DelDOT's red light program is a safety hazard and a rip off of local government by a private company having valuation issues.
According to published reports, the contracted operator, Elovate, is making much more money off the red light program than the towns it supposedly protects while its program increases certain accidents. It’s simple math. See the numbers below.
And who owns Elovate? Modaxo acquired Elovate in May 2024. The ultimate parent company is Constellation Software Inc., a Canadian vertical market software company headquartered in Toronto, Ontario, and listed on the Toronto Stock Exchange. This profitable company recently has been hit by leadership changes and artificial intelligence disruption fears. Time to boost its profits?
According to the last available reports – 2024 – rear-end crashes increased by 10% and the program hasn't greatly reduced red-light runners in the intersections over the past five years.
According to DelDOT’s own data, 26 of the 47 (55%) intersections with traffic cameras have seen an increase in wrecks since the cameras were installed and 25 of the 47 (53%) have seen increased rear-end crashes.
In 2020, the program collected $7.26 million. After expenses, the program netted about $714,000. That’s a difference of $6,546,000.
In 2024, the program collected $8.34 million. After expenses, the net income was $1.02 million. That’s a difference of $7,320,000.
Where is all that money going?
Those profits to Delaware pales in comparison to Elovate's, which has run the program through its previous names, Modaxo and Conduent, since 2014.
Elovate received $3,207,363.18 from 2024 income alone. In the meantime, Elsmere's camera at the Kirkwood Highway and DuPont Road has cost the city more to run than its revenues. In 2024, Elsmere paid Elovate $34,754.33, but the camera's violations totaled just $11,413. And Seaford has lost $322,679 over the past five years running its camera at Route 13 and Tharp Road.
These cameras have been cash cows – for Elovate.
Before any increase in fees is contemplated, let’s first find out how Elovate got these contracts, how much Elovate is making, to whom it has made political donations and whether there isn’t a better way to increase – and not decrease – public safety.
How about first dealing with enforcement with points, not dollars, of tailgating, aggressive driving and, while we’re at it, summertime blocking of intersections by out of town drivers?
Sheldon Finkelstein
Lewes
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