Special report: The future of mobility in Helsinki

Research by Automotive World Special report: The future of mobility in Helsinki

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i Research by Automotive World Special report: The future of mobility in Helsinki

Table of contents

Executive summary 1

Start at the Finnish line: Helsinki’s top-notch transportation 2

Public transport still key to future mobility in Helsinki 5

Can Helsinki go car-free without an official ban? 7

Interview: Sampo Hietanen, Chief Executive, MaaS Global 9

Mobility success dependent on shift in public attitude 12

Ride-sharing could be the space-saving solution smart cities need 15

Helsinki experience underlines ease of selling MaaS, says mobility alliance 17

Autonomy is coming, but MaaS development carries on regardless 20

What can we learn from the demise of Helsinki’s Kutsuplus? 23

Why Finland’s capital has become a world leader in future mobility 26

Research by Automotive World ii Special report: The future of mobility in Helsinki

Executive summary

• Helsinki is a peninsular city, with a rapidly carbon neutrality by 2035. As a result, growing population. Space is at a premium, electrification is a major aspect of its but due to its size, travel times and distances transport and mobility strategies. Helsinki’s are manageable making it an ideal location regional transport authority is promoting for innovative mobility services electric buses, and a number of e-buses are already in operation • Finland has a history of innovation – the home nation of former cell phone giant Nokia • Going car-free is a way of life for many is now also the birthplace of Mobility as a Helsinki residents. Car density is relatively Service (‘MaaS’) provider, MaaS Global, a low compared to similarly-sized cities, and Helsinki company which claims to be ‘the bicycle use is high. Indeed, the Helsinki city world’s first ever mobility as a service bike scheme offers 1,500 bikes and 150 bike operator’ stations. Between five and 11 journeys are made per bike per day across the city • And Finland had a strong hand in the creation of the concept of MaaS; one of the • Car use has declined by five percentage founding members of the 50+ member points since 2010, accounting for 22% of all Brussels-based MaaS Alliance (not to be transport in 2017; walking has increased by confused with MaaS Global) was Finland’s four percentage points over the same period, Ministry of Transport to 34% of transport in 2017

• Helsinki residents have shown a willingness • Finland actively supports autonomous and enthusiasm to adopt innovative mobility vehicle (AV) testing, with a regulatory and solutions, and there is close collaboration legal environment that permits public road between academia and the public and private AV trials. This has resulted in the inclusion of sectors on developing and trialling autonomous shuttle buses within the appropriate MaaS concepts Helsinki public transport network

• The city’s authorities not only demand • Helsinki’s ‘Vision 2025’ is designed to make cleaner, more efficient transportation, but public transport the number one choice for also support and assist its development; this travel, with the ultimate goal of making it was underlined by its involvement in more attractive than private car ownership Kutsuplus, the on-demand bus service that enjoyed popular and technological success, • As a result, transport planners around the even if it ultimately failed financially world look to Helsinki for inspiration and lessons on how to design and implement • Helsinki supports transport electrification; well-developed smart city mobility the city has a target to reduce CO2 emissions from 1990 to 2030 by 60%, and to achieve

1 Research by Automotive World Special report: The future of mobility in Helsinki Start at the Finnish line: Helsinki’s top-notch transportation

Simon Dixon, Partner and Global Transport Lead at Deloitte MCS provides an overview of the Finnish capital’s innovative approach to smart city mobility

elsinki is often cited as a poster child for Table 1: Mobility Analysis Scores Hwhat a sufficient, efficient transport system looks like. Previously known as just another T G O L MOBILITY ANALYSIS P O C P B charming European capital with respectable E O E A M A N R L E S T F L R P E O E G IR N R A public transport, it began to garner the world’s I I D M D N N E E E attention in 2015 when it piloted – and then G G R R R launched – the first commercial mobility-as-a- Cong est io n service (MaaS). But this belies a longer history Publi c tra nspo rt re li abili ty of innovative experiments in urban transport. Performance Tra nsport sa fet y and resilience In te grate d and share d mo bili ty Rated as a high performer among cities in Ai r qu ali ty the Deloitte City Mobility Index Vision and strate gy

(https://www2.deloitte.com/insights/us/en/foc Inv estme nt us/future-of-mobility/deloitte-urban-mobility- Innov at io n Vision and index-for-cities.html) , Helsinki scores well Re gul at ory envi ron me nt leadership Envi ron me nta l susta in abili ty across almost every indicator from road safety ini tiat iv es to the regulatory environment to ease of use (see Table 1). Notably, public transport is Publi c tra nsit suppl y reliable and has excellent coverage throughout Tra nspo rt aff ordabili ty the city; the system offers multiple modes of Versat ili ty Service and Cu st omer sat isfact io n transport that are interconnected across the inclusion city; and cycling and walking are also popular, Access ibili ty accounting for nearly 30% of all journeys, even Source: Deloitte City Mobility Index in the long, cold winter.

However, the steady increase of private The backdrop vehicles has led to Helsinki’s relatively high NOx emissions. The local government has a The capital and largest urban agglomeration goal to improve air quality by substantially in Finland, Helsinki is a compact city of reducing private car use in the city centre by 650,000 inhabitants in the core, and about 1.4 2050 through a combination of shared million in the wider metropolitan area. Since mobility, on-demand transport, and pedestrian- the 1960s, the population has doubled, friendly urban development. particularly in the outskirts.

Research by Automotive World 2 Special report: The future of mobility in Helsinki

The city is laid out in a hub-and-spoke model Even cycling takes a respectable 8% share – with a designated main centre, and a series of somewhat of a surprise in a place with such radial main roads and rail lines emanating out. frosty winters. Although cycling has been a Ring roads and rail routes connect the spokes. cause celebre in many major cities for a As the suburbs have grown, so have network number of years now, Helsinki has had a hubs in Espoon Keskus, Leppävaara, Pasila, strong culture going back decades – Tikkurila and Lentoasema (Airport). documents from the 1930s show there were more than 10,000 cyclists a day on its main Since the 1960s, the share of public transport has routes. It launched a public bike share in 2016 decreased, to just over 30% today, from over 65% and aims to reach a 15% modal share by 2020, in 1966. This has been caused by the increase in through the provision of more bike lanes and private car use, especially for shopping, social routes in the city. and recreational reasons. Like many places, car use increases the further out you go. Innovation is key Yet despite this, congestion remains manageable in Helsinki. Car density in the city, But what really sets Helsinki apart from other at 390 cars per 1000 people, is lower than cities cities is how innovative it is. The Finnish of similar size, such as Brussels, meaning that Ministry of Transport and Communication, and even as more journeys are taken by car there Tekes, the Finnish Funding Agency for has not been a corresponding rise in Technology and Innovation, have shown a congestion. And Helsinki scores better than its willingness to try out a range of new mobility main Nordic neighbours in rankings of services. Working in close collaboration with congestion, even when adjusted by population. Aalto University, and the private sector, Helsinki has demonstrated that the right mix of This is due in part to a mobility plan that has transport, technology and topography can strongly favoured public transport. Helsinki create a fertile space for new ideas. Many of the scores well for versatility, and its public modes trends that sweep the world of transport include bus, metro (the only one in Finland), services start with pilots in Helsinki. trams, commuter trains, and ferry services. The city aims to make public transport the No. 1 Take Kutsuplus, one of the first on-demand bus choice for all travel by 2025. services in the world. Originally designed to fill in gaps in public transport, limited coverage of Helsinki’s transportation system scores highly the metro network and bus routes running on customer satisfaction, largely due to its ease along the north-south spokes, Kutsuplus was of use. Public transport is accessible for created to help users headed in roughly the disabled people, and most of the buses and same direction along the east-west corridors. more than half the trams have low floors, with plans for full accessibility in the future. Kutsuplus developed a routing algorithm and software that enabled riders to go online and book a place in a 9-seat minibus for around Table 2: Congestion Ranking of €5 – slightly more than the €3 cost of a bus or Helsinki Neighbours, as of subway ride, but cheaper than the starting September 2016 price of a taxi, €6. The service ran from 2012 and expanded to a fleet of 15 buses before the 5 Helsinki Helsinki Regional Transport Authority ended Stockholm 4 the service in 2015. Although the economics Copenhagen 4 of the experiment did not ultimately work out in Helsinki, its micro-transit model has Oslo 3 inspired a number of similar services Source: Deloitte City Mobility Index, Inrix European Traffic elsewhere in the world, namely UberPool, Hotspots Research and Ford Mobility’s Chariot.

