AMONG Helsinki’s contributions to innovation in transport is a tram
kitted out as a fully functioning pub, which trundles through its
centre in the summer. But Finland’s capital will soon host schemes
that appeal to more than beer-swilling sightseers. Residents will be
able to travel quickly door-to-door within the city by using an app
that mixes and matches a variety of public and private means of
transport. Several such schemes are due to start this year. If they
succeed they could do for personal mobility what Airbnb and Spotify
have done for accommodation and music: turn it into a service,
accessed and paid for on demand.
http://www.economist.com/news/international/21707952-combining-old-and-new-ways-getting-around-will-transform-transportand-cities-too-it
MaaS Global (short for Mobility as a Service) is the startup behind
the most ambitious of Finland’s schemes. At a tap of a smartphone
screen its app, Whim, will show the best way to get from A to B by
combining public transport and a variety of options from participating
private firms. Whim is currently being tested; it is due to go live in
Helsinki this autumn and in two other Finnish cities late in the year.
If there is no obvious route, a scheme like these might suggest a
bicycle from the city’s bike-share scheme (if one is close to your
front door), followed by a train and then a taxi; an on-demand bus
(“hail” it on the app and it will come and pick you up); or a one-way
car-share to a tram and a rented “e-bike” with a small electric motor
to alleviate the strain of pedalling for the final leg. Once a route
has been chosen it will make any bookings needed, as well as ensuring
that hire vehicles are available and public-transport sections are
running on time. Costs will be displayed for every option, making
clear the trade-offs between speed, comfort and price. Customers will
be able to buy one-off journeys or “bundles” modelled on mobile-phone
contracts, allowing a certain amount of travel each month.

Commuters around the world are already accustomed to making journeys
that combine public transport with walking, taxis or shared bikes. And
preparing to take a trip has been transformed since the days of
printed maps and timetables. Many countries have websites that give
information on how to reach a destination by bus or train, both within
cities and between them; in some places Google’s online maps have
transport information built in. Buying tickets online is now common;
Trainline, an online booking system for rail tickets, is rolling out
across Europe.

But planning a journey is one thing; making it another. After getting
advice on their routes travellers have always had to find their own
way to a bus stop or train station, or call a cab. Payment and booking
systems have generally been separate for each leg of a journey, and
the “last mile” between mass transit and final destination has not
been covered at all. Services such as Whim aim to change all this:
removing the guesswork, combining the various options in the most
efficient and cost-effective ways, and getting the traveller
seamlessly from door to door.

Without such new thinking, cities will grind towards gridlock. In 2007
half the world’s population lived in cities; by 2050 it is expected
that two-thirds will (see chart). According to Arthur D. Little, a
consultancy, urban journeys already account for nearly two-thirds of
all kilometres travelled by people. On current trends urban distance
travelled each year will havetrebled by 2050, and the average time
urban drivers spend languishing in traffic jams is set to double to
106 hours a year.



The traditional policy responses to congestion—build more roads and
expand public transport—are too expensive for these cash-strapped
times. Hence the appeal to urban planners of the idea of travellers
combining existing mass-transit schemes with a growing variety of
private services. It offers a way to attract private capital into
“public” transport. By enabling a closer link between supply and
demand it will make mass transport more efficient. Congestion at peak
hours will fall as travellers are diverted from crowded routes to
less-packed ones; varying prices by time of day could help here, too.

Public-health experts are also keen on the new approach. The apps
through which the various options are accessed could be tweaked to
encourage healthier choices, such as walking or cycling, if desired.
Emissions of pollutants should also fall, because fewer vehicles would
be idling in jams and there would be fewer cars on the street.
Helsinki thinks it can make its centre free of cars by 2025—not by
banning them, but by building a transport system that renders them
redundant.

As well as commuters’ lives, cities will be transformed, too. With
fewer cars and parking spaces needed, they can be redesigned to be
more pedestrian-friendly and to have more green spaces. Quicker
journeys will increase the catchment area for job-seekers prepared to
travel to work.

Won’t the arrival of self-driving cars render such thinking
unnecessary? Not quickly, and even then, not really. Affordable
driverless cars that can handle both city driving and motorways safely
are a long way off. And even after they arrive, mass transit systems
will often remain the best way to move large numbers of people
swiftly. If all of the 1.3m daily commuters into central London
switched to autonomous vehicles, it would become a giant carpark. The
better integrated a city’s transport system, the less demand there
will be for driverless cars, and the easier those cars will be to
combine with the other options.

The new approach to transport as a service relies on two
interconnected trends. The first is the spread of smartphones, which
both generate the data required to manage a system that combines a
wide variety of public and private transport options, and allow firms
to offer the information via an app. They have already made navigating
a city by public transport much easier. “Intelligent” journey
planners, which use live information about congestion, disruption from
accidents and the like to suggest the best route, are proliferating.
Around 70% of Londoners regularly use an app such as Transport for
London’s journey planner. Live travel information shows whether trains
and buses are running on time.

