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by SlyShy 2867 days ago
I feel extremely curious about the construction costs given that the proposal says the Dugout Loop will transport just 250,000 a year at $1 fares. I suppose if it works the press alone could make the investment worthwhile.
2 comments

I imagine they're planning to lose money on it to help push it through whatever regulators are in the way. Once they have a working proof-of-concept in a city as big as LA, it'll be a much smoother process to expand to other cities because they can just say "I mean, it worked great in LA!".
And also, if it's reducing traffic congestion and car emissions, state governments might be willing to subsidize future projects.
Think of it as a pilot project for your first client. Typically you bill a very low price that doesn't really even cover the bills, even in a SW Project.
Also, they are assuming they’ll be able to use the digging experience to lower the cost of digging.
They also discussed ways to monetize selling the earth they excavate. Construction lego-like blocks was the concept they floated.