3 Research by Automotive World Special report: The future of mobility in Helsinki

Helsinki Transport Network

Source: ITF, adapter from data supplied by HSL and open HSL GTFS files

These days, Helsinki is best known as the most the first cities in the world to put driverless successful manifestation of MaaS. The company buses on the street – albeit at 11kph (7mph)! that started it, MaaS Global, began as a pilot in The city is looking to provide regular last-mile 2015, and relaunched as a going concern in solutions using self-driving buses. 2016. Its model is based on the idea that transport could be delivered as a multi-modal, All of this is helped by a very supportive on-demand, door-to-door service that regulatory and legal environment. Finnish law integrates public and private options, and does not require a vehicle to have a driver, offers greater convenience and value for money which paves the way for autonomous vehicles. than conventional transport models. And the Transport Service Act, which came into force from 1 January 2018, sets obligations for Powered by the Whim app, it has grown to service providers to make their travel data more than 45,000 users in Helsinki, with over available via an open interface. Effectively a ‘pay 5,000 on monthly subscriptions. The app to play’ model, the goal is to create calculates optimal routes of travel across opportunities for innovative new business ideas different modes of transport (including taxis, in transport services by promoting open data car rentals, and all public modes) and allows and smoothly linking travel chains. customers to book combined end-to-end journey tickets. It is no surprise that transport planners around the world look to Helsinki as a lodestar for lessons MaaS Global has now established a footprint in on what well developed city mobility should look the West Midlands, Amsterdam and Antwerp. like. It demonstrates how a willingness to Despite a number of cities trying to launch a introduce creative solutions to age-old problems similar service, Helsinki remains one of the can be successful, especially when driven by only cities in the world to run a fully collaboration between the government, the operational service. private sector and academia. And its commitment to innovation drives further improvement to the Helsinki is also at the forefront of autonomous system. Helsinki’s plan for 2050 paints a vehicle operations. With its launch of the compelling picture of a sustainable, integrated, RoboBusLine in 2017, Finland became one of and highly convenient transport system.

Research by Automotive World 4 Special report: The future of mobility in Helsinki

Public transport still key to future mobility in Helsinki

Innovative projects to accelerate smart mobility in Helsinki will not necessarily lead to the depletion of public transportation in the city

obility is one of the biggest areas of the Finnish development company specialising in Mdevelopment in cities across the world. digital services and innovations, aims to test Helsinki, in spite of its relatively small population, experimental ideas that will in part contribute to is no exception to this. With new start-ups and the future of smart mobility in Helsinki. innovative proposals arising frequently, Helsinki is becoming an example of how cleaner mobility These tests are designed to fit in with users’ solutions can be implemented to go alongside everyday lives. Speaking to Automotive World , pre-existing transportation options. The Finnish Sami Sahala, Project Manager of the Last Mile capital was ranked as one of the top six of 468 project for Forum Virium, said, “It’s pointless European cities for Smart City initiatives, to just sit down and wait for somebody to make according to research conducted by the a nice study on something. It’s about trialling, European Parliament. so we’ve been doing that and will continue to do that.” Some of the most successful mobility solutions have arisen as the result of experimental trialling. Though studies are effective in determining what Collaboration can be achieved and what is desired within a market, they do not necessarily equate to the Forum Virium’s members are diverse and cover a success of an idea when it is put into practice in broad range of services; members include real situations and environments. Forum Virium, telecommunications solutions providers, technology companies such as IBM, financiers and promoters of research and development (R&D) projects, as well as the city of Helsinki itself. Utilising these partnerships, Forum Virium It’s pointless to just sit aims to develop smart cities through the use of “ innovative ideas and solutions which can be down and wait for implemented in numerous urban areas. somebody to make a nice However, these projects are not designed to study on something. It’s replace existing public transportation systems, but rather to complement them. Public about trialling, so we’ve transport is still anticipated to be a key feature been doing that and will in Helsinki’s future and this is in part due to Forum Virium’s shared goal with the Public continue to do that Transportation Agency. “They are in our steering group of the project, so we are not competing for the users of public transport, but

5 Research by Automotive World Special report: The future of mobility in Helsinki

instead providing a variety of different mobility companies such as Forum Virium could services that would make the private car provide the solution to this problem. Forum useless. That’s our shared goal with the Public Virium invites new potential experts into the Transport Agency,” Janne Rinne, fellow Project field, broadening the scope of knowledge and Manager for the Last Mile project, said. innovation that can be introduced into Helsinki’s mobility systems. Choice Human-centric approach Forum Virium’s goal is to add choice to the mobility solutions that exist in Helsinki, so as to For the Last Mile project, one of Forum accelerate and improve the growth of mobility in Virium’s most notable visions, a human-centric the city. “We want to challenge all Helsinki approach is critical to the success of new residents and stakeholders, businesses, to think mobility solutions. Both Rinne and Sahala agree of their transport needs and mobility behaviour that the most successful innovations will come in a new way,” Sahala said. “In the end, what we from assessing the needs of the public, rather want is that people do change their behaviour. than the needs of companies. “We have a very And what we need to do in order to achieve that close interaction with the residents and we is to show that they have more choice.” listen to what they appreciate and what they would prefer while developing these pilots and In tandem with the progress made by Forum experiments,” Rinne said. “So instead of just Virium, Helsinki City Transport (HKL) is looking throwing in some technological solutions or to improve and expand public transportation to new services, we really try to understand what increase the ease of mobility in the city. Public people think and the reasons for them transportation systems are growing in scale and behaving in a certain way.” usage in Helsinki. As Arturri Lähdetie, Head of Unit – Infra and Equipment for Helsinki City Looking to the future of mobility in Helsinki, Transport (HKL) explained, “we are constantly Sahala believes that this is difficult to predict. “At expanding the tram and the metro systems. We the moment, it’s just as easy to predict as if you opened an extension last year for the metro and were asked before the internet or mobile phones yet another opening will be in four years, so the how they would change the world,” he said. length of the metro system will be doubled with However, disruption is an inevitability as mobility these two extensions.” Despite a rise in ride- increases and diversifies within the city. sharing and car-pooling solutions to increase Furthermore, developments in Mobility as a mobility, these existing modes of transportation Service (MaaS) are expected to change the are still being updated to maintain familiarity for ecosystem of transportation. “There’s plenty of users in cities. hype of course, but that’s the main, and so far, the best idea as to how we can really engage users Although many systems have been in place for and citizens,” he said. a long time, there are some challenges being faced by those trying to maintain traditional For HKL’s Lähdetie, public transportation is transportation systems. Most notably, a lack of expected to still remain a high priority in future experts within the field is causing trouble for mobility solutions. “The City of Helsinki has a HKL. “We cannot build the new rail-based strategy where mobility is prioritised so that the transportation systems as quickly as we would biggest priority in mobility is given to walking, like to because we don’t have enough people and then cycling, and third public transportation and knowledge,” Lähdetie explained. “That is systems.” As evidenced by the opinions of HKL one of the things we have realised in the last and Forum Virium’s representatives, although year, or the last few months - now that we start-ups and new mobility implementations are have started new projects, we have problems crucial for the progress of mobility, existing finding people to work with these projects.” public transportation still has a role to play in For this reason, complementing ideas from how citizens move around the city.