The second is the rise of the “sharing economy”, with businesses such
as Airbnb making it possible to rent fixed assets such as apartments
when they are not being used. Young urbanites, who have become
accustomed to usership instead of ownership, find the notion of
transport as a service both natural and appealing. Meanwhile the cost
of running a car in a city goes ever upwards. Parking gets harder.
Many city-dwellers are questioning whether the convenience is worth
it. Between 1983 and 2014 the share of Americans aged 20-24 with a
driving licence fell from 92% to 77%.



Ride-hailing services are the most obvious response to these two
trends. Since Uber turned the ignition switch in 2008 it has expanded
to operate in 500 cities around the world. Competitors such as Lyft,
which also uses an app to match riders with drivers and to handle
payments, are growing rapidly, too. Didi Chuxing, China’s biggest
e-taxi service, has 300m users in 400 cities and towns.

Uber and Lyft essentially provide a new way of calling a cab. But both
firms also offer ride-share services that promise to make journeys
cheaper and only slightly less convenient. UberPool, Lyft Line and
specialist ride-share companies such as Via, which operates in
Chicago, New York and Washington, DC, put passengers going in the same
direction together in shared cars and lets them split the bill.

Passengers are being pooled in larger vehicles, too. Firms such as
Bridj are using the wealth of data they collect from users’
smartphones to model travel patterns, and thus to run on-demand
minibuses in several American cities, including Boston, Kansas City
and Washington, DC. Book a ride and the app will show pick-up and
drop-off points close to your origin and destination, any walking
required and the fare. “It’s the bus that catches you,” says the
firm’s founder, Matthew George. At $2-6 a trip it is not much pricier
than a regular bus, but a comfortable seat is guaranteed.

Ford is testing an on-demand shuttle bus around its vast plant at
Dearborn, near Detroit. Several universities around the world run
similar services for students around campuses. Plenty of firms now
have pools of shared company vehicles available on demand, instead of
giving one to every eligible employee.

Self-driving is not out of the picture entirely. Car-sharing schemes,
which offer most of the benefits of owning a car, but at much lower
cost, are revving up. Some allow cars to be rented by the hour or even
minute. Vehicles may have to be returned to the point of hire; or
schemes may allow one-way trips between designated parking spots.
Boston Consulting Group reckons that the 5.8m people now signed up to
car-sharing schemes worldwide could grow to 35m in the next five
years.

These firms expand the traditional car-rental business by allowing
shorter rental periods and more convenient pick-up and drop-off.
Peer-to-peer schemes such as Getaround and Turo in America, and
CarUnity in Germany, take car-sharing one stage further. These enable
owners to rent out their cars for short periods, thus sweating assets
that would otherwise sit at the kerb for as much as 95% of the time.
Services that fill empty seats in cars and split the cost of petrol by
connecting drivers with prospective passengers are also growing fast.
The biggest by some way is BlaBlaCar, a French firm with operations in
more than 20 countries. It mainly connects big cities rather than
operating within them, taking a fee for matching passengers and
drivers going the same way.

Baby, you can drive my car

Other niche services are springing up. In America Carpool Kids and
Voom are among a band of new services that let parents connect and
share rides. Zum, in San Francisco, is aiming to co-ordinate transport
for children and child care such as babysitting in a single, on-demand
system.

The various permutations of car-sharing, car-pooling and ride-hailing
pose a big threat to vehicle manufacturers’ sales. Some are rattled
enough to get in on the act. The global car market is worth $2.3
trillion a year, of which Ford gets 6%, says Mark Fields, the firm’s
boss. The market for transport services is $5.4 trillion a year, he
estimates, of which it gets near to nothing.

That is starting to change. Many carmakers already manufacture small
electric vehicles that would suit a sharing scheme as they are easy to
maintain and can be charged when they are parked, saving users the
need to stop and pay for fuel. Some are planning powered scooters and
electric micro-cars, which could also be used as shared vehicles for
short urban trips. And most are busily reinventing themselves as
mobility providers. In January GM announced it was investing $500m in
Lyft to help it understand new transport models. In May Volkswagen put
$300m into Gett, an Israeli rival to Uber; Toyota invested an
undisclosed sum in Uber around the same time.

Some carmakers have launched services of their own. Daimler has
started a car-sharing service, car2go, which offers point-to-point
rentals charged by the minute, hour or day. Users arrange, via an app,
to pick a car up where a previous customer left it. Ford’s GoDrive,
which operates in parts of London, also offers rental by the minute,
as does DriveNow, a competitor, which is owned by BMW and Sixt, a
car-hire firm.

