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Implementing Mobility as a Service

Challenges in Integrating User, Commercial,


and Societal Perspectives

Jana Sochor, Helena Strömberg, and I. C. MariAnne Karlsson

This paper presents insights from a six-month field operational test (FOT) by launching improved traveler information services; in particular,
in Gothenburg, Sweden, during which 195 participants tested the UbiGo information and communication technology (ICT) solutions such as
mobility service for everyday travel. The service integrated both public real-time information and different types of multimodal travel plan-
and private solutions into a new type of collective transport and thereby ners (2–5). Other efforts have encouraged increased cycling and
contributed to Swedish societal goals of a reduction of private car use walking (6–9) by, for example, introducing new cycling and walk-
and ownership. A triangulation approach to data sources and collection ing lanes. However, the effects of the achievements, while positive,
methods was adopted to identify matches and mismatches between the are too limited to meet the challenges ahead. A way to bring about
expectations and experiences of three stakeholder groups: users (FOT more radical changes is required.
participants–customers), commercial actors (mobility broker and ser- However, innovative urban mobility solutions encounter a number
vice providers), and society. Identified matches included the concept of of barriers. The environment in which urban mobility management
a transportation smorgasbord, reduced private car ownership, and operates is, according to Little et al. (1), fragmented and lacking a
increased pretrip planning. Identified mismatches related to the greater holistic approach by which synergies could be achieved between dif-
than expected reduction in car use, the respective business models of ferent modes of transport. In addition, “. . . decisions are often mainly
the mobility broker and service providers, back-office administration, based on public actions and do not sufficiently address interfaces
and the smartphone platform. Gaps included the infeasibility of some with the private sector and what contribution it could make to the
trips and the need for more carsharing sites. The FOT was successful, achievement of urban mobility goals” (1).
with 93% of participants satisfied with their travel and 97% wanting to The Go:Smart project (10) in Gothenburg, Sweden, has been an
continue using UbiGo. However, before a commercially viable mobility attempt to create better conditions for sustainable urban travel—a
service can be created, the mismatches and gaps need to be resolved or reduced share of trips with fossil-fueled vehicles, an increased share
at least deliberated. The conclusion is that to create integrated solutions, of travel by collective transport (including public transport), and
truly collective transport must involve close cooperation between public reduced emissions (noise, CO2) by demonstrating how new busi-
and private actors and the consideration of at least the three, sometimes ness models and partnerships can reduce the need for private car
conflicting, stakeholder perspectives. Furthermore, new business models ownership in favor of viewing mobility as a service (11). Three main
are needed to address the challenges associated with future integrated assumptions shaped the project and the subsequent service:
urban mobility solutions.
• Collective transport. The desired changes cannot be brought
about by the development of a single transport mode or by focusing
Urbanization is an ongoing development trend across the globe. It solely on a shift from fossil-fueled, private cars to public transport,
is predicted that the need for transportation will rise, resulting in an but by the integration of different transport services, including both
even further increase in emissions, and noise, overloaded infrastruc- public and private solutions, that is, collective transport (1).
tures, and congestion. Hence, urban mobility is considered one of • Current societal trends. Current shifts in individuals’ attitudes
the major challenges for the future (1). and values, according to Fishbein and Ajzen (12), in a more environ-
Some cities have already faced the challenge by introducing dif- mentally conscious direction, and the trends toward joint and shared
ferent types of schemes. In addition to economic and legal mea- ownership or no ownership at all—including carsharing and bike-
sures, such as congestion charging, commuters have been the targets sharing (13–15)—open up new possibilities for new types of travel
of information and education campaigns to raise awareness and offers or services such as Uber (16), moovel (17), and Qixxit (18).
change attitudes toward public transport. Considerable efforts have • Advances in and dissemination of mobile ICT. The technologi-
been made to increase the attractiveness of public transport by intro- cal developments in the field of ICT as well as the dissemination of
ducing vehicles (i.e., buses, trams, and trains) with new designs and mobile ICT has made it increasingly possible to create and test new
types of offers (19, 20).