Research by Automotive World 6 Special report: The future of mobility in Helsinki

Can Helsinki go car-free without an official ban?

Finnish capital pushes to implement mobility solutions that will be more desirable than personal vehicle ownership - but what will this mean for the city?

he city of Helsinki wants to make cars Tobsolete by 2025. However, unlike other European cities taking steps to legally ban certain types of personal vehicles from their streets, Helsinki is taking a different approach. Rather than implementing an official ban, the In the Helsinki area, the city wants to develop and deploy mobility “ problem is that congestion systems so effective that personal ownership will begin to see redundancy when compared is slowing the development with the other options available. Helsinki wants to see its citizens simply choosing an alternative of the city. That’s one to their own cars due to the efficiency of the reason that the number of mobility services on offer. private passenger cars To ease congestion cannot grow any more

As with many cities across the world, congestion is one of the biggest motivators for there just simply isn’t enough room to cover all a reduction of vehicles in the city. “In the the congestion,” he said. “If you look at the Helsinki area, which is the capital area and the simulations, at the status quo, and if we even biggest urban area in Finland, the problem is add some lanes and some new roadways into that congestion is slowing the development of this, it just doesn’t cut it if the car ratio per use the city. That’s one reason that the number of is the same.” private passenger cars cannot grow any more,” explained Arturri Lähdetie, Head of Unit – In tandem with the desire to lower congestion Infra and Equipment for Helsinki City in dense urban areas, the drive to be a leader in Transport (HKL). smart mobility solutions and an example to other cities around the world of how to operate Moreover, Sampo Hietanen, Chief Executive of a smart city is also motivation behind this goal. MaaS Global, believes that one of the main “I like the attitude that you could live a reasons why less personal vehicle ownership in perfectly good life without being forced to own Helsinki is important is the expected a car,” said Hietanen. “I think it’s better to population increase. “They’re planning to have enable a world where you can buy a car and it’s 50% more people in quite a short time and quite okay if you wish to have a car, but even in

7 Research by Automotive World Special report: The future of mobility in Helsinki the suburbs you should be able to have the No ban same standard of living without needing to own a car. But of course, that’s going to be a long way off.” Lähdetie stressed that single passenger vehicles will still have role to play in the transportation ecosystem, in the near future at least. “We don’t Helsiniki and beyond expect passenger cars to diminish or to vanish completely,” he explained. “We want to increase MaaS Global’s Whim app was first introduced the modal share of public transportation because to test users in Helsinki in October 2016. Since that is the only way we can let the city develop then, its popularity has continued to rise, and and grow.” the app is now being used in the UK, with plans for further development in other global While a ban on cars may be too extreme for a markets. The concept behind the Whim app is relatively small city such as Helsinki, a more that car ownership does not make sense for balanced environment can at least be targeted, most people nowadays. In response to this and this is what HKL is trying to do. HKL’s website shift, the app offers its users the opportunity to makes a plea to vehicle owners, explaining that combine public transport with private sector “each and everyone can help to cut emissions and services, with the aim of ensuring the most improve air quality by using public transport, efficient, cost-effective and green way of cycling and walking. Car pools, car sharing, moving around. combined transport, economical driving and use of low-emission vehicles are other means to As mobility solutions continue to strengthen in reduce hazards caused by transport and traffic.” urban areas, and with the easing of congestion a priority for most city governments, As with many megatrends within the automotive alternatives are being sought, and Whim is one industry, the future of mobility will be subject to innovation that is taking advantage of this new, the development of new ideas and their transformative environment. “Whim's role has implementation, and is therefore difficult to been important, and the CEO of Whim Sampo exactly predict. Lähdetie, however, anticipates an Hietanen has been one of the early advocates of ecosystem of balance. “What we expect to see is mobility as a service, and he has been active in that there will also be new forms of mobility pushing people to rethink or to assess the services based on intelligent systems, which help current system and see the possibilities of the people to combine different modes of change,” Anni Sinnemäki, Deputy Mayor for transportation,” he said. “We like to speak of Urban Environment in Helsinki, told mobility as a service and, as the City of Helsinki, Automotive World . we are the only mobility provider, but we want to be part of this mobility service as the community Sinnemäki pointed out that private car provides for our citizens.” journeys take up only around a fifth of those in Helsinki, leaving room for plenty of Helsinki is fast becoming a benchmark for other developments in mobility. “I would say that if cities to learn from, particularly when it comes to we add together the public transport, the mobility solutions. Sinnemäki believes that now is journeys taken by walking and cycling, those the time for cities to react while so much change journeys make up almost 80% of all journeys is under way and while the industry is seeing being made in the city,” she explained. “So, great transformations. She explained that, “The the private car has the responsibility of 22% first lesson is probably that this is a good time for of the journeys being taken in the city. That is rethinking mobility in many ways and I think it is journeys, so if we count kilometres, the car a good time for cities to assess everything they do has a slightly more significant role, and I regarding mobility.” By taking advantage of an think that is the framework on which we are ever-changing platform, cities can begin to lead also building the platform for new mobility the way in making roads safer, more efficient and solutions.” cleaner in dense urban areas.

Research by Automotive World 8 Special report: The future of mobility in Helsinki

Interview: Sampo Hietanen, Chief Executive, MaaS Global

Automotive World talks to the founder of ‘the world’s first ever mobility as a service operator’

n February 2018, MaaS Global’s Whim Imobility app was selected as one of the three winners of a European Parliament-organised European Startup Prize for Mobility competition, from a shortlist of ten finalists and “We are on the verge of almost 500 start-ups. major change. It will take Backed by investment from a number of years to bring together companies including Denso, Karsan and Toyota Financial Services, MaaS Global claims to be the bits and pieces, but ‘the world’s first ever mobility as a service the main thing is that operator’. Founded in 2015 by Sampo Hietanen and Kaj Pyyhtiä, the company says it is ‘set to the whole industry has make the biggest change in transport since affordable cars came to market’. recognised it and is working towards change The Whim app was launched in 2016, and provides a single subscription platform for all means of transport, from public transit to taxis, bikes and car sharing. First launched in What is the current state of mobility in Helsinki, Whim is now also available in Helsinki? Birmingham, Antwerp and Amsterdam. Whim allows users to plan and pay for their journeys, It is currently undergoing a change and it is either on a single-trip basis, or via one of two clear that people are quite keen to try new monthly subscription packages. approaches. The taxi market was deregulated at the start of July, which brought in all kinds of In a recent interview with Automotive World , new things including Uber. We are seeing the the company’s Chief Executive, Sampo first trials under way with the mobility app Hietanen discussed the challenges of Whim. Even Mercedes-Benz is adding a piece to launching a mobility service, the this mobility puzzle. The new A-Class launched opportunities that it offers, and how this fits in Finland through Whim. With that you don't in with MaaS Global’s aim of offering an have to buy the vehicle outright but instead buy alternative to car ownership. so many days of use.

9 Research by Automotive World Special report: The future of mobility in Helsinki

“The competition is car ownership. That's not because there is anything bad with it, but rather because the car is a great product. It offers a sense of freedom. To compete with that you must have an extremely good service promise for people

How is the wider ecosystem impacted by Why is Mobility as a Service so important these developments? in this city?

