1. The Future of Mobility and its Implications Dr George Hazel OBE / 5 November 2015 Transport for Regional Growth Conference

2. The transport revolution - a new world  Every person will have a personal mobility plan and a mobility service provider  Future mobility is mode neutral – integration will be transparent to the user, done in the back office  Global, non-transport players are coming in to lead mobility  The revolution is being driven by these companies for non-transport reasons  The traditional car purchasing model is breaking down  If every city car was autonomous and shared we would need 10% of the current cars to move the same number of people to the same places  Future mobility could be free to the end user, like the free internet

3. Future mobility is moving rapidly from a traditional operationally based model to a new world driven by personalised, customer driven services “ You take the blue pill and the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill and you stay in Wonderland and I show you how deep the rabbit hole goes.” Morpheus

4. Survey of Megacity Officials & Influencers (n=522 across 25 cities during Oct./Nov. 2006)

5. The Future of Cities Megacities LondonMunichViennaUS-Mayors European Green City Index Sustainable City Challenge in Canada Sustainable Cities Complete Mobility in the GTHA

6. From Trends to Future Mobility Core Needs Globalisation Urbanisation Land Use Ageing Workforce Participation Smaller Households Affluence Consumer Culture Motorisation Congestion Environmental Awareness Infrastructure Spend ICT Availability Governance Complex Trips Consumer Congestion Enabling Technology Government Policy Personalised Options Informed Decisions Simple Mode Neutral Inform & Communicate Personal Connectivity Physical & Virtual Integration Coordinated Transfer “Zero-Wait State” Trusted Services Perceived Value Transparent Value Proposition Payment Mechanism Attractive Mobility Package User Focused Seamless Value

8. The Future of Mobility Personal, seamless and of value to the user

9. Yesterday’s information broadcast: top down

10. Today’s information broadcast: fast, flexible, interactive, personal and global

11. The Industry/Profession Challenge Mobility Services Winning in “smart mobility” markets TODAYTOMORROW

12. Mobility Service Provider (MaaS) Val’s lifestyle needs serviced by the personalised Urban Commuter package BigCo plc saves money with the Business World package Tom is never late with the 15 minute package Mr and Mrs BeSafe buys family safety and security with the Family package © ITS Finland

13. Things Vehicles Networks Service Buyer Big Data Know-how Information Things that move People Goods Vehicles Land Sea Air Networks Transport ICT Smart Grid Service Provider Valued Integrated Trusted Customers People Business Government The Mobility as a Service Value Chain Service Provider NetworkVehiclesThingsInformation

14. The Potential of MaaS Potential outputs ■ Generates new markets and profits – a global business ■ Generates new funding streams from value added products and services ■ Helps to attract and retain residents, businesses and visitors through personalised services matched to their lifestyle needs ■ Generates efficiency savings ■ Provides the ability to shape and balance the mobility system ■ Enables the delivery of other strategic objectives like health, environments and social needs

15. Mobility as a Service is driven by finding and capturing customer value

16. New personalised products and services Using incentivisation, gamification, nudging, etc related to customer values Design-in value Find the value Capture the value Understand user values from lifestyle needs MaaS is a User Value Based Approach, not a traditional operational transport approach

17. People see value very quickly London’s Heathrow Airport to City Centre Cost on the “Heathrow Express” is £18 for a 15 minute journey On the London Underground it can cost as little as £2.90 – BUT takes around 1 hour 16,000 passengers take the Heathrow Express on a daily basis ….but 1 st Class is usually almost empty!

18. Spitsmijden, Netherlands incentives to reduce peak traffic  Pilot project  Paid participants to travel by public transport or out of peak time  Used smart phones to provide information and cameras to enforce  Discounts and PTP type advice  20-50% change away from peak car use

19. Information creates value – increased coffee sales!

20. Helping to shape cities and regions for the citizen – some potential areas  Cutting congestion and pollution by reducing dynamic parking  Cutting congestion and pollution by delivering to your car  Varying pricing to help retail areas  Balance supply and demand  Promote public transport – eg park and ride at certain times  Promote walking/health by incentivising use of more remote parking  Harnessing the advantages of autonomous, shared vehicles – congestion, land use, etc

21. What is Scottish Enterprise doing to help companies move into MaaS ?

22. Unique Selling Point Scotland Devolved Government Talented and skilled people Just the right size Engineering excellence Industry specialisation Transport Informatics Energy Retail Markets People buy SM service Business buy SM service Public Sector buy SM service Launchpad to Global Markets Research Excellence Science Technology Engineering Mathematics

23. Potential system for industry led MaaS market Open Innovation Partner Network MoU Private Sector Needs ExperimentsGlobal Leadership Targeted Implementation Partner Network Benefits Access to open data** Government support and incentives Over 250 Ambitious Partners in Cluster Global Tier 1 companies Exit Entry GVA ** Mobility Opportunity Development Environment project is in development

24. Requests to participate from Global Companies GlobalExperimentST Global Auto 1 Connected bicycles as sensors experiment  Global IoT 1 Mobility Service Provision  Global Transport MaaS for inbound air travellers  Global Oil Vehicle-Grid Energy Supply Company (microgeneration)  Global Auto 2 Connected Vehicle  Global Car Hire Route Optimisation  Global Auto 3 Mobility as a Service (100 LCV’s)  Global V2V;V2I Connected Highway  Global IoT 2 Internet of Moving Things  Global Defence Military grade data Interoperation  Global IT CityNext and open innovation with partner network  11 Globals Open Innovation with Scottish SMEs S:  = qualified lead T:  = immediate need

25. It’s happening and it’s happening quickly!  How self-Driving cars could radically transform Cities – Lisbon Study 2009, OECD  The auto industry – Bill Ford quotes  NTU and NXP to Develop Smart Mobility Test Bed in Singapore  Siemens working on MaaS in Austria and Finland  Sweden developing a national MaaS system  Uber is the new bus – San Francisco  Other companies copying Uber

26. How to respond?  How can the public sector get involved with MaaS systems – can it lead?  What is the role of the public sector?  What is the future for traditional public transit companies?  How can we change from an operational, top down, mode based business model to a customer focused, seamless, mode neutral business model and valued by the user and operated by non-traditional global companies?  What is the business model for MaaS systems?  How can we ensure social equity and environmental sustainability?  How do we integrate top down strategic city/regional planning with bottom up personalised MaaS systems?

27. The Future of Mobility and its Implications Dr George Hazel OBE / 5 November 2015 Transport for Regional Growth Conference