Free public transport in Tallinn

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The Free Public Transport initiative in Tallinn allows residents of the Estonian capital to use the city's public transportation system at no cost.
What are the main aims and objectives?

The free public transport initiative in Tallinn was introduced with several key aims and objectives. Primarily, it sought to promote social equity by improving mobility for low-income residents who were disproportionately affected by the 2008 financial crisis, making transportation more accessible and affordable. Additionally, the policy aimed to tackle environmental challenges by reducing car usage, thereby decreasing traffic congestion and lowering greenhouse gas emissions. Another objective was to reverse the decline in public transport usage observed in previous years and to enhance the efficiency and image of the public transit system. Indirectly, the initiative also aimed to stimulate economic activity by encouraging greater mobility across the city, which could lead to increased spending in local businesses.

How does the program work?

The Free public transport initiative in Tallinn, implemented in 2013, provides residents of the Estonian capital with access to the city's public transportation system at no cost. This groundbreaking policy covers buses, trams, trolleybuses, and some inner-city trains, making Tallinn the largest city in the world and the first capital to offer free public transit to its inhabitants.

To benefit from this initiative, individuals must be registered as residents of Tallinn. They are required to pay a one-time fee of €2 for a "green card" or Ühiskaart, which serves as their public transport card. This personalized card must be validated for every journey by holding it against the validator when entering a vehicle. The system is designed to be user-friendly, with validators available at the entrances of buses, trams, and trolleybuses.

While the service is free for Tallinn residents, it's important to note that visitors and tourists are still required to pay for public transport. The city offers various options for non-residents, including single-ride tickets, period passes, and tourist cards like the Tallinn Card, which provides unlimited public transport access along with entry to numerous attractions.

What is the overall cost?

When the initiative was first introduced, the annual cost was estimated at around €12 million. The initiative is funded through income tax.

How was it implemented?

The Free public transport initiative in Tallinn was created through a democratic process that involved the city's residents and local government. The idea emerged as a response to declining public transport usage and the need to address social, economic, and environmental challenges in the Estonian capital.

In March 2012, the city of Tallinn held a referendum to gauge public opinion on introducing free public transport. The referendum saw a turnout of about 20% of eligible voters, with an overwhelming 75.5% voting in favor of the proposal. This strong mandate from the citizens gave the city administration the support it needed to move forward with the initiative.

Following the referendum, the Tallinn City Council officially adopted the decision in September 2012 to implement free public transport for residents of Tallinn starting from January 1, 2013. The initiative was designed to cover buses, trams, trolley buses, and later expanded to include some inner-city trains.

What impact has been measured?
  • Public transport usage increased by 14% in the first year, with a subsequent rise to 63% modal share in 2013 from 55% in 2012
  • Car usage declined modestly from 31% to 28%
  • Walking as a primary means of transport decreased from 12% to 7%
  • Train ridership within Tallinn borders increased dramatically by about 1,000%, though this still only accounts for about 3% of total public transport rides
  • the initiative resulted in more than 10,000 city dwellers deciding to register as residents, which led to a €10 million increase in the city’s revenue
What lessons can be learned?

The Free public transport initiative in Tallinn has several indirect impacts on entrepreneurs and startups.

Firstly, the initiative may contribute to increased mobility and economic activity across the city. By providing free public transport, it encourages people to move around more freely, potentially increasing foot traffic and customer base for local businesses. This increased mobility could benefit entrepreneurs and startups by exposing their products or services to a wider audience and facilitating easier access to their physical locations.

Secondly, the policy might indirectly support startups and entrepreneurs by reducing their operational costs. For employees of these companies who are registered residents of Tallinn, the free public transport eliminates commuting expenses. This could be particularly beneficial for early-stage startups operating on tight budgets, as it effectively increases the disposable income of their workforce.

The initiative may also contribute to the overall attractiveness of Tallinn as a place to start and grow a business. The city's innovative approach to public services, including free public transport, enhances its reputation as a forward-thinking, technology-driven environment. This reputation could help attract talent and investment to the startup ecosystem, indirectly benefiting entrepreneurs.

Lastly, the digital ticketing system developed alongside the free public transport initiative has itself spawned entrepreneurial opportunities. The Tpilet bus ticket system, for instance, has expanded beyond Estonia and is now used by bus operators across Europe, demonstrating how public initiatives can lead to innovative business solutions.

While the direct impact on entrepreneurs and startups may not be immediately apparent, the Free public transport initiative in Tallinn contributes to creating a more connected, mobile, and innovative urban environment, which can indirectly support the growth and development of new businesses.

CURATED BY

Simona Bielli

Research Programme Coordinator – Digital Startups
Nesta
United Kingdom