We are on the verge of major change. It will take Helsinki is based on a peninsula. The years to bring together the bits and pieces, but population is expected to grow by 50% in a the main thing is that the whole industry has short time and there simply isn’t enough recognised it and is working towards change. room to cover all the congestion. If the car There is an understanding that you need an open ratio usage remains the same, then adding ecosystem with a separate layer of business. This more lanes and some new roadways just involves the provision of transportation, the cars, won't cut it. buses, trains, taxis, ride-hailing and bike-sharing. Then there is a separate layer, where you How significant a role will the Helsinki- combine and package the service. This is what we based transport service Whim play? are doing. Whim combines all the transport services on How would you characterise competition in offer in a simple way - public transport, taxis, this new space? bikes and many cars. Even though the model split favours public transport, it also ensures The competition is car ownership. That's not there is access to many different and because there is anything bad with it, but rather beautiful cars. The essence is that you don’t because the car is a great product. It offers a sense have to live without a car even though you of freedom. To compete with that you must have don’t own it. Testing has been going on for an extremely good service promise for people. some time now in Helsinki. We launched it at the end of last year with the first marketing campaign. How quickly have developments been emerging? What has the reception been like so far? The thinking process has been going on for a long time. It became the core of the Finnish Transport People were readier for this than we had Ministry’s transport policy back in 2011. The expected. We have already secured 50,000 understanding around how to create this type of users, which was more than we bargained ecosystem comes from the 1990s. Finland was for. They really appreciate the affordability the first place to have the Global System for and convenience. All of these bits and pieces Mobile Communications (GSM) markets up and of mobility existed before Whim, but now running and this is similar to what is happening there is an overarching service provider that now in transportation. takes care of all of it for the user.

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“We have already secured 50,000 users, which was more than we bargained for. They really appreciate the affordability and convenience

Have you seen any barriers to consumer users but we aim to offer a service across the acceptance? country. In the UK especially, the rail aspect is vital, particularly for commuting. We have just Sadly, the consumer acceptance has been better about been accredited to sell all the UK rail than the industry acceptance. For consumers, tickets. We’re adding a bit more supply on the barriers tend to centre on the ease, the taxi-type services to have a complete set. convenience, the understanding of the tariff scheme, things like that. They have high What can other cities learn from Helsinki, expectations from services. Perhaps the biggest either from Whim or just from Mobility as a hurdle for them is trusting that the monthly Service in general? subscription will allow them to go anywhere at any time. In all honesty, we are still struggling Consumers want access to everything within the with that. city, not just parts of the offering. They want their choice of operator. They also deserve to have Whim obviously has a number of success roaming services and the knowledge that the stories, but are there instances that have not service works not just in this city but across the been so successful? world. The sooner cities start playing by these rules, the better. Take the taxi, for example. We had to postpone our launch for quite a while. We had one client How will new mobility approaches change who gave up his car and relied on Whim. Once the city infrastructure? the taxi took 20 minutes to come, and he was late for an appointment. A week later it was even One of the biggest changes in the coming years worse. The taxi picked up someone else, so he will be the decreased need for parking space. missed the appointment entirely. In the end, he That will open up new options for the city to do went back to his car. something else, something that looks much nicer than a parking lot. It took a lot for us to understand that it’s a different thing to simply providing a taxi or an What sort of financial investment will Uber. We are there with the users throughout transport require moving forward? the whole month, so the whole attitude must be different. We need to take that to all of our For any given area, city or country, the partners - they provide that physical service, expenditure for transportation is the second not us. We need to ensure there are enough largest. It is a humungous market - ten times the fallbacks, and we cannot leave these size of telecom. This is undergoing disruption and customers alone. the cards are being reshuffled. The countries that lead on this front will be those that get their What are the next steps for Whim? markets right first. Politically, that has been a much bigger driving force in Finland than The next step is expansion. People would like to anything else. It has to do more with trade, have a roaming subscription. For the UK, we are exports and jobs than actually taking care of starting in Birmingham and have reached 4,000 transportation.

11 Research by Automotive World Special report: The future of mobility in Helsinki

Mobility success dependent on shift in public attitude

Solutions for mobility in Helsinki rely heavily on a new way of thinking from the industry and citizens alike

s with all significant developments in global Aindustries, consumer acceptance is critical to the success of the mobility solutions being tried and tested in the smart cities of today. Peoples’ attitudes are Helsinki is no exception to this; as a fast- “ growing hub of technological and mobility changing, especially for advances, the peninsular city is taking leaps towards becoming a greener, more efficient MaaS. I’m not sure that transportation ecosystem. everybody really wants to The reliability of a personal vehicle is a own a car challenge facing any innovator of mobility. For a century, the immediate availability of a car has been an unrivalled convenience, in spite of acceptable to own a personal vehicle, but it is the many alternatives that are available from also possible to have the same standard of public transportation. As Sami Sahala, Project living without one, particularly for those living Manager for Forum Virium’s Last Mile project, in the suburbs of smart cities. explained, “The main challenge we have and everyone else has is how to make people Public acceptance of a solution is not the only change their behaviour. That’s the ultimate consideration for a new mobility solution. For challenge that we all need to address in the some companies, industry acceptance can also end. And people like their cars, for example. be a barrier to the implementation, funding and How do you overcome that?” development of new mobility idea. Sampo Hietanen, Chief Executive of MaaS Global and creator of the Whim App, one of the most Mobility as a Service innovative and successful mobility solutions to have arisen in Helsinki in recent years, explained One solution for this is to make mobility that the app has been met with more resistance solutions that are as good as, if not better than, from those within the industry than from the personal vehicle ownership. This is where public in general. “Sadly, consumer acceptance Mobility as a Service (MaaS) plays a large role in is better than industry acceptance,” he gaining consumer acceptance. One of the ideas explained. Replacements for the traditional, behind the creation and implementation of long-term solutions that have been in place in MaaS is to provide alternatives where it is still cities for decades could face resistance.

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How do you manage the change in a way that two things are “ensured - that people reach the places they need to go to, and that they have the access to that opportunity?”

However, mobility solutions do not necessarily just throwing in some technological solutions mean a total replacement for public or new services, we really try to understand transportation options, but rather a complement how people think and what their reasons are to them, to provide increased options for users. for behaving a certain way.” Whilst it is important to be innovative and introduce new Developing close relationships with consumers ideas to market, their point is lost if consumers based on mutual understanding is pivotal to the have expressed no desire for them. success of a new solution. Janne Rinne, fellow Project Manager at Forum Virium believes that Not all mobility innovators have seen strong communication with the residents of a resistance from consumers. Piia Karjalainen, city is essential for mobility progress. “We have Senior Manager at Brussels-headquartered a very close interaction with the residents. We MaaS Alliance, explained, “All indications from are listening to them, what they appreciate and the current pilots and services already what they would prefer,” he said. “Instead of available in the market show that there really is a huge market demand. People are really excited to start using different application- based services, start to plan their journey, or start to use applications to do the journey planning.” MaaS Alliance is a public-private With MaaS, we achieve the partnership which seeks to find a common “ approach for MaaS, predominantly in Europe same targets in terms of but further afield as well. environmental implications and reducing congestion, Changing priorities but at the same time we MaaS is proving to be a catalyst for behavioural provide users with more change in smart city inhabitants. The mobility options arising from this are providing more variety of mobility options alternatives that could see economic and and more freedom in terms environmental improvement. “Peoples’ attitudes are changing, especially for MaaS. I’m not sure of how they would like to that everybody really wants to own a car,” do their journey explained Jari Kauppila, Senior Economist at the International Transport Forum. This is evidenced in cities like Helsinki and Stockholm, which have seen a decline in the number of young people

