The potential benefits of a MaaS systems are readily apparent – \u00a0ranging from fewer unnecessary journeys, the associated reduction in carbon emissions and a decrease in congestion in our crowded cities and streets, to the enhanced convenience and potential cost savings for consumers.<\/p>\n
There are no strict definitions of which methods of transport can be part of a MaaS ecosystem. \u00a0Anything is possible, as long as it can be plugged into the system, from taxis and bike sharing, to autonomous vehicles, public transport, refueling and even payment systems.<\/p>\n
![\"MaaS](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-1-scaled.jpg\")
<\/p>\n
One of the main objectives of MaaS systems is to remove \u2013 at least partially \u2013 the privately-owned car from the personal transport equation as the only, or primary, means of making our journey. \u00a0Historically, doing away with private vehicles would have left the commuter relying on inflexible and inconvenient public transport options that are only available on specific routes at specific times, and with limited thought given to interconnections between different modes of transport, not to mention the very real risk of delays, overcrowding and cancellations.<\/p>\n
MaaS though, attempts \u2018fills in\u2019 any gaps in the journey, viewing the trip as a single service provision, so travelers are not left waiting for connections and should not have to complete any sizeable stretch of their journey on foot.<\/p>\n
Growing the MaaS market<\/h2>\n
According to a report by PS Research, the global MaaS market is expected to be worth more than US$ 347.6 billion[2]<\/a> by 2024. \u00a0<\/p>\n Among the chief growth drivers are the rapid advances being made across three key technologies that are essential to successful MaaS systems: mobile communications, the Internet of Things (IoT), and big data. \u00a0<\/p>\n The mobile device – smartphone – is the front-end of the MaaS experience, allowing people to plan, book, and pay for a journey. This is underpinned by the highly advanced wireless networks that enable mobile communication systems. \u00a0<\/p>\n These, in turn, give rise to the Internet of Things: physical devices, vehicles and appliances that are connected to these networks and which people can interact with via their smart device.<\/p>\n The third element is big data.\u00a0 These interactions between people, services and systems online create vast repositories of data, which can be analyzed and used to improve operations and efficiency in allocating resources. \u00a0As the volume of data increases exponentially, machine learning and AI can be used to gain intelligent insights that can increase the value and efficiency of services.<\/p>\n As well as the growing availability of mobile technology, the on-going urbanization of our societies is also driving the need for alternative mobility solutions<\/a>. \u00a0According to the United Nations[3]<\/a>, 55% of people worldwide live in cities today, a figure which is expected to grow to 68% by 2050. \u00a0Urbanization combined with population growth is set to add another 2.5 billion people to cities[4]<\/a> over the next three decades.<\/p>\n Lots of people means lots journeys, which in turn, can mean of cars, buses, etc., and if those vehicles are powered by fossil fuels \u2013 then lots of pollution, too. \u00a0Finding a way around this is also fueling growing interest in MaaS systems. \u00a0Other factors include consumer demand. \u00a0People are increasingly used to having what they want, when they want it, from ordering food and goods online to booking a table at your favorite restaurant. \u00a0Is the expectation to be able to go from A to Z at the touch of a button any different?<\/p>\n One of the huge benefits of MaaS is sustainability.\u00a0 Once operational, MaaS systems can reduce the need for so-called \u2018gas-guzzling\u2019 private vehicles and thus help to reduce the amount of carbon emitted into the atmosphere.\u00a0 This is particularly important given the climate emergency that has seized international attention over the last two years and the global drive towards achieving net-zero emissions. \u00a0Factors which, in a world increasingly sensitive to the threat of virus pandemics, are likely to intensify<\/a>.