Division of Design and Human Factors, Chalmers University of Technology, From a societal perspective, an integrated mobility service has the
SE–412 96, Gothenburg, Sweden. Corresponding author: J. Sochor, jana.sochor@ potential to increase the use of shared resources and decrease private
chalmers.se. car ownership. However, a prerequisite for this potential to be real-
Transportation Research Record: Journal of the Transportation Research Board,
ized is that it is possible to create a service that is both commer-
No. 2536, Transportation Research Board, Washington, D.C., 2015, pp. 1–9. cially viable and adopted by its customers. For this to happen, user
DOI: 10.3141/2536-01 demands and commercial prerequisites must meet.

1
2 Transportation Research Record 2536

This paper explores how the user, commercial, and societal perspec- company, one car rental company, one carsharing company, and one
tives met during a real-world trial of a new and innovative mobility bikesharing company) by becoming a business client. By represent-
service. Questions posed are: What were the challenges in establish- ing a large number of customers, the broker could often negotiate
ing cooperation between private and public transport services? Where lower prices for the individual trips. The back-office function also
did the stakeholders’ expectations and experiences match up success- handled administration and billing, and kept track of credit that was
fully? Where were there mismatches that will need to be addressed, added or rolled over, extra fees from rental cars and carsharing,
and what gaps will need to be filled to create a successful, integrated subscription changes, rebates, etc.
mobility service in the future? In addition to the mobility broker, transport service providers, and
users, additional project stakeholders included service developers
(ICT), research institutes, and society represented by the city and
UbiGo Mobility Service the region.

The Go:Smart project has involved the development and field oper-
ational test (FOT) of an innovative mobility service, named UbiGo, Method and Material
for sustainable transport of people in urban environments. The
service has attempted to bridge the gap between private and public In order to address the research questions and identify matches,
transport by taking on the role of a commercial actor, a broker of mismatches, and gaps, a triangulation approach has been applied
everyday travel, offering customized transport services to fit the concerning information sources as well as data collection methods.
individual traveler’s needs and requirements.
The service did this by uniting already existing transport solutions
and transport providers, including public transport, taxi, carsharing Data Collection
and bikesharing, and rental cars, and offering them in a package to
customers through a single subscription service. The intended audi- The first, primary information source was the user stakeholder
ence for the service was inner-city households who were judged to group; i.e., the FOT participants, also referred to as the UbiGo cus-
have sufficient access to the existing transport solutions, in particular tomers. Data was collected via a mixed-methods approach, includ-
to carsharing and public transport, and large enough travel needs for ing before questionnaires (BQ), during questionnaires (DQ), after
the service to be financially competitive with their current solution. questionnaires (AQ), through individual and household interviews,
For its users, the UbiGo service offered one-stop access to the range through focus groups, and before and during travel diaries, as well
of travel services through a Web interface adapted to smartphones as through workshops and logging of customer service issues. Sta-
(subsequently referred to here as the app). Customers, in the form of tistical analyses of the questionnaire data were performed with the
households (comprised of any number of individuals including both IBM SPSS software. Ratings discussed in the text below are on
adults and children, i.e., typically a family), paid a monthly sub- a 7-point Likert scale, with 7 being the most favorable. Instances
scription adapted to their transport needs, which included a person- where a question was answered only by the main participant group
alized combination of, and amounts of credit for, the different travel (due to questionnaire pretesting by 19 participants) are indicated
services. During the FOT, the minimum limit for prepaid credit was with an asterisk in the text.
1,200 Swedish krona (SEK) per month, approximately 130 euros The second information source was the commercial stakeholder
(EUR), or 162 U.S. dollars (USD) as of November 2014. (As a ref- group, consisting of both the UbiGo mobility broker and the ser-
erence value, the 2013 gross median income for Gothenburg County vice providers. Information regarding the mobility broker’s and the
was 244,463 SEK, or approximately 26,400 EUR or 33,000 USD) service providers’ expectations was collected from reports from
(21). Credit could be topped up or rolled over depending on how the pre-studies for the development of the service, as well as from
much credit the household utilized, and the subscription could be the work done in connection with funding applications (in which
modified on a monthly basis. To encourage participation in the FOT, one of the current authors participated). Experiences from the FOT
any unused credit was refunded to the participants at the end of the were gathered through participatory observation, where the authors
test. Also, the project could compensate participants for not using were present at the meetings during which the running of the service
a private car during the FOT; i.e., to offset insurance, parking, etc., was discussed and decided upon. The authors also participated in
up to a fixed limit. This incentive resulted in 20 deliberately unused mid-level customer service and other back-office duties.
private cars during the FOT. The third information source was society as a stakeholder. In addi-
To access their travel services, the UbiGo traveler logged into tion to information regarding societal expectations from previous
the app via a Google or Facebook login, where they could activate studies, funding applications, and general local and regional devel-
tickets and trips, make or check bookings, and access already acti- opment plans, representatives of the local and regional authorities
vated tickets (e.g., for validation purposes). The app also allowed participated in project meetings at which the authors were present.
them to check their balance, bonus, and trip history, and get support
(in terms of FAQ–customer service). Each participant received a
smartcard, which was used, for instance, to check out a bicycle from Sociodemographics and Ex Ante Travel Behavior
the bikesharing service or to unlock a booked car, but also charged
with extra credit for the public transport system in case there was any The original participant group in the FOT, which ran from Novem-
problem using the UbiGo service. UbiGo also included a centralized ber 1, 2013, to April 30, 2014, consisted of 83 customer subscriptions
customer service phone line that was open 24 hours per day. covering 195 persons: 173 adults and 22 children (under 18 years of
The mobility broker handled everything so as to create a seamless age at the start of the FOT). Furthermore, a total of 20 private cars
customer experience. The broker procured transport from different were deliberately unused during the FOT; 17 from single-vehicle
transport service providers (the public transport authority, one taxi households.
Sochor, Strömberg, and Karlsson 3

