Mobility-as-a-Service, or MaaS, describes digital platforms that integrate multiple modes of transportation. Through a single service, users can access end-to-end trip planning, booking, and payment for all the transit options that they need in a particular area. More concretely, imagine a smartphone app that you can use to seamlessly switch from a ride share to the subway to a public bike, without having to change payment methods, and with all transit information available through the same platform.
The MaaS space is still relatively nascent, particularly in the US. Proponents of MaaS argue that the technology would bring a myriad of benefits for users and for cities. For consumers, the advantages are pretty transparent — greater convenience in planning and paying for trips, decreased reliance on private vehicle ownership, and potential reductions in trip times. For governments, an integrated system could allow for more data on travel patterns, allowing for better transit and infrastructure planning. Public transportation ridership could increase and vehicle congestion could decrease.
Helsinki, Finland, is one of the leading cities in adopting MaaS. Whim, a Maas platform created by the startup MaaS Global, rolled out in October 2016. Helsinki users can either pay per trip or subscribe to different pricing tiers on Whim (ranging from ~60 Euros to ~500 Euros for 30 days), and utilize the app as a single booking and payment platform across public transportation, taxis, citi bikes, ride shares, rental cars, and e-scooters. Since its launch, Whim has facilitated more than 6 million trips for its ~70,000 users, and is planning to launch in 50+ cities globally.
In the US, Dallas is at the forefront of MaaS adoption. The Dallas Area Transit Authority (DART)’s GoPass app offers integrated ticketing across an number of public transit options managed by multiple trasit agencies, and recently integrated to include Lyft and Uber. GoPass is also adding features to incorporate bike share, and shows Bird scooter locations.
For other US cities, MaaS adoption is likely on the horizon. Stakeholders will need to consider a few key challenges to implementation:
- Building coalitions: Creating trust and cooperation between multiple stakeholders ranging from transit authorities, public and private transit service operators, and the MaaS operator is a significant hurdle. Private companies may be unwilling to share data with the MaaS operator, or “let go” of the user app experience — especially as the benefits of joining a MaaS platform are less obvious for private transit operators (until adoption is widespread). Integrating processes across multiple public transit agencies may require redefining responsibilities, which can create significant frictions.
- Operational changes: In order to integrate planning, booking, ticketing, and payment operations across multiple disparate transit operators, some operators may need to change the way the collect and store data, or change their scheduling and booking systems. Customer service methods may also need to be changed to fit the new platform.
- Technical barriers: Public transportation infrastructure may need to be revamped to be compatible with the MaaS system (e.g., upgrading subway ticketing to be digital). Governments will also need to make sure that access to MaaS is equitable, including for senior citizens who may be less technologically savvy, and for individuals without access to smartphones. Citizens will need reliable connectivity to receive real-time transit data, and MaaS operators would need to consider fall-back plans in case connectivity fails.
Mobility-as-a-Service has been heralded as one of the biggest potential disruptors to the transportation ecosystem. In conjunction with increased penetration of Level 3+ autonomous vehicles, MaaS could usher in a shift away from personal vehicle ownership, and change the way that consumers view mobility. The market opportunity for MaaS is potentially huge — a 2016 report from ABI estimates global MaaS revenues to exceed $1 trillion by 2030. Whim in Helsinki has helped prove out the feasibility of MaaS — the US should be prepared to see disruption coming soon.
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