<\/p>\n According to the UN Environment Program, (UNEP<\/a>) the transport sector is the fastest growing contributor to climate emissions.\u00a0 Particles from cars and other vehicles – including black carbon and nitrogen dioxide \u2013 also contribute to a range of illnesses including respiratory conditions, strokes, heart attacks, dementia and diabetes[5]<\/sup><\/a>.<\/p>\n In the United States, cars and trucks account for nearly one-fifth of all US emissions, while the transportation sector as a whole, which includes cars, trucks, aircraft, trains, ships, and freight, produces nearly 30% of all US emissions contributing to global warming \u2013 more than almost any other sector.[6]<\/sup><\/a>\u00a0 In the UK, meanwhile, it is estimated that air pollution causes an estimated 40,000 early deaths every year. [7]<\/a> \u00a0\u00a0<\/p>\n While data varies, many scientists believe that if we keep polluting the atmosphere at current levels, we can expect a rise in global temperatures of several degrees by the end of the century, with predictably devastating consequences.\u00a0 Dwindling fossil fuel supplies, with oil and gas running out in as little as 50 years, makes the MaaS argument even more urgent.[8]<\/a><\/p>\n The desire to reduce congestion and pollution is already a major factor in how big cities are developing their transport policies.\u00a0 The mayors of Paris, Madrid, Mexico City and Athens[9]<\/a>, for example, have said they plan to ban the most polluting diesel vehicles from their city centers by 2025.<\/p>\n While the German cities of Bremen and Hamburg have created \u2018transport hubs\u2019 that combine multiple modes of transportation in one location.\u00a0 Analysis of their impact found Bremen\u2019s 290[10]<\/a> car share vehicles have removed the equivalent of 4,200 private cars from the city\u2019s roads.<\/p>\n It is not just the impact on the planet, but also the potential climate-related financial savings for individual countries. \u00a0For example, the costs of congestion alone in Europe are estimated at around \u20ac130 billion per year[11]<\/a>, or just over 1% of the EU’s GDP. \u00a0By taking significant numbers of private vehicles off the road, MaaS could help to reduce congestion and the associated costs. \u00a0Of course, removing thousands of cars from our roads could have a major impact on government tax revenues. \u00a0According to the European Automobile Manufacturers Association (ACEA<\/a>), motor vehicles account for \u20ac440.4 billion in tax contributions in the major European markets. \u00a0Nevertheless, the all-round benefits of MaaS \u2013 financial, environmental, health, spatial, even societal \u2013 are expected to far outweigh any reduction in tax revenues.<\/p>\n \u201cMaaS systems hold out the promise of a true win-win for all parties.\u00a0 They provide a fast, convenient transport solution for individuals.\u00a0 They reduce congestion, enabling greener, more livable urban communities and contributing to more efficient economies.\u00a0 And by reducing the overall number of vehicles on our roads \u2013 and the resulting pollution \u2013 they can play an important role in our journey towards <\/em>net zero<\/em><\/a>,\u201d said Fady Jameel<\/a>, Deputy President and Vice Chairman, Abdul Latif Jameel.<\/p>\n It could revolutionize the design of our cities, too.\u00a0 For decades, how people live \u2013 especially in the urbanized West – has been built around car ownership. \u00a0Reducing reliance on the private car could give rise to urban centers designed for people, not vehicles, with more green spaces and larger pedestrianized areas. \u00a0Indeed, creating new communities that are designed around people rather than motor vehicles is one of the key factors behind the concept of smart cities.<\/a><\/p>\n Despite the benefits of MaaS systems, their development to date has been patchy.\u00a0 The main challenges tend to fall into three categories: technology, perceptions and coordination.<\/p>\n MaaS by its very nature cannot exist in a bubble of isolation, it depends on the technology infrastructure to exist.\u00a0 And although technological advances have been rapid, big gaps remain in ensuring the seamless connectivity that MaaS systems depend on. \u00a0Not least in terms of reliability.