From the before questionnaire (164 responses), the participant Results


group had an average age of 38 years and consisted of approximately
50% women. Most lived in apartments (80%), and there was a mix of To identify and discuss the matches and mismatches that arose
household types (mostly multiple adults with and without children) between the stakeholders during the project, it is necessary to first
and income levels. present their respective expectations going into the project. The
The majority were employed (80%) and had a driver’s license matches and mismatches in expectations, and gaps in service, are
(88%), although only 41% stated that they had daily personal access discussed subsequently. To provide additional context, an overview
to a car. In terms of household car ownership, 36% were single- of mode use, change, and satisfaction during the FOT is provided
vehicle, and 10% were multiple-vehicle households; i.e., a slight in Table 1.
majority (54%) did not own a car, although, of those households,
42% stated that they could borrow one or more vehicles. The majority
were neither a carsharing member (69%) nor a bikesharing member Stakeholders’ Expectations
(81%). However, the majority owned a bicycle (81%) and had a
Users’ Expectations
public transportation card (88%).
A large majority of participants used the internet and apps on com- The major motive behind the participants’ initial interest to join
puters, tablets, and smartphones on a daily basis (88–91% in all cases). UbiGo was curiosity (62.8%, BQ, see Figure 1), suggesting that
(A smartphone was needed to run the UbiGo app.) they could be considered innovators or early adopters (23–25).
An initial analysis of the before travel diaries (846 trips from However, beyond their curiosity, they also had expectations of what
24 women and 16 men) revealed that the participants differed some- an integrated mobility service could offer them in their daily lives.
what from the average Gothenburg resident (22). In terms of car use, One practical reason that the participants bought into the service
the participant group was most similar to the average person living was to try and see whether it was possible to live without a privately
in central Gothenburg (27% versus 24%, respectively). However, owned car—consider those selling as shedders or those gaining
their use of alternative modes differed somewhat in that more par- access without buying as accessors (26). Many driving forces
ticipants used public transportation (34% versus 26%, respectively) behind the wish to not own a car were stated in the interviews. One
and fewer walked (24% versus 39%, respectively). reason was that owning a car involves a lot of work and cost, such

