Mobility as a Service
Digitalization has stormed off the market and the mobility is no exception. Digitalization aides the convergence of connected technologies to boost a specific business area. The rise of sharing economy has given rise to the concept of mobility as a service in the new age mobility. The shaping force for mobility has been the change in the relationship between the producer and consumer. The goods can now be shared instead of purchasing using online platforms that help in matching demand and supply.
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Evolution of mobility
From the beginning, Industry has always been the shaping force for mobility. The speed and size of mobility have always evolved as required by the industry and this is made possible with the advancements in technology. To get a wider picture to let us look at the historical trends of these changes:
- 18th Century – Agriculture was the main focus of the industries and waterways and horse carriages ensured the distribution of the crops.
- 19th Century- Steam-based technologies started increasing the machining capabilities and industrialization started taking shape. This increased production had to be now delivered to new markets with the help of expanded rail routes and local transportation. The horses were now replaced with bicycles and the ships now started embracing steam engines.
- 20th Century– The start of industrialization forced the growth of automation and highly efficient systems to ensure mass production of goods. The cars became the backbone of mobility at this time with individual cars and expanded roads. To keep up the pace with supply and demand, the distribution now had to be fast enough. This made the air transportation popular. Towards the end Electrification also began to spark interest as future of the wheel.
- 21st Century- Digitalisation stormed the industry and the customer behavior changed massively with concepts of shared economy and Internet of things. The products were now based on individualization and mass customization. Mobility is now seen as a service for the first time and the concept of ownership began to lose existence.
The evolution of mobility has led to a rise in various services that try to serve customer needs based on various complex factors.
Modern mobility solutions:
Car Rental – The customer can rent vehicles for a time duration ranging from a few hours to a few weeks. It provides customers with temporary ownership of the vehicle. This solution proves very needful in situations where your own vehicle is damaged and is currently undergoing repair. It can also be useful when customers visit a new place and need a car to commute nearby. Some logistic firms also use rental vehicles for operations to reduce the depreciation of assets. User group consists of tourists, non-vehicle owners, and commercial logistic operators. Some prominent examples are Hertz, Europcar & Sixt
Ride-Sharing – The customers can arrange one-time shared rides in real-time on very short notice. The idea is to better utilize the empty seats in most passenger cars and reduce wastage of resources. It has the capability of serving the areas not covered by public transport and reduces the cost of fuel and travel for the owner of the vehicle. The trips organized can be one-time, recurring and scheduled trips. It is a good way of promoting ride pooling. The user group includes inter-city travelers, Car owners, and working individuals. Some prominent examples include BlaBla car, Getaround, and Sidecar.
Transport Network Companies (TNC) – Also known as Mobility Service Provider and Ride-hailing service is a platform that provides a link between the taxi driver and passenger using an online portal or a mobile app. TNC’s have a major presence in less populated areas where the public transport and traditional taxi network is weak. Ride-hailing services are cheaper than compared to traditional taxis as the prices of TNC are not set by local jurisdiction as in case of taxi cabs. Mobility service providers also use dynamic pricing models that set prices based on the availability of drivers and factors some more parameters while calculating the fares. The user group includes daily commuters and people for small errands. Some prominent examples include Uber, Ola, and Lyft.
Car Sharing – A fleet of vehicles are made available to the customers for collaborative use on a subscription basis or per ride charges. The vehicles are in a free flow model where the user can pick-up the nearest car and park it near his destination from where another user can pick it up. The user group includes non-car owning professionals and drivers. Some prominent examples include Car2Go and Drive Now.
Microtransit – This technology-enabled transit service offers flexible routing and scheduling of vans and mini-bus. There is an instant share of information to calculate the most convenient and accessible pick-up and drop-off points that fall in the route already planned to allow optimization. The user group includes working group, nearby market visitors and student going to school. Some prominent examples include Via and Shotl.
Alternate transit Solution – These solutions are for long-distance journeys with fixed routes that aides the bus and rail network. It includes shuttle services and private bus hires. The user group includes travelers and tourists. Soe prominent examples include Flixbus, Redbus, and Blabla bus
Bike and Scooter Sharing -This service is used as a first/last-mile solution to reach from the major public transport stops to home. It is a service in which bicycles and scooters are made available for shared use to individuals for a short term. The vehicles can be picked up from the dock and returned to a dock of the same system. The payment is saved in the app and the bike can be unlocked using a QR-code. The user group includes tourists, visitors, and all local residents. Some prominent examples include Offo, Mobike, Lime, Bird, Tier, and Bolt.
To get a better view of these services can be distributed on the basis of two important parameters, that are vehicle ownership and distance traveled.
I hope the post gives you an idea about the Mobility Solutions. You can also check out more blogs on Opinion, technical, and Formula One. Also, Let me know what you think about it in the comments.
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