\u00a0 A study by uSwitch energy comparison service in the UK, for example, found that 56% of rail commuters struggled to connect to their mobile network on 3G or 4G.\u00a0 Even in London \u2013 one of the World\u2019s busiest and most connected cities – \u00a0although 3G, 4G and Wi-Fi may be available on most over-ground train lines, connections can be slow and often completely unavailable underground.[12]<\/a><\/p>\n Public perceptions, too, although moving in the right direction, do not seem ready to forgo the private car just yet, particularly among older generations.\u00a0 A 2018 \u2018Evolution of Mobility\u2019 study by Cox Automotive[13]<\/a>, for example, found that just over half of Generation Z consumers agreed that owning a vehicle was not necessary, the proportion dropped substantially as consumers got older.<\/p>\n It is a similar picture when it comes to using technology to pay for services.\u00a0 While younger people are more open to booking and paying for services via their mobile phone, the pre-millennial generations are not, in general, quote so comfortable. \u00a0In a 2018 Digital Payments survey by Visa[14]<\/a>, 65% of millennials said they have paid for products or services via mobiles, compared to only 42% of the general population.<\/p>\n Perhaps the biggest challenge to widespread MaaS adoption, though, is one of coordination and regulation. \u00a0Without the buy-in, facilitation or coordination of government at a national, regional and local level, it will be hard for any private sector MaaS solution to gain traction. \u00a0Private enterprises often function in siloes and tend to be \u2013 by their very nature \u2013 uneasy about sharing technology, while also worrying about falling foul of data protection laws when passing on commuter and customer information.<\/p>\n These were some of the findings by the Institute of Engineering and Technology in the UK. It produced a report on MaaS which stated[15]<\/a> that many of the current commercial models used for procuring transport solutions were driving \u201cunhelpful behaviors, siloed services and a protectionist position\u201d.<\/em><\/p>\n Regulatory factors can also be an issue in some markets.\u00a0 For MaaS providers to run their operations effectively, it is necessary for them to collect and hold vast amounts of user data, from financial and personal information to location data, frequency of travel, payment methods and modes of transport. \u00a0They also need to collect data related to infrastructures used such as car parking spaces, road conditions, EV charging points and congestion levels.\u00a0 This is a huge amount of data for any business to manage effectively and most importantly, securely, particularly in markets with strict regulations on data privacy, such as the EU\u2019s General Data Protection Regulation (GDPR), which was itself borne from the policy impetus to protect consumers after a series of data security breaches by major social media platforms, and others. \u00a0Given that data security failures continue to regularly feature in media, gaining consumer permission to collect and process such large amounts of personal data may prove problematic.<\/p>\n These challenges are not unsurmountable, however, as a few pioneering countries are already demonstrating. \u00a0<\/p>\n Finland and Singapore are leading the way through a combination of innovation culture and \u2013 crucially – a desire by their respective public authorities to commit to the concept of MaaS.<\/p>\n Finland\u2019s capital, Helsinki, is trialing a MaaS system based on a mobility app called \u2018Whim\u2019[16]<\/a>. \u00a0\u00a0Whim allows people to plan and pay for all modes of transportation. \u00a0Commuters can book city bikes, e-scooters, taxis, public transport and rental cars on demand.\u00a0 The Helsinki pilot has been helped by significant buy-in by the local authorities. \u00a0Helsinki\u2019s dedicated traffic and street planning office, for example, has been able to ensure that parking spaces are located near areas where planners want commuters to switch to alternative modes of transport[17]<\/a>.<\/p>\n There is even a specific new law, known as the Transport Code[18]<\/a>, which requires transport companies to open up their ticketing functionality and data to third parties.