Mobility as a Service. Australia get ready

In the urbanised environments of major Australian cities, the best way to get around is often to use a variety of transport modes, depending on the situation or need at any given time.

This sounds like a good idea, but it’s not always achievable, for reasons of availability, co-ordination and cost.

And the net result of this is often congestion, frustration, wasted time and resources.

The positive news is that there is a global momentum to find a solution to these mobility issues in the development of what is called Mobility as a Service (MaaS).

For example, in the Finnish capital of Helsinki, residents can book their personal transport on an app called Whim.

The app enables them to travel around the city of 1.4 million on any combination of shared bicycles, scooters, taxis, cars or public transport.

It is part of a push to make Helsinki less dependent on cars and make the city – already rated as one of Europe’s most livable – one of the most advanced in the world.

Whim, which has also launched in Vienna and Antwerp and drawn funding from big corporates such as BP and Mitsubishi, is one of the best examples of MaaS currently operating globally.

Elements of MaaS services are already being delivered today by rideshare companies such as Uber or car-sharing providers like GoGet, but innovations can develop MaaS further.

MaaS, in its complete form, typically manifests itself as an “agnostic” app that bundles access to a range of transport modes offered by third party providers. The MaaS platform provider doesn’t necessarily own any of the assets, allowing them to partner with a multitude of transport organisations, ultimately putting more choice in consumers’ hands.

People can pick and choose the package which suits them. For example, Whim has five different packages ranging from a 30-day student plan for 34 euros with public transport access to an Unlimited package for 699 euros combining car rental, taxis, public transport, and shared bikes and scooters.

On an agnostic platform, it is in theory possible to book both an Uber or rideshare from a rival provider, such as Ola, and combine that with other modes, such as public transport or bike-sharing, again with many providers to choose from.

Australia has a plethora of ride-sharing, car-sharing and micro-mobility (otherwise known as ‘first and last mile’) services. We have Uber, Sheba, Ola, Didi, Lime, Beam, Neuron, GoGet, and Flexicar – in addition to taxis – so from a consumer perspective, the best outcome is an aggregated platform that delivers frictionless access and wide choice.

The benefits of MaaS are easy to list. For individuals, it will mean a lower total cost of ownership for their overall transport needs, flexibility, and could also mean they get more exercise, positively impacting their health.

Typically, 15% of a household income is spent on transport, with the primary item being a car, which is only in use for around 5% of the time.

A YouGov survey recently found that the typical Australian spends $5,131 each year on a new car, while almost half of Australians feel they are not in control of their vehicle expenses.

Then there are the benefits to the environment. If there are fewer cars on the road, then our cities are less congested.

Cities with fewer cars require less space for car parks and this space can be put to other uses. Particularly in the current COVID climate, urban space is valued for activities such as outdoor dining. MaaS presents as a key part of urban design as we seek to make our cities smarter and greener.

With its shorter distances and higher population density, Europe is a natural place for MaaS to take off, but it is also gaining traction in Australia’s inner cities.

The arevo app, for example, was developed in Victoria by the RACV and rolled out in 2019. Intelematics were commissioned in 2019 to build the brains behind arevo’s MaaS offering.

With more than 125,000 downloads and counting, thousands of Melbournians now have an easier way to get around their city.

At Intelematics, we are also working to innovate with integrated and agnostic solutions in partnership with other organisations, such as local government authorities, corporates, and other technology providers.

For example, one of our partners, UbiPark, has already rolled out a product that allows users to access and pay for certain car parks on their smartphones.

Much of the movement towards MaaS is predicated on the belief that the long-term trend in Australia is for levels of car ownership to decline.

For young people, getting a driver’s license as soon as they can and buying their first car is no longer the rite of passage it once was. According to the RACV, the number of 18-year-olds with a driving licence has fallen from around 55% a decade ago to around 40% today.

People are changing the way they use their cities, and mobility is a key part of that.

Even people living in outer suburban areas can combine their modes of transport to make MaaS viable.

Someone might drive from their home to a nearby train station, or take an on-demand shuttle bus, and then use public transport to get to the city where they pick up a shared bike or scooter to take them to their final destination.

Car ownership and dependence are likely to remain higher in Australia than in Europe, but that doesn’t preclude the development of MaaS solutions. Instead, it means that cars should be part of the solution, rather than being seen as an impediment.

Over time, there is no doubt that transport infrastructure and smart technology will change the way we live, and MaaS is likely to play a role in that and be a major part of the future of our cities.