Tag Archives: mobility as a service

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

Posted on by

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

The ‘Netflix of transportation’ – could MaaS be the future of urban mobility?

Posted on by

digital city_unsplash

Congestion, air pollution, inadequate public transport services – these are just some of the issues cities around the world are having to try and mitigate.  Could Mobility as a Service (MaaS) be the solution?

A recent webinar presented on Intelligent Transport looked at the different approaches currently being proposed, discussing the various benefits they offer and the challenges they face.

What is MaaS?

Although MaaS is enabled by technology, it was made clear from the get go that it is fundamentally about the user perspective.

Keynote speaker, Jonathan Donavan, CPO of Masabi, highlighted one definition provided by University College London’s MaaS Lab:

“Mobility as a Service (MaaS) is a user-centric, intelligent mobility management and distribution system, in which an integrator brings together offerings of multiple mobility service providers, and provides end-users access to them through a digital interface, allowing them to seamlessly plan and pay for mobility.”

Essentially, MaaS aims to provide the convenience of a private vehicle without the need for ownership, making users’ lives easier.

From the user perspective, it has to make it easier to plan and pay for travel, match the right mode of transport for the journey, be cost-effective and provide complete journey coverage. From a city perspective, it has to move people away from private cars, keep the city moving, provide equitable service to riders and optimise transport resources.

Real world examples

In an attempt to address these needs, a number of pilots have emerged. These include: the Whim app in Finland, which has now expanded to projects in the UK and Europe; Transport for Greater Manchester; UbiGo in Gothenburg, which has expanded to Stockholm; and NaviGoGo, Scotland’s first MaaS web application, similar to UbiGo, which was piloted in Dundee – to name but a few.

Other examples of MaaS in practice, include: Uber, which is expanding its market by bringing different forms of transport onto the platform; Citymapper, a journey planning app bringing in different ways of paying for and commissioning your own travel; Transit App, a navigational app based in Montreal, Canada; and Kisio’s PlanBookTicket, a mobile ticketing solution.

Stephen Miller, the Communications Lead at Transit outlined the work they are doing. Transit provides navigational services getting people from A-B without their own car, shows nearby transport and other mode options, and can track buses and trains approaching in real time. It also includes bike share, car share, your own bike, walking and now scooters, showing how multiple modes can integrate. It is the number three navigation app in the US and Canada, after Google Maps and Waze.

With PlanBookTicket, Kisio has moved towards a one platform MaaS, as described by their Chief Product Officer, Laurent Leca. It covers the data platform, trip planner, booking and ticketing, and analytics. Providing a seamless user experience, it offers a full ticket range which can be purchased with or without an account and it enables flexible integration with the existing infrastructure, making it affordable for medium-sized cities.

These real world examples show that MaaS is about enabling a simple and combined experience. Such initiatives are a good example of how the public and private sector are working together by combining various transport options. Nevertheless, there are still issues that need to be addressed for MaaS to be a true success.

Subscription or account based MaaS

MaaS has been referred to as the ‘Netflix of transportation’. However, a digital platform is very different to providing physical services and there are a lot of different services available for providing transport. In consideration of what might be the best model for MaaS, two were discussed: subscription based and account based.

Subscription based benefits:

  • Commitment to package means usage of car may be reduced, therefore shifting behaviour
  • Potential to support initial pilots
  • Under-utilised subscriptions may have roll-over model to ensure passengers don’t miss out

However, various issues were also highlighted. For example, subscription based models could favour those who can afford to pre-pay for their transport; there are potential barriers in relation to which package is most suitable and the geography of services; and there are national constraints of supply and demand.

It was also noted that the subscription demographic is a very niche one that is already well served by a mix of mobility options, but it doesn’t cover everybody. It was therefore argued that there is a need to look at different options to make it more universal.

Unlike Netflix, there is finite capacity within the transportation system and a lot of transport systems are physically constrained by something.

It was therefore suggested that perhaps more of an ‘Amazon for transportation model’ is more appropriate, where users can pay as they go for the services they need when they need them. This paves the way for an account based model.

Account based benefits:

  • Puts the city at the centre of MaaS
  • Customer does not need to pre-select their package – lower barrier to entry, more flexibility for customer and city
  • Greater equity – pay for travel once consumed
  • Greater ability to link together transit, tolling, parking and other mobility solutions

It was suggested that this provides a much more holistic option.

Future of public transit

With the success of numerous pilots across the globe, and with 85% of transport professionals in the UK who responded to the Landor Links 2018 annual survey of Mobility as a Service perceiving MaaS as an opportunity and something that would improve matters, both socially and environmentally, MaaS may well be the future of urban mobility.

Perhaps one concern, as highlighted by the author of the survey, Beate Kubitz, is resistance among public transport operators, the very people that are expected to provide the services. They only made up 4% of responses to the survey. The reason cited was because they are concerned about the costs and don’t see the business case. The automotive industry on the other hand is moving towards cooperation and collaboration with MaaS. Clearly more work is needed to increase cooperation and collaboration among the public sector.

