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What will the post COVID era mean for the transport industry?

2020 was a tough year for the transportation industry. COVID-19 changed the way of travelling with shared and public spaces becoming a threat zone for regular commuters. Nearly every business suffered from reduced operations, decreased revenue production and a steep economy. The transportation industry was no different – before the pandemic, it was cruising towards smart mobility solutions. COVID-19 forced many modes of transportation to a standstill. Many taxi companies completely shut down because they were unable to meet their operational costs and demands.

The strong blow of the pandemic forced the transport industry to mend its ways. There has been significant disruption in transportation industry with consumers reluctant in using public (shared) transport because of the COVID threat looming over their heads. Shared and smart mobility appears to be a thing of the past. People prefer private cars because isolated traveling is considered more hygienic amid the COVID wave.

The important question remains: Where is the transport industry heading in the next five years?

COVID’s impact on the transportation industry

The global pandemic is bound to have far reaching implications. The stakeholders of the transport industry will have to improvise. They should look above and beyond the conventional rule book. The pandemic has equally affected the consumers and the players of the automotive and the mobility market. The policy makers have the biggest role to play since they can ensure the growth of the transportation industry.

COVID-19 has forced the transport industry to change its course of operations. This is how the industry will have to respond to cater to the latest trends, reformed requirements and competitive factors:

Increase health, security and reliability standards

Before the pandemic, consumers decided their mode of transportation based on cost, time effectiveness and convenience. COVID, however, has altered the norms with commuters now preferring the safest mode of travel by choosing an option that has a minimum threat of infection. With the lockdown ending in most parts of the world; consumers feel inclined towards walking, riding or using private cars to go about their day. According to a recent survey; almost 70% of the shared mobility users will now prefer to walk or ride to their destination, causing significant disruption in transportation industry.

In these circumstances, meeting the required safety standards is important. Transport companies can survive only if they are meeting the quality benchmark. They will have to ensure social distancing, sanitized spaces and other safety requirements. Smart mobility solutions such as micro mobility, self-driving cars or autonomous vehicles and the ride hailing industry are expected to boom. The growth of the transportation industry will now be determined by different factors. Entities adjusting well and quick to the “new normal” will be able to survive and grow.

Adjust to the changing policies and regulations

The outbreak of the global pandemic has brought the transportation industry to a standstill. At the peak of the virus; mobility was strictly restricted. Disruption in transportation industry forced the introduction of new guidelines and regulations. States all around the world took measures to help bring back the industry on track. However, the business is not expected to reach the pre-pandemic figures soon.

There is immense pressure on governments to come up with effective policies that will ensure safety of the consumers and will also keep the economy afloat. It is expected that governments will introduce policies favoring ride-hailing companies, e-scooters and bikes. Cities such as Milan, Paris, Brussels, Seattle and Berlin have already started working on transforming car lanes into bike paths.

In today’s times, shifting to smart mobility solutions is the most sensible approach for taxi companies. Policy makers will be coming up with schemes supporting and influencing micro and smart mobility solutions. States across the globe are partnering up with micro-mobility players to promote sustainable and safe mobility solutions. E-scooters and bikes are expected to rule the transportation industry in the foreseeable future.

Leading agents of the transportation industry

With the majority of the daily commuters working from home and the rest avoiding public and shared spaces; future of the transport industry looks bleak. However, these alternate modes of transport abiding by the new SOP’s might prove to be a ray of hope for the transport industry:

Micro-mobility

Micro-mobility solutions such as e-scooters and e-bikes will be the preferred choice among the masses. They are easy to operate, making navigation easier. Moreover, they are light on the pocket and help avoid congestion. With consumers avoiding public transport and shared spaces; micro-mobility comes like a breath of fresh air to them. It is safe, isolated and a convenient mode of transport.

Autonomous Vehicles

Autonomous vehicles are also known as self-driving cars seem to be the most appropriate choice of travel post COVID. Even before the pandemic, self-driving cars were expected to lead the transport industry by the year 2023 and generate estimated revenue of 173 billion US dollars.

With cost, convenience and comfort taking a back seat, safe, hygienic and isolated traveling is what matters the most now.

Ride-hailing

COVID-19 has revolutionized the world, our lifestyles and preferences. Under this new era, the ride-hailing platform does not seem to be the best available option but it cannot be completely ruled out either.

Earlier, merging technology with convenient travel was all the rage. Currently, the idea of shared vehicles might be daunting for some but it is still the preferred choice of travel for many consumers. It avoids public spaces and busy transit stops. The smart booking options and the ease of payment and usage has made ride-hailing survive the pandemic. Smart mobility can very well be the future of the transport industry. It is sustainable, comfortable, cheap and convenient.

Build a reliable future with CabStartup

The growth of the transportation industry will be determined by new policies, reformed trends, alternate modes of transport and smart mobility solutions. We, at CabStartup can help you build a reliable future and adjust to the changing requirements of the transport industry by helping you survive the pandemic and come out of it as leaders and pioneers of the new market.

By cabadmin 0 Comments

Future Transportation Trends Depict Dominance of Smart Vehicle

The current wave of industrial revolution redefines multiple industries. Many developed countries are working on raising smart cities with intelligent robots working in place of humans. The most notable factor of a smart city is the means of transportation and commuting. By assessing the research and development of recent times, one can forecast the future transportation trends.

