MaaS: The Mobility Revolution Coming to North America Ongoing urbanisation in North However, in many metro areas the America has led to worsening rise of ride-hailing has increased traffic and congestion in cities traffic congestion, as drivers often across the US and Canada. The drive around passenger-less former has registered a 160% waiting for their next fare. increase in urban population since 1980, which has significantly One transport concept that Introduction increased vehicle miles travelled capitalizes on the increasing (VMT) in cities. Traffic congestion use of shared mobility and has increases localized air pollution potential to alleviate congestion Transport has always been one and has a negative impact on and pollution problems is mobility- of the largest greenhouse gas the economy and productivity as as-a-service (MaaS). MaaS is the people are stuck in traffic at the integration of multiple forms of (GHG) emitting sectors, but in expense of being economically transport, both public and private, recent years it has overtaken productive. These trends prompt to create a seamless mobility questions around whether there system. electricity generation as the are more sustainable ways to get most emitting sector in the US around our cities. A MaaS system brings planning, booking, and payments for and in many of the world’s Urban passenger transport has multiple modes of transport into already been disrupted by the rise an integrated platform. In the largest economies. of transport network companies most developed MaaS systems, (TNCs), such as Uber and Lyft. In customers can purchase mobility 2015, only 15% of Americans had service packages instead of ever used a rideshare service, but owning individual modes of in the following year that number transport, such as a private car, jumped up to 36%. Ride-hailing bicycle, or monthly metro card. and ride-sharing provide mobility Indeed, it is this convenience without the hassle of driving, (thereby cutting down on “app parking, owning a car, insurance fatigue” from switching between and maintenance, planning around different apps) that will help drive public transport timetables, or increased MaaS adoption. waiting at bus or metro stops. 2 3 Defining MaaS transit as well as a certain number of miles of ride-sharing or uses of There are multiple levels of MaaS bike-sharing for a monthly rate integration. According to the paid to the MaaS provider. Only topology developed in Sochor et. three “Level 3” schemes have been al. (2017), the first or most basic designed to date, none of which level allows for multimodal trip are available in North America. planning. Examples of this first level can be seen somewhat in Whim, a MaaS platform based in the Google Maps trip-planning Helsinki offered by MaaS Global, functionality, as well as other is the most sophisticated Level 3 apps, such as Citymapper. The scheme. Residents of Helsinki can second level of integration is the use the Whim app to plan and pay ability to book and pay for rides for all modes of public and private with multiple different transport transport in the city, from train and providers through one app. Today taxi to bike-share and carshare, we see that capability emerging at or any combination of these. Users Uber and Lyft with their integration have the option to pre-pay a of micro mobility and public transit monthly subscription or pay as they in some cities, as well as some city go with a linked payment account. transit apps. The fourth level of MaaS The third level of integration integration incorporates societal iinvolves the bundling of goals, by implementing incentives subscriptions or contracts for that influence travel behaviour. multiple modes of transport on one For example, this would include platform. The user would not have penalising trips at rush hour or for to book individual trips but could driving downtown. have a monthly pass to use public Fig. 1 Total Addressable Global Mobility Market, 2020 (USD millions) 134,925 127,970 84,326 1, 073,742 5,753,875 Ride Hailing Personal Public Rental Micro Mobility 4 Source: inspiratia, Goldman Sachs 2019 Sustainability potential and options are integrated into MaaS, the more likely people of MaaS will see alternative modes as Whether MaaS systems will genuine competition for a personal help urban areas meet their vehicle. MaaS’s potential to sustainability goals depends on the make passenger transport more system’s ability to reduce emissions sustainable in cities lies in its ability and congestion. So far there are to change travel behaviour with limited studies on the emissions very little additional infrastructure and congestion impacts of MaaS, or vehicles. This is crucial in cities but one study in Nordic countries that are strapped for funding for shows reductions in both CO2 public transit. emissions and vehicle kilometres travelled (VKT). To reduce both In addition to providing convenient emissions and congestion, a MaaS