Bike monopoly, data security risks, and development challenges,

Bike
shares, Uber and public buses all have one important feature in common: they
allow customers to function without personal cars in an urban world. While the public
bus system has been in place for years, the other organizations have arisen in cities
around the world while the population has steadily increased. The most current
numbers show that in 2014, 54% of the world population choose to live an urban
life and this is predicted to grow to 66% by 2050.1
North America and Europe have especially high portions of people living
in urban areas with 81.5% and 73.4% respectively.2
In recent years, less young adults are getting their licenses and buying cars.3
Mobility as a Service (MaaS) is a new concept for urban areas that offers
access to purchasing many different types of transportation services, including
public and private buses, trains, bike shares, taxis and car rentals, into one
user friendly app. Although some people believe MaaS is too risky of a
proposal due to the potential for monopoly, data security risks, and
development challenges, the positive outcomes for private consumers, third
party companies, and the government outweigh the negatives.

MaaS
is about simplification.4
The platform will plan and purchase traveling routes for the customers all in
one setting incorporating “journey planning, booking, and real-time
information.”5
Without a MaaS platform, customers find and pay for each leg of their trip
separately. There will be either a monthly or pay-as-you-go subscription.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Customers are not confined to one type of transportation: the app will help the
customer switch with ease. Follow the journeys of both Bob and Beth in this video
from the UCL Energy Institute and the UK’s Department for Transport. Upcoming developments for
MaaS will enable it to help customers plan routes, while picking up trends in
each customer’s usage in order to customize their route. Consumers can travel
with more savings, speed, or emphasis on the environmental impact depending on
the customer’s values.

Although
curiosity will draw many people’s attention to MaaS, what will hold their
attention are the numerous benefits. A survey in Finland of 160 people found
that “‘easier transaction,’ ‘faster transaction,’ ‘smoother boarding,’ and
‘better fits regional transport'” were highly demanded.6
MaaS meets these demands and also provides a relief for the wallets of car
owners. MaaS provides a cheaper route for households because it lets
individuals remove fuel, repairs, and parking costs from their budgets. Cambio
is a car sharing program in Brussels, Belgium that has a monthly subscription
as well as pay-as-you-go services. They explain that by using their app,
consumers can save up to 1,116 euros a year if they drive 7,000 km a year or
2,100 euros a year if they drive 3,500 km a year.7
This is only a car sharing program, so a full MaaS platform with car sharing,
bike sharing, and public transportation options will greatly aid consumers by
reducing their costs.

A
successful trial called UbiGo was run in Sweden with 83 households of 195
individuals. The demographic distribution is in Table One of the Appendix. This
trial had positive results by consumers of the MaaS platform. One participant
in the trial remarked that “the best part is the package; getting a unified
solution to get by without a private car,” which shows how consumers
appreciate not relying on a personal car.8
In fact, 97% wanted to still be UbiGo customers after the trial ended.9
UbiGo shows that individual consumers will benefit from and enjoy using the
MaaS platform.

MaaS
not only has positive outcomes for consumers, but it also aids the third-party
companies such as public transportation and car sharing programs. For these
companies, the MaaS platform provides important information about the typical
wants and needs of consumers. The companies can then adjust their routes to
target the consumers. Table 2 shows how consumers changed their modes of
transportation during the study.10
It shows that there were significant increases in bus/tram, and car sharing,
while private car use significantly decreased. Based on the data from the UbiGo
trial, public transportation will gain customers that use MaaS. They also get
free marketing from the MaaS provider.11
People will buy into the third-party companies just by signing up with the MaaS
provider.

http://ac.els-cdn.com/S2352146516302794/1-s2.0-S2352146516302794-main.pdf?_tid=b6e33480-b860-11e6-bf06-00000aacb362=1480663800_bfd269d945cfe8f4b86052e0c8c3cf3f

The
marketing and consumer preferences updates are not the only benefits from MaaS
for third party companies. Because MaaS provides many transport options within
one platform, consumers avoid a “locked in” feeling of having to use a specific
service because they bought tickets from individual sources.12
People buy less tickets to avoid this feeling, which is a problem for any
service that operates under a program that provides limited options. MaaS
overcomes this challenge because it provides multiple options and encourages
consumers to use many forms of transportation. People can buy a subscription
and not feel guilty about not using a specific section.

The
third group which largely benefits from MaaS may be a surprising group: the
government. MaaS will reduce the number of cars on the road, directly affecting
government goals in a positive way. As of 2014, the main cause of city air
pollution and almost a fourth of Europe’s greenhouse gas emissions was from
transportation.13
Road transport is the biggest provider with a contribution of 72.8% of Europe’s
greenhouse gas emissions.14
The European Union is trying to lower this number and would be interested
in decreasing pollution as a result of less cars on the road.15
With the Cambio system in Belgium, there are 14 less private cars on the road
for every Cambio car.16
MaaS is a solution that helps accomplish this goal.

