View article

Measuring the performance of public transit service operators is a powerful tool for decision-making and managerial control in the utilization level of inputs to obtain the desired outputs. This study aims to measure the performance of public transit enterprises of Addis Ababa city using the Data Envelopment Analysis model. Fleet size and the total number of employees are used as inputs, while covered vehicle km and total passengers transported per year are used as an output. Then, service providers' technical efficiency and operational effectiveness are analyzed based on secondary data collected from each enterprise. The overall results show Anbessa and Sheger city buses were technically efficient and operationally effective in utilizing their inputs to deliver the desired output compared to other peer groups in the city. However, Alliance city bus and PSETSE bus outcomes indicated that they were operated their inputs inefficiently. Therefore, using slack analysis results these inefficient enterprises need significant improvements in using their resources to enhance their performance and deliver services incompetent with other operators in the city. Besides, the study suggests that the Government should encourage privately owned public transport operators in the city and provide subsidies based on their actual performance.