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A report from The Economist Intelligence Unit 
How mobile is transforming 
passenger transportation 
Clearing the way for 
more liveable cities
1 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Preface 2 
Introduction 3 
Reaping returns from mobility 4 
Static information and online purchases today 6 
Resolving operational headaches through real-time information delivery 8 
Resistance to mobility 9 
Solving data-quality and technical problems 11 
Connecting transit modes: car-sharing and pooling services as the next mobility wave 12 
Appendix: survey results 16 
Contents 
1 
2 
3 
4 
5 
6
2 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Preface 
Clearing the way for more liveable cities through 
mobility is one of four reports in a series that 
probes how mobile technologies are transforming 
organisations and lives. It examines how a new 
generation of mobile devices is already making 
journeys faster, safer and more reliable, while 
improving efficiency and reducing costs—and 
explores the great potential of growing amounts of 
real-time data to better engage and serve 
passengers. Yet, while new technologies offer 
exciting opportunities, they bring new challenges 
and regulatory risks. 
The research is anchored by a global survey by 
The Economist Intelligence Unit (EIU) of 116 
transport executives, including public and private 
transport operators and government and transport 
agencies. The findings and views in this report do 
not necessarily represent the views of the sponsor. 
The author was Sarah Wachter; Carolyn Whelan 
edited the report. We would like to thank all of the 
executives who participated on the record and 
anonymously for their incisive views. 
Interviewees 
Adam Cohen, researcher, Transportation 
Sustainability Research Center, University of 
California at Berkeley 
Jacqueline Kopp, research expert on transport, 
Center for Urban Development, Columbia 
University 
Ray LaHood, chair of the MTA (New York’s 
Metropolitan Transportation Authority) 
Reinvention Commission and US secretary of 
transportation from 2009 to 2013 
Nathan Marsh, director, performance improvement 
practice, Ernst & Young 
Graham Parkhurst, director, Centre for Transport 
and Society, University of West of England, Bristol 
Michael Replogle, managing director for policy, 
Institute for Transportation and Development 
Policy (ITDP) 
Bill Wheeler, director of planning, New York’s 
Metropolitan Transportation Authority 
Mike Wilson, managing director, transportation 
practice North America, Accenture 
Survey results are based on 116 responses from transport executives 
spanning the globe. Most respondents hail from private transportation 
operators (61%), public transportation operators (21%) and government 
or transportation agencies (18%). Executives are based in Europe and the 
Middle East (34%), North America (28%), Latin America (21%) and Africa/CIS 
(17%). More than half (53%) are C-level executives or equivalent, 17% are 
vice-presidents or equivalent and 9% are senior managers. Two thirds work 
at organisations with annual revenues of more than $500M. Please see the 
appendix for full survey demographics. 
Who took the survey?
3 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Transportation is a sector straining to keep pace 
with rapid population growth and shifting mobility 
patterns. Its principal pain points are congestion 
and high costs. 
These headaches are the fallout of an 
increasingly urbanised and road-networked world 
with underutilised mass transit systems. Pollution 
from transport and road accidents can cost a 
developing country up to 5% of its gross domestic 
product, and these two factors take a greater toll 
on productivity and lives globally than HIV/AIDS, 
tuberculosis, malaria or diabetes, according to the 
2014 World Bank-led Global Road Safety study. In 
tandem, many transit systems are now a complex 
maze of urban, regional and inter-regional 
networks, with many gaps and overlaps. 
Against this backdrop and amid fierce competition 
for scarce capital, much of the passenger-transportation 
sector is now using mobile devices for 
discrete, practical purposes: to boost system 
efficiencies, to better engage with riders, and to 
lower costs. The next set of mobile opportunities lies 
in helping to resolve problems that hobble 
passengers and operators alike, including 
congestion, uncertainty and interminably long waits. 
Increasingly, mobile is spurring new service 
models and generating new revenue streams. And 
as real-time data become increasingly available 
and integrated across different modes in the 
transportation supply chain, they could help cure 
operational headaches and better meet passenger 
needs through interactive offerings. 
“By linking mobile devices to surface 
transportation, you can create a much smarter 
transport system that works…from the bottom up, 
enabling users to get more effective transport 
where they need it and save money, too,” says 
Michael Replogle, managing director for policy at 
the Institute for Transportation and Development 
Policy. 
Introduction
4 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Each transportation subsector is tapping mobility 
for different reasons, but a common thread among 
operators is efficiency, cost and passenger-satisfaction 
gains. 
More than half of private transportation operators 
surveyed by the EIU say mobile devices will help 
them improve network or on-time performance 
(55%). Slightly less say mobility is a priority to 
reduce costs and to increase passenger satisfaction 
(both 48%) and to boost revenue (36%). Meanwhile, 
their peers in the public transport sector believe 
greater use of mobile devices and systems will help 
boost ridership (44%), passenger satisfaction (33%) 
and public safety (33%). 
And government and transport agencies foresee 
better public safety (60%), greater employment 
(55%) and curbs in pollution (40%) as the 
principal benefits. These gains will be realised by 
making commutes easier, by broadening shared-use 
transport, and by linking transport options, 
including bike and walking paths, experts 
interviewed say. 
1 Reaping returns from mobility 
Improve public safety 
Improve employment 
Reduce pollution 
Improve community quality of life 
Reduce security threats 
Reduce congestion 
Attract businesses 
Increase tax base 
Reduce public expenditures 
What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? 
Please select up to three 
(% respondents) 
Source: Economist Intelligence Unit survey, 2014 
Government or transportation agency Public transportation operator Private transportation operator 
60 
55 
40 
35 
30 
20 
20 
5 
5 
Increase ridership 
Increase passenger satisfaction 
Improve passenger safety 
Improve network or on-time performance 
Reduce environmental impact 
Reduce costs 
Improve public safety 
Increase public revenues 
Improve workforce safety and productivity 
Reduce congestion 
Ensure regulatory compliance 
44 
33 
33 
28 
28 
28 
22 
17 
11 
6 
6 
Improve network or on-time performance 
Increase passenger satisfaction and loyalty 
Reduce costs 
Increase revenues 
Improve passenger safety 
Reduce environmental impact 
Improve workforce safety and productivity 
Ensure regulatory compliance 
55 
48 
48 
36 
26 
22 
16 
10
5 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Looking ahead, the sector aims in five years to 
increase its use of mobile technology and data to 
address its biggest and costliest headaches— 
relaying information about delays and emergencies. 
The payoffs of a better communications 
infrastructure include cost savings and cutting 
pollution by applying real-time data to operational 
decisions—ensuring, for instance, sufficient 
subway cars at peak or slack times. In the future, 
the growth of this two-way dialogue will further 
open the door to providing new products and 
services to passengers.
6 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
In this first wave of wireless data delivery, mobile 
technology is helping transportation organisations 
better connect with passengers in a more cost-effective 
way. 
According to the EIU survey, providing 
information on fares, tickets and services; route 
viewing/planning features; and ticket, pass and 
trip purchasing are the primary ways operators 
currently serve passengers through mobile 
technology. 
As they add new features and functions, 
transport organisations are increasingly offering 
mobile-payment options for tickets. Easy mobile 
purchases are now available to commuters through 
the national rail network in Spain, across southern 
Ontario, Canada, through the Presto e-payment 
scheme, and via the Massachusetts Bay 
Transportation Authority (MBTA) in Boston. 
