Shared services models fuel demand for mobility-as-a-service

Shared mobility business models that focus on integrated and digitally connected ecosystems that offer unified multi-modal mobility services and personalized user experiences will find high adoption all over the world.

“Globally, companies are planning to commercialize autonomous shuttles between 2020 and 2022, backed by favorable government initiatives in North America, the UK, China, Japan, and Dubai,” said Abhishek Iyer, research analyst, Mobility at Frost & Sullivan.

“There will be an increase in the number of partnerships and rollouts of new technologies such as autonomous shuttles, blockchain, and Artificial Intelligence (AI), which will enhance user experience and operation.”

Iyer noted that governments across developed cities are building testing infrastructure and piloting autonomous shuttles to evaluate viability and user experience. “Approximately 10 to 15 cities can be expected to conduct autonomous shuttle trials on public roads in 2019. Cross-industry collaborations for connected technologies, integrated payment capabilities, shared mobility insurance and financial services will also prove to be critical for future success,” he commented.

The researcher suggested that further growth opportunities will come with industry participants partnering with stakeholders from other industries such as banking and financial services (BFS) and insurance to lower costs and generate fresh revenue streams.

Other opportunities include adopting business models such as vehicle subscription services, demand responsive transit (DRT), ride-hailing and carsharing to create opportunities for data monetization. This will also allow them to leverage their investments and partnerships to develop autonomous and emission-free vehicle technologies.