Distance-graduated fares

Under this structure, the fare paid is proportional to the distance travelled. The accuracy of the match depends on the graduation of the fares scale, in turn being affected by the currency units in circulation and hence the specific fares that can practicably be charged.

Clearly such a fare structure offers the potential to balance the interests of both passengers and operators, though distance is not the only relevant factor in pricing a trip with its commercial speed also being significant in relation to the value received and the cost of production.

The disadvantage of a graduated fare structure is complexity of understanding for passengers, and of administration by agents or operators, with these impacts being exacerbated the more finely graduated the fare structure is. Fare increases for shorter trips in the face of rising input costs can also be disproportionate as a result of currency value constraints, but some mitigation of this effect can be made through recasting fare stages to avoid the worst effects.