This shift to mobile is helping reduce costs. Mike 
Wilson, managing director of Accenture’s North 
American Transportation Practice, reckons the cost 
of managing fares accounts for roughly 15% of a 
ticket’s price due to time-consuming paper and 
customer phone-line transactions. This cost drops 
Static information and online 
2 purchases today 
“The two great trends in the next century are 
demographic shifts and climate change,” says Ray 
LaHood, chair of the Reinvention Commission for 
New York’s Metropolitan Transportation Authority 
(MTA) and US transportation secretary from 2009 
to 2013. 
Millennials, those born in the 1980s and 
1990s, represent 22% of the population in the 
greater New York region. Many eschew car 
ownership for car-sharing services and the 
subway, even at odd hours. 
Because many millennials work on flexible or 
non-traditional schedules and live in 
neighbourhoods with limited peak subway 
service, they are dramatically changing commuter 
patterns in greater New York. Peak times are 
becoming flatter, while the greatest ridership 
growth is now between 7 pm and 11 pm on 
weeknights, followed by weekends. 
To accommodate the city’s most-connected 
generation, the MTA has rolled out real-time 
information on its bus network, installed 
countdown clocks on major subway platforms and 
published a map detailing weekend shutdowns in 
real-time. It is also building a fully wireless 
system in all stations and tunnels. This involves 
installing a communications backbone so that all 
460 subway stations can take payments when a 
rider waves a smartphone at a turnstile or across a 
reader panel. 
case study How New York’s MTA is adapting to an influx of millennials 
❛❛ 
The two great 
trends in the next 
century are 
demographic 
shifts and climate 
change. 
❜❜ 
Ray LaHood, 
Chair of the Reinvention 
Commission at New York’s 
Metropolitan Transportation 
Authority
7 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
to 9% when transactions migrate to smartcards and 
mobile devices, he adds. Transport organisations 
are also using mobile technology to manage fleets, 
to exchange information internally, to maintain, 
inspect and repair vehicles, and to equip attendants 
to serve passengers on station platforms. 
Globally, transport operators are locking in 
these wins despite the lack of ubiquitous wireless 
connections. In developed countries, many riders 
have sophisticated mobile devices; operators are 
upgrading networks and launching new services to 
keep pace with passenger expectations for quick 
updates and easy mobile payments. In a poll 
managed by Coleman Parkes Research on behalf of 
Accenture in 2012 and 2013 that covered nine 
major world cities, 90% of riders said they expect 
travel updates on social media, while one in three 
expect mobile-payment capabilities. 
As these offerings expand, new transport service 
models are emerging to pair riders with real-time 
data to plug gaps in the transportation system, 
particularly over the last mile home. Ride-sharing 
schemes such as Uber, Lyft and Sidecar are 
proliferating in many countries. Uber is now in 
dozens of cities, guaranteeing door-to-door service 
in five minutes. And Park-o-Pedia in San Francisco 
helps drivers find nearby parking spaces, says 
Adam Cohen, a researcher at the Transportation 
Sustainability Research Center at the University of 
California at Berkeley.
8 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
The next mobility wave in transportation, however, 
will help resolve a pain point that preoccupies the 
industry and passengers: congestion, by relaying 
more real-time information on emergencies and 
delays. Congestion was ranked as a top obstacle 
for both easy and reasonably priced journeys by 
survey respondents. More mobile devices in more 
hands and more ubiquitous wireless coverage in 
transportation hubs will drive this change. 
In five years, passengers will use their mobile 
devices most frequently to receive alerts and 
instructions related to emergencies, delays and 
rerouting, and to buy tickets and receive information 
on fares and routes, according to the EIU survey. 
Experts say that the move is already underway. 
“A lot of agencies are already publishing statistical 
and geographical information in case of 
emergencies,” and encouraging third-party 
developers to build information services around 
them, says Accenture’s Mr Wilson. The city of 
Ottawa’s smart bus initiative, for example, helps 
passengers access bus arrival information from 
mobile devices. Meanwhile, many US drivers 
receive real-time traffic data and routing assistance 
through satellite navigation systems in their 
vehicles and through global positioning systems in 
their smartphones. 
But in virtually all countries, insufficient 
technology investment in the public-transportation 
sector is slowing the expansion of the integrated 
platforms needed to deliver real-time transit 
information region-wide. The public-transportation 
sector spends just one penny of every $10 of total 
investment on information technology, an 
Accenture study shows. 
Still, some experts, including Mr Cohen, are 
skeptical that emergency data is the next big trend 
for car drivers in the US, because many passengers 
with access to real-time traffic data are not 
changing their travel habits, either because real 
alternative routes don’t exist or it would be too 
expensive to create them in clogged city centers. 
“The real problem is a lack of alternative routes,” 
he says. 
Resolving operational headaches 
3 through real-time information delivery
9 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
The shift from static to real-time data is being 
slowed by business case issues. Justifying heady 
investments in mobile services is difficult without a 
critical mass of passengers equipped with, or open 
to, accessing real-time data delivery through 
smartphones or tablets. 
Indeed, roughly one-third (32%) of survey 
respondents say passengers’ resistance is what 
most gets in the way of quick and easy access to 
travel information. A similar percentage (29%) 
cites the lack of a desktop computer. 
Today, of the eight channels that passengers use 
around the world to plan and manage their 
journeys, the personal computer (PC) is the most 
heavily used, followed by customer-service phone 
lines, according to the survey. Less experience with 
mobile may be the cause. “It’s more about 
education and outreach, [the need] to teach 
providers and consumers how to fully leverage and 
use these technologies,” Mr Cohen says. “Reliance 
on customer-service lines in these areas may be 
due to the comfort level… vs using text messaging 
or a smartphone app.” 
But that gap should shrink. By 2019, 
4 Resistance to mobility 
So-called informal transit systems in the 
mega-cities of the developing world are 
the primary way people get around 
town. But the unregulated way in which 
these systems have developed has 
created a spaghetti bowl of overlapping 
routes, unnecessary smog from 
inefficient routing, and huge traffic jams 
as buses converge on city centers. 
In Nairobi, for example, 40% of 
vehicles on the road are matatus, 
privately owned minibuses that serve as 
the city’s de-facto bus network. Until 
recently, no map of the network existed, 
and passengers had to rely on their 
limited knowledge of lines and unofficial 
stops. 
Now Nairobi’s mobile-savvy 
population can access a map on mobile 
phones that was developed by equipping 
the mobile phones of volunteer mappers 
with global positioning system (GPS) 
capabilities. 
Thanks to the digital map, the 
National Transport and Safety Authority 
of Kenya is implementing a cashless fare 
system for matatus that also calculates 
standardised fares after commuters 
enter departure and destination 
information into their mobile devices. 
case study Using mobile to untangle Nairobi’s matatu maze 
❛❛ 
The Digital Matatu project 
illustrates the power of 
technology to support critical 
data collection on transport from 
below. It is also a challenge… to 
start making data available to 
the public to support 
entrepreneurship, accountability 
and better research and policy. 
❜❜ 
Jackie Klopp, 
researcher at the Center for Sustainable Urban 
Development at Columbia University
10 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
respondents expect smartphones to be the second 
most popular channel, almost on par with PCs. 