EC2B
“Easy to B” is a MaaS feasibility case study in the Nordic countries being
worked on by four entities: 1) Trivector Traffic, a Swedish company, 2) Movia,
a Danish company focused on public transportation, and the cities of 3) Malmö
and 4) Copenhagen. Every year, the EC2B program expects to decrease 3.2 tons of
CO2 per person, when calculated with people driving 15,000 km a year in cars
that burn.08 liters of gas/10 km.17
This huge reduction will help governments with their goals of reducing the
annual amount of CO2 released into the atmosphere.

Not
only will MaaS have positive outcomes for the government in relation to
pollution, but it will also provide a significant economic boost. ABI Research
predicts that MaaS will bring in over $1 trillion in revenue by 2030.18
MaaS relies on an economy of scale, which is the concept that as more people
join, the cost of the service will go down because the production cost is less.19
MaaS may initially be a costly service, but as more people participate in MaaS,
the cost of the service will lower.

UbiGo,
the trial in Sweden, shows that consumers want to use a MaaS platform and yet
MaaS platforms have not yet taken off. Consumer interest is not the roadblock
to implementing these platforms. Interestingly, although consumers wanted to
continue to be customers of UbiGo, it was unable to continue as a private
company after the trial ended. The main issues private MaaS companies face are
the potential for monopoly, risk of data violation, and difficulty with company
provider cooperation.

Because
MaaS is such a new concept and only a few companies have begun to develop MaaS,
a large risk is one of these companies monopolizing. To combat this, Paul
Kompfner, Head of the Mobility as a Service Programme at ERTICO- ITS Europe,
has outlined three mandatory rules. The first rule is that consumers should be
able to move between multiple MaaS programs, especially when moving from city
to city. The second rule is that the transport providers, such as taxis, public
transportation, or bike share, should be allowed to join any MaaS program. The
third rule is that the MaaS provider should be allowed to move their MaaS
business to any city. These key rules will combat monopoly by making sure the
floor is open for multiple MaaS schemes with many companies participating in
each. The MaaS companies can differentiate themselves through highlighting
different services or payment schemes. Kompfner points out that this is like
choosing internet or cellular providers. This is where ERTICO-ITS Europe’s MaaS
Alliance comes into play. Instead of using a MaaS scheme, the MaaS Alliance is
going to “build a framework for interoperation agreements and freedoms,” which
will combat monopolies by opening the discussion surrounding MaaS early.20

Along
with the fear of monopoly, some people do not support MaaS because they are
concerned about the risk to data security. Risks include manipulators adding
false information to the database to adjust the consumers’ routes by or around
certain businesses, customers giving access to nonusers, and people inside the
MaaS scheme sharing the real time information with competitors of the
transportation companies.21
These are real concerns. To combat them, Paul Groth and his colleagues explain
certain requirements of “verifiability, accountability, reproducibility,
preservation, scalability, generality, and customizability.”22
These would address the data security concerns by keeping each person and
service accountable for the actions within the app. The MaaS brokers need to
actively manage this type of risk, but with a plan based on Groth’s
requirements, it can be monitored and controlled.

Another
main problem with a MaaS scheme is that partner cooperation between so many
companies is difficult. MaaS will only work if there is a wide variety of
providers participating. The MaaS broker must coordinate between customers,
private companies, and public authorities. Although the Gothenburg UbiGo trial
results were positive, the customers wanted more variety of options, such as
more transport providers within the app.23
Researchers point out that “new private mobility schemes based on ride-sharing
schemes need to be ‘institutionalized’, embedded in the overall mobility offer,
planned and integrated with public transport services,” otherwise the scheme
will not work.24

Yet
transport incumbents may not be happy. Public transport operators might feel as
though they are having customers taken away from them, similarly to how the
taxi company felt threatened by Uber when it first began building its customer
base.25
Because many less cars will be sold due to less consumers wanting private
vehicles, car companies may feel threatened and unhappy with MaaS schemes.26
It is important for MaaS brokers to work with these companies and add them to
the MaaS scheme, not compete with them. Something to keep in mind is that
technology is constantly shifting and it is necessary to build upon new
programs. For example, taxis now have an on-demand service like Uber, which
helps improve the taxi company by better connecting it to what customers would
like.27
In order to overcome these hurdles with the transport providers, the MaaS
provider will need to be skillful and have good marketing, research, sales, and
app developers.28
It will be necessary for the MaaS broker to be able to communicate effectively
with the companies to explain to them the benefits, and importance, of joining
MaaS.

Along
with convincing multiple providers to join, the MaaS service needs to be
trustworthy, reliable, speedy, cheap, and comfortable because people will not
leave the convenience and understanding of their own vehicle without this.29
For example, in the UbiGo trial, some customers decided not to join even though
they were interested because of the cost of the program (1200 SEK per month or
122.25 euros a month as of 2 December 2016).30
The broker will need to be able to communicate effectively with the
transportation providers to meet these customer requirements and agree on the
pricing.

