By Nagesh Shenoy Bantwal Toledar, Head – Embedded Technologies, Cyient
Ryan is a 28-year-old community manager working at a non-profit in Seattle. Ryan commutes between downtown Seattle and Bellevue daily. However, Ryan isn’t bound to his car. In fact, Ryan doesn’t even own a car. Expensive parking costs, insurance, rising fuel prices, and a wide range of other factors have discouraged him from owning a car. However, despite not owning a car, Ryan still drives when he chooses to. How?
Ryan’s not alone. A survey by Zipcar found that 45% of millennials say they have actively made an effort to reduce the amount they drive. According to a survey by Kelley Blue Book, 75% of millennials say they would rather spend money on something other than a car. This trend is gaining prevalence in large cities where urban commuter problems such as high parking costs, fuel prices, traffic congestion, and high total costs of ownership continue to affect people.
How technology is transforming this problem
In 2009, a mobile-based service allowed users to call a cab to their doorstep, make payments directly via their credit cards, and get dropped off without hassles. Uber was a big step in the mobility revolution. Over the years, apps like Zipcar provided newer alternatives to transportation, allowing people to choose how they would like to ride. The gradual evolution over the years has led to a transformation in mobility and the way people move around, known as Mobility as a Service.
Mobility as a Service (MaaS) is an integrated transportation system that combines various modes of transport, such as public transport, ridesharing, car-sharing, bike-sharing, and even walking, into a single platform. With MaaS, users can book and pay for their entire journey using a single app. MaaS is gaining importance due to its potential to reduce traffic congestion, improve accessibility, and make transportation more affordable and sustainable.
One of the biggest advantages of MaaS is its potential to reduce traffic congestion in cities.
Traffic congestion is a major problem in urban areas, and it results in lost productivity, increased travel time, and increased air pollution. MaaS can help to decongest cities by encouraging people to use public transport, ridesharing, and bike-sharing instead of driving their cars. By reducing the number of cars on the road, MaaS can make transportation more efficient and improve the overall quality of life in cities.
MaaS can also improve accessibility by providing a more comprehensive and efficient transportation system. MaaS platforms can offer a range of transportation options to users, including public transport, ridesharing, and bike-sharing. This means that users can choose the most convenient mode of transport for their journey, depending on factors such as distance, time, and cost. By providing more options, MaaS can make transportation more accessible to people who may not have access to a car or public transport.
The initiatives in MaaS have already begun to stand out. Singapore is adopting a form of Intelligent Transport System where a user can purchase a mobility pack from the provider, and the agency provides a doorstep pickup that brings you to the best mode of transport (bus, MRT etc.) and to the final destination. At each touchpoint, the next mode of transport is prepped and readied for the customer, creating seamless mobility across touchpoints and last-mile connectivity.
Volvo, as an OEM, has been selling cars for nearly 70 years. However, in recent times they have adopted a MaaS strategy as well. Based on customers’ usage patterns, they offer vehicles that are better suited to the user’s changing needs. So a family could use a station wagon during the weekdays, a pickup truck to go camping over the weekend, and even opt for an off-roader for the more adventurous trips without owning the cars and only paying based on how they are they use it. Customers can get a complete package for their mobility needs, including insurance, service, and all associated perks.
MaaS is set to become one of the leading trends in the automotive industry owing to the effect it has on everyday users and commuters. With the increasing popularity of ride-hailing and car-sharing services, MaaS has the potential to disrupt traditional car ownership models. Instead of owning a car, users can access a range of transportation options through a single app. This can make transportation more affordable and sustainable, as users only pay for the transportation they actually use. More importantly, the costs associated with owning an automobile are significantly reduced, making this a viable option, especially among the Gen Z populace who already struggle with real estate prices, tuition debts, and a wide range of other expenses.
Mobility as a Service will also pave the path to improving accessibility, reducing traffic congestion, and creating a system where transportation creates ease rather than a burden. By providing users with more transportation options and making transportation more efficient, MaaS has the potential to transform the way people move around in cities.
Ryan is just one example. There are several others like him who view transportation as getting from point A to point B without the pomp attached to it. They don’t expect to possess their own car until much later in their lives. They aren’t looking for luxury during travel. And as a technology, MaaS hits this sweet spot, making it one of the many decade-defining trends that are shaping an entire industry and even a generation.