Perhaps that is why executives surveyed see their 
top opportunities for 2014 as linked to providing 
passengers with real-time information, better 
network availability inside vehicles, and the ability 
to make purchases. 
Which mobile services do your passengers use today, and which services do you expect to support in the future? 
Mobile feature 
Select all that apply in each column (Number respondents) 
Access information on fares, 
tickets and services 
View and plan routes 
View and plan mixed mode routes and trips 
Purchase tickets, passes, or packaged trips 
Receive alerts on delays and rerouting 
Receive assistance with alternative travel and 
services in the event of delay or interruptions 
Receive alerts about emergencies 
Receive instructions in the 
event of emergencies 
Receive personalised offers 
or recommendations 
Access information about local 
entertainment, retailers and public services 
Access information on tickets and 
services such as taxis or car services 
Reserve, request and pay for 
taxis or car services 
Source: Economist Intelligence Unit survey, 2014 
77 
51 
46 
53 
50 
45 
37 
52 
41 
51 
39 
47 
43 
61 
48 
46 
42 
46 
45 
61 
54 
34 
38 
42 
47 
46 
38 
36 
37 
35 
29 
38 
38 
26 
38 
35 
Now 
Two years from now 
Five years from now
11 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
To better connect with passengers via mobile, 
executives say they face two thorny issues: poor 
data quality and a lack of data integration. 
Respondents rank a lack of quality transit 
information across all channels as the top obstacle 
to faster journeys. This may be due to difficulties 
integrating data and systems across many 
organisations, which executives rate as the top 
obstacle to delivering data to mobile devices within 
five years vs insufficient network coverage or 
bandwidth today. 
Common data integration hiccups range from 
smartcards that do not work across all transport 
providers to services that cannot be accessed in a 
nearby transit zone or a neighbouring country. 
But addressing data-integration problems will be 
neither simple nor fast and will require greater IT 
investment, says Accenture’s Mr Wilson: “Agencies 
need to think about a single customer account and 
more holistic, integrated platforms and invest in 
vertically integrated solutions. To access data in 
real-time, you need the right IT platforms,” he 
adds. 
Other data problems concern the need for better 
data to more fully engage all segments of the 
population, from the visually impaired to those 
suffering from dyslexia. “The problem is producing 
technology that is easy to understand by 
everybody—[people] of all ages and at all levels of 
education—and hardware that promotes good user 
interaction,” says Graham Parkhurst, director of the 
Centre for Transport and Society. 
Solving data-quality and technical 
5 problems 
❛❛ 
A lot of 
[transport] 
agencies are 
already publishing 
statistical and 
geographical 
information in 
case of 
emergencies. 
Open data is 
already 
happening. 
❜❜ 
Mike Wilson, 
managing director of 
Transport at Accenture
12 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
A new era is gradually unfolding in which mobile 
technology will help solve the transport sector’s 
biggest operational headaches: congestion and 
delays. Most noteworthy are moves to link 
transportation modes to smooth inner- and 
inter-city travel. 
To prepare for this shift, more transit agencies 
and operators are joining the open-data 
movement, making their statistical and geographic 
information publicly available and working with 
developers to offer new services. 
In the future, ITDP’s Mr Replogle believes system 
managers will receive real-time intelligence on the 
location of congestion, system underutilisation 
and capacity constraints. These data will help 
drivers and system operators avoid traffic and 
delays, respond to congestion issues more quickly, 
and help passengers change routes to reach their 
destinations faster. 
Cleaner transport is also on the sector’s radar 
through congestion charges and ride-sharing 
programmes. Road transport accounts for one-fifth 
of CO2 emissions on average, followed by aviation. 
To create cleaner and more efficient transportation 
systems across metropolitan areas and regions, 
public-private partnerships are working to boost 
and generate revenue from vehicle usage data 
captured. The City of Manchester for example, set 
up a special-purpose vehicle (SPV) scheme in which 
transport authorities and commercial operators 
share passenger data and direct marketing efforts. 
Over the next two years, the SPV will roll out a plan 
by which passengers can buy transit tickets 
through both mobile devices and conventional 
channels across all transit modes, from the bus and 
rail network to electric vehicle, park and ride, and 
bike sharing schemes. 
A big opportunity lies in applying real-time fees 
using a number-plate recognition system on 
heavily travelled roads at peak times, according to 
Mr Replogle. Giving a price break to car poolers 
through a mobile device to monitor vehicle 
occupants is another area of opportunity. “This will 
pave the way to reprice transport,” says Mr 
Replogle, who sees some of these price reductions 
going to passengers. 
Operators are also developing services to pair 
mobile devices with low-speed transit, such as bike 
sharing payable by bank card, according to Mr 
Cohen. Matching riders and destinations through 
mobile devices will help close the gap in ride services 
through reasonably priced and convenient transport 
from train station to home, he says. In time, the 
benefits of more connected transport modes will 
cascade across the transportation ecosystem. 
As real-time data-driven services take root, 
worries over privacy and safety are growing. When 
developing new mobile-driven products and 
services, 57% of executives surveyed say security is 
a top concern and 53% cite safety concerns. 
These concerns are most acute with new 
ride-sharing schemes; not surprisingly, mobile 
technology is helping assuage them. Some 
schemes now filter for “friends” in a social network 
to ensure privacy in ride-share bookings. In 
California, the Public Utilities Commission has 
Connecting transit modes: car-sharing 
and pooling services as the next 
mobility wave 6
13 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
created a special company status for ride-sharing 
schemes with online platforms. So-called 
transportation network companies operate under a 
new regulatory and legal framework designed to 
ensure that drivers have cleared background 
checks and are adequately covered by insurance. 
In the future, the sector will gradually shift its 
efforts from addressing pain points to finding new 
revenue-generating opportunities. Operators will 
focus on providing more location-based services 
and forging partnerships so they can supply 
information on the surrounding environment, 
including, for example, booking a table at the 
nearest Italian restaurant, experts say. 
“Transport is moving from tracks and trams to a 
customer-service mindset....The benchmark will be 
against the best companies in service,” says 
Nathan Marsh, director of the performance 
improvement practice at Ernst & Young.
14 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Appendix: 
survey 
results 
Percentages may not 
add to 100% owing to 
rounding or the ability 
of respondents to 
choose multiple 
responses. 
It is currently our top priority 
It is currently not our top priority, but it is one of our strategic priorities 
It is not a priority today, but it will be within 2 years 
It is not a priority today, but it will be within 3 to 5 years 
It is not a priority today, and it will not be within 5 years 
How does your organisation view mobile technology in relation to your strategy? 
(% respondents) 
44 
39 
14 
3 
0 
Government or transportation agency 
Public transportation operator 
Private transportation operator 
Is your organisation a government or transportation agency or a private or public (primarily state-owned) 
transportation operator? 
(% respondents) 
18 
21 
61
15 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Increase ridership 
Increase passenger satisfaction 
Improve passenger safety 
Improve network or on-time performance 
Reduce environmental impact 
Reduce costs 
Improve public safety 
Increase public revenues 
Improve workforce safety and productivity 
Reduce congestion 
Ensure regulatory compliance 
What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? 