TABLE 1   Overview of Mode Use, Change, and Satisfaction During UbiGo FOT

Average Subscription and Self-Reported Change in Use (% less, equal, more


Pre-UbiGo Mode Use Utilization Levels; Self-Reported use) and Change in Attitude Toward (% less, equal,
Mode (service provider) (BQ, n = 164) Use Levels (DQ, n = 161) more positive) (AQ, n = 160)

Public transport 88% have a public transport card. Subscribed for 2,220 days/month. VT bus–tram use change. 4 46 50
[Västtrafik (VT)] 65% use bus/tram at least Utilized 1,920 days/month. VT bus–tram attitude change. 2 46 52
3–5 times/week. 63% use bus/tram at least VT local train use change. 7 75 18
9% use local trains at least 3–5 times/week. VT local train attitude change. 3 71 26
3–5 times/week. 4% use local trains at least
3–5 times/week.
Bicycle [Styr&Ställ 81% own a private bicycle. Nov., 241 S&S rentals for S&S use change. 16 61 23
(S&S)] 17% use bicycle at least 28 active users. S&S attitude change. 1 57 42
3–5 times/week. March, 80 active S&S users. Private bicycle use change. 19 65 16
19% are S&S members. 6% use S&S at least 3–5 times/ Private bicycle attitude change. 3 83 14
week (note that S&S was not
available Dec.–Feb.).
16% use private bicycle at least 3–5
times/week.
Car [Sunfleet (SF), 88% have a driver’s license. Subscribed for 904 h/month. SF use change. 6 37 57
  Hertz (HZ)] 41% have daily personal access Utilized 620 subscription h/month.a SF attitude change. 3 36 61
to a car. 1% use SF at least 3–5 times/week. HZ use change. 13 59 28
19% use a private car at least 0% use HZ at least 3–5 times/week. HZ attitude change. 4 75 21
3–5 times/week. 9% use a private car at least Private car use change. 48 48  4
35% are SF members. 3–5 times/week. Private car attitude change. 23 74  3
Taxi [Taxikurir (TK)] 1% use taxi at least 3–5 times/ For Nov.–Apr., 11 rentals/month. TK use change. 12 68 20
week. 0% use taxi at least 3–5 times/week. TK attitude change. 6 76 18
Walk 36% walk at least 3–5 times/week. 50% walk at least 3–5 times/week. Walk use change. 6 73 21
Walk attitude change. 2 82 16
Satisfaction with 77% satisfied (rating 5–7 of 7). 88% satisfied (rating 5–7 of 7). 93% satisfied (rating 5–7 of 7).
current travel 19% very satisfied (rating 7 of 7). 40% very satisfied (rating 7 of 7). 51% very satisfied (rating 7 of 7).
79% want to continue as UbiGo customers.
18% want to continue under certain conditions.
3% do not want to continue as UbiGo customers.
a
Actual use hours can be greater than the utilized subscription hours, because of special offers.
4 Transportation Research Record 2536

Before

During

After

0% 20% 40% 60% 80% 100%


Curiosity
Convenience–flexibility
Economy
Environment
Family member
Test living without a private car
Gain access to cars
Other

FIGURE 1   Primary incentive of participant group over time.