\u00a0 The regulations also require the streamlining of payments so a ticket from one company can be used with another.<\/p>\n Singapore is another city leading the way in the development of MaaS systems. \u00a0A start-up called MobilityX is working with Nanyang Technological University (NTU) and JTC Corporation to develop a MaaS system based on two apps – Jalan and JalanX. \u00a0Jalan (the Bahasa language word for \u2018to go forward\u2019 \u2018to pass\u2019 or even \u2018road\u2019) integrates train and bus networks, including next generation tech such as bicycle-sharing systems and e-scooters, while JalanX is an on-demand bus service based on NTU\u2019s campus and JTC\u2019c CleanTech Park.<\/p>\n As well as developing the technology, the team behind the work see urban design as a crucial component of MaaS ecosystems.\u00a0 For example, one of the ideas being considered is to build car parks at the university\u2019s main entrances, so visitors can leave their cars and use other modes of transport to get about the sprawling campus.<\/p>\n As in Helsinki, the support of the public sector has been crucial in getting the MaaS system off the ground, namely Singapore\u2019s Land Transport Authority (LTA).\u00a0 The LTA is already developing dedicated cycle networks in public housing estates and redesigning roads to be more pedestrian and cycle friendly, helping to lay the ground where a fully-fledged MaaS transport network can take root.<\/p>\n Japan is also taking positive steps towards MaaS adoption. \u00a0The cities of Kitakyushu and Fukuoka have introduced a MaaS system, in collaboration with hybrid\/electric vehicle pioneer Toyota, public transport operator Nishi-Nippon Railroad (Nishitetsu), and a number of local partners.<\/p>\n The My Route MaaS system includes three main components:<\/p>\n The My Route app was downloaded more than 300,000 times during a year-long trial, with satisfaction rates of around 80%, prompting the full roll-out in November 2019.<\/p>\n The partnership is in line with Toyota\u2019s official \u2018Connected & MaaS strategy\u2019, which will see it integrating a proprietary mobility service platform into all its new vehicles in Japan, U.S. and China by the end of 2020[19]<\/a>; using big data to drive innovation within Toyota; and linking up with external partners to create new mobility services.<\/p>\n In July 2019, it concluded an agreement with Didi Chuxing (DiDi) to expand MaaS collaboration in China[20]<\/a>. \u00a0As part of this agreement, Toyota will invest US$ 600 million in DiDi and establish a joint venture for vehicle-related services for ride-hailing drivers.<\/p>\n The tie-up with DiDi came little more than a year after Toyota agreed a similar deal with Singaporean ride-hailing company Grab[21]<\/a>, to strengthen their existing partnership and drive further advances in MaaS across Southeast Asia.<\/p>\n Two fast-developing mobility technologies that could help to entice people out of their gas-guzzlers and into MaaS are electric vehicles and autonomous vehicles. \u00a0With taxis and ride-sharing expected to be key components of most MaaS systems, they will need to be electric \u2013 and preferably autonomous \u2013 if they are not to undermine the purpose for which the entire endeavor has been partly designed.<\/p>\n Recent advances in battery technology<\/a> could have a dramatic impact on the performance and perceptions of EVs, which can only benefit the arguments for MaaS systems.<\/p>\n The new GM Corsa E, for example, has a range of 209 miles[22]<\/sup><\/a>, long enough to drive between London and Manchester on one charge. \u00a0While the Tesla Model S Long Range Plus has a reported range of 390 miles[23]<\/sup><\/a> \u2013 far enough to drive from Manhattan to Montreal, or Abu Dhabi to Muscat.<\/p>\n One of the frontrunners in this market is RIVIAN<\/a>, a fast-growing US-based EV and mobility firm in which Abdul Latif Jameel is a primary investor.\u00a0 RIVIAN\u2019s first two models, an electric pickup truck and an electric SUV, are due to go into production in 2020.\u00a0 The vehicles – the R1T and R1S respectively – are classed as \u2018Level 3 Autonomous\u2019, meaning drivers\u2019 eyes can safely be taken off the road.