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The pace of digitalisation in transport, especially in cities, has “accelerated in recent years just as many new technologies have been introduced and as citizens have adopted new behaviours

obtaining driving licences. “This has to do with a in recent years just as many new technologies general value and the thinking, ‘What do I value have been introduced and as citizens have more? Owning a car and paying for a parking adopted new behaviours. The conflation of space or having a nice apartment with other technology, both within and outside of the transport options I can use?’ I think this is where transport sector, with evolving societal trends there’s a change taking place,” he said. and new relationships built around the production and consumption of services has As Karjalainen explained, “With MaaS, we been faster than anticipated by many actually achieve the same targets in terms of the authorities and has outpaced the speed of environmental implications, in terms of reducing regulatory adjustments.” congestion, but at the same time we provide users with more variety of mobility options and While a complete overhaul of personal vehicle more freedom in terms of how they would like to ownership does not appear imminent, it is clear do their journey. They also have better that work is being done to change people’s transparency in terms of the cost of the mobility.” attitudes towards getting around. By utilising existing transportation options and bringing The International Transport Forum analyses more options to people who live in the data from different smart cities. According to a suburban areas of dense cities, mobility 2017 report by ITF, “The pace of digitalisation progress can be accelerated. The ITF’s Kauppila in transport, especially in cities, has accelerated believes that when looking to the future of mobility, the important consideration is not what cities will look like in the coming years, but rather how they anticipate this change. The unpredictability of mobility acceleration makes We have a very close way for an uncertain but exciting future, and “ one for which careful preparation is required. interaction with the “How do you manage the change in a way residents. We are listening that two things are ensured - that people them, what they appreciate reach the places they need to go to, and that they have the access to that opportunity? You and what they would prefer also need to ensure that the system, whatever way it will be delivered, is delivered safely, and in an environmentally friendly way,” Kauppila said. These are the questions facing those involved in the development of mobility today.

Research by Automotive World 14 Special report: The future of mobility in Helsinki

Ride-sharing could be the space-saving solution smart cities need

The potential for ride-sharing is being explored both to replace and to enhance public transportation. Automotive World looks at how such initiatives are being implemented in Helsinki

ide-sharing, in many forms, has been a biggest change in the structure of the city will Rspace-saving mobility option for some be the skeleton or the backbone of the city. time. However, with Mobility as a Service Pretty soon we will end up in a situation (MaaS) becoming a more widely-known and where the structuring in people’s minds is developed idea, ride-share solutions are much more based on hubs.” developing rapidly towards more business- oriented goals within smart cities. Congestion is a motivator behind encouraging a change in behaviour for people living in The Finnish capital of Helsinki has seen smart cities, where mobility options are rife. A multiple rideshare options being tested, to lack of interest or knowledge surrounding the varying degrees of success. The greatest alternative options has and will continue to success story is the Whim App, a mobility lead to an unmanageable volume of traffic app which combines many forms of building in city centres. Olivier Bonfils, Senior public transport and rideshare to create the Business Advisor at Helsinki Business Hub, most efficient route for users. The service, explained that, “you have to see some change which was designed by Helsinki-based in behaviour of people, because if people company MaaS Global, aims to be an continue to always use their own cars to get alternative to private car ownership, and has from A to B and don’t share space, we will still resulted in a rise in the use of ride-sharing end up with more cars on the road than we options in Helsinki and recently also in the have now. So, the shared side of mobility is UK city of Birmingham. very important.”

Ride-sharing, along with other mobility In 2017, Uber decided to withdraw from solutions, could change the way cities look Finland, after it experienced difficulties and operate when it comes to public resulting from taxi regulations that meant its transportation. As Sampo Hietanen, Chief services could not operate sufficiently. In July Executive of MaaS Global and creator of the 2018, Uber was relaunched in Helsinki after Whim App, explained, “In the coming years, new laws surrounding taxi legislations came one of the biggest phenomena will be the into effect. This relaunch is further evidence decrease of needed parking space, and that of how attitudes are changing towards ride- creates options for the city to do something sharing and how governments are more that looks much nicer than just parking. The willing to embrace these operations.

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“The biggest change in the structure of the city will be the skeleton or the backbone of the city. Pretty soon we will end up in a situation where the structuring in people’s minds is much more based on hubs

Anni Sinnemäki, Deputy Mayor of Helsinki, implications of this show that ride-sharing explained how ride sharing could solve one of could have strong environmental as well as the largest issues in the city. “From a city physical benefits to smart cities. perspective, the most promising thing is that the efficiency rate of a single car goes up when ITF asked citizens in Helsinki how they felt it's shared. Be it via services like Uber or be it about ride-sharing options during their individual people sharing their own car, if one research and found that ride-sharing even had car is used more, you need fewer cars in total. the potential to change peoples’ attitudes to You then need less parking space, and parking owning a car. “Over 60% of people would space is usually something that is quite difficult choose this mode if it was available, which is a for a city because in a dense city you need to huge number in any context. And quite a lot of use the space for something else.” people would be even willing to sell their own cars because then you wouldn’t need them. Sinnemaki further emphasised this point, Because whenever you need it, you take your explaining, “I think what we don't want to lose app and order your ride from the origin. The is the space efficiency that public transport and only difference is that the vehicle would be walking and cycling bring to the city, but we are automatically rerouted, depending on who else very willing to be adventurous and to encourage needed that service around that region. So, that new private initiatives on the part of companies would be add maybe five minutes of extra to come with their solutions and to diversify the travel time, but it would be much cheaper than possibilities that people have in their mobility.” owning a car or taking another mode of transport.” The International Transport Forum (ITF) conducted research that explored “what if” The future of smart cities looks promising if scenarios in different cities in Europe and more people can be encouraged to move away found favourable results from ride-sharing. One from solely relying on personal vehicle such scenario was an imagined situation of all ownership and if ride-sharing can be presented public transportation services being replaced as an appealing alternative. Shared mobility, by shared mobility in Lisbon, Portugal and in particularly car-sharing, presents the Helsinki. opportunity of utilising cars to lower the 96% idleness rate for vehicles. “We looked at what would be the impact of having this kind of shared mobility system,” Private car ownership only makes up around Jari Kauppila, Senior Economist at ITF 22% of the total journeys made in Helsinki on a explained. “And we found that you could daily basis. As congestion and emissions actually provide today’s car share needs in the resulting from cars driving around trying to whole Helsinki metropolitan area with just 4% find parking spaces are prevalent problems in of the current number of private vehicles.. That many smart cities, it would behove would mean the CO2 emissions would fall by a governments to invest more research and third, congestion by nearly 40%, and you development into ride-sharing options to wouldn’t need any special parking.” The counter this.

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Helsinki experience underlines ease of selling MaaS, says mobility alliance

It’s all about the user experience; get it right, and people are happy to consider alternatives to car ownership, says Piia Karjalainen, Senior Manager at MaaS Alliance

eadquartered in Brussels, MaaS Alliance Major corporate members include the Hwas established in 2015 by a number of European Automobile Manufacturers founding members that included the Finnish Association (ACEA), which represents the Ministry of Transport, ERTICO-ITS Europe and major vehicle manufacturers in Europe, as FIA. Rising interest in Mobility as a Service well as IT companies, MaaS providers from (MaaS) has since seen the Alliance’s Finland (MaaS Global), Belgium and Italy, membership swell to over 50 members, with a transport service providers such as Hamburg number of different regional county councils or Hochbahn and ATM Barcelona, as well as new regional government representatives alongside mobility service providers including Uber, Via corporate members. and Moovel.