as parking, maintenance, insurance, congestion charges, and sea- had a high level of trust that they would do so (6.25 of 7, DQ), even
sonal tire changes. The need for a car by several of the participants though several participants mentioned in the interviews that they
had been recently reduced due to other life events such as a new were more lenient toward problems because it was a test of something
job, moving, or the children having moved out. This opened up the new and innovative, and that they would have oversight with billing
possibility to get rid of the car, or one of the cars; but as participants errors and the like, as long as they felt they were not being cheated.
they were not sure they could manage without a car, and entering
this project was a low-risk way of finding out whether they could.
Proenvironmental reasons also contributed to the willingness to Commercial Expectations
try to live without a private car because they felt that by selling
their car, which they did not need as much as before, they would Mobility Broker’s Expectations   The mission statement of the
reduce their unnecessary and habitual use of the car when other mobility broker was to make it easier and more rewarding to use
modes of transport were equally good. For participants who did sustainable modes of transport in urban areas. The main idea was to
not own a car going into the FOT, but who were considering such provide their customers with different kinds of travel services, more
a purchase (often because they recently had a child), they instead sustainable than a private car, in a simpler, packaged way than their
saw the UbiGo service as an opportunity to test whether they really current situation, in which a customer would have to turn to each of
needed to buy a private car or not. the included services individually to get the same access. Realizing
Many of the participants also expected the service to reduce their that the entire household was the customer, rather than each separate
overall travel costs (4.87 of 7, BQ). Participants also felt that the individual, was a part of the simplification as well.
single, joint household subscription to all services would make it The mobility brokers saw their role as performing market analy-
easier to pay for their travels and that they would have more control ses to find the right customers and travel service providers, procur-
over their transport expenditures (5.66 of 7, BQ). ing and selling trips in specially adapted and packaged travel offers,
A further expectation was that they would gain access to more and developing or procuring the software necessary to support the
modes of transport (5.49 of 7, BQ*). However, this demanded that broker service. They expected that accomplishing these tasks would
the accessibility to those services would be good with high-quality require a close collaboration with the travel service providers and
public transport and with car-sharing sites close at hand (30.3% good relations with key public actors and agencies to facilitate the
rated this as a critical factor, BQ*). Based on the wider choice of establishment of a company after the FOT. They also expected
transport modes, participants also expected that they would be able to be able to use currently available ICT platforms and transport
to better adapt their choice of transport mode to the individual trip services, where the broker would essentially simply function to
requirements (5.29 of 7, BQ*). combine readily available services.
On a more practical day-to-day level, the participants expected that The mobility broker expected to earn revenue based on travel ser-
the service, primarily the app, would be easy to use (36.6% rated this vice margins; by taking a percentage of the transactions between
as a critical factor, BQ*). It was also vital that the service be secure in customer and travel service provider (like a credit card company),
terms of protecting personal information (35.9% rated this as a criti- made possible by getting cheaper prices by prepaying trips in bulk.
cal factor, BQ*) as well as in terms of preventing unrestricted access This would require that the mobility broker could handle the busi-
(37.2% rated this as a critical factor, BQ*). Customers also expected ness in an efficient manner and with added value to the customer
the mobility broker to take care of any problems that could arise and so that they would be prepared to pay in advance. Other revenue
Sochor, Strömberg, and Karlsson 5