Get on the bus

The next step is to combine these disparate experiments. Helsinki is
not the only place seeking to integrate public and private transport,
and do better at getting passengers from A to B. Switzerland’s
national rail company has teamed up with car- and bike-sharing firms.
Several Canadian cities have a scheme incorporating public transport,
bike-sharing, taxis and Communauto, a car-sharing service; Brussels
runs a similar scheme. But these only provide discounts for combined
subscriptions and some limited integration of booking, though not
payments.

In Hanover, Germany’s 13th-largest city, Hannovermobil goes a bit
further by charging users for their month’s travel in a single monthly
bill. Moovel, owned by Daimler, operates a countrywide service in
Germany that also knits different transport together—but booking and
ticketing are still handled separately. Joint Venture in Silicon
Valley is experimenting with integrating shuttle buses with other
mobility apps that whisk users from door to door. After a successful
pilot in Gothenburg, UbiGo will launch in Sweden this year, combining
public and private transport.

But truly turning transport into a service, as Helsinki is aiming to
do, is a Herculean task. It not only means integrating the booking,
payment and operating systems of dozens of transport providers. It
also means persuading private firms to take part in the first place.
Public-transport operators can be forced to do so by national or
municipal authorities. But private operators may balk at sharing data
and real-time information on customers with a third party, even if
they are promised confidentiality. And why would a ride-sharing or
taxi firm want to sign up to a scheme that may direct customers to its
rivals?

In Helsinki Sampo Hietanen, the boss of MaaS Global, has two answers.
First, as the use of private cars declines many more people will use
the firm’s app (and its competitors’), so taking part will mean
getting access to an ever-growing pool of customers. Second, any firm
that does not join will be left behind. And though the contractual
negotiations are proving tricky, to some amazement nearly all
Helsinki’s transport operators—even taxi-drivers—seem willing to give
it a go.



Finland’s sense of shared national endeavour probably helps. More
important is the determination of the municipal and national
governments. Indeed, without city authorities’ active encouragement
mobility as a service will not take off, says Catherine Kargas of
Marcon, a Canadian consulting firm.

Finland’s national government is doing its bit by rewriting
legislation to bring the various laws covering different modes of
transport into harmony. The transport minister, Anne Berner, cites
regulations that treat hire vehicles with fewer than seven seats as
taxis, whereas minibuses are covered by the same laws as full-sized
buses. Entirely separate laws cover vehicles that shift parcels and
vehicles that shift people. That places an unnecessary obstacle in the
way of any firm that might like to do both.

Putting an independent tech firm like MaaS Global rather than an
existing transport operator in charge of the app has some big
advantages. A tech firm may be more innovative and more willing to
take risks than a big incumbent. The likes of Deutsche Bahn, which
already has a system to integrate trains and car-sharing, might still
be slow to let innovators break in, reckons Mr Hietanen. Independent
operators would be happy to offer a large ready-made market of
travellers to any firm able to extend its range of offerings, and
might be more willing to support small firms with new ideas.

Mr Hietanen certainly has big plans. The Whim app includes
pay-as-you-go “multi-modal” packages that bundle monthly travel
requirements at a single price. For perhaps €95 ($106) a month it
might offer free city-wide public transport, 100km of local taxi use,
500km of car rental and 1,500km on national public transport. He
thinks that aiming mobility services at city-dwellers is too limited,
and wants to integrate regional and national trains—as well as rural
services, where on-demand buses and ride-sharing could prove handier
than scheduled buses, which often travel half-empty.

Other mobility evangelists go further. Some are eyeing big cities in
the developing world, even though these rarely have good
public-transport networks. Could the 50,000 minibuses and 150,000
taxis in Mexico City, for example, be better deployed as part of a
system that encouraged ride-sharing and on-demand re-routing? Others
talk of interoperability across borders; a few even suggest roping in
airlines. Who knows: one day a wily entrepreneur may add an on-demand
mobile pub.


-- 
Avinash Shahi
Doctoral student at Centre for Law and Governance JNU


Register at the dedicated AccessIndia list for discussing accessibility of 
mobile phones / Tabs on:
http://mail.accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in


Search for old postings at:
http://www.mail-archive.com/accessindia@accessindia.org.in/

To unsubscribe send a message to
accessindia-requ...@accessindia.org.in
with the subject unsubscribe.

To change your subscription to digest mode or make any other changes, please 
visit the list home page at
http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in


Disclaimer:
1. Contents of the mails, factual, or otherwise, reflect the thinking of the 
person sending the mail and AI in no way relates itself to its veracity;

2. AI cannot be held liable for any commission/omission based on the mails sent 
through this mailing list..

Reply via email to