In a recent interview with Automotive World , Piia Karjalainen, Senior Manager at MaaS Alliance, discussed the rising interest in MaaS initiatives, the leading role played by We have plenty of data on Helsinki, and the importance of “ electrification and automation in the the young generation development of long-term mobility solutions. which shows they are no How do you choose the partners that you longer interested in owning work with? What do you need them to a vehicle. Instead, they offer? want access to mobility. There are no strict terms or conditions for joining. It is for all groups who recognise that So, we have to provide an mobility as a service will play a really big part alternative to the car in the future mobility ecosystem. We are all true believers. ownership model In terms of what is attractive for members and potential members, we are working together to co-create the business models, the

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“Helsinki is definitely up there, and the Finnish company MaaS Global which operates in Helsinki is now also providing services in Birmingham in the UK. Antwerp in Belgium is also really good example, as is Vienna in Austria where they have some really interesting services data sharing models, and the playing rules for different Mobility as a Service pilots and the whole ecosystem. We cannot rely on just facilities which clearly indicates that by one or two players from the transportation providing Mobility as a Service, and by market to provide such a good service for the integrating different modes together, we end user that they decide to start using actually create new demand for public mobility as a service regularly. Instead, we transportation, which then contributes to the need a big bunch of different players. And we decarbonisation of transportation. are creating that ecosystem with the MaaS Alliance. It is also a platform for companies All kinds of new mobility services are and cities to get peer-to-peer support, emerging, but if cities really want to get the because many of them have a strong presence most out of this, it is better that they are in the market and others would like to learn integrated on to existing mobility services from them and understand best practice. We and truly integrated. have different working groups focusing on regulation, business models, interoperability What are some of the biggest challenges of the technical solutions and data sharing. facing Mobility as a Service?

Why do you think Mobility as a Service I don’t see many technological challenges. has become such a priority within the What is important is that players in this new automotive industry and within the mobility ecosystem work towards transportation ecosystem? interoperable services. One challenge is encouraging some existing market players to First of all, user demands and expectations recognise the benefits of working more are changing. We have plenty of data on the closely with others, to enable things like young generation which shows they are no access to ticketing, to provide access to longer interested in owning a vehicle. service provision and to combine the services Instead, they want access to mobility. So, we with other new services. There might be have to provide an alternative to the car some issues around trust in the ecosystem ownership model. Then, from the policy because traditionally, transport systems have perspective, it is evident that we have to been strictly regulated by public authorities. seriously reduce our environmental footprint. The European Commission, for Of course, public authorities will continue to example, is concerned about the play a really important role, but perhaps we transportation sector because it’s the only don’t need that kind of controlled system any one in Europe which hasn’t managed to more. It’s more about co-existence. So, reduce its CO2 emissions since 1990. finding the balance between control and Immediate action is needed to meet these trust, and changing the business culture, is targets. We now have evidence from the something that we have to work on.

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“ When we talk about the future of mobility, we have to bear in mind that it has to be at least as good as it is today. We still have to be able to tackle all the same challenges we have now, and aim to have zero accidents and zero emissions, whilst adding something for the end users

Transforming company attitudes is one emphasis is on shared, automated vehicles. In thing, but how about customer attitudes? Is the European model, it’s more about integrating there an issue around customer acceptance other services with public transportation. to new mobility models?

All indications from the current pilots and Which European cities would you say are services show there is already huge market leading the way in mobility as a service, demand. In Helsinki, for example, expectations and where does Helsinki stand? of customer demand have been completely exceeded. And so customer attitudes are not Helsinki is definitely up there, and the Finnish problematic at all. This underlines that MaaS is company MaaS Global which operates in really easy to sell, not only from an end user Helsinki is now also providing services in benefit point of view but also from a policy Birmingham in the UK. Antwerp in Belgium is perspective. Traditionally, the transport sector also really good example, as is Vienna in has guided user behaviour through heavy Austria where they have some really interesting measures such as taxation or congestion tolls. services. Soon there will be some good solutions available in Stockholm too, starting in Now, with Mobility as a Service, we actually September of this year. There are many really achieve the same targets in terms of congestion good examples. reduction, but at the same time provide customers and users with a greater variety of How do you expect the mobility ecosystem options and better freedom in terms of how to look in 20 years’ time? they would like to do their journey. And they also have bigger or better transparency in I personally hope that we will have managed terms of the cost of mobility. to start truly considering the end-user perspective, and that everyone involved in And what roles do electrification and autonomy this ecosystem is working towards the same play in the development of mobility solutions? goal of making the mobility of goods and The role of both is big. The emergence of people as easy and as seamless as possible. I Mobility as a Service would appear to go hand also feel we should have the means to tackle in hand with electromobility and autonomy. all environmental considerations in 20 years. That said, in the European context at least, I When we talk about the future of mobility, we think we can establish good Mobility as a have to bear in mind that it has to be at least Service models without automated vehicles. as good as it is today. We still have to be able to tackle all the same challenges we have now, There may be different approaches in the US. and aim to have zero accidents and zero When they talk about Mobility as a Service, it is emissions, whilst adding something for the more understood as a package where the end users.

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Autonomy is coming, but MaaS development carries on regardless

Autonomous drive technology could change the future of mobility, but some industry players suggest that MaaS development must still continue without it

utomation is one of the biggest areas of Adevelopment within the automotive industry, and there is particular interest in how it can be applied to future mobility services. As cities and individual players compete to find Autonomy is guiding us the most innovative solutions for mobility, new “ towards safety and technologies are being developed and deployed that are set to change the way in which moving us in the direction personal vehicles and public transportation operate in urban areas. of avoiding accidents, rather than dealing with The cost-saving aspect of autonomous driving is one that has impacted its rate of adoption them when they happen and experimentation. “For any market operator, if you can remove the driver, that’s a huge saving in the cost of providing the years’ time its role would be so different. We service,” explained Jari Kauppila, Senior have been part of a European project, where Economist at the International Transport we are trying to purchase autonomous buses Forum (ITF). The removal of the driver in for certain routes, so I think that in five years’ vehicles such as buses, however, could lead to time we will have seen more pilot issues of consumer acceptance. Consumers programmes.” Sohjoa, an EU-financed project unfamiliar with autonomous drive technology that involved Finland’s six largest cities as well may find a lack of driver in control of a vehicle as universities and transportation authorities, to be a daunting prospect. For this reason, the saw autonomous shuttle buses tested in a adoption of fully-automated transportation number of cities, including Helsinki, Espoo could still take many years. and Tampere. This ran until May 2018, when it was replaced by Helsinki RobobusLine, as “I do believe, in 20 years’ time, that outlined below. autonomous vehicles (AVs) will play a much bigger role than now,” explained Anni Helsinki Business Hub (HBH), the Finnish Sinnemäki, Deputy Mayor of Helsinki. “I don't capital’s investment agency that seeks to think that the change will be so fast that in five proactively invest in new business ventures

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“I would say that, at least when speaking about the European context, we can establish good Mobility as a Service (MaaS) without automated driving or automated vehicles

including mobility solutions, is one organisation Many organisations and industry players, such that is looking to accelerate the use of as HBH, are looking to hastily introduce autonomy. As Olivier Bonfils, Senior Business automation into their future plans for Advisor at HBH, noted, Finland is of particular mobility. However, Piia Karjalainen, Senior interest for autonomous drive testing, as it one Manager for MaaS Alliance, believes that of the few countries that allows autonomous mobility is not dependent on autonomy, and vehicle testing on all roads, without a driver. does not need to wait for developments in the technology. “I would say that, at least when speaking about the European context, we can No need to wait establish good Mobility as a Service (MaaS) without automated driving or automated HBH’s website explains the reasoning behind vehicles,” she said. “So, it will be additional the focus on Helsinki for developments in elements there, providing nice, new options mobility: “Helsinki has an extremely well- or solutions, but autonomy is not something functioning business environment, and it we have to wait for until we can start to make boasts one of the world’s most talented Mobility as a Service.” workforces. It has impressive figures to show on investments made in research and Autonomy could have more of an impact in development (R&D). It’s also a clean, stable and suburban areas of smart cities, where public secure region with a very high standard of transport may be slightly less accessible than in living and welfare.” For these reasons, it seems city centres. As Karjalainen explained, “when that Helsinki is an ideal location for testing we have a maturity with automated vehicles, automated mobility solutions. then you really will see that they are providing us with sufficient first and last mile solutions for suburbs, and also for rural areas, for the different working-while-commuting kinds of solutions. These will be services that we cannot “For any market operator, even imagine today.” if you can remove the Safety benefits driver, that’s a huge saving One of the biggest benefits of autonomous in the cost of providing drive technology is the potential for increased the service safety in vehicles. AVs are not mere novelties in the development of technology; designed correctly, they have the potential to be safer than human drivers. “Autonomy is guiding us