streams included interest on money generated by the prepaid trips, of 7, respectively, AQ) and their attitudes toward these services as
possibilities for franchising fees, and add-on services for businesses. more positive than before (5.18 and 4.26 of 7, respectively, AQ). They
also rated their use of a private car as less frequent than before (2.92
Travel Service Providers’ Expectations   The motives behind the of 7, AQ) and their attitude toward private cars became less positive
collaboration from the transport service providers’ side were that (3.71 of 7, AQ). As described in the section on stakeholders’ expecta-
they hoped to expand their customer base in a new direction, increas- tions, some of the participants said they either sold their cars before
ing their marginal revenue. Collaborating with UbiGo would hope- the FOT started, that they considered it during the FOT, or that they
fully mean larger business volumes, with UbiGo acting as one of their were exploring whether UbiGo was an alternative to a car purchase.
business clients, and increased capacity utilization. The recruitment Thus, there is potential for an integrated mobility service such as
of new customers through UbiGo also meant that these customers UbiGo to provide the right conditions for a reduction of private car
were tied to using their services, because they were the only travel ownership. UbiGo benefits become a unique selling point (USP), also
provider of that kind available through the UbiGo service. offering access to a range of modern vehicles to users, who can adapt
the car to the needs of the trip. As a result, the car service providers
gain customers and society sees movement toward general societal
Societal Expectations goals of reduced private car ownership and reduced emissions, where
even more progress could be made with increased availability of
From the societal point of view, an important reason to get involved electric vehicles in the carsharing and rental fleets.
in and support this project (particularly the local government and Perhaps a less expected match was the increase in pretrip planning.
regional development council) was the hope that this kind of service This was one of the travel behaviors that participants rated as having
would contribute to the Swedish national and local societal goals of changed the most (34.4% stated that this had changed, and only 2.9%
reducing the number of privately owned cars in the city, an increase stated that they were dissatisfied with the changes in their travel
in the use of shared resources, a reduction in environmental impacts behavior, AQ). Participants also agreed that their travel planning had
of transportation. The short- and long-term expectations were that a become more effective (4.79 of 7, AQ). Interview results revealed
reduced number of privately owned cars would reduce congestion, that participants felt that they had gained insight into and a better
open up areas (now used for parking) for other types of land use overview of their travel behavior due to the FOT and the necessity of
(such as parks or housing), and ultimately help reduce the environ- deciding their monthly subscription. Through this, UbiGo benefits
mental impact of the city, both globally via reduced greenhouses as a more accurate subscription with less back-office administra-
gases and locally through less air pollution and noise. Furthermore, tion (top-ups and rollover), while society benefits as individuals and
economic support was provided with the additional expectation that households gain awareness of their travel behavior.
the project would result in new, green business, contributing to more
sustainable development (27–33).
Mismatches: Where Expectations
and Experiences Failed to Meet
Matches and Mismatches During
Field Operational Test The first type of mismatch relates to behavioral changes. In the after
questionnaire, a majority of participants (64.4%) stated that they
Overviews of the matches and mismatches and the gaps in service had experienced changes in their travel behavior during the FOT,
are provided in Table 2. with the most common being changes in transport mode (42.5%).
Participants also stated that they became more satisfied with their
travel (5.13 of 7). As described earlier, participants also used private
Matches: Where Expectations and cars less often, but it turned out that, because the targeted group
Experiences Proved Mutually Beneficial (inner city) had such good access to public transport, they had even
less car use than anyone had expected, even the participants them-
UbiGo’s integration of travel services into a transportation smorgas- selves. UbiGo found that participants purchased credit for approx-
bord with households as customers was perceived as an added value imately 30% more car hours than used, leading to a lowering of
by the participants, for which they were willing to pay. Participants subscriptions or refunded credit at the end of the FOT. Although the
felt that they had more transportation alternatives available to them participants were highly satisfied, and lower car use is a Swedish
(5.44 of 7, AQ) and that it became easier to pay for their travel and societal goal, this lower revenue is not beneficial to UbiGo from the
keep track of their transport expenditures (5.74 of 7, AQ). This match profit-driven company perspective; and whether a particular service
between UbiGo and its customers also resulted in more customers provider gains or loses also depends on the behavioral changes and
for the service providers and a move toward sharing resources. modal shift.
UbiGo also became a platform for testing new offers, such as Other mismatches relate to aspects of the current basic structure
expanded public transport zones and daily tickets, which the partici- of the UbiGo service. First, that public transport is the core UbiGo
pants greatly appreciated. This meant that the participants often had service is positive for customers as a necessary, basic service, and
better alternatives or prices than they normally would, which gave for society because it is a Swedish national and local societal goal to
UbiGo a competitive advantage and encouraged a modal shift away increase public transport use. However, because of the way public
from private car use. transport is subsidized by taxes, it is not possible for UbiGo to
There was also a match regarding the move away from private car benefit from volume purchasing, and, because customers would not
ownership, as related to access to a modern, maintained, varied car buy the service if public transport within UbiGo were more expen-
fleet (via carsharing and car rentals). Participants rated their use of car- sive than it is normally, it is difficult for UbiGo to make any profit
sharing and rental services as more frequent than before (5.21 and 4.16 based on public transport. It is unclear whether the public transport
TABLE 2   Identified Matches, Mismatches, and Gaps by Stakeholder Perspective

