Infrastructure funding challenges in the sharing economy ANNEX VII Infrastructure funding challenges in the sharing economy Presenter: Matthias Finger Research Team: Nadia Bert, Kathryn Bouchard, Matthias Finger, David Kupfer, Juan Montero, Marcin Wolek 04/12/2017 Presentation for the Committee on Transport and Tourism

What does digitalization do? ANNEX VII What does digitalization do? Development of new services and business models Value-added moves from the physical to the digital layer Client Duplication (“mirroring”) of the physical value chain (digital value “chain”) Client receives more information and power Client Competition in the physical value chain intensifies Value chain (physical, linear) Client * Source: Authors’ own elaboration 04/12/2017 Presentation for the Committee on Transport and Tourism

Infrastructure funding challenges in the sharing economy ANNEX VII 1. Introduction Infrastructure funding challenges in the sharing economy Sharing economy in transport – what are we talking about? Sharing economy as a new paradigm The role of online platforms in multisided markets Shared mobility forms: carpooling, carsharing, bikesharing, ridesharing, ridesplitting Revenue of shared mobility in Europe: EUR 5.1 billion (EUR 1.6 billion for platforms) in 2015* * Source: PwC (2016), Assessing the size and presence of the collaborative economy in Europe, document prepared for the European Commission (DG GROW), April 2016. 04/12/2017 Presentation for the Committee on Transport and Tourism

ANNEX VII 2. Shared Mobility in long distance trips: substitution of traditional transport modes Is car pooling substituting traditional public transportation? Source: UIC, Status of the competition for long distance trips at the aggregated level. Carpooling, bus, train, private car and air competition on long distance trips. Study by Systra. Pre-publication, September 2016, p. 219. 04/12/2017 Presentation for the Committee on Transport and Tourism

ANNEX VII 2. Shared Mobility in long distance trips: substitution of traditional transport modes Carpooling has reached a significant volume In France in 2015, 6 billion passengers/km, including drivers (12% of railway domestic long distance passengers/km)* Carpooling is reducing numbers of passengers and revenue in traditional public transportation (railway and coaches) In France in 2015, a 6% reduction in passengers/km* Recommendations: EU statistics are necessary Level playing field Review of Public Service Obligations (PSO) policies: passenger/revenue reduction will increase the cost of existing services cross-subsidies as a funding mechanism, more difficult carpooling is also an opportunity in the provision and funding of PSO * Source: CGDD, Covoiturage lingue distance: état des lieux et potentiel de croissance, Etudes & Documents du Commissariat Général au Développement Durable, nº 146, May 2016. 04/12/2017 Presentation for the Committee on Transport and Tourism

Alternative if a transport mode was not available (USA) ANNEX VII 3. Shared Mobility in urban transportation: complementarity with traditional public transport Alternative if a transport mode was not available (USA) Shared mobility is still at its infancy in urban transportation: Bikesharing represents only 3% of trips in Paris Carsharing represents only 0.1% of trips in Berlin Ridesharing represents only 1%/2% of trips in San Francisco. Different substitutability patterns emerge, but overall: Complement for mass-transit services Substitute for the private vehicles Source: SUMC (2016), Shared Mobility and the Transformation of Public Transit, Research Analysis for the American Public Transportation Association. TCRP Report 188 04/12/2017 Presentation for the Committee on Transport and Tourism

ANNEX VII 3. Shared Mobility in urban transportation: complementarity with traditional public transport “Shared mobility might be a key complement to mass-transit. Even if the volumes are not very large, shared mobility might reinforce the weak points of mass-transit (low-density areas, night services, specific needs) in a way that makes the combined provision of both […] a fully viable alternative to private car ownership.” Transport infrastructure will benefit from the increase of passengers and revenue in mass-transit systems Recommendations: Promote each single shared mobility service, ensuring legal certainty Promote the complementarity of shared mobility to mass-transit services (first mile/last mile, etc.) Promote Mobility as a Service to combine mass-transit and shared mobility services as a valid alternative to the private vehicle 04/12/2017 Presentation for the Committee on Transport and Tourism

4. Value appropriation by platforms ANNEX VII 4. Value appropriation by platforms Online platforms manage the new data layer Value appropriation in the form of/through commissions (average 20%). Potential problem if traditional collective transport services are mediated (Mobility as a Service) Freeriding is a potential problem, as in telecoms and electricity Recommendation: “Closely follow the evolution of platforms’ activities in order to identify […] arrangements that challenge the financing of infrastructure” 04/12/2017 Presentation for the Committee on Transport and Tourism

Thank you for your attention! ANNEX VII Thank you for your attention! Contacts for further questions: Florence School of Regulation - Transport Area Robert Schuman Centre for Advanced Studies European University Institute Villa Schifanoia via Boccaccio 121 50133 Firenze – Italy tel: +39 055 4685 795 email: fsr.transport@eui.eu 04/12/2017 Presentation for the Committee on Transport and Tourism