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“The emergence of automated driving and cars will make for a completely different adventure. It is hard to see 20 years ahead from now, but it will for sure be exciting

towards safety and moving us in the direction a three-year trial that will culminate in the of avoiding accidents, rather than dealing launch of a commercially viable automated bus with them when they happen,” said Larry operation in Helsinki. Initially, Helsinki Dominique, Chief Executive at PSA North RobobusLine will operate for six months over America, speaking at Connected Car the summer and autumn of 2018, and the route California 2018. This preventative, active has been incorporated into the Helsinki Region safety technology has the potential to Transport’s Journey Planner. significantly reduce road traffic incidents, which could be a catalyst for the Financial support for the Helsinki RobobusLine improvement of consumer acceptance, project comes from the EU-funded particularly for public transportation where mySMARTLife project. This sees Helsinki the user – a passenger – by default does not develop smart commercial-scale solutions with have control of the vehicle. other European cities to cut urban carbon dioxide emissions, focusing on transportation Companies like Autonomous Mobility, whose and housing. focus is on automated mobility solutions in the Nordics and Baltics, are arising to bring One thing seems certain; autonomy is set to innovative technology to areas that have change the landscape of mobility in major adverse weather conditions. Established in smart cities, though it is hard to predict when 2016, Autonomous Mobility is now at the stage this will happen. This makes for an interesting where autonomous solutions are being tested but unpredictable future, as relayed by in mixed traffic situations. As Autonomous Karjalainen, who explained that “the Mobility explains on its website, “It's quite emergence of automated driving and cars will simple. You want to be somewhere at a make for a completely different adventure. It is certain time. Be it by bus, by car or by drone - hard to see 20 years ahead from now, but it will whatever, as long as you reach your for sure be exciting.” destination effortlessly. We are creating the solutions that take you where you need to be, Deputy Mayor Sinnemäki agrees with this door to door, on demand to suit your prediction of the time it will take to see an changing needs.” impact of autonomy on mobility in Helsinki, but through slightly different means. “I think in The autonomous bus is 20 years’ time it is more realistic that the change will be seen, and probably, that drones coming and flying objects probably will have a bigger role in the city transport. Perhaps not that In May 2018, Helsinki RobobusLine launched people would use them themselves, but for on public roads in the Finnish capital. The example, in small scale logistics they might Navya self-driving electric minibuses are part of have a bigger role than now.”

Research by Automotive World 22 Special report: The future of mobility in Helsinki What can we learn from the demise of Helsinki’s Kutsuplus?

Kutsuplus was the Finnish capital's on-demand minibus service. Innovative and popular, but commercially unsuccessful, much can be learned from this pilot programme

major aspect of the development of new Amobility solutions is the testing and validation process. As with any new technology, not all initiatives succeed, but each Kutsuplus was a pilot and I can teach something new about what “ consumers want and what works. think it was an important

Referred to by some as Uber-for-buses, Kutsuplus one, although it wasn't a was launched in October 2012 by Helsinki City success in the normal Transport (HSL) with the aim of offering an on- demand ride-sharing service that would see sense of the word passengers matched with mini-buses heading in the appropriate direction. An example of flexible micro transport services (FMTS), Kutsuplus grew out of Aalto University research into alternative A success – of sorts public transport, and was created as a response to unsustainable mobility solutions existing in According to HSL’s Final Report on Kutsuplus, Helsinki at the time. published in 2016, “The number of private cars trips in the Helsinki metropolitan area is still Kutsuplus was powered by software designed increasing as before. In 2012, almost two to enable people to go online and for €5 million trips were made per weekday, of which (US$5.76) book a ride on a nine-seat minibus. 1.1 million were with private cars. Orbital traffic The ticket price was higher than a standard bus is related to this development. In orbital traffic, or subway ticket, but users paid for the traditional public transport has not been at its convenience; notably, though, each ride was best, as the origin and destination points of still heavily subsidised by the city. journeys tend to be scattered over a large area and it is therefore rather difficult to provide a The service ran from 2012 and expanded to a good level of service with a traditional fixed fleet of 15 buses before the Helsinki Regional route and fixed schedule service.” Transport Authority ended the service in 2015. The original aim had been to expand The report explained Kutsuplus’ ultimate the Kutsuplus fleet to between 5,000 and downfall came when the service increased in 8,000 vehicles by 2027. popularity and more vehicles were required

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“The lack of paying riders also meant that each trip was more expensive to operate…which made it increasingly difficult for HSL to justify subsidising Kutsuplus

to meet the demand, and, “the municipalities trip was more expensive to operate.” This, of did not grant the funding for the proposed course, made it increasingly difficult for HSL capacity increase in the challenging economic to justify subsidising Kutsuplus. Mobility situation. This decision severely hurt the solutions must be a cheaper or more efficient service development in terms of efficiency, alternative to private vehicle ownership to economics, and quality development.” avoid redundancy. If ride-sharing options However, the report maintains that, “Despite have long wait times, it is very difficult for the challenges in the operating environment, them to compete with the century-old the positive development of the Kutsuplus reliability of private vehicle ownership. service continued. The developing service drew wide attention and services resembling Sinnemäki acknowledges the important role Kutsuplus started to emerge outside Finland. played by Whim, the mobility app launched The service was found to be very good and the by Finnish company MaaS Global. The pilot interesting, including at the political company’s Chief Executive, Sampo Hietanen level, until August 2015.” was one of the early advocates of mobility as a service, and played an active part in pushing people to consider a new approach to Increasingly difficult to transportation and mobility. “I think he has, justify as an individual, actually handled it, but to the city and to the national transport officials and “Kutsuplus was a pilot and I think it was an of course, at the moment it is the most important one, although it wasn't a success in comprehensive package for mobility as a the normal sense of the word at the end of service,” says Sinnemäki. “It's too early to say the day,” said Anni Sinnemäki, Deputy Mayor how successful the company will eventually of Helsinki. be, but it is interesting that they are spreading internationally. This kind of company, of “I'm not saying that it would be eternally course, won't survive in the world if it only impossible but, in that situation, HSL couldn't operates in one city or one place – they need take the next step where it would have to be international.” needed to invest in the vehicles,” Sinnemaki continued. “But the software behind Subsidised initiatives Kutsuplus, which was actually responsible for combining the journeys, has survived and the struggle - can automakers do company that developed it has continued selling it.” it better?

According to research from Shared-Use Kutsuplus is not the only innovative mobility Mobility Centre, “Despite the concept’s focus service to have failed despite its potential. At on shared rides, users found when they rode the end of July 2018, Parisian electric car Kutsuplus they were often the only passenger. sharing service Autolib was wound up after a The lack of paying riders also meant that each number of factors led to its demise.

