How Zero Fare works in cities that have already adopted free transportation

The policy of Zero Tariff has been spreading as an innovative solution to transform public transport into a real and accessible right.

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By eliminating the cost of travel, Brazilian and international cities are redrawing the map of urban mobility and its social impacts.

But how does this model work in practice? Who pays the bill? Is it even viable for larger cities?

In this article, you will understand how this model works in municipalities that have already adopted free transportation, its economic and social effects, the structural challenges, and the paths to making the proposal viable on a large scale.


What does Zero Tariff actually mean?

Deploy Zero Tariff It goes beyond offering free transportation. It's about redefining the concept of urban mobility.

Instead of seeing transportation as a paid service, it begins to be considered a public good, like education or sanitation.

In practice, this means that any citizen can board buses or other modes of transport without having to pay for a ticket.

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However, being free doesn't eliminate operational costs. What changes is who funds the system—and how it's sustained over time.

This shift in logic requires more than political goodwill. It involves financial planning, efficient management, and active listening to the public.

But why are more and more cities taking risks in this direction?

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Social benefits that go beyond mobility

The impact of Zero Tariff isn't limited to transportation. In Maricá (RJ), for example, where the "little red buses" have been circulating for free since 2014, residents report an improvement in their quality of life.

Monthly savings on transportation represent up to 12% of the budget of low-income families.

This economy generates a cascade effect: greater access to the job market, greater school attendance, and even more leisure time.

This creates increased mobility, connecting neighborhoods previously isolated from the city's public infrastructure.

The National Transport Confederation (CNT) itself pointed out, in a 2023 survey, that 64% of Brazilians consider public transport expensive, and 29% have already stopped going to medical appointments due to lack of money for transport.

Free of charge, in this context, becomes a health, education and even public safety policy.

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Is Zero Tariff only for small cities?

Tarifa Zero

This is one of the most common questions—and one of the biggest myths. In fact, many cities that have implemented the model are small or medium-sized, such as Caucaia (CE), with 365,000 inhabitants, or Vargem Grande Paulista (SP), with less than 50,000.

But there are notable exceptions. Estonia's capital, Tallinn, has offered free transportation to its residents—more than 400,000—since 2013.

The city of Dunkirk, France, followed the same path in 2018, recording a 60% increase in transport use and a drop in the number of cars on the streets.

These examples demonstrate that, with strategic management, the model can also work in larger urban areas, provided there is consistent funding and robust infrastructure.


Financing: who pays the bill?

It is impossible to talk about Zero Tariff without addressing its financial sustainability. The model requires resources, and these resources don't just appear out of thin air.

Therefore, each city builds its own financing solution based on available revenues.

See below a table with the main sources:

Funding SourceHow it works in practice
Progressive property taxHigher taxation on properties that appreciate in value with improved mobility
Royalties and municipal fundsUse of oil exploration revenues, as in Maricá
Partnerships with local companiesFinancing by businesses that benefit from increased circulation
Reduction of tax exemptionsReadjustment of incentives to support the free system
Public budget redistributedCutting spending in less priority areas

Maricá, for example, uses part of its oil royalties to maintain its free system, with its own fleet and public management. The result has been a stable model for over a decade.

Furthermore, according to an analysis by the Consumer Defense Institute (IDEC), cities that adopt Zero Tariff They also save in indirect areas, such as health (fewer accidents and pollution) and infrastructure (reduction of damage caused by excessive car traffic).


Structural and operational challenges

Despite the benefits, obstacles cannot be ignored. One of the main ones is service quality.

Increasing demand without expanding the fleet or improving frequency can lead to overcrowding, delays, and stress for the population.

Another challenge is urban planning. Cities that don't integrate transportation with other modes (subway, bicycle, train) lose efficiency.

Furthermore, free access must be accompanied by educational campaigns to prevent vandalism and misuse.

The city of Paulínia (SP) temporarily suspended free parking in 2023 due to vandalism and poor service quality.

This shows that the model requires more than good intentions: it needs constant investment and serious management.


An analogy that helps to understand

Think of public transportation as a city's circulatory system.

It transports people—the lifeblood of the economy—to every corner: work, study, culture. If this system is slow, expensive, or obstructed, the entire city becomes ill.

A Zero Tariff, in this scenario, acts as a transfusion — a vital impulse that restores fluidity, access and power to urban life.

It is a decision that transforms the city into a living, accessible organism, capable of growing in a more fair and balanced way.


Direct and indirect economic impact

The data is also favorable from an economic perspective. According to a study by the Federal University of ABC, each R$1 invested in free transportation can generate up to R$3 in local economic activity.

This happens because, with more people circulating, there's an increase in commercial sales, greater use of public spaces, and a vibrant neighborhood. The city literally breathes.

In practice, merchants in previously isolated neighborhoods report an increase in customer flow. People who previously had no way of reaching them are now part of the everyday economy.

Furthermore, by reducing car use, cities also save on paving, accidents and emissions.

The Energy and Environment Institute points out that efficient public transport can reduce CO₂ emissions in cities by up to 35%.


What does the population think?

In interviews conducted by the Locomotiva Institute, 82% of Brazilians would support the Zero Tariff in their cities, as long as the system works with quality.

This data reveals pent-up demand and a collective desire for more accessible cities.

In Maricá, for example, in addition to the "little red ones," the city offers free Wi-Fi in vehicles, air conditioning, and punctuality — points valued by residents.

Gratuity, in this case, does not come alone: it carries the promise of dignity and respect.


Recent advances in Brazil

By the end of 2024, more than 100 Brazilian municipalities had already adopted the model, either fully or partially.

In addition to the examples already mentioned, such as Vargem Grande Paulista and Caucaia, cities such as Agudos (SP), Paranaguá (PR) and Volta Redonda (RJ) have started testing free transport on specific lines.

São Paulo is discussing extending free parking to Sundays and holidays to encourage leisure and reduce weekend traffic.

The idea is that, gradually, the Zero Tariff stop being an exception and become part of the national urban mobility policy.

The National Front of Mayors (FNP) frequently debates the issue and is lobbying the federal government to create a national free transportation fund. The debate remains active—and promising.

You can follow more details of these initiatives at FNP official website.


Conclusion: Is Zero Tariff the Future?

Everything indicates that yes. Zero Tariff It is not a panacea, but it is one of the most concrete measures to guarantee mobility with social justice.

Cities that tested the model and made the necessary adjustments are now reaping the rewards: greater inclusion, greater efficiency, and greater citizenship.

If public transport is a right, why is it still paid for?

At the current rate of expansion, it's possible that within a few years, free public transportation will be viewed as naturally as access to school or the Unified Health System (SUS). A guaranteed right—not a privilege.


Frequently Asked Questions

1. Is the Zero Tariff really free for citizens?
Yes. Passengers do not pay for the fare, but the service is maintained with public resources, partnerships, or municipal funds.

2. And what about the quality of service?
It depends on planning. Cities that expanded their fleet and trained managers were able to maintain (or even improve) their service levels.

3. Does it work in big cities?
Yes, with adaptations. The case of Tallinn (Estonia) shows this is possible in medium and large urban centers.

4. Does free provision encourage misuse?
It may happen, but educational campaigns and monitoring help preserve the service and maintain conscious use.

5. Is there a risk of financial collapse of the system?
There's a risk without planning. But cities with sustainable models demonstrate that the social and economic returns outweigh the investment.


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