TP 14389E Integrating Traveller Services: The Ride Points System Prepared for Transport Canada by IBI Group April 2005 TP 14389E Integrating Traveller Services: The Ride Points System Prepared by Geoff Knapp IBI Group April 2005 NOTICES This report reflects the views of the authors and not necessarily those of Transport Canada. Transport Canada does not endorse products or manufacturers. Trade or manufacturers' names appear in this report only because they are essential to its objectives. All monetary amounts are in Canadian dollars unless otherwise indicated. Since some of the accepted measures in the industry are imperial, metric measures are not always used in this report. This project is part of Canada’s Intelligent Transportation Systems (ITS) R&D Plan, Innovation Through Partnership, funded by the ITS Office of Transport Canada under the Strategic Highway Infrastructure Program (SHIP). The Transportation Development Centre of Transport Canada served as the technical authority for the project. PROJECT TEAM Derek Sims, Project Leader Geoff Knapp, Project Manager Yuval Grinspun, Engineer Nils Larsson, Larsson Consulting, Sub Consultant Bohdan Zabawskyj, Redknee Inc., Sub Consultant Bosco Tong, University of New Brunswick, Sub Consultant Karen Robichaud, University of New Brunswick, Sub Consultant Un sommaire français se trouve avant la table des matières. Page ii Transport Transports Canada Canada PUBLICATION DATA FORM 1. Transport Canada Publication No. 2. Project No. 3. Recipient’s Catalogue No. TP 14389E 4. Title and Subtitle 5. Publication Date Integrating Traveller Services: The Ride Points System April 2005 6. Performing Organization Document No. 7. Author(s) 8. Transport Canada File No. Geoff Knapp 2450-GP017 9. Performing Organization Name and Address 10. PWGSC File No. IBI Group 052ss-T8663-030015 230 Richmond Street West, 5th Floor Toronto, Ontario 11. PWGSC or Transport Canada Contract No. Canada M5V 1V6 T8663-030015/003/SS 12. Sponsoring Agency Name and Address 13. Type of Publication and Period Covered ITS Office – Transport Canada Final Place de Ville, Tower C, Floor 27 330 Sparks Street 14. Project Officer Ottawa, Ontario Pierre Bolduc Canada K1A 0N5 15. Supplementary Notes (Funding programs, titles of related publications, etc.) This project is part of Canada’s Intelligent Transportation Systems (ITS) R&D Plan, Innovation Through Partnership, funded by the ITS Office of Transport Canada under the Strategic Highway Infrastructure Program (SHIP). The Transportation Development Centre of Transport Canada served as technical authority for this project. 16. Abstract The Ride Points System (RPS) aims to leverage technological advancements (cellular, locationing, computer processing, etc.) and the popularity of customer loyalty programs to develop a successful ride sharing system that would positively affect traffic congestion and greenhouse gas emissions. The primary objectives of this project were to: (i) develop a concept design for an efficient system based on the latest technologies; (ii) investigate the marketability and commercial opportunities of a loyalty points-based ride matching system; and (ii) evaluate the business case for the system. The project involved the completion of five major tasks: 1. A Literature Review involved an environmental scan of relevant technologies, the operation and marketing of ride sharing programs, and loyalty programs. 2. A Legal Review identified and examined potential legal issues with the overall RPS concept, including implications on automobile insurance and licensing, and safety and security. 3. A Concept Design included the definition of functional requirements, development of a high-level system architecture, and development of a theory of operations. 4. A Focus Group provided insight into the marketability and public acceptance of the RPS concept. 5. A Business Case indicated that, given a number of assumptions (widespread use of GPS/AGPS-equipped mobile devices, resolution of potential issues with automobile insurance, etc.), an RPS is financially viable over a 10-year horizon. 