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The Advent of Mobility as a Service and Transportation Conquest

The constant increase in the number of vehicles will saturate the cities. Many governments seeking sustainable economic and environmental solutions are searching for alternate ways to replace private ownership. The advent of on-demand taxi solutions was a giant leap in this direction. Now, the urban administrations expect shared mobility as a service as a complete overhaul of the traditional transportation system.

Private vehicle ownership is not only causing problems for regulatory institutions but the owners themselves too. Keeping a vehicle is becoming more of a bane than a blessing. Commuters are expecting a solution which saves money as well as time for them.

What is mobility as a service?

Uber and a bunch of other ride-sharing apps offer a shared environment where riders can acquire on-demand taxi. This rising concept is the beginning of an era where private vehicle ownership will be a thing of past. There is a gradual shift of riders from using private vehicles to shared ones.

The success of this business model encourages the businesspersons and metropolitan administrations around the world to scale up these services to include entire public transportation. The inclination toward public transport will pick up more pace. Consequently, the residents of major cities in the world will entirely quit private car ownership to embrace mobility on-demand.

The scaling up of services would result in a centralized operation of all modes of urban transport. Instead of disparate command and control center for various means of traveling, the administrators are preparing to offer a universal regulatory system for taxi services, subways, rapid transits, and bike-sharing. Thus, the future is not confined to car mobility as a service.

Drastic Reduction in Traffic congestion

Every vacant seat indicates the inefficient use of a vehicle with considerably greater capacity. Over 80 out of every 100 cars on average in the US metropolises have at most two riders. People tend to use private cars to travel to workplaces leaving a substantial amount of space in public vehicles. As a result, frequent traffic congestion is inevitable.

On-demand cab service only partially solves the challenge of transportation. The traffic problems still haunt the administrations. Nevertheless, some startups have begun to offer single seat instead of an entire vehicle. Via – the on-demand shuttle service – is a highly efficient model which serves as a precedent. The introduction of Via allowed many vehicle owners to quit ownership in favor of Via. The service ensures that each vehicle fills more than 80% of the seats. Thus, every vehicle in on-demand shuttle service eliminates many vehicles from roads and parking.

Reoccupying public spaces

The need for more spaces increases as the number of vehicles grows. An area that could have served as a community center or recreational facility ends up becoming a car parking facility. Unfortunately, the speed with which the public spaces are diminishing is alarming.

The primary objective of private car ownership was to ensure that people could save time. Unfortunately, the relentless increase in traffic indicates that the private ownership model is no longer a sustainable solution. Vehicle owners are spending almost the same amount of time on roads as public transport users. Thus, the city administrations will welcome any mobility as a service app which allows reduction in vehicle ownership. Surveys reveal that the passengers will voluntarily cease to keep private vehicles if an appropriate alternative is available to them.

Global warming Social responsibility

Another reason for quickly adopting shared mobility as a service is to fulfill social responsibility. Millions of vehicles running in urban areas are causing havoc to biodiversity. Apart from health hazard, pollution from vehicles is one of the major causes of climate change. The introduction of electric cars ensures a remarkable reduction in pollution. However, electric vehicles leave a carbon footprint too. However, the benefits of electric vehicles will fade out with the increase in the number of cars.

Therefore, the shared digital mobility is indispensable. Citizens are as concerned about the pollution factor of vehicles as the regulatory bodies. For the same reasons, both preexisting and new mobility services are ensuring shared on-demand commuting services.

Travel costs

Shared mobility is currently the most cost-effective solution to tackle increasing fares of ride-sharing services. Instead of a single person paying for the ride, multiple travelers occupying every seat will be able to distribute the fare. Moreover, service providers can offer various packages to frequent travelers. These packages will not only benefit the commuters but the transporters too.

The taxi on-demand service managed to bring significant relief to travelers by offering relatively far lesser taxi fare. Shared taxi services will cause an exponential decline in fares favoring the riders without affecting business profits.

Various Rides, Mutual Account

Currently, passengers can access taxi at their doorstep using a smartphone. Similar services enable them to find bike, vans and other modes of commuting. An average commuter has to maintain at least three different accounts for seeking commuting services and paying for it. Therefore, this excess of accounts disables them from effective financial management.

A mutual account for various ride services allows the commuters to have same account for rapid transits and cab services. This account enables them to keep the record of fares easily. Üstra offers a similar scheme with the assistance of Hanover administration in Germany. The travelers can pay for bike-sharing, cab, and buses with the same account. Hence, commuters experience a shared public transport environment from cycle to bus.

Onwards and Upwards

The appropriate legislation is one of the mobility as a service challenges. Fortunately, the successful implementation of shared mobility in some cities including Hanover and New York is encouraging regulators around. Analysts expect that all the metropolitan cities will introduce large-scale mobility as a service by 2030. The system will bring all the urban means of transportation under one centralized umbrella in each city.

The remarkable benefits of mobility as a service bring an unprecedented business opportunity for entrepreneurs. The investors who act today will be the leaders in transportation of tomorrow. CabStartup is as excited to make you a leader as yourself. Sign up today to start building.