Stakeholder Perspective

Aspect User UbiGo Service Broker Service Provider Society

Matches
Smorgasbord of transportation alternatives + more choices + USP + gain customers + shared resources
Testing new types of offers + often better prices, choices + competitive advantage + testing ground + modal shift
Access to a modern, varied car fleet + variation, quality, adaptability + range to customer — + reduced emissions
Potential to reduce private car ownership + reduced costs + USP + gain customers + societal goal
Increased pre-trip planning + overview, insight + efficiency — + awareness
Mismatches
Modal shift and behavioral changes + satisfaction +/− depending on direction of shift +/− depending on direction of shift +/− depending on direction of shift
Less car use than expected + satisfaction − lower revenue +/− depending on provider + societal goal
Public transport as core UbiGo service + necessary basic service − no profitability +/− depending on provider + societal goal
Providers as UbiGo “subcontractors” + centralized access + range to customer, more brand exposure + gain customers —
− less brand exposure —
Exclusive providers − fixed choices + negotiation advantage + no competition within UbiGo − no competition within UbiGo
− less customer satisfaction
UbiGo a “business client” of the providers − business needs do not always − less customer satisfaction + fits into current business model —
match private needs
Minimum, prepaid subscription − less flexible, expenditure may + revenue in advance, negotiating power + guaranteed business − excludes certain types of customers
exceed use − potentially excluding
Volume purchasing + often lower prices + negotiating power + gain big customer —
↳ Fixed price not always the cheapest ↳ − go outside UbiGo ↳ − fewer UbiGo trips ↳ − lose some trips —
Centralized customer service + convenient + creates added value + less work —
− more work
Integration of multiple systems + convenient + creates added value − more work —
− more work
Smartphone-based service + convenient, easy to remember + trendy and innovative − excludes those without smartphones
− battery, Internet, ticket control
Gaps
Trip gap (some types of trips not feasible) − missed trip–activity − lower revenue − lower revenue − restricted mobility
Placement and number of carsharing sites − not universally accessible − fewer customers +/− depending on provider − more private car ownership–use
(and bikesharing sites)
Access to public transportation infrastructure − not universally accessible − fewer customers +/− depending on provider − more private car ownership–use

Note: — = none identified.