\u00a0<\/p>\n Chinese EV manufacturer NIO, founded in 2014, specializes in autonomous EVs, and in 2016 was granted an Autonomous Vehicle Testing Permit in California to begin trialing its cars on public roads.\u00a0<\/p>\n Meanwhile, Chinese-Swedish joint venture Lynk & Co, founded in 2016, specifically targets younger buyers by emphasizing its internet connectivity and wide-ranging customization options.\u00a0 In 2018 it logged sales of more than 120,000 in China.\u00a0<\/p>\n Autonomous vehicles would also help reduce the problem of city center congestion. \u00a0In theory they would be able to pick up passengers from, say, their home and drop them off in the city center to a place of work or social setting.\u00a0 The vehicle could then head back out of the city to either park up in carparks way beyond the congested areas of the city center, or to pick up another passenger.<\/p>\n As transport technology itself becomes more sophisticated, there is even the possibility of more futuristic methods being thrown into the MaaS mix.<\/p>\n Joby Aviation<\/a>\u2019s electric air taxi, for example, is a piloted, five-seater vehicle capable of flying 320 kilometers per hour and covering a distance of 240 Km on a single charge. \u00a0The company completed a US$ 590 million Series C funding round in January 2020, including investments from Toyota Motor Corporation and the investment arm of Abdul Latif Jameel<\/a>.<\/p>\n Joby\u2019s air taxi service will make use of in-house developed electric vertical take-off and landing (eVTOL) aircraft that will in part benefit from Toyota\u2019s vehicle manufacturing experience.\u00a0 Because it uses an electric drivetrain and multi-rotor design, Joby Aviation says its eVTOL is \u201c100 times quieter than conventional aircraft during takeoff and landing, and near-silent when flying overhead.\u201d\u00a0<\/p>\n These benefits make eVTOL craft prime candidates for MaaS-enabled urban aerial transportation networks. \u00a0As well as Joby, a number of companies, including Airbus[24]<\/a> and China\u2019s EHang[25]<\/a>, are also working on this technology for city-based, short-hop transit for people and cargo.<\/p>\n There are few facets of society that have not been affected by the global crisis around COVID-19.\u00a0 Mobility is no exception, with the impact of social distancing guidelines perhaps the most obvious factor.\u00a0 Inevitably, addressing concerns around social distancing and the practicalities of enabling social distancing are major challenges for all forms of transport, not only MaaS systems.\u00a0 In the short term, it is likely people will gravitate back towards private vehicles as the easiest way to stay safe.\u00a0 However, in the longer term, as a \u2018new normality\u2019 begins to return, MaaS systems could actually support future transport strategies that are aligned with social distancing requirements.<\/p>\n For example, a recent McKinsey report on the impact of COVID-19 on mobility solutions stated that the crisis could \u201cdelay the development of advanced technologies, such as autonomous driving, as OEMs and investors scale back innovation funding to concentrate on day-to-day cash-management issues.\u201d<\/em> \u00a0<\/p>\n Looking to the future, however, it found that AVs, micromobility solutions, and other technologies that support physical distancing could benefit, as \u201ccustomer demand for these solutions could soar once the initial crisis subsides, increasing their attractiveness to investors.\u201d<\/em><\/p>\n It concluded that, \u201cmany changes in the modal mix are temporary and that shared-mobility solutions, including public transit, will rebound and continue to capture increased market share.\u00a0 Micromobility solutions could also pick up more quickly if strict disinfection protocols are installed.\u201d<\/em><\/p>\n The technology required for MaaS is developing at a rapid pace. \u00a0While the booming popularity of app-enabled taxi and ride-sharing services such as Lyft, Uber and Careem, are quickly reshaping our view of transport from a concept built around ownership, to something we pick up and put down when we\u2019ve finished with it.<\/p>\n An increasing willingness to use mobile phone apps to make payments is also a crucial factor in bringing MaaS systems within touching distance.