The San Diego Metropolitan Transit System (MTS) in the US has received approval from its board of directors for a contract with moovel North America to implement a new mobile ticketing application.
moovel is software company that provides seamless multimodal experiences and connected transit commerce through mobile applications.
After securing approval from the North County Transit District’s (NCTD) board, MTS and NCTD will enter a cost sharing agreement for the contract for development costs and annual maintenance costs.
Valued at $347,500, the six-year agreement includes a three-year base period and three one-year options, with moovel also taking a 4% commission on ticket sales.
MTS CEO Paul Jablonski said: "Nearly 70% of our customers carry a smartphone and two-thirds of them said they would likely use mobile ticketing if it were available.
"Mobile ticketing speeds up the boarding process, and puts the ticket vending machine in the pocket of our passengers. It will make riding transit in San Diego much easier and convenient in the future."
Earlier, moovel has partnered with other transit agencies across the US to employ mobile ticketing including TriMet, Virginia Railway Express, Chicago Transit Authority, San Francisco Municipal Transportation Authority, and METRO Houston.
moovel North America CEO Nat Parker said: "We believe mobile is the future of transit and we are thrilled to be selected by the San Diego Metropolitan Transit System (MTS) as their mobile ticketing partner.
"moovel strives to be the most innovative provider of mobile ticketing software through our moovel transit platform. MTS is leading the way by embracing these technologies, and we look forward to providing their riders with an easier commute."
The mobile ticketing agreement follows a three-year pilot programme for special events served by MTS’s trolley system.
Since that programme was implemented, the number of mobile ticketing transactions had jumped from 7,500 in 2013 to 18,600 in 2015.