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“Although the economics of the experiment did not ultimately work out in Helsinki, its micro-transit model has inspired a number of similar services elsewhere in the world, namely UberPool, and Ford Mobility’s Chariot

Poor service and maintenance, reports of poor work out in Helsinki, its micro-transit model hygiene and cleanliness, and outdated battery has inspired a number of similar services technology all led to Autolib’s inability to elsewhere in the world, namely UberPool, and compete against growing segment competition Ford Mobility’s Chariot.” that included ride-sharing services such as Uber and Taxify. Faced with mounting debts and And while Kutsuplus may have failed declining subscriber numbers, Paris authorities commercially, Ajelo, the software maker turned down a request for financial aid and the behind Kutsuplus, continues – it merged with service was closed. Washington, D.C.-based Split and continues to be used and developed. Where government-subsidised initiatives such as Kutsuplus and Autolib have failed, a number Clearly, scale and carefully controlled of micro-transit bus-hailing programmes are operating costs are essential for success. currently being developed, including VW Kutsuplus was too small in terms of vehicle Group’s recently-launched Moia and Ford’s fleet, and too thinly spread in terms of now well-established Chariot ride-hailing geographical reach. Social media reaction to activity. The San Francisco shared mobility the closure of Kutsuplus showed that it was a shuttle service start-up, which was acquired by popular service, but the user experience was Ford Smart Mobility in 2016, operates Ford- limited. There was no mobile app, and the branded 14-seater vehicles along fixed routes, booking of rides was restricted to within an stopping if hailed by a Chariot customer using hour of the ride itself. the Chariot app. Customers pay for a guaranteed seat, with Wi-Fi and USB sockets That it was run as a public-private venture included in the very modest fare. meant Kutsuplus was unable to compete with rising global corporate competitors such as Uber; and not only was it run like a public- Lessons from Kutsuplus private venture, it also looked and felt like a public service, which further hampered its Kutsuplus is widely regarded as a successful ability to operate in an increasingly pilot, if not a successful commercial venture. competitive market. Kutsuplus was designed to assess technological feasibility and user acceptance; on these Ultimately, Kutsuplus was an experiment that metrics, it succeeded. As a result, it inspired was operated like an experiment; it needed a similar operations in a number of other major long-term vision, and many have said it was cities. It has also inspired similar commercial ended before it had a chance to prove itself. ventures run by major global players. The brutal reality is that no matter how popular According to Simon Dixon, Partner, Global the service, taxpayers and city authorities alike Transport Lead at Deloitte MCS, “Although the balk at contributing to heavily-subsidised economics of the experiment did not ultimately transport experiments.

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Why Finland’s capital has become a world leader in future mobility

Mobility as a Service is on the rise in many cities - with Helsinki enjoying a leading role - are some locations simply better suited to the testing of new solutions than others?

or many cities, developments in mobility Fare becoming an increasing priority. From pressures to reduce emissions to the desire for new businesses to see growth in the Geography plays a massive automotive industry, there are many “ motivations behind the increase of mobility role in mobility, and this is solutions in major urban areas. something that leaders Helsinki has become a frontrunner for should consider when innovation in the mobility sector in the last decade. But why Helsinki? A number of reasons looking at other cities for make this small seaside city ideal for future inspiration mobility solutions.

No stranger to pioneering proven useful and similar services continue to be rolled out in cities across the world. technology Furthermore, the maker of the software that underpinned Kutsuplus lives on, having merged Finland has a place in history when it comes to with Split, a Washington, D.C-based mobility technological innovation; the home nation of the services provider. And a Finnish company with once best-selling cell phone manufacturer Nokia, big ambitions lays claim to being ‘the world’s the country’s Ministry of Transport was a founding first ever mobility as a service operator’; MaaS member of the Brussels-based Mobility as a Service Global started life in Helsinki, but now also forum MaaS Alliance. The Alliance now boasts over operates in a number of other countries. 50 members including automaker representation, IT companies and on-demand mobility providers. Geographically suited For a few years, the country’s capital was home to Kutsuplus, an on-demand bus service heavily According to a 2018 report by Deloitte, supported by the city. Kutsuplus may have failed geography lies at the heart of Helsinki’s lead commercially, but the lessons learned have in future mobility. “Geography plays a

Research by Automotive World 26 Special report: The future of mobility in Helsinki

“Helsinki is a small market, but in a way, it is easier to come and test and develop things with less risk than going straight into a megalopolis like Paris or another big city where, if you don’t have the right kind of service or business model, you will not be successful

massive role in mobility, and this is Finland’s first two-way charging point was something that leaders should consider when installed in Helsinki, as part of a collaboration looking at other cities for inspiration. Spread- involving Helen, Liikennevirta and Nissan; out cities tend not to rank highly for active this enables vehicle-to-grid (V2G) charging, transportation. This is no surprise: If and came with the inclusion of free public you have to get from A to B, cycling across a charging during the test phase. large city is a less viable option. While it is relatively easy for cities like Amsterdam “Electrification is one answer to trying to and Helsinki to do well in this regard, their decarbonise the transport systems. Climate recipes for success may be hard to replicate change and the health impacts of transport in a sprawling metropolis, such as are quite significant, especially at the local Los Angeles,” the Deloitte City Mobility level,” says Jari Kaupilla of the International Index explained. Transport Forum (ITF). “The quality of air is getting worse in many global cities, partly With a population of around just 625,000 from car use. Electrification is seen as one citizens, Helsinki’s size may give it an answer to that, and I would imagine that advantage when it comes to mobility, as it is electric vehicles will be increasingly common, less dense and therefore may be easier to test especially for shorter distances in cities.” new solutions in the city. As Olivier Bonfils, Senior Business Advisor for Helsinki Business Piia Karjalainen of Brussels-based Hub (HBH), told Automotive World , “Helsinki MaaS Alliance agrees. “Electrification is a small market, but in a way, it is easier to definitely plays an important role in future come and test and develop things with less mobility services. And when we are talking risk than going straight into a megalopolis about mobility as a service ecosystem, it like Paris or another big city where, if you appears that electromobility and the don’t have the right kind of service or emergence of autonomous vehicles are business model, you will not be successful.” definitely included.”

Helsinki City Transport (HSL) is working hard Electric dreams to electrify its bus network. Artturi Lähdetie of HSL told Automotive World , “We are Helsinki’s goal is to reduce CO2 emissions improving the bus system. We are looking to from 1990 to 2030 by 60%, and achieve use electric buses on certain lines. At the carbon neutrality by 2035. As a result, moment they are in a test phase, but the electrification is a major issue in its transport regional transport authority has announced a and mobility strategies. target to have one-third of the bus operators

27 Research by Automotive World Special report: The future of mobility in Helsinki

“We are looking to use electric buses on certain lines. At the moment they are in a test phase, but the regional transport authority has announced a target to have one-third of the bus operators fully electric by the end of 2029 fully electric by the end of 2029.” HSL’s Willing and able commercial e-bus tenders begin in August 2018, with operation starting in August 2019. Testing is already under way, with a number The public disappointment at the closure of the of fully electric buses already in service on Kutsuplus on-demand transport programme existing bus routes. underlined Helsinki inhabitants’ willingness to embrace new and alternative modes of However, an electric vehicle strategy alone is transportation. Kutsuplus also highlighted the not enough, cautions Bonfils. “By 2035, city’s interest in supporting alternative Helsinki should be a carbon neutral city, so transport solutions. Indeed, Helsinki’s ‘Vision it’s not only things that can be done around the source of energy used, but also the type of mobility itself which has a big role to play. But it’s not enough to have an electric car, or By 2035, Helsinki should even a clean car. You have to see some “ change in behaviour.” be a carbon neutral city. But it’s not enough to have Autonomous vehicle testing an electric car, or even a autonomy clean car. You have to see

Finnish law permits public road testing of some change in behaviour autonomous vehicles, up to SAE Level 5. As a result, it is becoming a go-to location for autonomous vehicle testing, supported by Trafi, the Finnish Transport Safety Agency 2025’ is designed to make public transport the which issues test plate certificates. number one choice for travel, with the ultimate goal of making it better than car ownership. Interest in autonomous vehicle testing in Finland ranges from light passenger vehicles Deputy Mayor Anni Sinnemaki believes the idea to heavy trucks and buses. Most recently, that people are either car owners or public autonomous shuttle buses have been tested transport users “will probably fade away”. as part of an EU-funded trial, which was Helsinki’s dense, walkable nature, combined followed in May 2018 by the introduction of with the growth in mobility on demand means Navya shuttles operating as part of the that fewer people own cars, and a growing Helsinki public transport network under the number of people are willing to use a variety of RobobusLine Helsinki name. options to suit their transport needs.

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