17. Key Words 18. Distribution Statement Ride match, ride share, carpool, GPS, AGPS, Limited number of copies available from the locating system, cellular phone, loyalty points, Transportation Development Centre reward points, automobile insurance, business case Electronic version available from Transport Canada Web site: www.tc.gc.ca 19. Security Classification (of this publication) 20. Security Classification (of this page) 21. Declassification 22. No. of 23. Price (date) Pages Unclassified Unclassified — xvii, 26, Shipping/ apps Handling CDT/TDC 79-005 Rev. 96 iii Transports Transport Canada Canada FORMULE DE DONNÉES POUR PUBLICATION 1. No de la publication de Transports Canada 2. No de l’étude 3. No de catalogue du destinataire TP 14389E 4. Titre et sous-titre 5. Date de la publication Integrating Traveller Services: The Ride Points System Avril 2005 6. No de document de l’organisme exécutant 7. Auteur(s) 8. No de dossier - Transports Canada Geoff Knapp 2450-GP017 9. Nom et adresse de l’organisme exécutant 10. No de dossier - TPSGC IBI Group 052ss-T8663-030015 230 Richmond Street West, 5th Floor Toronto, Ontario 11. No de contrat - TPSGC ou Transports Canada Canada M5V 1V6 T8663-030015/003/SS 12. Nom et adresse de l’organisme parrain 13. Genre de publication et période visée Bureau STI – Transports Canada Final Place de Ville, Tour C, 27e étage 330, rue Sparks 14. Agent de projet Ottawa, Ontario Pierre Bolduc Canada K1A 0N5 15. Remarques additionnelles (programmes de financement, titres de publications connexes, etc.) Ce projet fait partie du Plan de R&D du Canada sur les systèmes de transports intelligents STI), Innover par l’établissement de partenariats, financé par le Bureau des STI ainsi que par Transports Canada dans le cadre du programme stratégique d’infrastructures routières (PSIR). Le Centre de développement des transports de Transports Canada a agi comme responsable technique pour ce projet. 16. Résumé Le système de points de voyage (SPV) mise sur les nouvelles technologies (téléphonie cellulaire, localisation, informatique, etc.) et sur la popularité des programmes de fidélisation des consommateurs pour offrir un système de covoiturage efficace, qui permettrait de réduire la congestion routière et les émissions de gaz à effet de serre. Ce projet avait pour objectifs ce qui suit : (i) définir les principes de base d’un système de points de voyage efficace, fondé sur des technologies de pointe; (ii) évaluer les chances de succès commercial d’un système de covoiturage allié à un programme de fidélisation; (iii) effectuer une analyse de rentabilité du système. Le projet comportait les cinq tâches suivantes : 1. Recherche documentaire : survol des technologies pertinentes, analyse du mode de fonctionnement et de commercialisation des systèmes de covoiturage et des programmes de fidélisation des consommateurs. 2. Revue des aspects juridiques : examen des incidences juridiques que pourrait avoir un SPV, notamment sur l’assurance et l’immatriculation des véhicules, et sur la sécurité. 3. Avant-projet : définition des exigences fonctionnelles, élaboration d’une architecture de système de haut niveau et établissement des principes de fonctionnement. 4. Groupe de discussion : réunion de gens du public pour avoir une meilleure idée des chances du projet de SPV de recevoir un accueil favorable dans la population. 5. Analyse de rentabilité : cette analyse a confirmé la viabilité financière d’un SPV sur une période de 10 ans, selon un certain nombre d’hypothèses (grande popularité des appareils mobiles dotés de GPS/AGPS, résolution des problèmes éventuels d’assurance des véhicules, etc.). 17. Mots clés 18. Diffusion Covoiturage, GPS, AGPS, système de localisation, téléphone Le Centre de développement des transports dispose cellulaire, programmes de fidélisation, points de récompense, d’un nombre limité d’exemplaires. assurance automobile, analyse de rentabilité Version électronique disponible à partir du site Web de Transports Canada : www.tc.gc.ca 19. Classification de sécurité (de cette publication) 20. Classification de sécurité (de cette page) 21. Déclassification 22. Nombre 23. Prix (date) de pages Non classifiée Non classifiée — xvii, 26, Port et ann. manutention CDT/TDC 79-005 Rev. 96 iv ACKNOWLEDGEMENTS We would like to thank Pierre Bolduc from the Transportation Development Centre of Transport Canada for his project management support and guidance, and all of the members from the Technical Steering Committee for their insight and guidance, including: Lorenzo Mele – Town of Markham Sophie McKenna – Ministry of Transportation of Ontario Stephen Lee – Public Works and Government Services Canada Madeleine T. Betts – ITS Office of Transport Canada Page v EXECUTIVE SUMMARY Background Intelligent Transportation Systems (ITS) include the application of technology to address transportation issues. Through this research and development (R&D) project funded by Transport Canada, the study team explored the application of advanced technologies and leveraging customer loyalty programs to facilitate and promote an innovative dynamic ride matching system. Ride matching is one of a number of potential methods that can reduce greenhouse gas (GHG) emissions by increasing vehicle occupancy and decreasing traffic volume and congestion. This R&D project sought to study the technical feasibility and appropriate business model of a state-of-the-art ride matching prototype deployment: the Ride Points