9th January, 2020

15 min read

The Growth Of Smart Mobility Solutions And The Transit Ecosystem

On-Demand Mobility | Transit Solutions | Public Transit | Economic Mobility | Smart Mobility Solutions | Ride Sharing

In almost every major city today, you will see the appearance of new transit options, ranging from ride-sharing services to bike and scooter hires. The way we get around in cities is fundamentally transforming, with conventional private vehicles making way for shared mobility alternatives, ride-sharing services, and bicycle use. The demand for alternative and multi-modal transport options is furthermore compelling the use of smart mobility solutions, to help authorities and businesses plan and operate these new services.

At PikMe, we aim to make urban transportation more efficient. To accomplish that, we constantly keep track of all things transportation to understand the mobility ecosystem more deeply.

The Growth of On-Demand Mobility and the Mobility Ecosystem

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According to a report by KMPG, multi-modal Mobility as a Service (MaaS) solutions are enabling consumers to couple different kinds of transport, lessening the reliance on public transport. The expanding use of vehicle subscription services, and new technology like connected and autonomous vehicles, adds to this trend.

The stats:

  • Half of the car owners today will no longer want to keep a vehicle by 2025.
  • Just 29% of men aged 17-20 in the UK carried a driver’s license, dropping from 51% in the mid-1990s.
  • By 2035, mobility technology will drive over 40% of profits in the automotive industry.

Source: KPMG, Boston Consulting Group

Ride-Hailing and Ride-Sharing

Ride-hailing has taken the globe by storm, with Uber and Lyft becoming household names. The commercial transport industry has transformed permanently, and regulators are debating how to support the phenomenon while promoting a move from crowdsourced, commercial transport providers, to ride-sharing and ride-matching.

Authorities will increasingly provide incentives for commuters to ride with others rather than with a paid driver, making more effective use of transport means.

The stats:

  • 36% of adult Americans have used a ride-hailing service such as Uber or Lyft, vs. only 15% in 2015. 
  • 51% of Americans aged 18-29 never used a ride-hailing service vs. only 24% of those aged 50+.
  • 53% of Americans with a yearly household income of $75,000 or higher used ride-hailing services vs. only 24% of Americans with earnings less than $30,000.
  • 45% of US urban dwellers used a ride-hailing app vs. only 19% of inhabitants of rural regions.

Source: Pew Research Center survey, 2018

Bicycle Commuting 

In Europe, commuting by bicycle is very widespread, and provides tremendous gains for cities and residents: cost savings, a decrease in congestion, improved air quality, and more. In Asia, bikes are an increasing component of smart city planning. In the USA, by contrast, only 0.6% of commuters get to work by bicycle. The number is tiny but quickly growing, outlining the huge potential for the future of mobility in the US.

The stats:

  • 171 US regions studied had a total of 635,000 bicycle commuters, but hold the potential to add 28 million more.
  • Reduce 17 billion vehicle miles annually.
  • Produce personal savings of $23 billion each year for commuters.
  • Save $68 billion per year for cities.

Source: Deloitte Smart Mobility Report

Car Sharing

Car sharing programs are enabling consumers to use cars without having to own a private vehicle. It normally takes the form of hourly-metered vehicle rental in which consumers pick up and return cars independently from assigned parking places. As early as 2014, commercial car-sharing services in the US expanded to over 1.3 million users and ran a combined fleet of 19,000 vehicles. These services are transforming the transportation scene in urban areas.

The stats:

  • Families who cooperate in car-sharing ultimately move from 0.47 to 0.24 vehicles per household on average.
  • Car sharing services influenced Americans to avoid buying 500,000 cars between 2006-2013.
  • 1 shared vehicle decreases the demand for 9-13 private vehicles
  • In a survey of 23,000 commuters in 19 nations, 50% said personal vehicles were not their preferred form of transportation.
  • Even amongst Generation Y in the USA, only 64% view the car as their preferred form of transportation.

Source: Deloitte

Public Transit

The stats:

  • In the USA, merely 9% use public transit as their primary mode of transportation, but in France the number is double, and in the UK, Scandinavia, and the Netherlands it stands at 35%.
  • In New York, which has one of the world’s largest subway systems, 18-24-year-olds are 47% more likely to use public transit and 51% less likely to use a private vehicle.
  • Over 23% of trips of private vehicle owners require more than one kind of transportation.
  • In both Europe and the US, over 82% of people use at least one transit app on their phones.

PikMe, Empowering The Change In The Mobility Ecosystem

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The stats stated above suggest that the need for more efficient, convenient, and environmentally-friendly mobility choices is only going to continue growing. As we move away from conventional automobile-dominated journeys, individuals and families alike will increasingly combine public transit choices with other modes of transportation. States and local authorities, as well as private businesses, can take advantage of these trends to offer mobility services that will enhance the quality of life and make commuting an easier, quicker, and overall much more pleasant experience. PikMe enables businesses of all sizes to run an effective, efficient and powerful transit service by enabling the service providers to manage all required processes that are needed to run a healthy logistics business on a single platform.
PikMe unleashes growth, eliminates operational inefficiencies and reduces IT costs allowing service providers and fleet owners to focus on key revenue-generating decisions, rather than worrying about their distributed back-end systems.

Learn more about PikMe here.
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