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Instead of making it free, could they improve the speed and comfort of public transport?

I don't drive because it is cheaper, I drive because it is faster, more comfortable and more convenient (it gets me closer to where I want to be).

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Agreed. I actually think it could be possible to make transit faster than driving by implementing the right infrastructure. For example, bus only lanes. I think there's still big issues with first and last mile though. One of the things that kills bus time is stopping at many stops and waits between transfers.

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