Above the Fold

Municipalities Face Long-Term Impacts of Coronavirus/Remote Work

Across the United States, public transit authorities are having to rethink operations as remote work and the pandemic cut deeper into an already declining trend of ridership in many metros. Cities like Washington, D.C. and San Francisco are seeing revenues cut to near zero as fewer and fewer Americans turn to buses, trains and subways for their daily commutes. 

Ironically, even those who need these services can’t get regular access as social distancing regulations in some areas have forced some essential workers to turn to other options as there are simply not enough routes to support them. With several transit agencies out of money, they are unable to employ the drivers and mechanics needed, let alone add or upgrade equipment. New York’s Metropolitan Transportation Authority recently warned it may have to cut subway services by 40%, along with even deeper reductions in its commuter rails. 

Federal aid from the CARES Act has helped prop up the ailing operators, but those funds are running out fast and several agencies interviewed by The Wall Street Journal say they will have to make additional cuts and further reduce services if another bailout doesn’t come soon. Local and state tax revenues have also fallen, adding insult to injury. One thing is for certain, there is no simple solution, and commuters who return to the daily grind are likely to see a much different public transit system in the coming months and years. 

Three Things 

1. Cyber Friday? – Yesterday marked the 15th year of “Cyber Monday,” where online retailers traditionally offer the best deals, but Black Friday also set records as consumers spent an estimated $9 billion on U.S. retail websites as foot traffic at brick and mortar stores fell 52% year over year. 
2. Investors and Consumers “Extending Their Stay” in This Company – The hotel and lodging industry has obviously had a rough year. Companies like Marriott International and many of its peers have seen revenues cut by nearly half this year compared to last. But Extended Stay America is bucking that trend and has only seen revenue drop by 16% year over year while remaining profitable; its occupancy rate climbed to nearly 80% in the last quarter as consumers preferred its full kitchen and on-site laundry, among other things. 
3. Moderna Officially Ready to Deliver Its Vaccine – Following Pfizer and BioNTech, Moderna formally requested U.S. and European health regulators authorize its COVID-19 vaccine. The timing puts the company on track to begin domestic inoculations just after an expected Dec. 17 meeting of the Food and Drug Administration. Its vaccine was shown to be 94.1% effective in studies, with minor side effects. 

Did You Know?

An Historic Day for Civil Rights

It was on this date, 65 years ago, when a 42-year-old black woman named Rosa Parks refused to give up her seat to a white man on a public bus in Montgomery, Alabama. The seamstress was returning home from work after a long day and was forced to relinquish her seat (in the Black section of the bus) to a man who boarded after her and was standing. While she was arrested, her act of civil disobedience triggered the successful Montgomery Bus Boycott, which had been in talks for some time. The boycott was organized by a young Baptist minister named Martin Luther King, Jr.