherent with high-productivity NDSP models like UZURV. Rather than shoehorning NDSP billing into a revenue hour model – innovative agencies and transportation management companies have carved out, or set aside, a portion of the total paratransit budget appropriate for the amount and nature of the rides they want to assign to UZURV. The contract is then set up with per-trip billing at the core of the negotiation.<\/p>\n

Using a carve-out for NDSP\u2019s fits the spirit of the revenue hour model – which is finding a predictable billing model, that incentivizes productivity, and fits the mode of service.[\/vc_column_text][vc_separator sep_color=”” uncode_shortcode_id=”115015″][\/vc_column][\/vc_row][vc_row][vc_column column_width_percent=”100″ align_horizontal=”align_center” gutter_size=”3″ override_padding=”yes” column_padding=”3″ back_color=”color-209364″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ radius=”xl” width=”1\/1″ uncode_shortcode_id=”119562″ back_color_type=”uncode-palette”][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ uncode_shortcode_id=”126541″]Let’s talk about how UZURV can increase rider satisfaction and on-time performance for your ADA paratransit programs.[\/vc_custom_heading][vc_column_text uncode_shortcode_id=”157385″]UZURV quickly onboards fully FTA-compliant drivers to provide a higher level of service for paratransit riders, real-time ride monitoring, and transparent reporting, all for up to 30% less per trip as compared to traditional paratransit.[\/vc_column_text][vc_raw_html]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[\/vc_raw_html][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column width=”1\/1″][vc_single_image media=”84782″ media_width_percent=”100″ uncode_shortcode_id=”180983″][vc_custom_heading uncode_shortcode_id=”278511″]How Do You Fit an NDSP into a Revenue Hour Billing Model?[\/vc_custom_heading][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ uncode_shortcode_id=”151854″]Ideally, […]<\/p>\n","protected":false},"author":10,"featured_media":84782,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[71],"tags":[589],"class_list":["post-84757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-partners","tag-business"],"acf":[],"yoast_head":"\nRevenue Hour Billing and Paratransit | UZURV<\/title>\n<meta name=\"description\" content=\"How Do You Fit an NDSP into a Revenue Hour Billing Model?Ideally, You Don\u2019t. 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