On September 20, 2022 the Los Angeles City Council approved a bus shelter contract with Vector Media and Tranzito. Approval and agreement have come in plenty of time for two of the world’s greatest sporting events to be hosted in Los Angeles, the upcoming Summer Olympics and Soccer’s World Cup. According to both parties, the implementation of the shelters will ‘modernize the City’s transportation infrastructure’ fitting of a world-class city. OOH Today carried the Vector press release⇒ Vector Partners with Tranzito for 20 Year Agreement with Los Angeles Bus Shelters.
Our publisher and billboard correspondent, William Board (BB), asked Vector Media’s CEO Marc Borzykowski about the process and direction of the project.
BB— 1. Who was in the bidding for this opportunity besides Vector?
MB— Outfront-Decaux, Intersection, and Insite
BB— 2. Why did Vector take a partner with as opposed to moving independently?
MB— This program required a vision beyond that of a typical advertising contract. The City of Los Angeles was looking to create a unique program focused on modernizing its transit infrastructure to meet the current and future needs of Angelenos. Tranzito has a long track record of transportation innovation and devised a program that would re-imagine bus shelters as mobility hubs in order to create an equitable and sustainable future through an open architecture that would be able to evolve as the world does.
It was Tranzito who brought Vector into the project early on, after meeting with several OOH companies and determining that Vector provided the best combination of attributes; shared values, a creative and innovative DNA and the perfect balance of local and national expertise.
BB— 3. Tranzito appears to be limited to bikes and ebikes historically speaking via their website, what makes them a good partner for Vector for this opportunity?
MB— Transportation is quickly evolving and Tranzito is at the forefront of helping cities and transit agencies evolve with micromobility, curbside management, and multimodal infrastructure expertise. The bus shelter must be the backbone of LA’s mobility infrastructure and Tranzito’s expertise ensures this partnership remains cutting edge – drastically improving the bus shelter experience for riders while incorporating new mobility options for first/last mile connectivity.
Tranzito has extensive experience working with public agencies in the LA region, including LA Metro and LADOT. As bikes and now scooters have become electrified, industry focus has shifted to infrastructure and public right-of-way, and Tranzito has shifted its focus accordingly to mobility hubs. Two recent projects include helping Orange County Transit Authority (OCTA) with their mobility hubs strategy and Los Angeles Department of Transportation (LADOT) with their mobility hubs project – a long-anticipated pilot program that includes secure bike parking, multimodal app, on-demand Downtown microtransit, and building 97 mobility hubs in Downtown, Hollywood, and Long Beach.
BB— 4. How will duties between the two partners be delegated?
MB— Vector and Tranzito have been working hand in hand for nearly two years now and a great deal of coordination on all aspects of the program will continue. That said, Vector will be responsible for all advertising aspects of the program while Tranzito will be primarily responsible for managing the buildout and operations of the program.
BB— 5. What is the management makeup of the partnership?
MB— The JV will be co-managed by Vector’s CEO, Marc Borzykowski and Tranzito’s CEO, Gene Oh. Additional management will be added and announced in the coming weeks.
BB— 6. What is the MAG for the deal?
MB— The MAG will be variable based on a few factors but is expected to be in the vicinity of $100m over the first 10-yrs of the contract.
BB— 7. When will the first shelter be in the ground and at what point on the calendar will all shelters be fully operational
MB— The rollout process has already begun as the parties work to finalize design and engage in community outreach. The first units are expected to go into the ground in the summer of 2023. All shelters will be rolled out over a 5 year period.