[x0x0]

We know how to make sf muni significantly faster and cheaper; it's just sf lacks the willpower to do so. Muni has the slowest route round-trip time of any major bus system, caused by the overabundance of bus stops. Recommendations from transport experts seem to be to get rid of 2/3 of bus stops. If this were to happen, bus speeds would increase leading to less need for buses and drivers.

   Your Muni is slow. With an average vehicle speed of 8.1 mph, it is far and 
   away the slowest major urban transit system in the nation. While some of 
   this can be blamed on San Francisco's congestion and density, there are 
   myriad methods of speeding up service other agencies have adopted that Muni 
   hasn't. This isn't just an inconvenience for Muni's declining ridership; 
   it's a major financial drain on a beleaguered system. Slow vehicle speeds 
   force Muni to spend more money to provide less service. Muni's lethargy is 
   literally costing it millions.
   
   For these and other reasons, Muni spends more to operate its vehicles than 
   virtually any comparable transit agency. For every mile Muni runs a bus in 
   this city, it spends $19.21; comparable agencies nationwide pay between $10 
   and $13. For every mile Muni runs a light-rail vehicle, it throws down 
   $24.37; comparable rail services spend between $12 and $22.

   http://www.sfweekly.com/2010-04-14/news/the-muni-death-spiral/

      

That said, services like chariot need no public funding; they're actively destructive to public transport. Amongst other things, public transport requires temporal and service area ubiquity in order to be effective, particularly when the city goal is transport first. Cherry picking high demand times / locations and withdrawing them from muni damages the system as a whole.

[prodigal_erik]

Scaling to meet peak demand is more expensive than merely meeting average demand, and when fares are heavily subsidized, peak demand doesn't pay for itself. And when every bus and train is standing room only, riders need more time at every stop to push their way to the doors. Relieving some of the peak demand should also make Muni faster and cheaper.