Please select up to three 
(% respondents) 
Public transportation operator 
44 
33 
33 
28 
28 
28 
22 
17 
11 
6 
6 
Improve public safety 
Improve employment 
Reduce pollution 
Improve community quality of life 
Reduce security threats 
Reduce congestion 
Attract businesses 
Increase tax base 
Reduce public expenditures 
What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? 
Please select up to three 
(% respondents) 
Government or transportation agency 
60 
55 
40 
35 
30 
20 
20 
5 
5
16 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Paper 
Persaonal computer 
Tablet 
Smartphone 
Feature phone 
Terminal agents and personal 
Kiosks 
Customer-service phone line 
What channels do your passengers use for travel planning and management transactions with your organisation now and how 
will they use them in the future? 
Transaction channels for planning and managing travel 
Provide percentage estimates so that each column adds up to 100% (% respondents) 
Now 
Three years from now 
Five years from now 
12 
8 
6 
33 
30 
26 
11 
14 
17 
12 
19 
25 
5 
5 
5 
7 
5 
6 
5 
5 
4 
15 
14 
13 
Improve network or on-time performance 
Increase passenger satisfaction and loyalty 
Reduce costs 
Increase revenues 
Improve passenger safety 
Reduce environmental impact 
Improve workforce safety and productivity 
Ensure regulatory compliance 
What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? 
Please select up to three 
(% respondents) 
Private transportation operator 
55 
48 
48 
36 
26 
22 
16 
10
17 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Which mobile services do your passengers use today, and which services do you expect to support in the future? 
Mobile feature 
Select all that apply in each column (Number of respondents) 
Access information on fares, 
tickets and services 
View and plan routes 
View and plan mixed mode routes and trips 
Purchase tickets, passes, or packaged trips 
Receive alerts on delays and rerouting 
Receive assistance with alternative travel and 
services in the event of delay or interruptions 
Receive alerts about emergencies 
Receive instructions in the 
event of emergencies 
Receive personalised offers 
or recommendations 
Access information about local 
entertainment, retailers and public services 
Access information on tickets and 
services such as taxis or car services 
Reserve, request and pay for 
taxis or car services 
77 
51 
46 
53 
50 
45 
37 
52 
41 
51 
39 
47 
43 
61 
48 
46 
42 
46 
45 
61 
54 
34 
38 
42 
47 
46 
38 
36 
37 
35 
29 
38 
38 
26 
38 
35 
Now 
Two years from now 
Five years from now
18 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
What are the greatest challenges that your organisation faces? 
Please select up to three in each column 
(Number of respondents) 
Lack of quality transit information across all 
channels (eg, routing, delay, schedule 
changes, alternate routes information) 
Lack of emergency information 
and response or assistance 
Poor access to ticketing facilities (eg, kiosks, 
windows) or long ticket purchase lines 
High ticket prices 
Traffic congestion 
Frequent schedule changes or delays 
Lack of adequate inter-modal connections at 
transport hubs, stops and in terminals 
Lack of final link to home or destination 
(eg, bus, rail or taxi) 
Cost of service 
Public safety (eg, crime and accidents) 
Lawsuits and regulatory fines 
50 
34 
28 
30 
29 
10 
25 
25 
29 
24 
14 
32 
31 
38 
36 
28 
32 
17 
27 
22 
23 
20 
20 
20 
10 
20 
40 
10 
22 
11 
6 
9 
16 
Obstacles to fast journey 
Obstacles to easy journey 
Obstacles to reasonably priced journey 
Well above average 
for the industry 
Somewhat above 
average 
Average/On par 
with peers 
Somewhat below 
average 
Well below average 
for the industry 
Lack of quality transit information across all channels (eg, routing, delay, schedule changes, alternate routes information) 
Lack of emergency information and response/assistance 
Lack of or difficult to access ticketing facilities (kiosks, windows) or long ticket purchase lines 
High ticket prices 
Traffic congestion 
Frequent planned schedule changes or delays 
Frequent unplanned schedule changes or delays 
Lack of adequate inter-modal connections at transport hubs, stops and in terminals 
Lack of final link to home or destination (eg, bus, rail or taxi) 
How would you rate your organisation’s ability to resolve the following issues? 
Please select one in each row 
(% respondents) 
35 29 28 7 1 
23 37 24 13 3 
19 29 34 11 7 
18 25 40 11 6 
18 27 35 11 9 
22 29 29 12 7 
19 27 36 12 6 
17 32 37 11 3 
19 31 35 10 4
19 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Consumer resistance to accessing travel information from mobile devices 
Lack of a desktop computer 
Lack of a mobile device 
Inconsistent quality of experience across all channels (eg, desktop, mobile devices, kiosks, in-person) 
Difficulties understanding information that is provided 
Comprehensive information is not available online and mobile 
Difficulties delivering information to travellers with special needs 
Real-time information not available 
Public safety (eg, on platforms) 
Information not presented in a simple, mobile-accessible manner 
What are the main obstacles your passengers face in getting easy and rapid access to travel information? 
Please select the top two 
(% respondents) 
32 
29 
22 
22 
21 
15 
14 
11 
10 
10 
What are your main technical obstacles in delivering data via mobile devices today, five years from now, and five years ago? 
Obstacle 
Please select up to three in each column 
(Number of respondents) 
Now 
Five years from now 
Five years ago 
Insufficient network 
coverage or bandwidth 
Lack of onboard Wi-Fi 
Difficulties integrating data 
and systems across many 
organisations 
Difficulties supporting all 
device platforms and types 
Limited smartphone 
and tablet usage 
Data security and privacy 
Don’t know 
57 
29 
43 
45 
23 
34 
36 
56 
33 
31 
37 
31 
41 
24 
44 
29 
37 
33 
8 
18 
18
20 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Where do you see the best opportunities for the use of mobile technologies today, and five years from now? 
Please select up to three in each column 
(Number of respondents) Now 
Five years from now 
Providing commuter/travellers 
information while travelling 
Providing commuters/travellers 
information between travel 
Providing commuters/travellers with 
the ability to make purchases 
Increasing network availability 
inside vehicles 
Joining up different transport 
modes across a city 
Offering location-based data on 
traffic and congestion 
Offering location-based services 
Smart routing (eg, providing passengers with 
information on faster or less costly routes) 
Analysis of travel behaviour 
Targeted personalised offers for products and services 
(eg, resulting in direct revenues or third-party commissions and fees) 
57 
32 
30 
25 
36 
34 
35 
28 
27 
28 
30 
28 
16 
26 
26 
37 
16 
23 
10 
22 
Security 
Safety 
Privacy 
Competition from new players 
Price erosion 
Data regulation 
Deterioration of existing business 
Other regulation 
As new opportunities for product and service delivery through mobile technology arise, what concerns are also rising for you? 
Please select up to three 
(Number of respondents) 
57 
53 
41 
29 
24 
21 
18 
5 
Transportation operator (such as airlines, trains, ferries, rail, buses or taxis) 
Highway and roads administrator 
Service provider (such as the American Automobile Association) 
Rental car, truck, or two-to-three wheeler supplier 
What is your primary industry 
(% respondents) 
88 
10 
16 
12 
Yes 
No 
Are you familiar with mobile technology trends in 
transportation? 
