System Update Smart Card Alliance Payments Summit April 6, 2016 OVERVIEW: CHICAGOLAND TRANSIT

• Transit Authority (CTA): Provides bus and rail service in Chicago and 35 surrounding suburbs • Pace Suburban Bus: Provides fixed bus route, paratransit, and vanpool services in 284 municipalities • Metra: Provides commuter rail service at 241 stations along 11 lines

2 CTA FARE SYSTEM EVOLUTION

1950 (Bus) 1995 2002 (Chicago Card) 1952 (‘L’) 2004 (Chicago Card 2013 Plus)

3 WHAT IS VENTRA?

4 VENTRA COMPONENTS Fare collection system Fare media procurement Customer account system Retail network Cash collection (not including bus) Gate and device maintenance Data collection and reporting Customer communication Customer service Regional integration Pace, RTA, Metra

5 WHY MAKE THE SWITCH? Legacy equipment nearing end of useful life Proprietary system Chip supply dwindling High capital costs to replace system - $140 M Readers, Vending Machines, Network devices, etc. Focus on core mission of CTA: moving people, not money Future-proof system Enhance customer convenience Ability to store all kinds of fare products on one card State legislation

6 VENTRA TIMELINE August, 2009 – Step 1 RFP issued April, 2010 – RFC issued November, 2010 – Step 2 RFP issued November, 2011 – Contract awarded to Cubic Transportation Systems Chicago, Inc. September, 2013 – Go Live “Stabilization” period July 1, 2014 – Legacy decommissioned October, 2014 – Mobile App announced November, 2015 – App launch

7 CHALLENGES

8 FIRST OF ITS KIND, INNOVATIVE TECHNOLOGY OFTEN HAS GROWING PAINS

9 ALL AT ONCE!

1886 BUSES

774 RAIL GATES

(PLUS 400 VVMS, 1300 RETAILERS)

10 AREN’T WE ACCOUNT BASED?

11 COMMUNICATIONS CHALLENGE:

How to communicate the new, improved cutting edge system that will essentially change nothing about how people board a bus or train?

12 VENTRA: LESSONS LEARNED

Focus on customer experience first and foremost Impossible to over-communicate with customers An account-based system is different Treat Special Fare Programs as their own major project Take advantage of data to guide deployment process Begin internal conversations early about data use Test, test, test Launch when ready Account-based transition is worth it

13 VENTRA: WHERE ARE WE NOW?

November, 2015 December, 2015 January, 2016 February, 2016 Ridership 36,737,247 35,520,235 34,523,568 35,667,619 Revenue $45,472,546 $48,179,743 $48,622,567 $47,333,991

# Accounts 5.57 M 5.68 M 5.77 M 5.84 M

• Over $1.2 billion settled via Ventra since launch • 2 million accounts active in the last 90 days • 1.56 million full fare accounts • 429 thousand transit-only cards • 23 thousand third-party bankcards

14 WHERE ARE WE GOING?: VENTRA MOBILE APP

Integrates regional transit systems Unlocks the system Puts a Ventra in your pocket Especially of value for bus customers who don’t have access to Ventra Vending Machines at bus stops Metra Mobile Ticketing Establishes universal fare payment system Purchase any Metra ticket on your cellphone Transit Tracker Bus and Train Tracker integration Real-time Metra information Integration into mobile ticketing function

15 VENTRA APP LAUNCH: HIGHLY ANTICIPATED

16 VENTRA APP LAUNCH: WELL RECEIVED

Ventra App Proves Popular With Transit Riders On Public Debut November 20, 2015 6:41 AM By Bob Roberts

“… the response was ‘overwhelmingly positive,’ a sharp change from the problems that plagued the introduction of the Ventra card for months.

CTA, Metra, Pace debut new Ventra app WRITTEN BY TINA SFONDELES POSTED: 11/19/2015, 02:44PM Riley Mundt takes the train from Crystal Lake to get to classes at the University of at Chicago. She’s looking forward to having her monthly pass on her phone. “All my friends keep telling me to [download] it. They tell me it’s really cool,” said Mundt, 21.

17 VENTRA IN APP-TION

18 VENTRA APP LAUNCH: WELL RECEIVED 25,000 downloads the first day, over 400,000 to date

19 VENTRA APP LAUNCH: WELL RECEIVED Over $28.5 million in sales since launch, 1.1 million orders

20 VENTRA APP LAUNCH: WELL RECEIVED Leading to more frequent web usage and now dominant means of account management

Customer Visits via Ventra Website 2,500,000

2,000,000

1,500,000 Desktop

Mobile Web

1,000,000 App Tablet

500,000

0 October, 2015 November, December, January, 2016 February, 2016 2015 2015

21 VENTRA APP FUTURE PHASES

Integrated Trip Planning Door-to-door trip planning across all three transit agencies Shared-use integration? Advertising and Promotions Virtual Ventra Card

22 VENTRA APP AND MOBILE PAYMENTS A transit app can be a strong motivator for the adoption of mobile payments CTA’s customers want to pay a fare by phone CTA has 750,000+ riders who would love to use mobile payments Muscle memory of fare payment can encourage mobile payment adoption Trip planning, in-app promotions provide opportunity Use mobile wallet to redeem promotions? Up to the mobile payments industry to unlock transit’s potential

23 VENTRA: MOBILE OBSERVATIONS

Account + Smartphone = anything Customers expect mobile Customers want to pay a fare by phone Needs of transit providers and wants of customers must be balanced Transit is an untapped resource to drive adoption Treat transit differently We are not retail

24