The Uberization of Public Transit

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3Q 2017 | IN-4632

Multi-modal, mass/group transit, and single-payment transportation apps are increasing in use from companies such as Token Transit used in Reno, Nevada; MaaS Global in Helsinki; Via Transportation in Austin; TransLoc in Nashville; Cubic Transportation Systems in Miami; and Conduit for Denver and L.A. Additional communities, including Portland, Seattle, Chicago, and San Francisco, as well as London, are trying out a variety of apps for bus passes, NFC for boarding and access to both public (train, bus, bike, etc.), and private transport options.

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On-Demand City Transit

NEWS


Multi-modal, mass/group transit, and single-payment transportation apps are increasing in use from companies such as Token Transit used in Reno, Nevada; MaaS Global in Helsinki; Via Transportation in Austin; TransLoc in Nashville; Cubic Transportation Systems in Miami; and Conduit for Denver and L.A. Additional communities, including Portland, Seattle, Chicago, and San Francisco, as well as London, are trying out a variety of apps for bus passes, NFC for boarding and access to both public (train, bus, bike, etc.), and private transport options. 

Local transit agencies are beginning to spend more time deploying digital access to maintain relevance to their citizens and visitors accustomed to near real-time digital access to transportation in the age of Uber and Lyft. Many of these Mobility as a Service (MaaS)-loving consumers are open to public transit, as well. Local solutions include both owned and hosted solutions, as well as public-private partnerships; especially needed for still emerging multi-modal apps. Last year, Finland began one of the first completely integrated multimodal transport apps (Whim) for all of its cities and public transport networks, which was created by MaaS Global (with an investment from Toyota).      

Pick a Mode (or More)

IMPACT


Growing options include on-demand van services found in Austin, with the Cap Metro transit through Pickup’s app. TransLoc has a similar service in Nashville, which leverages route-optimization software, allowing more flexibility for non-standard routes. The Seattle area provides a TripPool service, as well as the actual vans to borrow. Additionally, it utilizes the iCarpool app, which has also challenged Uber and Lyft in the Bay Area.

Some sprawling cities chose the partnership model with ridesharing companies including subsidized rides to mass transit locations in Florida, California, Colorado, and New York. Uber integrated with the Transit app, which is supported in Canada, about 50 U.S. cities, Mexico, the UK, Germany, Italy, France, and Australia. The company is beginning to incorporate transit stops and departure times into the rider app with support from the Transit team.

Multi-modal transport applications are developing in places like LA, which links multiple mass and personal transit options with private ridesharing. Potential riders can select preferred choices from most efficient to least expensive, or to most environmentally-friendly. However, challenges such as a co-existence of competing ridesharing platforms on one app exist.

Identity and Extensibility

COMMENTARY


Like many other disrupted industries, public transit groups are reevaluating their identity and mission in the face of MaaS and their related roles as part of a smart city. Once thought of as city bus services or rail providers, companies now must engage in digitization and greater access, while contending with security, privacy, and emerging competition. The benefits can include less passenger fraud, as well as optimized passenger loading and routing (greater usage and fuel/vehicle efficiency).

London recently unveiled a transport strategy and vision to reduce the number of automotive trips and increase citizens walking, biking, and utilizing public transport up to 64% by 2041. At the same time, Seattle is expecting a 40% increase in total daily person trips in the same time frame, and is addressing the challenge through shared mobility solutions and developing transportation technology. Even tiny Moose Jaw, Ontario is reducing transit fees to address a 27% decline in ridership over the last six years, which will be offset by increased parking fees.

The desired future direction includes all electric vehicles, reducing pollution and noise, and increasing automation, which is already seen in some trains and shuttles. Multi-modal options are expected to draw greater participation through the value props including flexibility and transparency. Communities can extend their reach to lesser-served members such as the elderly and disabled through multiple options, as well as reaching lower-income populations through free or subsidized rides to mass transit.

Services

Companies Mentioned