(% respondents) 
100 
0
21 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
United States 
United Kingdom 
Brazil 
Argentina 
Africa 
Germany 
Mexico 
Russia 
France 
Commonwealth Independent States (CIS) 
Austria 
Italy 
Spain 
Switzerland 
North Africa 
In which country/region are you personally based? 
(% respondents) 
28 
10 
8 
7 
6 
6 
6 
5 
4 
4 
3 
3 
3 
3 
2 
$500m or less 
$500m to $1bn 
$1bn to $5bn 
$5bn to $10bn 
$10bn or more 
What are your organisation's global annual revenues in 
US dollars? 
(% respondents) 
34 
16 
23 
21 
7 
Board member 
CEO/President/Managing director 
CFO/Treasurer/Comptroller 
CIO/Technology director 
CMO/Marketing director 
Other C-level executive 
SVP/VP/Director 
Head of Business Unit 
Head of Department 
Manager 
Other 
Which of the following best describes your title? 
(% respondents) 
6 
21 
3 
16 
7 
1 
17 
3 
6 
14 
6 
Customer service 
Finance 
General management 
Human resources 
Information and research 
IT 
Legal 
Marketing and sales 
Risk 
R&D 
Strategy and business development 
Other 
What are your main functional roles? 
Please select up to three. 
(% respondents) 
28 
21 
36 
7 
16 
34 
1 
20 
5 
9 
28 
8 
EMEA 
North America 
LATAM 
Africa/CIS 
In which region are you based? 
(Number of respondents) 
40 
32 
24 
20
22 © The Economist Intelligence Unit Limited 2014 
How mobility is transforming passenger transport: clearing the way for more liveable cities 
Whilst every effort has been taken to verify the accuracy of this 
information, neither The Economist Intelligence Unit Ltd. nor the 
sponsor of this report can accept any responsibility or liability 
for reliance by any person on this white paper or any of the 
information, opinions or conclusions set out in the white paper. 
About our Sponsor 
As the world’s leading provider of enterprise application 
software, SAP delivers products and services that help 
accelerate business innovation for its more than 183,000 
customers in more than 120 countries.
London 
20 Cabot Square 
London 
E14 4QW 
United Kingdom 
Tel: (44.20) 7576 8000 
Fax: (44.20) 7576 8476 
E-mail: london@eiu.com 
New York 
750 Third Avenue 
5th Floor 
New York, NY 10017 
United States 
Tel: (1.212) 554 0600 
Fax: (1.212) 586 0248 
E-mail: newyork@eiu.com 
Hong Kong 
6001, Central Plaza 
18 Harbour Road 
Wanchai 
Hong Kong 
Tel: (852) 2585 3888 
Fax: (852) 2802 7638 
E-mail: hongkong@eiu.com 
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Fax: (41) 22 346 93 47 
E-mail: geneva@eiu.com

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How mobile is transforming passenger transportation

  • 1. A report from The Economist Intelligence Unit How mobile is transforming passenger transportation Clearing the way for more liveable cities
  • 2. 1 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Preface 2 Introduction 3 Reaping returns from mobility 4 Static information and online purchases today 6 Resolving operational headaches through real-time information delivery 8 Resistance to mobility 9 Solving data-quality and technical problems 11 Connecting transit modes: car-sharing and pooling services as the next mobility wave 12 Appendix: survey results 16 Contents 1 2 3 4 5 6
  • 3. 2 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Preface Clearing the way for more liveable cities through mobility is one of four reports in a series that probes how mobile technologies are transforming organisations and lives. It examines how a new generation of mobile devices is already making journeys faster, safer and more reliable, while improving efficiency and reducing costs—and explores the great potential of growing amounts of real-time data to better engage and serve passengers. Yet, while new technologies offer exciting opportunities, they bring new challenges and regulatory risks. The research is anchored by a global survey by The Economist Intelligence Unit (EIU) of 116 transport executives, including public and private transport operators and government and transport agencies. The findings and views in this report do not necessarily represent the views of the sponsor. The author was Sarah Wachter; Carolyn Whelan edited the report. We would like to thank all of the executives who participated on the record and anonymously for their incisive views. Interviewees Adam Cohen, researcher, Transportation Sustainability Research Center, University of California at Berkeley Jacqueline Kopp, research expert on transport, Center for Urban Development, Columbia University Ray LaHood, chair of the MTA (New York’s Metropolitan Transportation Authority) Reinvention Commission and US secretary of transportation from 2009 to 2013 Nathan Marsh, director, performance improvement practice, Ernst & Young Graham Parkhurst, director, Centre for Transport and Society, University of West of England, Bristol Michael Replogle, managing director for policy, Institute for Transportation and Development Policy (ITDP) Bill Wheeler, director of planning, New York’s Metropolitan Transportation Authority Mike Wilson, managing director, transportation practice North America, Accenture Survey results are based on 116 responses from transport executives spanning the globe. Most respondents hail from private transportation operators (61%), public transportation operators (21%) and government or transportation agencies (18%). Executives are based in Europe and the Middle East (34%), North America (28%), Latin America (21%) and Africa/CIS (17%). More than half (53%) are C-level executives or equivalent, 17% are vice-presidents or equivalent and 9% are senior managers. Two thirds work at organisations with annual revenues of more than $500M. Please see the appendix for full survey demographics. Who took the survey?
  • 4. 3 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Transportation is a sector straining to keep pace with rapid population growth and shifting mobility patterns. Its principal pain points are congestion and high costs. These headaches are the fallout of an increasingly urbanised and road-networked world with underutilised mass transit systems. Pollution from transport and road accidents can cost a developing country up to 5% of its gross domestic product, and these two factors take a greater toll on productivity and lives globally than HIV/AIDS, tuberculosis, malaria or diabetes, according to the 2014 World Bank-led Global Road Safety study. In tandem, many transit systems are now a complex maze of urban, regional and inter-regional networks, with many gaps and overlaps. Against this backdrop and amid fierce competition for scarce capital, much of the passenger-transportation sector is now using mobile devices for discrete, practical purposes: to boost system efficiencies, to better engage with riders, and to lower costs. The next set of mobile opportunities lies in helping to resolve problems that hobble passengers and operators alike, including congestion, uncertainty and interminably long waits. Increasingly, mobile is spurring new service models and generating new revenue streams. And as real-time data become increasingly available and integrated across different modes in the transportation supply chain, they could help cure operational headaches and better meet passenger needs through interactive offerings. “By linking mobile devices to surface transportation, you can create a much smarter transport system that works…from the bottom up, enabling users to get more effective transport where they need it and save money, too,” says Michael Replogle, managing director for policy at the Institute for Transportation and Development Policy. Introduction
  • 5. 4 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Each transportation subsector is tapping mobility for different reasons, but a common thread among operators is efficiency, cost and passenger-satisfaction gains. More than half of private transportation operators surveyed by the EIU say mobile devices will help them improve network or on-time performance (55%). Slightly less say mobility is a priority to reduce costs and to increase passenger satisfaction (both 48%) and to boost revenue (36%). Meanwhile, their peers in the public transport sector believe greater use of mobile devices and systems will help boost ridership (44%), passenger satisfaction (33%) and public safety (33%). And government and transport agencies foresee better public safety (60%), greater employment (55%) and curbs in pollution (40%) as the principal benefits. These gains will be realised by making commutes easier, by broadening shared-use transport, and by linking transport options, including bike and walking paths, experts interviewed say. 1 Reaping returns from mobility Improve public safety Improve employment Reduce pollution Improve community quality of life Reduce security threats Reduce congestion Attract businesses Increase tax base Reduce public expenditures What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? Please select up to three (% respondents) Source: Economist Intelligence Unit survey, 2014 Government or transportation agency Public transportation operator Private transportation operator 60 55 40 35 30 20 20 5 5 Increase ridership Increase passenger satisfaction Improve passenger safety Improve network or on-time performance Reduce environmental impact Reduce costs Improve public safety Increase public revenues Improve workforce safety and productivity Reduce congestion Ensure regulatory compliance 44 33 33 28 28 28 22 17 11 6 6 Improve network or on-time performance Increase passenger satisfaction and loyalty Reduce costs Increase revenues Improve passenger safety Reduce environmental impact Improve workforce safety and productivity Ensure regulatory compliance 55 48 48 36 26 22 16 10
  • 6. 5 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Looking ahead, the sector aims in five years to increase its use of mobile technology and data to address its biggest and costliest headaches— relaying information about delays and emergencies. The payoffs of a better communications infrastructure include cost savings and cutting pollution by applying real-time data to operational decisions—ensuring, for instance, sufficient subway cars at peak or slack times. In the future, the growth of this two-way dialogue will further open the door to providing new products and services to passengers.