By Shahrukh Satti 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

Rise of Autonomous Cars and Ride Hailing Industry

The contemporary inhabitants of earth are extremely fortunate to be alive in the current age. They are able to see vehicles running on steam, petrol, gasoline and electric charge. Currently, the technology is enabling them to see the autonomous or self-driving vehicles too. The taxi dispatch solutions are successfully making rounds for over a decade now. The researchers forecast that the commercialization of autonomous cars for ride hailing services will abruptly spread in 2019.

Although legislation and regulatory framework for autonomous cars are still in the rudimentary stages, yet the technology has evolved up to the extent that it outperforms human drivers. The disruption in traditional taxi businesses caused by cab startup solutions will not end here. The advent of autonomous vehicles will further evolve and optimize the industry.

Autonomous Ride Sharing and Public Response

The consumers carry some apprehension about the ability of software to be as good or better as human drivers. The surveys by Forbes indicate that most of the participants were willing to travel in self driving cars if the service provider offers a “considerable” compensation in case of an accident. They also want large scale use of fellow citizens before they would adopt it.

However, the self-driving cars manufacturing companies are confident that they are going to win the trust of public. Waymo, an initiative of Alphabet Inc., partially launched the service last month for the residents of some counties of Arizona. The public response is overwhelming as a significant number people are willing to adopt this mean as their primary commuting choice.

The riders welcomed the Waymo ride for comfort and reasonable fares. A 3-mile trip lasting for 15 minutes costs $7.59 as reported by Reuters. This cost is almost the same as Lyft and Uber.

Another reason for manufacturer’s high expectations is the fact that the surveys conducted five years back with a similar set of questions indicated far greater level of fears surrounding the commercialization of autonomous cars. The experts believe that the substantial reduction in apprehensions follows the decline in the number of accidents of self-driving vehicles.

Stance of Ride Sharing Industry Leaders

There is a diversity of opinions among executives of on-demand taxi services, but most of them are convinced that a considerable amount of their business will involve the self-driving cars before the end of upcoming decade.

The executives at Uber believe that Uber self driving car will be on roads before the year 2019 concludes. Although they plan to acquire the self-driving cars, yet they rule out the possibility of laying-off drivers. Uber wants drivers to keep the wheel when they sense an unprecedented and unusual behavior by cars. The tablets embedded in autonomous cars enable the riders to view the surroundings as the car “views” it. This ability signals the drivers if the ride is not up to the mark.

However, the company also plans to phase out drivers in the long run once they develop efficiency beyond doubt in the automated vehicles. The number of employees will not drop because the continuously running vehicles will require more maintenance and, hence, more mechanics.

Lyft also projects to initiate the autonomous rides before midyear. The company leaders believe that the complete transformation may take up to five years. It has already collaborated with General Motors to acquire vehicles, and tech analysts put the collaboration as a landmark in the concept of autonomous car sharing.

Major Investors

While Uber and Lyft have already made a significant amount of investment, a bunch of other notable companies is also following the suit. Tesla is one of the pioneers who introduced autonomy in vehicles. Now, Tesla leaders are finalizing the autonomous ride sharing services. Since the company is manufacturing the vehicles, it is capable of rolling out and growing the autonomous taxi services faster than its competitors.

Alphabet’s vehicles have managed to win the consumer trust in the partial release. The leaders project to attain a return of five times of their investment. Ford is all set to introduce their self-driving vehicles by 2021 and wants to invest $4billion by 2023.

Nevertheless, the industry is not saturating any time sooner despite remarkable growth of investors’ interest. At the current estimation, the global investment of autonomous ride sharing is still falling short to fulfill the future consumer demand. Besides the traditional needs, there are scores of other benefits of investment in autonomous cabs. The electric vehicles will reduce the operational costs and improve the climate situation as well.

Thus, the entrepreneurs opting for self-driving cabs to put their money will be capable of growing their domain to as big as over a billion dollar inside five years.

Future Projections

Research at Allied Market Research forecasts that market of self-driving vehicles will top up to over $556 billion by 2026. Currently, the market worth stands at little over $54 billion. The increase of an astonishing 39% in a span of seven years reveals that the dominant share of vehicle industry will turn towards the autonomous vehicles. There is little doubt that the combination of autonomous cars and ride hailing technologies will revolutionize the taxi businesses. The only challenge is that of regulation.

Up to 600 Waymo One vehicles roam the roads of 25 cities. These vehicles have already covered over 100 million miles with no significant accident reported. The cautious analysts believed that the vehicles would unveil shortcomings once tested in intense traffic areas. However, Waymo rides are proving the critics wrong since the Arizona launch.

Apart from corporate giants including Tesla, Alphabet, Uber, Lyft and Ford, many small companies and startup entrepreneurs are also considering the investment. If these investors acquire robustly tested vehicles and fulfill the requisite safety measures, there is no reason for them to fail. As the trends indicate, the public trust on autonomous is bound to grow as the services will soon be launched in multiple cities of the US.

Contact us to learn more about the autonomous ride hailing industry and the potential for investment. Our expert teams will help you in developing and expanding your business.