This forecast does not depict the trends of distant future. Instead, the inhabitants of developed nations will witness the CASE vehicles roaming on the highways and narrow streets. The CASE – short for Connected, Autonomous, Shared and Electric – vehicles are the essence of prospective smart cities.

The consumers and entrepreneurs will not have to wait much to observe the CASE vehicles. Many companies are inching closer to reveal their products allowing the investors to revolutionize transport industry.

Since many investors are preparing to flow their money in this revolutionary idea, the aspirants should learn how the CASE concept will evolve the industry.

CASE vehicles will transform the Transportation in multiple ways

Economic Sustainability

The future transportation systems will ensure a three-way economic sustainability for investors, commuters and transport administrators.

Sustainability for Investors

Investment in electric vehicles significantly reduces the costs of operation. The US Department of Energy reveals that the fuel cost of a combustion engine is more than twice of that of electric vehicles. The investors can save millions of dollars annually with efficient fuel consumption. These cost-effective vehicles depicting future trends in public transportation move entirely on charged- battery.

The DOE also reports that the maintenance of EVs cost 35% less than that of the combustion engine. Moreover, the costs of EV maintenance are reducing with time as the number of parts is lessening.

Sustainability for commuters

The travelers and commuters will optimize their daily tasks by reducing the time and costs of traveling. The ability to pool the cars by multiple commuters will divide the fare. In fact, Uber and some other ride-hailing services already offer the option of car-pooling.

The commuters will not face the menace of traffic while commuting by CASE vehicles. An autonomous car is able to locate and identify any object from an approximately 250m distance. If the object is another CASE car, the two vehicles can also communicate with each other to adjust their relative speeds. Thus, the bottle-necks and traffic jams will be things of the past.

Environmental Sustainability

The environmental campaigns are strongly supporting the large-scale production of electric vehicles for transportation and commuting. Research indicates that cars with combustion engines emit three times as much CO2 as EVs.

Some buyers were reluctant to purchase electric cars owing to a severe deficit of charging stations. Nevertheless, governments are paying careful attention to increase the number of chargers to meet demand by the end of 2019.

Evolution of Transport Administrative Setup

The contemporary transportation requires extensive management on multiple fronts. In most cities, an entire section of traffic police maintains the flow of traffic and identify the violators.

Many urban administrations are implementing intelligent cameras which identify the vehicle and share the owner’s information with relevant authorities. The database connected with these cameras generates and sends an automated ticket to the offenders. This mechanism is still in the rudimentary stages, but experts believe that it will mature in less than a year.

The autonomous vehicles will further assist the administrators by eliminating the damages and fatalities due to accidents. Research unveils over 1.25 million annual worldwide casualties due to human errors. Analysts label the current status of self-driving cars as level 4.

Level 1 and 2 involved very limited automation as drivers controlled most of the functions. The subsequent level required only occasional intervention from humans while the vehicle was able to control every function. There is essentially no intervention from humans in Level 4. The vehicle requires supervision only in extremely rare cases. This stage is nearing its conclusion.

Final and forthcoming level will enable the cars to entirely decide in any situations. This level may take some time to evolve, but it will not affect the usual operations. Thus, the connected, autonomous and shared environment is highly effective for administrators.

Transport Business Development

The ride-sharing industry is the chief stakeholder of CASE integration in vehicles. Many transport, commute, and ride-hailing companies are investing a significant amount of money on what some call smart transportation system.

Uber is projecting a ride-pooling service with fully autonomous vehicles by the end of 2020. The company has also revealed the plans to introduce VTOL CASE aircraft ride-hailing. It forecasts to start the service in 2023. The analysts expect it to rule the future trends in air transportation. The aircraft called Nexus is a product of Bell which is in partnership with Uber.

Ford also plans to initiate autonomous ride sharing around the same time as Uber. Unlike Uber, the auto manufacturer will use their vehicles. Google’s parent company Alphabet already started their CASE ride-hailing service in Arizona. The service ensures level 3 autonomy where drivers sit behind the wheel to intervene once alerted by vehicle software.

The fresh investors can benefit as much as the established ones. An investor needs to make collaborations with leaders of multiple industries. For instance, collaboration with the auto manufacturer will ensure the acquisition of vehicles on discounted rates.

Moreover, the on-demand taxi concept does not require ownership of the vehicle. Instead, other investors may offer their vehicle to get a share of profit. The only expenditure is the development of an efficient mobile app which enables the companies to monitor and customers to book rides. Thus, an entrepreneur can start the ride-sharing business with little investment.

It is notable that the development is unlikely to result in unemployment hike. While the autonomous software will replace drivers, scores of alternate jobs will be created to govern the future transportation systems.

Act Now!

All these indicators highlight the significance of CASE vehicles in changing the future transportation trends. This is the appropriate time to invest as the smart industry is emerging. Careful planning and efficient implementation can make any startup as one of the pioneers of smart ride-hailing.

To initiate building the ride-hailing software, you can start your free trial right now.

By Shahrukh Satti 0 Comments
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