  • 7. 6 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities In this first wave of wireless data delivery, mobile technology is helping transportation organisations better connect with passengers in a more cost-effective way. According to the EIU survey, providing information on fares, tickets and services; route viewing/planning features; and ticket, pass and trip purchasing are the primary ways operators currently serve passengers through mobile technology. As they add new features and functions, transport organisations are increasingly offering mobile-payment options for tickets. Easy mobile purchases are now available to commuters through the national rail network in Spain, across southern Ontario, Canada, through the Presto e-payment scheme, and via the Massachusetts Bay Transportation Authority (MBTA) in Boston. This shift to mobile is helping reduce costs. Mike Wilson, managing director of Accenture’s North American Transportation Practice, reckons the cost of managing fares accounts for roughly 15% of a ticket’s price due to time-consuming paper and customer phone-line transactions. This cost drops Static information and online 2 purchases today “The two great trends in the next century are demographic shifts and climate change,” says Ray LaHood, chair of the Reinvention Commission for New York’s Metropolitan Transportation Authority (MTA) and US transportation secretary from 2009 to 2013. Millennials, those born in the 1980s and 1990s, represent 22% of the population in the greater New York region. Many eschew car ownership for car-sharing services and the subway, even at odd hours. Because many millennials work on flexible or non-traditional schedules and live in neighbourhoods with limited peak subway service, they are dramatically changing commuter patterns in greater New York. Peak times are becoming flatter, while the greatest ridership growth is now between 7 pm and 11 pm on weeknights, followed by weekends. To accommodate the city’s most-connected generation, the MTA has rolled out real-time information on its bus network, installed countdown clocks on major subway platforms and published a map detailing weekend shutdowns in real-time. It is also building a fully wireless system in all stations and tunnels. This involves installing a communications backbone so that all 460 subway stations can take payments when a rider waves a smartphone at a turnstile or across a reader panel. case study How New York’s MTA is adapting to an influx of millennials ❛❛ The two great trends in the next century are demographic shifts and climate change. ❜❜ Ray LaHood, Chair of the Reinvention Commission at New York’s Metropolitan Transportation Authority
  • 8. 7 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities to 9% when transactions migrate to smartcards and mobile devices, he adds. Transport organisations are also using mobile technology to manage fleets, to exchange information internally, to maintain, inspect and repair vehicles, and to equip attendants to serve passengers on station platforms. Globally, transport operators are locking in these wins despite the lack of ubiquitous wireless connections. In developed countries, many riders have sophisticated mobile devices; operators are upgrading networks and launching new services to keep pace with passenger expectations for quick updates and easy mobile payments. In a poll managed by Coleman Parkes Research on behalf of Accenture in 2012 and 2013 that covered nine major world cities, 90% of riders said they expect travel updates on social media, while one in three expect mobile-payment capabilities. As these offerings expand, new transport service models are emerging to pair riders with real-time data to plug gaps in the transportation system, particularly over the last mile home. Ride-sharing schemes such as Uber, Lyft and Sidecar are proliferating in many countries. Uber is now in dozens of cities, guaranteeing door-to-door service in five minutes. And Park-o-Pedia in San Francisco helps drivers find nearby parking spaces, says Adam Cohen, a researcher at the Transportation Sustainability Research Center at the University of California at Berkeley.
  • 9. 8 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities The next mobility wave in transportation, however, will help resolve a pain point that preoccupies the industry and passengers: congestion, by relaying more real-time information on emergencies and delays. Congestion was ranked as a top obstacle for both easy and reasonably priced journeys by survey respondents. More mobile devices in more hands and more ubiquitous wireless coverage in transportation hubs will drive this change. In five years, passengers will use their mobile devices most frequently to receive alerts and instructions related to emergencies, delays and rerouting, and to buy tickets and receive information on fares and routes, according to the EIU survey. Experts say that the move is already underway. “A lot of agencies are already publishing statistical and geographical information in case of emergencies,” and encouraging third-party developers to build information services around them, says Accenture’s Mr Wilson. The city of Ottawa’s smart bus initiative, for example, helps passengers access bus arrival information from mobile devices. Meanwhile, many US drivers receive real-time traffic data and routing assistance through satellite navigation systems in their vehicles and through global positioning systems in their smartphones. But in virtually all countries, insufficient technology investment in the public-transportation sector is slowing the expansion of the integrated platforms needed to deliver real-time transit information region-wide. The public-transportation sector spends just one penny of every $10 of total investment on information technology, an Accenture study shows. Still, some experts, including Mr Cohen, are skeptical that emergency data is the next big trend for car drivers in the US, because many passengers with access to real-time traffic data are not changing their travel habits, either because real alternative routes don’t exist or it would be too expensive to create them in clogged city centers. “The real problem is a lack of alternative routes,” he says. Resolving operational headaches 3 through real-time information delivery
  • 10. 9 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities The shift from static to real-time data is being slowed by business case issues. Justifying heady investments in mobile services is difficult without a critical mass of passengers equipped with, or open to, accessing real-time data delivery through smartphones or tablets. Indeed, roughly one-third (32%) of survey respondents say passengers’ resistance is what most gets in the way of quick and easy access to travel information. A similar percentage (29%) cites the lack of a desktop computer. Today, of the eight channels that passengers use around the world to plan and manage their journeys, the personal computer (PC) is the most heavily used, followed by customer-service phone lines, according to the survey. Less experience with mobile may be the cause. “It’s more about education and outreach, [the need] to teach providers and consumers how to fully leverage and use these technologies,” Mr Cohen says. “Reliance on customer-service lines in these areas may be due to the comfort level… vs using text messaging or a smartphone app.” But that gap should shrink. By 2019, 4 Resistance to mobility So-called informal transit systems in the mega-cities of the developing world are the primary way people get around town. But the unregulated way in which these systems have developed has created a spaghetti bowl of overlapping routes, unnecessary smog from inefficient routing, and huge traffic jams as buses converge on city centers. In Nairobi, for example, 40% of vehicles on the road are matatus, privately owned minibuses that serve as the city’s de-facto bus network. Until recently, no map of the network existed, and passengers had to rely on their limited knowledge of lines and unofficial stops. Now Nairobi’s mobile-savvy population can access a map on mobile phones that was developed by equipping the mobile phones of volunteer mappers with global positioning system (GPS) capabilities. Thanks to the digital map, the National Transport and Safety Authority of Kenya is implementing a cashless fare system for matatus that also calculates standardised fares after commuters enter departure and destination information into their mobile devices. case study Using mobile to untangle Nairobi’s matatu maze ❛❛ The Digital Matatu project illustrates the power of technology to support critical data collection on transport from below. It is also a challenge… to start making data available to the public to support entrepreneurship, accountability and better research and policy. ❜❜ Jackie Klopp, researcher at the Center for Sustainable Urban Development at Columbia University