Nevertheless, as highlighted throughout the webinar, the fundamentals are there for MaaS to be a success.

If you enjoyed reading this, you may also be interested in our other posts on the potential of smart cities and lessons from public transport in Nordic countries.

Follow us on Twitter to discover which topics are interesting our research team.

 

Reimagining travel: how can data technologies create better journeys?

Posted on by

Light-streamed highways heading towards the city

By Steven McGinty

From steam trains to electric trains, bicycles to Segways, the transport sector is constantly innovating. Although much of the excitement revolves around high profile developments in self-driving vehicles and private space travel, there are many up-and-coming technologies that could make a great deal of difference to both transport professionals and the average traveller.

The driving force behind these innovations is data.  By gathering, analysing, processing and disseminating travel information, we can make better use of the transport infrastructure we have around us. Developing new technologies and business models that use transport data in innovative ways will be key to improving journeys and creating real benefits.

Managed Service Providers (MSPs)

Many companies – such as Masabi and Whim – currently offer ‘mobility-as-a-service’ apps that allow travellers to compare journeys on different modes of transport. Travel agents purchase tickets in bulk and monitor real time travel data from airports and other transport operators. And travellers can use ‘digital wallet’ services such as Google Wallet to store their tickets in their smartphones. However, these services can be complex to navigate, and don’t always offer travellers the option to update or change their tickets in real time. The MSP concept involves utilising the transport infrastructure that’s currently in place, but also providing travellers with the flexibility to change their planned journey if conditions change e.g. cancellation of a service.

There is also the potential for ‘insured travel’, where MSPs could guarantee that a traveller reaches their destination by a specific time. This, according to professional services firm KPMG, would be more complex, as it would require using big data analytics to estimate the risk of delay and pricing the journey accordingly. In Holland, travellers are already able to purchase insurance along with their railway ticket to Schiphol Airport. If a train is delayed – resulting in a traveller missing their flight – the rail operator will book them onto the next available flight.

Data and traffic management

The development of ‘connected cars’, which transmit real time location data, and greater coordination between smartphone and satnav providers, will mean that transport professionals will increasingly have access to a wide variety of travel information. As a result, a more ‘holistic approach’ can be taken to traffic management. For instance, public sector road managers could group drivers by certain routes, in order to avoid or worsen traffic congestion problems.

Cloud Amber is one of the most innovative companies working in this area. For example, their Icarus passenger information and fleet management solutions enable professionals to view real time locations of all vehicles within their fleet, integrate traffic congestion into predicting vehicle arrival times, and create reports replaying vehicle journeys.

Flexible resourcing at airport security

Gatwick Airport has been involved in trials which monitor data and gather intelligence on the traffic conditions which may affect passenger arrivals. KPMG have suggested that combining data on current travel conditions with historic data could lead to airports becoming better at predicting the demand at the arrival gates. Having this knowledge would support airports in providing appropriate staffing levels at arrival gates, which means fewer queues, and a better experience for travellers.

Public / private collaboration

Sir Nic Cary, head of digital transformation at the Department for Transport (DfT), has highlighted the need for the public sector to embrace new ways of working or ‘risk being led by Californian-based software companies.’

In his keynote speech at a recent infrastructure conference, he explained that the public sector needs to get more involved in digital transformation and to have a greater focus on user needs and working collaboratively.

As a good example of this, Cornwall Council recently engaged Idox’s digital agency Reading Room to look at how digital services could encourage existing car drivers to use public transport in a sustainable way. There was a particular interest in engaging with 18-25 year olds.

Cornwall is a county where over 78% of all journeys are taken by car – with only 1% of journeys taken by bus and 3% by train. Following Government Digital Services (GDS) guidelines, Reading Room embarked on a series of activities to understand how public transport is perceived by Cornish citizens.

The user research explored barriers discouraging them from using public transport; online/digital tools they may use already to plan journeys; and their experience of public transport. Reading Room also reviewed and made recommendations to the council around the brand proposition for public transport. The user insights are now being taken forward by the council.

Security implications

There is, however, a risk in integrating data technologies into transport systems. For instance, smart ticketing, traffic lights, signage, and automated bus stops, are just some of the technologies which present potential opportunities for malicious hackers, or those looking to commit acts of terrorism.

Last year, San Francisco transport systems suffered a cyber-attack, where hackers demanded the city’s transportation agency pay 100 Bitcoin (about $70,000). The incident had no impact on the transport system, but over 2,000 machines were hacked. As a precaution, the agency shut down the city’s ticketing machines, which led to customers being able to travel for free.

Final thoughts

Improving how people get from A to B is one of the key challenges for cities. If data technologies can play even a small role in creating better experiences for travellers – by providing more reliable and flexible journeys – then the transport sector and the public sector should look to invest and create partnerships which encourage innovation.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other smart city articles.