integration, European MaaS program must be structured so as programs have been successful However, Level 4 MaaS schemes are still to incentivize a transition away at reducing emissions and car aspirational as none currently exist. The massive from private vehicle ownership use because they have featured size of the global mobility sector means that, toward fleet ownership and public transit on their platforms depending on how one defines the sector, the operation, P2P vehicle sharing, and have worked closely with total addressable market (“TAM”) that MaaS and public transport systems. governments to implement their providers have as their target is comfortably solutions. According to a survey above US$7 trillion in 2020. Pilots of MaaS in Europe have conducted by the American Public shown that it can help reduce Transit Association (APTA), most The bundling of mobility on a single platform private car use. During the people still see public transit as presents a shift away from ownership-based pilot of Smile in Vienna, 21% of the “backbone” of a transport transport systems towards access-based participants reduced private cars system and 74% of millennials ones. This has positive implications from both usage. During the trial of UbiGo said they would use a MaaS app a sustainability and traffic point of view. In in Sweden, 44% of participants that includes public transit. This Helsinki’s experiment with Whim, the aim is to reduced their car use. Positive indicates that MaaS could have an make it so convenient to get around using the perceptions of private car use important role to play in reviving options available on the platform that people also decreased during the pilot, public transit’s role in our cities. forego their personal vehicles because the and support for alternative modes alternative is more appealing. increased. To change perceptions Electrification of fleets can reduce and compete with car ownership, emissions and air pollution, but Already Whim users ride on public transit MaaS has to offer “something with limited integration with public for 63% of their trips, more than the average pretty spectacular,” according to transport will not be effective at urbanite in Helsinki who only uses public Krista Huhtala-Jenks, the head reducing congestion. Whether transport 48% of the time. This has positive of ecosystem of MaaS Global, or not North American MaaS implications for the sustainability of MaaS and Whim’s parent company. programs can offer the same its ability to get people out of private vehicles. sustainability benefits as European What MaaS can offer is equivalents will depend on the convenience. The more payments extent to which they integrate public transit and work with local governments. 6 7 Status of MaaS in North partnerships and higher quality America public transit. While there is some debate over MaaS in North America is up the size of the global MaaS against car ownership rates that market, ride hailing alone is are higher than anywhere else in estimated to have reached a the world, as well as an ingrained global market size of US$108 car culture. TNCs, third-party app billion in 2019 with the United providers, and cities are working to States accounting for just under change this and satisfy demand for US$40 billion. Due to increased MaaS in cities. urbanisation, transport demand is shifting to shorter trips throughout TNCs move towards the day in more urban areas, which would suit MaaS well. While there MaaS is clear demand for more MaaS TNCs are the largest promoters of solutions, there are relatively few MaaS in North America, offering fully integrated examples available ride-hailing, e-scooters, and bike- in North America. sharing services in their apps. Uber and Lyft – which together account Currently, different modes of for more than 99% of current transport each require a separate offerings in the ride hailing sector payment method: a bike-share may in North America – have been have one account, ride-hailing working to rebrand themselves another, and public transit its own from ride-hailing companies to tickets, while the success of MaaS mobility platforms. in Europe centres on public-private Fig. 2 Ride-hailing market share & revenue, United States 2019 Lyft, 3.6 Uber, 3.6 billion (USD) billion (USD) 35% 65% Lyft US Market Share Uber US Market Share Chapter 1 / Embracing the new energy revolution 8 Source: inspiratia, Uber 2020, Lyft 2020 9 Summit, New Jersey has signed Now commuters are able to watch a partnership with Uber to help on screen where and when transit get commuters to and from their vehicles will be arriving and bike local rail station. This helps the lanes are now being displayed city avoid using taxpayer money too. Lyft also has plans to add to fund an expensive new parking a comparison tool for time and garage – a multimillion-dollar cost across different modes and project – by reducing the number recommend the fastest and most of cars that will park by the station.