  • 11. 10 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities respondents expect smartphones to be the second most popular channel, almost on par with PCs. Perhaps that is why executives surveyed see their top opportunities for 2014 as linked to providing passengers with real-time information, better network availability inside vehicles, and the ability to make purchases. Which mobile services do your passengers use today, and which services do you expect to support in the future? Mobile feature Select all that apply in each column (Number respondents) Access information on fares, tickets and services View and plan routes View and plan mixed mode routes and trips Purchase tickets, passes, or packaged trips Receive alerts on delays and rerouting Receive assistance with alternative travel and services in the event of delay or interruptions Receive alerts about emergencies Receive instructions in the event of emergencies Receive personalised offers or recommendations Access information about local entertainment, retailers and public services Access information on tickets and services such as taxis or car services Reserve, request and pay for taxis or car services Source: Economist Intelligence Unit survey, 2014 77 51 46 53 50 45 37 52 41 51 39 47 43 61 48 46 42 46 45 61 54 34 38 42 47 46 38 36 37 35 29 38 38 26 38 35 Now Two years from now Five years from now
  • 12. 11 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities To better connect with passengers via mobile, executives say they face two thorny issues: poor data quality and a lack of data integration. Respondents rank a lack of quality transit information across all channels as the top obstacle to faster journeys. This may be due to difficulties integrating data and systems across many organisations, which executives rate as the top obstacle to delivering data to mobile devices within five years vs insufficient network coverage or bandwidth today. Common data integration hiccups range from smartcards that do not work across all transport providers to services that cannot be accessed in a nearby transit zone or a neighbouring country. But addressing data-integration problems will be neither simple nor fast and will require greater IT investment, says Accenture’s Mr Wilson: “Agencies need to think about a single customer account and more holistic, integrated platforms and invest in vertically integrated solutions. To access data in real-time, you need the right IT platforms,” he adds. Other data problems concern the need for better data to more fully engage all segments of the population, from the visually impaired to those suffering from dyslexia. “The problem is producing technology that is easy to understand by everybody—[people] of all ages and at all levels of education—and hardware that promotes good user interaction,” says Graham Parkhurst, director of the Centre for Transport and Society. Solving data-quality and technical 5 problems ❛❛ A lot of [transport] agencies are already publishing statistical and geographical information in case of emergencies. Open data is already happening. ❜❜ Mike Wilson, managing director of Transport at Accenture
  • 13. 12 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities A new era is gradually unfolding in which mobile technology will help solve the transport sector’s biggest operational headaches: congestion and delays. Most noteworthy are moves to link transportation modes to smooth inner- and inter-city travel. To prepare for this shift, more transit agencies and operators are joining the open-data movement, making their statistical and geographic information publicly available and working with developers to offer new services. In the future, ITDP’s Mr Replogle believes system managers will receive real-time intelligence on the location of congestion, system underutilisation and capacity constraints. These data will help drivers and system operators avoid traffic and delays, respond to congestion issues more quickly, and help passengers change routes to reach their destinations faster. Cleaner transport is also on the sector’s radar through congestion charges and ride-sharing programmes. Road transport accounts for one-fifth of CO2 emissions on average, followed by aviation. To create cleaner and more efficient transportation systems across metropolitan areas and regions, public-private partnerships are working to boost and generate revenue from vehicle usage data captured. The City of Manchester for example, set up a special-purpose vehicle (SPV) scheme in which transport authorities and commercial operators share passenger data and direct marketing efforts. Over the next two years, the SPV will roll out a plan by which passengers can buy transit tickets through both mobile devices and conventional channels across all transit modes, from the bus and rail network to electric vehicle, park and ride, and bike sharing schemes. A big opportunity lies in applying real-time fees using a number-plate recognition system on heavily travelled roads at peak times, according to Mr Replogle. Giving a price break to car poolers through a mobile device to monitor vehicle occupants is another area of opportunity. “This will pave the way to reprice transport,” says Mr Replogle, who sees some of these price reductions going to passengers. Operators are also developing services to pair mobile devices with low-speed transit, such as bike sharing payable by bank card, according to Mr Cohen. Matching riders and destinations through mobile devices will help close the gap in ride services through reasonably priced and convenient transport from train station to home, he says. In time, the benefits of more connected transport modes will cascade across the transportation ecosystem. As real-time data-driven services take root, worries over privacy and safety are growing. When developing new mobile-driven products and services, 57% of executives surveyed say security is a top concern and 53% cite safety concerns. These concerns are most acute with new ride-sharing schemes; not surprisingly, mobile technology is helping assuage them. Some schemes now filter for “friends” in a social network to ensure privacy in ride-share bookings. In California, the Public Utilities Commission has Connecting transit modes: car-sharing and pooling services as the next mobility wave 6
  • 14. 13 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities created a special company status for ride-sharing schemes with online platforms. So-called transportation network companies operate under a new regulatory and legal framework designed to ensure that drivers have cleared background checks and are adequately covered by insurance. In the future, the sector will gradually shift its efforts from addressing pain points to finding new revenue-generating opportunities. Operators will focus on providing more location-based services and forging partnerships so they can supply information on the surrounding environment, including, for example, booking a table at the nearest Italian restaurant, experts say. “Transport is moving from tracks and trams to a customer-service mindset....The benchmark will be against the best companies in service,” says Nathan Marsh, director of the performance improvement practice at Ernst & Young.