By Shahrukh Satti 0 Comments

Key Trends in Public Transit Services For 2018 And Beyond

Technology advancement is rapidly bringing changes to public transportation. In the current year 2018, rapid adoption of on-demand service platforms to manage transportation services is in trend and its urge is going to increase in years to come.

The advent of on demand apps for transport services management, using technology to make the traveling experience smooth and upgrading security, are the leading trends for public transportation in 2018 and beyond.

Public transportation agencies and their supplying vendors are taking notice of the trends in Public Transit Services and developing similar technology for an intra-city public transport system that can run on preset routes.

Mobility as a Service (MaaS) is Becoming More Prevalent:

The technology trends in Public Transit Services in transportation are quickly gaining cache in the transit industry worldwide is called Mobility as a Service (MaaS). MaaS is the utilization of app by consumers to travel from point A to B by leveraging various transportation modes according to their subscribed packages. Several agencies have considered adopting the MaaS model. This year, experts from several regions see MaaS gaining more momentum in the industry. In Northern Europe, Maas is in use that provides an excellent experience to customers with its promise of greater convenience and effectiveness that enables sharing and personalization through smartphones and IoT connectivity. While in the UK, there is an increasing focus on the integration of transport modes towards a MaaS model.

In Helsinki, Finland, people can utilize a mobile app called “Whim” to book and pay for traveling via various modes of public and private transportation such as bus, train, taxi, car share or bike ride. A traveler can enter his destination, a preferred method of transit, or other relevant information, and enjoy the public transit ride. Travelers can pay in advance for the service as a part of a monthly subscription or pay on-the-go through different payment methods. Various companies are providing customized solutions for booking a car, taxi, etc., People can travel and make the payment online with the available in-app credits, cash or credit/debit card.

Many enterprises are aiming to access the MaaS concept to achieve the goal of technology trends in Public Transit Services. Popular cities like Paris, Las Vegas, Denver and Los Angeles are controlling various local versions of MaaS that consider real-time travel conditions, user preferences, time management, cost reduction, and seamless mobile payments.

Driverless buses:

Driverless buses will cut labor cost, which has diverted the attention of public transit managers across the globe. Various companies are working out on this concept and planning to offer their initial driverless bus version in the next year. Mark Joseph, a global chief development officer for Transdev has prepared his company of self-sufficient shuttles that will begin operating on roads by the end of this year.

Furthermore, self-sufficient shuttles will become more prevalent on corporate campuses and airports in 2018. However, liability issues for potential accidents and injuries still need to be worked out. In 2017, the US National Highway and Transportation Safety Administration (NHTSA) released new federal guidelines for automated driving systems for safety. These guidelines show that for the time being, the federal government is moving forward with the guided manufacturers and state governments in this fast-evolving technology.

Autonomous Vehicles: A future trend in the Industry:

News about autonomous vehicles never seemed to end last year. It is predicted that we will be hearing more about them in the next year as the next year will bring autonomous vehicles into plain view and will be used primarily on closed-circuit routes and not on straight public roads.

The survey reports show that public transport users are becoming much more demanding and willing to pay higher prices for more convenient services. Most of them are under the age of 40.

The second major area for innovation in the coming year will be technology improvements according to trends in Public Transit Services to make use of public transportation in urban areas.

Nathaniel “Nat” Ford, CEO of Jacksonville Transport Authority and new chairman of the American Public Transportation Association, mentioned in a speech:

Our industry is evolving at a pace, never seen before. Moving away from current models, to one where there’s a synergy between different modes of transportation, different technologies, and different providers. Technology is being developed every day that is disruptive to our industry. Things such as autonomous vehicles, electric vehicles, and artificial intelligence, to name a few.

The already existing way of transportation via a bus and metro usage in the United States has decreased over the past five years, and transit chief is looking to change their business model using these new technologies to compete in the new mobility marketplace. Transit companies are aiming to adopt new mobility ecosystems. These include peer-to-peer car clubs, on demand privately provided bus rides, TNCs, cars/bike sharing and more.

Eventually, improving transit security is a fast-growing need recognized by developed countries who are aiming to achieve the trending goals. City transit systems are purchasing the latest security systems to monitor and respond quickly to new traditional crime and potential terrorist activity. These objectives are achieved using the security systems that include monitored cameras on buses, trains and in transportation stations, with facial recognition and object identification software solutions. Gas detection and other crime prevention technologies are quietly being implemented in subway stations, and significant data usage is being brought into effective action to better track transit customers.

As it turns out,

Public transportation companies are adopting new technologies for providing riding services. This approach is quickly changing as millennials prefer to travel together to cities via the latest rising services and get rid of their cars. The technology enables new ways to unify mobility options. Latest modes of traveling are being invented and quickly adopted including shared ride services, self-driving cars, and buses. These changes will be increasing in the coming year.

We at Cab Startup, provides state-of-the-art systems for the transport industry to allow traveling via online booking systems. No matter, whatever business you are running, a taxi business, or any other transport business, we provide customized systems to cater all your transportation needs.

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