<\/p>\n The biggest long term obstacles remain around the standardization of services and greater coordination between the public and private and sectors. \u00a0But as Singapore and Helsinki are showing, with the right support, commitment and investment, MaaS does not have to be an aspiration for tomorrow. \u00a0It could be a reality today.<\/p>\n Innovative investment on a global scale, like RIVIAN and Joby Aviation, is the cornerstone of Abdul Latif Jameel\u2019s approach to business.\u00a0 Through its continued investment in the \u2018infrastructure of life\u2019 in key markets around the world, from transport to energy, e-commerce to real estate, Abdul Latif Jameel is committed to supporting a new approach to mobility that can help to deliver a cleaner, greener future for all.<\/p>\n [1]<\/a> https:\/\/maas-alliance.eu\/homepage\/what-is-maas\/<\/a><\/p>\n [2]<\/a> Global mobility as a service market report 2019<\/a>, PS Research, August 2019.<\/p>\n [3]<\/a> https:\/\/www.un.org\/development\/desa\/en\/news\/population\/2018-revision-of-world-urbanization-prospects.html<\/a><\/p>\n [4]<\/a> https:\/\/www.un.org\/development\/desa\/en\/news\/population\/2018-world-urbanization-prospects.html<\/a><\/p>\n [5]<\/a> Gearing up for change: transport sector feels the heat over emissions<\/a><\/p>\n [6]<\/a> https:\/\/www.ucsusa.org\/clean-vehicles\/car-emissions-and-global-warming<\/a><\/p>\n [7]<\/a> Gearing up for change: transport sector feels the heat over emissions<\/a><\/p>\n [8]<\/a> https:\/\/ourworldindata.org\/how-long-before-we-run-out-of-fossil-fuels#note-6<\/a><\/p>\n [9]<\/a> https:\/\/www.unenvironment.org\/news-and-stories\/story\/gearing-change-transport-sector-feels-heat-over-emissions<\/a><\/p>\n [10]<\/a> https:\/\/sharedusemobilitycenter.org\/build-your-own-mobility-hub-7-lessons-for-cities-from-bremen-germany\/<\/a><\/p>\n [11]<\/a> https:\/\/www.mdpi.com\/2071-1050\/12\/6\/2200\/htm<\/a><\/p>\n [12]<\/a> https:\/\/www.uswitch.com\/media-centre\/2019\/02\/signal-failure-nine-10-rail-commuters-cut-off-connectivity-issues\/<\/a><\/p>\n [13]<\/a> https:\/\/www.coxautoinc.com\/learning-center\/2018-mobility-study\/<\/a><\/p>\n [14]<\/a> https:\/\/www.itproportal.com\/features\/digital-payments-in-2018-how-millennials-are-driving-next-gen-commerce\/<\/a><\/p>\n [15]<\/a> https:\/\/www.theiet.org\/media\/3666\/mobility-as-a-service-report.pdf<\/a><\/p>\n [16]<\/a> https:\/\/whimapp.com\/<\/a><\/p>\n [17]<\/a> https:\/\/urbanmobilitydaily.com\/maas-evs-and-avs-how-helsinki-became-a-transport-trendsetter\/<\/a><\/p>\n [18]<\/a> https:\/\/www.citylab.com\/perspective\/2018\/10\/helsinkis-maas-app-whim-is-it-really-mobilitys-great-hope\/573841\/<\/a><\/p>\n [19]<\/a> https:\/\/global.toyota\/pages\/global_toyota\/ir\/presentation\/2019_q3_competitiveness_en.pdf<\/a><\/p>\n [20]<\/a> https:\/\/global.toyota\/en\/newsroom\/corporate\/28993116.html<\/a><\/p>\n [21]<\/a> https:\/\/global.toyota\/en\/newsroom\/corporate\/22940912.html<\/a><\/p>\n [22]<\/a> https:\/\/www.vauxhall.co.uk\/cars\/new-corsa\/electric.html<\/p>\n [23]<\/a> https:\/\/www.tesla.com\/blog\/longest-range-electric-vehicle-now-goes-even-farther<\/p>\n [24]<\/u><\/a> https:\/\/www.airbus.com\/innovation\/urban-air-mobility\/vehicle-demonstrators\/cityairbus.html<\/a><\/p>\n [25]<\/u><\/a> https:\/\/www.ehang.com\/ehangaav<\/a><\/p>\n","protected":false},"author":18,"featured_media":63300,"template":"","tags":[],"acf":[],"yoast_head":"\n![\"Global](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-2.png\")
<\/p>\nWhat are the benefits of MaaS systems?<\/h2>\n
![\"Fady](\"https:\/\/www.alj.com\/app\/uploads\/2019\/09\/Fady-Spotlight-289x300.jpg\")
<\/p>\nChallenges of MaaS construction<\/h2>\n
![\"Evolution](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-3.png\")
<\/p>\nMaaS pioneers lead the way<\/h2>\n
![\"Whim](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-4.jpg\")
<\/p>\n![\"Mobility](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-5.png\")
<\/p>\n\n
![\"Route](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-6.jpg\")
<\/p>\nKey role of electric vehicles<\/h2>\n
![\"Development](\"https:\/\/www.alj.com\/app\/uploads\/2020\/06\/MAAS-7.png\")
<\/p>\nThe impact of the recent pandemic crisis<\/h2>\n
Making MaaS a reality<\/h2>\n