  • 15. 14 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Appendix: survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses. It is currently our top priority It is currently not our top priority, but it is one of our strategic priorities It is not a priority today, but it will be within 2 years It is not a priority today, but it will be within 3 to 5 years It is not a priority today, and it will not be within 5 years How does your organisation view mobile technology in relation to your strategy? (% respondents) 44 39 14 3 0 Government or transportation agency Public transportation operator Private transportation operator Is your organisation a government or transportation agency or a private or public (primarily state-owned) transportation operator? (% respondents) 18 21 61
  • 16. 15 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Increase ridership Increase passenger satisfaction Improve passenger safety Improve network or on-time performance Reduce environmental impact Reduce costs Improve public safety Increase public revenues Improve workforce safety and productivity Reduce congestion Ensure regulatory compliance What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? Please select up to three (% respondents) Public transportation operator 44 33 33 28 28 28 22 17 11 6 6 Improve public safety Improve employment Reduce pollution Improve community quality of life Reduce security threats Reduce congestion Attract businesses Increase tax base Reduce public expenditures What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? Please select up to three (% respondents) Government or transportation agency 60 55 40 35 30 20 20 5 5
  • 17. 16 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Paper Persaonal computer Tablet Smartphone Feature phone Terminal agents and personal Kiosks Customer-service phone line What channels do your passengers use for travel planning and management transactions with your organisation now and how will they use them in the future? Transaction channels for planning and managing travel Provide percentage estimates so that each column adds up to 100% (% respondents) Now Three years from now Five years from now 12 8 6 33 30 26 11 14 17 12 19 25 5 5 5 7 5 6 5 5 4 15 14 13 Improve network or on-time performance Increase passenger satisfaction and loyalty Reduce costs Increase revenues Improve passenger safety Reduce environmental impact Improve workforce safety and productivity Ensure regulatory compliance What goals does your organisation aim to achieve by prioritising mobile technology in its strategy? Please select up to three (% respondents) Private transportation operator 55 48 48 36 26 22 16 10
  • 18. 17 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Which mobile services do your passengers use today, and which services do you expect to support in the future? Mobile feature Select all that apply in each column (Number of respondents) Access information on fares, tickets and services View and plan routes View and plan mixed mode routes and trips Purchase tickets, passes, or packaged trips Receive alerts on delays and rerouting Receive assistance with alternative travel and services in the event of delay or interruptions Receive alerts about emergencies Receive instructions in the event of emergencies Receive personalised offers or recommendations Access information about local entertainment, retailers and public services Access information on tickets and services such as taxis or car services Reserve, request and pay for taxis or car services 77 51 46 53 50 45 37 52 41 51 39 47 43 61 48 46 42 46 45 61 54 34 38 42 47 46 38 36 37 35 29 38 38 26 38 35 Now Two years from now Five years from now
  • 19. 18 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities What are the greatest challenges that your organisation faces? Please select up to three in each column (Number of respondents) Lack of quality transit information across all channels (eg, routing, delay, schedule changes, alternate routes information) Lack of emergency information and response or assistance Poor access to ticketing facilities (eg, kiosks, windows) or long ticket purchase lines High ticket prices Traffic congestion Frequent schedule changes or delays Lack of adequate inter-modal connections at transport hubs, stops and in terminals Lack of final link to home or destination (eg, bus, rail or taxi) Cost of service Public safety (eg, crime and accidents) Lawsuits and regulatory fines 50 34 28 30 29 10 25 25 29 24 14 32 31 38 36 28 32 17 27 22 23 20 20 20 10 20 40 10 22 11 6 9 16 Obstacles to fast journey Obstacles to easy journey Obstacles to reasonably priced journey Well above average for the industry Somewhat above average Average/On par with peers Somewhat below average Well below average for the industry Lack of quality transit information across all channels (eg, routing, delay, schedule changes, alternate routes information) Lack of emergency information and response/assistance Lack of or difficult to access ticketing facilities (kiosks, windows) or long ticket purchase lines High ticket prices Traffic congestion Frequent planned schedule changes or delays Frequent unplanned schedule changes or delays Lack of adequate inter-modal connections at transport hubs, stops and in terminals Lack of final link to home or destination (eg, bus, rail or taxi) How would you rate your organisation’s ability to resolve the following issues? Please select one in each row (% respondents) 35 29 28 7 1 23 37 24 13 3 19 29 34 11 7 18 25 40 11 6 18 27 35 11 9 22 29 29 12 7 19 27 36 12 6 17 32 37 11 3 19 31 35 10 4
  • 20. 19 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Consumer resistance to accessing travel information from mobile devices Lack of a desktop computer Lack of a mobile device Inconsistent quality of experience across all channels (eg, desktop, mobile devices, kiosks, in-person) Difficulties understanding information that is provided Comprehensive information is not available online and mobile Difficulties delivering information to travellers with special needs Real-time information not available Public safety (eg, on platforms) Information not presented in a simple, mobile-accessible manner What are the main obstacles your passengers face in getting easy and rapid access to travel information? Please select the top two (% respondents) 32 29 22 22 21 15 14 11 10 10 What are your main technical obstacles in delivering data via mobile devices today, five years from now, and five years ago? Obstacle Please select up to three in each column (Number of respondents) Now Five years from now Five years ago Insufficient network coverage or bandwidth Lack of onboard Wi-Fi Difficulties integrating data and systems across many organisations Difficulties supporting all device platforms and types Limited smartphone and tablet usage Data security and privacy Don’t know 57 29 43 45 23 34 36 56 33 31 37 31 41 24 44 29 37 33 8 18 18
  • 21. 20 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Where do you see the best opportunities for the use of mobile technologies today, and five years from now? Please select up to three in each column (Number of respondents) Now Five years from now Providing commuter/travellers information while travelling Providing commuters/travellers information between travel Providing commuters/travellers with the ability to make purchases Increasing network availability inside vehicles Joining up different transport modes across a city Offering location-based data on traffic and congestion Offering location-based services Smart routing (eg, providing passengers with information on faster or less costly routes) Analysis of travel behaviour Targeted personalised offers for products and services (eg, resulting in direct revenues or third-party commissions and fees) 57 32 30 25 36 34 35 28 27 28 30 28 16 26 26 37 16 23 10 22 Security Safety Privacy Competition from new players Price erosion Data regulation Deterioration of existing business Other regulation As new opportunities for product and service delivery through mobile technology arise, what concerns are also rising for you? Please select up to three (Number of respondents) 57 53 41 29 24 21 18 5 Transportation operator (such as airlines, trains, ferries, rail, buses or taxis) Highway and roads administrator Service provider (such as the American Automobile Association) Rental car, truck, or two-to-three wheeler supplier What is your primary industry (% respondents) 88 10 16 12 Yes No Are you familiar with mobile technology trends in transportation? (% respondents) 100 0
  • 22. 21 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities United States United Kingdom Brazil Argentina Africa Germany Mexico Russia France Commonwealth Independent States (CIS) Austria Italy Spain Switzerland North Africa In which country/region are you personally based? (% respondents) 28 10 8 7 6 6 6 5 4 4 3 3 3 3 2 $500m or less $500m to $1bn $1bn to $5bn $5bn to $10bn $10bn or more What are your organisation's global annual revenues in US dollars? (% respondents) 34 16 23 21 7 Board member CEO/President/Managing director CFO/Treasurer/Comptroller CIO/Technology director CMO/Marketing director Other C-level executive SVP/VP/Director Head of Business Unit Head of Department Manager Other Which of the following best describes your title? (% respondents) 6 21 3 16 7 1 17 3 6 14 6 Customer service Finance General management Human resources Information and research IT Legal Marketing and sales Risk R&D Strategy and business development Other What are your main functional roles? Please select up to three. (% respondents) 28 21 36 7 16 34 1 20 5 9 28 8 EMEA North America LATAM Africa/CIS In which region are you based? (Number of respondents) 40 32 24 20
  • 23. 22 © The Economist Intelligence Unit Limited 2014 How mobility is transforming passenger transport: clearing the way for more liveable cities Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper. About our Sponsor As the world’s leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more than 183,000 customers in more than 120 countries.
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