Regaining momentum: can Mobility-as-a-Service get back on the road?

When we last wrote about it in 2019, Mobility-as-a-Service (MaaS) appeared to be on the threshold of transforming the way we get around. An innovative MaaS project had already taken off in Finland, and pilot projects in Sweden and the UK were trialling the advantages of bundling together different transport modes into a single service.

But more recently, some of the high hopes behind MaaS appear to have faded, with some questioning whether the concept needs a reboot.

The benefits of MaaS

The big idea behind MaaS is that anyone can use their mobile device to plan, manage and pay for a journey, selecting from a menu of transport options – such as buses, trains, ride-hailing and bike sharing services.

For passengers, MaaS promises greater freedom of choice. In addition, MaaS has the potential to help support government policy objectives, such as promoting active lifestyles, reducing traffic congestion and improving the air quality of our cities. For transport providers, MaaS could generate new business and cost savings. Research published in 2020 found that transport-related energy consumption can be reduced by up to 25% by allowing travellers unbiased choice of mode of transport for each trip.

Putting the brakes on MaaS

In spite of its appealing possibilities, the momentum driving MaaS seems to have stalled. Reluctance by drivers to give up their cars, the contractual and technical complexity of combining multiple transport modes into one service, and the challenge of getting private companies and public services to work together have all hindered the development of MaaS.

In Finland, once the shining example of MaaS in practice, the operation of the platform has been overshadowed by a conflict over ticketing apps between the country’s leading MaaS provider and Helsinki’s local transport authority. Elsewhere, private sector-led MaaS initiatives have run into financial difficulties.

Debunking the myths about MaaS

Despite these setbacks, MaaS still has its champions. Last month, in a webinar hosted by Intelligent Transport, Sohejl Wanjani and Ulrich Lange from German technology firm Siemens responded to some of the arguments that are often put forward against public transport authorities developing MaaS solutions.

A new platform requires a new app
While it’s possible to build a new app solely for MaaS functions, existing apps can be expanded, meaning users don’t have to have multiple accounts and payment methods.

Building a new MaaS project is too big for us
Two options are open to providers: start with one service provider, offering a fully integrated service (planning, booking and paying for trips within the MaaS app) and later add additional service providers; alternatively, start with several service providers, and offer only planning and booking, but not payment.

Most users rely on Google Maps. We can’t do better than that
The key to a successful MaaS system is data, and transport authorities are rich in data about usage of their services. MaaS systems can use real time data that Google does not have, and can integrate ticketing and booking for all modes of transport. In addition, transport authorities can generate income from their own datasets, adapted to local circumstances. Once passengers are assured of the integrity and quality of the data, they are more likely to use the service.

A good example of this is Denmark’s Rejseplanen. This nationwide mobility platform was launched in 2007, and has since achieved more than 5 million downloads. In Denmark, this app is used more frequently than Google Maps, and its extensive data set continues to drive its popularity. Today, Rejseplanen includes information not only for rail, bus and metro services, but also cycle hire and even domestic air services.

Upgrading to a MaaS platform is not financially viable
As cities introduce measures to reduce traffic congestion, it should now be clear that the need to tackle climate change is driving a shift away from private vehicle use to shared modes of transport that are healthier for people and for the planet. MaaS can contribute to climate-friendly travel, while helping transport providers achieve their strategic goals – generating additional revenue streams, increasing passenger usage and creating new mobility services.

Last year, Renfe, the national railway company of Spain, signed a contract with Siemens to develop a nationwide MaaS platform that will allow users to plan, book and pay for trips in a single application. The system will integrate different modes of shared and public transport, such as train, bicycle, metro, bus, car sharing, and scooter services. Renfe clearly sees MaaS as a viable concern; it expects the new service to generate a 4% increase in train travel, 650,000 new customers, and €156m in additional revenue.

MaaS on the move

MaaS is by no means a lost cause. Last month, a research study estimated that the worldwide market for MaaS would grow at a compound annual growth rate (CAGR) of 36.8% over the next five years.

Meanwhile, Berlin’s Jelbi service is currently the world’s largest MaaS solution, bringing together public transport, bike sharing, e-scooter, taxis and ridesharing services, as well as offering 12 “Jelbi Stations” where users can rent, return and recharge a range of different vehicles.

Last year, Pittsburgh’s mayor unveiled its own MaaS programme. Move PGH is a partnership between the city’s public transport authority and an assortment of carpooling, car rental, e-scooter and bike sharing enterprises.

Final thoughts

MaaS is still in its infancy, and it’s too early to be sure of its future direction. While its proponents present a seductive vision of car-free cities, cleaner air, clearer streets and almost unlimited choices for passengers, the reality may be very different.

A 2020 study questioned the assumptions surrounding MaaS, and argued that, while MaaS has strong potential for increased mobility, there are also “…unanticipated societal implications that could arise from a wholesale adoption of MaaS in relation to key issues such as wellbeing, emissions and social inclusion.”

With MaaS at a crossroads, it will be worth revisiting this issue to assess its progress.

Further reading: more on travel and transport from The Knowledge Exchange blog

Transport – Idox

Idox’s transport solutions support traffic management and the delivery of real-time passenger information across all modes of transport. Through the use of new digital technology, we help traffic managers and local transport authorities to harness data and inform the design of smart transport systems that ease congestion on existing networks. Further information here

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