A
challenge for the MaaS scheme, from the public authority side, is addressing
regulations regarding subsidization. Although the UbiGo app did well in the
trial, it was unable to continue as a private company afterwards. This is
because the app was too expensive and the financial investors, including the
government, did not want to invest due to the institutional barriers.31
Because public transportation is subsidized via taxes in Sweden, the MaaS
provider would also need to be subsidized by taxes. This worked for the
non-profit trial, but to continue as a for-profit company would not work
because of the laws and regulations of granting subsidies.32
In order for a MaaS scheme to work as a private company, it would need to work
out an agreement with the government to work with the current subsidy laws.

Although
the risks of monopoly, data security, and challenges of development seem
daunting for the implementation of MaaS, the numerous benefits for all involved
exceed these challenges. The positive results from studies to date warrant
continued research. It will be a long road to develop a MaaS project that
becomes integral to the consumers lives, but with organizations working
together and being open to the discussion of new concepts, it will be possible.

MaaS can use the critical, fast-paced world of technology to take the next big
step to advance us into the future of cooperation technology.

1
page 7 United Nations. Department of Economic and Social Affairs, Population
Division. Urbanization Prospects: The 2014 Revision, Highlights. 2014.

2
page 8 United Nations

3Sivak,
Michael and Brandon Schoettle. Recent Decreases in the Proportion of persons
with a Driver’s License across All Age Groups. Ann Arbor: University of
Michigan, 2016. Print. UMTRI-2016-4.

4
Kompfner, Paul. Personal interview. November 22, 2016.

5
Page 3297 Kamargianni, Maria et al. “A Critical Review of New Mobility Services
for Urban Transport.” Transportation
Research Procedia, vol. 14, 2016, pp. 3294-3303.

6
Page 3298 Kamargianni, Maria et al.

7
“Reduce your expenses.” Cambio,
https://www.cambio.be/cms/carsharing/en/2/cms?cms_knuuid=96412593-6ffa-49ed-8be5-17bd056f5abe.

Accessed 25 November 2016.

8
IP11 page 3270 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

“Developing the ‘Service’ in Mobility as a Service: Experiences from a
Field Trial of an Innovative Travel Brokerage.” Transportation Research Procedia, vol. 14, 2016, pp.

3265-3273.

9
Page 3269 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

10
Page 3270 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

11
Kompfner, Paul. Personal interview. November 22, 2016.

12
Page 3270 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

13
European Union. European Commission. A
European Strategy for low-emission mobility. 2016.

14
European Union

15
“Mobility as a Service: A business case for EC2B.” Climate-KIC Projects, http://www.climate-kic.org/projects/mobility-service-business-case-ec2b/.

Accessed 30 November 2016.

16
“For a better environment.” Cambio,
https://www.cambio.be/cms/carsharing/en/2/cms?cms_knuuid=08b631fb-eb1b-43e6-90e7-5ccbc955f936.

Accessed 25 November 2016.

17
“Mobility as a Service: A business case for EC2B.” Climate-KIC Projects

18
“ABI Research Forecasts Global Mobility as a Service Revenues to Exceed $1
Trillion by 2030.” ABI research, 12
September 2016, https://www.abiresearch.com/press/abi-research-forecasts-global-mobility-service-rev/.

Accessed 30 November 2016.

19
“Working Together.” Mobility as a Service
Alliance, http://maas-alliance.eu/.

Accessed 29 November 2016.

20 Kompfner,
Paul

21
page 4-6 Callegati, France et al. “Insider Threats in Emerging Mobility-as-a-Service
Scenarios.” Dep. Of {Engineering and
Information Systems, Computer Science and Engineering}, University of Bologna, 2016.

22
page 77 Groth, Paul et al. “A protocol for recording provenance in
service-oriented Grids.” Principles of
Distributed Systems, 8th International Conference, Grenoble, France, December
15-17, 2004, Lecture Notes in Computer Science, December 2004.

23
page 3271 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

24
Page 3 Ambrosino, Giorgio et al. “Enabling intermodal urban transport through
complementary services: From Flexible Mobility Services to the Shared Use
Mobility Agency: Workshop 4. Developing inter-modal transport systems.” Research in Transportation Economics,
2016.

25
Kompfner, Paul. Personal interview. November 22, 2016.

26
Markman, Jon. “Carmakers Embrace Mobility As A Service.” Forbes, 6 August 2016, https://docs.google.com/document/d/19xp2xsgfg7WI4bQaNA997D8wa9CRBZmynC0LZJAaOzM/edit#.

Accessed 29 November 2016.

27
Kompfner, Paul. Personal interview. November 22, 2016.

28
Kompfner, Paul. Personal interview. November 22, 2016.

29
Kompfner, Paul. Personal interview. November 22, 2016.

30
page 3270 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

31
Page 3271 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg.

32
Page 3271 Karlsson, I.c. Marianne, Jana Sochor, and Helena Strömberg. 

BACK TO TOP
x

Hi!
I'm Nicholas!

Would you like to get a custom essay? How about receiving a customized one?

Check it out