MaaS: How Public-Private Partnerships Can Reshape Mobility
Between 2008 and 2011, the government of Texas invested US$2.8B to add lanes to one of its major highways. As a result, travel time increased by 30% and 55% during the morning and evening commutes, respectively. While that might seem counterintuitive to some, the phenomenon is actually quite simple: humans have a certain tolerance of how much time they are willing to spend stuck in traffic. By adding more lanes, city officials only lowered the commute time for a relatively short period of time. With time, people were incentivized to move away from the city centre and use their car more often, thus increasing traffic again. As the supply of a good or service increases, the demand for it also increases. This phenomenon, known as induced demand, also applies to congestion.
Not too long ago, the Quebec provincial government got into a scrap with the opposition about a 3rd bridge linking suburbs to Quebec City. In a video that became viral, the leading party doubted expert reports about induced demand, citing the fact that the electorate had voted them in and wanted a new bridge. This, for some reason, trumped the opinion of transportation experts.
Between 2010 and 2050, the number of urbanites will double, from 3 to 6 billion. This means that the infrastructure that has been built through history will have to be doubled in the next 40 years. This would be an unprecedented pace. This also means that, to make things work, we cannot simply disregard the point of view of mobility experts. Lots of government are cash-strapped, and investment in infrastructure is not exactly the flavour of the month, especially as we try to stray away from CO2 emissions.
In a McKinsey report published in 2016, the consulting firm describes three probable scenarios. The first is Clean and Shared, in which the future of mobility would be seen through a decrease in car ownership and an increase in electric public transport. This is particularly likely for very dense cities such as Mexico City and Mumbai. The second scenario is Private Autonomy, in which our fellow Americans would get to keep their cars and front lawns. The result of Private Autonomy would be highly sprawled cities with significant car infrastructure, most likely resulting in an increase in miles traveled as autonomous vehicles become a reality. Finally, Seamless Mobility, a future in which autonomous vehicles come pick you up at home and bikes are readily available everywhere you go. McKinsey describes future citizens of rich cities such as London or Hong-Kong as “travelers [having access to] many clean, cheap, and flexible ways to get around, and the boundaries among private, shared, and public transport are blurred”.
In Montreal, like numerous cities, residents are already seeing the beginning of seamless mobility. From JUMP Bikes, Bixi, and the new REM being built, as well as an extension of the blue metro line, a lot of efforts have been made to facilitate transit. And all of that without building more car infrastructure. What’s missing? Linking all of these facets together.
MaaS
Mobility-as-a-Service (MaaS) refers to a global movement away from private car ownership to shared modes of transportation such as ridesharing, bike sharing or taxis, provided as a service. Helsinki is a champion of MaaS. Whim, the first MaaS solution of its kind, partnered with Helsinki to provide Helsinki residents an all-in-one stop for mobility solutions. By paying €63 per month, residents of the Finnish capital have full access to bikes, public transport, cabs for €10 per ride and cheap car rental. Helsinki’s goal is clear: make cars completely obsolete in the city by 2025. Whim, and MaaS as a whole, can contribute to this goal. Right now, if one wants to get to the nearest subway station using a city bike, then use the subway system to get to work, they would have to use to apps. If this same person wants to ride a scooter to their friend’s place after work, and then ride a cab back home, they would have to use 4 different apps during the day. That’s also 4 different payment methods, as well as a pretty expensive day.
The evident advantage of MaaS is that it creates a smooth experience for users. MaaS also involves Public-Private Partnerships. The major infrastructure, which often needs to be operated at a loss, is handled by the government. It can subsidize where need be, and invest heavily in new infrastructure, without imposing a high price to consumers. Innovation and risky business moves can originate from private players. An efficient system combines the best of both worlds, at a relatively cheap price.
Convenience is one thing, but there are also economic benefits to efficient transit systems. In New York City, the total cost resulting from congestion reached US$33B in 2017. However, MaaS isn’t a given. It’s not only about having access to the infrastructure, but also having a certain level of technological advancement. Deloitte states that MaaS “would require the following conditions: widespread penetration of smartphones on 3G/4G/5G networks; high levels of connectivity; secure, dynamic, up-to-date information on travel options, schedules, and updates; and cashless payment systems.” For MaaS to truly work, and for it to be a perfect substitute to cars, a high level of cohesion is necessary. An app like Whim is rendered useless if there’s no connection between the different services. Train and bus schedules must match, while train stations have to be able to receive a large number of bikes. The point of MaaS is to make your trip from point A to B as frictionless as possible. According to Deloitte, there is a long list of players that would need to cooperate in order to make MaaS a useful tool, such as mobility management players, telecommunication providers, payment processors, public and private transportation providers and local governments.
This might be the biggest obstacle for a completely seamless experience. MaaS is not something cities can do by themselves. Step by step, cities can offer more and more mobility options and partner with private companies to offer a cheap and efficient experience that makes the idea of having a car completely superannuated.