Milwaukee Has Stopped Providing Ridership Data for Beleaguered Streetcar

The controversial Milwaukee Streetcar, or The Hop, has experienced fluctuating ridership since starting operations in November 2018, with initial projections and actual numbers showing significant variation.

And now, the operators have stopped providing ridership data altogether. No data has been published since last summer.

Even before the Milwaukee Streetcar stopped providing ridership totals, the data was often incomplete or estimated, reflecting ongoing technical and operational challenges. For instance, November 2018 daily ridership excluded 16,413 passengers from the grand opening weekend, skewing averages. February and March 2019 ridership was estimated due to a malfunctioning Automatic Passenger Counter (APC) system, while February 2020 data was prorated from just two weeks due to a wayside server failure. Service disruptions, like the water main repairs on April 12-13, 2021, and September 1-7, 2023, led to incomplete counts, with daily figures adjusted for partial service days (e.g., 28 days in April 2021 and 23 days in September 2023, excluding bus replacement ridership).

Technical issues compounded the problem: Vehicle 1’s transmitter failed from late December 2020 to April 2021, initially omitting its data from 2021 reports until corrected, and a ransomware attack in June 2021 necessitated estimates due to server data loss, despite subsequent backup measures. Further APC malfunctions in October 2023, affecting Vehicles 1 and 5, led to estimated figures based on partial data from other vehicles, highlighting the persistent gaps in accurate ridership reporting.

Early estimates suggested an average of 1,850 daily rides for the 2.1-mile system, translating to roughly 600,000 rides annually. However, because riders have never had to pay a fare, the streetcar surpassed these expectations in its first year, recording over 800,000 rides, or about 2,200 per day. In its first two weeks, daily ridership averaged 2,191, with a peak of nearly 3,800 rides on a single Saturday. The busiest month came in July 2019, with more than 103,000 rides, averaging 3,343 daily, boosted by events like Bastille Days and Summerfest, and a single-day high of almost 9,000 rides on July 13.

The COVID-19 pandemic caused a sharp decline, with ridership dropping to just over 260,000 rides in 2020. Recovery has been gradual, with 2023 seeing nearly 495,000 rides, a 30% increase from 2022, though daily averages remained lower at 1,386, still below pre-pandemic levels. In early 2024, January ridership was just over 32,000 (around 1,036 daily), down 1% from the previous year, while February rose to 37,600 (about 1,293 daily), up 20% from February 2023. July 2024 saw the year’s highest monthly total at over 63,000 rides, though this was 4% lower than July 2023, partly due to reduced activity during the Republican National Convention. A notable daily post-pandemic peak occurred on July 15, 2023, with nearly 6,900 rides, driven by heavy promotion and multiple events and summer festivals.

The Hop faces a projected $4 million deficit in 2025.

The Milwaukee Journal Sentinel reports the service is looking for a new manager, after the previous administrator quit to avoid being fired last year.

The Hop, has faced ongoing financial deficits since its inception, with costs consistently exceeding revenue due to its fare-free model and reliance on external funding. Below is a summary of the deficit based on available information:

Key Deficit Details

Operating Costs vs. Revenue:
- In 2021, The Hop’s operating costs were $4.5 million, while revenue was only $1.3 million, resulting in a $3.2 million deficit
- By 2024, the operating budget increased to $5.5 million, with projections for 2025 showing a $4 million deficit, the largest to date, after federal COVID-19 relief funds expired
- Historically, the streetcar has run an average annual deficit of $2.2 million since 2019
Funding Challenges:
- The Hop has relied heavily on federal grants and sponsorships, such as a $10 million, 12-year naming rights deal with Potawatomi Hotel & Casino in 2017, which allowed free rides for the first year
- ARPA funds covered significant portions of the deficit in recent years (e.g., 62.7% of the 2022 budget), but these funds dropped to $0 in 2025, exacerbating the shortfall.
- 2023 Wisconsin Act 12 restricts Milwaukee from using tax increment financing (TIF) or other local taxes to fund operations or expansion, limiting funding options.
Proposed Solutions and Controversies:
- To offset the 2025 deficit, the Milwaukee Department of Public Works (DPW) proposed increasing parking ticket issuance (500,000 tickets in 2025, up from 455,000) and raising violation fees by nearly 50%, aiming to raise $2 million in additional . However, DPW denies this is directly tied to The Hop’s deficit
- Critics, including Alderman Scott Spiker, have raised equity concerns, arguing that increased parking fines may disproportionately burden lower-income residents to subsidize a service used more by affluent riders
- The fare-free model has been debated, with experts noting that charging fares could reduce ridership by 50%, making it an unviable solution
Operational and Management Issues:
- In October 2024, the streetcar’s manager resigned after the decision was made to begin his termination
- Maintenance issues, such as worn wheels and missed federal grant deadlines, have compounded financial challenges, with expansion plans stalled due to lack of funding