Sochor, Strömberg, and Karlsson 7

core is a gain or loss for the other service providers (likely depend- mation systems as well as keeping up with updates and developments
ing on the degree of competition with public transport for a specific, from the providers as well as from Google and Facebook), but also
individual trip). Second, the service providers act as a type of sub- for the service providers themselves, who needed to keep UbiGo
contractor, which is beneficial to customers because of the central- informed in a timely manner, which required close collaboration with
ized access to multiple providers and beneficial to UbiGo because it key contact persons within the providers’ organizations.
means a range of services to the customers as well as more UbiGo Finally, the technological aspect of UbiGo as a smartphone-based
brand exposure. Service providers also gain customers, but they lose service was mostly positive, but the participants felt several issues
brand exposure because they are functioning under UbiGo. Third, needed to be addressed, including the design of the app. On one
that the providers are exclusive within UbiGo was unpopular with hand, participants found it convenient to have everything in the
the participants, who wanted multiple providers of the same ser- smartphone, with the bonus of it being easy to remember: “I can
vice to choose from (taxies, carsharing, or rentals). This desire for forget my public transport card, but I cannot forget my phone.” On
choice is a disadvantage for UbiGo if the customers see lower rates, the other hand, there were issues with battery life, the necessity of
higher quality, or greater accessibility in external service providers, network access, and the ability to show that one had a valid ticket
although having exclusive providers means an advantage in nego- to a ticket controller. From UbiGo’s perspective, the smartphone
tiations because those who become UbiGo providers will have near gave an added flair of trendiness and innovativeness, while from
exclusive access to their customers. The providers benefit from the society’s perspective it is not beneficial to exclude those without a
lack of competition, although society as a whole likely does not smartphone from becoming a UbiGo customer.
benefit because UbiGo is made less attractive than it could be to
customers. Fourth, UbiGo is treated as a business client of the ser-
vice providers. This is convenient for the service providers because Gaps in Service During Field Operational Test
UbiGo’s business needs do not always match the private needs of
UbiGo customers, which could be a problem for UbiGo if it leads Based on the participants’ experiences, there appears to be a gap in
the UbiGo market, where some types of trips are neither possible
to customer dissatisfaction.
to cover by public transport (due to distance or location) nor pos-
A third category of mismatches is related to the business model
sible to cover by carsharing or car rental (due to the activity time
of UbiGo. First, that UbiGo has a minimum, prepaid subscription
being too long for carsharing or too short for car rental to justify
means that UbiGo gets income in advance of trip utilization, which
the expense under the current pricing schemes). For example, these
gives UbiGo negotiating power with the service providers, while
trips fall somewhere in between trips to one’s summer house but
guaranteeing business for the service providers. However, the par-
are mostly day trips to golf courses, riding schools, friends and fam-
ticipants found paying their subscription in advance to be less flex-
ily in remote places, the beach, or other nature areas. This lack of
ible than they would have preferred, not only regarding the content
trip coverage is not good for any of the stakeholder groups: not for
of the subscription (days of public transport and hours of car use), but
service providers because they are not able to provide the service
also regarding monthly expenditure that may exceed necessity. The
that customers are willing to pay for; not for UbiGo because they
minimum subscription price also potentially excludes certain types
lose the trip revenue; not for customers who cannot perform desired
of customers; for example, the single-person and low-income house- trips; and not for society if these types of trips still require the use
holds with travel expenditures lower than the minimum subscription of privately owned cars.
price, because they would need to team up with other persons under Another identified gap is in the placement and number of car-
one subscription. Second, that UbiGo works with volume purchasing sharing sites. The need for a car—for the kind of travel suitable for
from the UbiGo service providers is a double-edged sword. Often, carsharing, such as running errands—is greater in the areas outside
this is an advantage with greater negotiating power on the part of of the inner city where there are few or no carsharing sites. These
UbiGo, with service providers gaining a big customer (UbiGo), and are areas where commuting can be done by public transport, but
with lower prices to the UbiGo customers. However, it is not always errands such as shopping and trips to accompany or collect some-
the case that volume purchasing leads to the cheapest prices in the body else are harder to perform. The lack of carsharing is caused by
overall market. In these cases, customers purchase trips outside these areas being primarily residential, and the carsharing provider
UbiGo, and both UbiGo and the internal service providers lose trips judges that the capacity use would be too uneven—low during
and revenue. daytime and possibly too high during evenings and weekends—for
The fourth type of identified mismatches is related to the back the placement of vehicles in these areas to be profitable. However,
office. First, it has been greatly appreciated by the participants without carsharing available in the inner city, it would be difficult to
that UbiGo provided a centralized customer service that not only reduce private car ownership. Having a carsharing site nearby was
managed the subscriptions and various pricing schemes but also identified as a critical factor for the UbiGo service (see the section
provided support. Having only one number to call is convenient. on users’ expectations). This lack of carsharing coverage is again
The participants also highly trusted UbiGo to solve any problems negative for customers who cannot perform desired trips, for UbiGo
that might occur (6.16 of 7, AQ). Although this created added value, because of lost revenue, and for society because of higher private
which is positive for UbiGo, it also meant more work. However, the car ownership. Although the carsharing company may argue that
service providers gained from less work. Second, the integration of this is positive within their current business model, it is negative for
multiple travel services under one UbiGo interface was very con- other providers, who likely lose customers because of continued,
venient for participants. However, the expectation of easily uniting general use of private cars. Expansion of the carsharing system,
already available travel services (more precisely their software and which depends both on the carsharing company and on public pol-
information systems) proved to be much more work than expected. icy [e.g., parking permits and policies (34) and taxation (35)], will
This extra work was mainly for UbiGo and the project partners in be vital to expanding UbiGo’s customer base, particularly in areas
charge of ICT development (integrating multiple software and infor- other than the inner city.
8 Transportation Research Record 2536

Similar observations can be made regarding the bikesharing sys- charge of public transport as well as with public transport providers.
tem, although the impact of owning a private bicycle is negligible The broker service challenges the public transport organization’s own
compared with ownership of a private car. The bikesharing sites attempts to develop as a brand and build contact with their customers
are located only in the inner city, thus targeting tourists and those because a broker manages customer relations with public transport as
who both live and work in the inner city, or those who have inner a subcontractor, as with any other subcontractor. Therefore, coopera-
city errand trips. Thus it is still often necessary for local residents tion to create integrated solutions will become a question of policy
to complement the bikesharing system with a private bicycle, for for the public actors, versus a primarily commercial question for the
example for commutes from outside the inner city or for longer trips private sector service providers. The support from top management of
in distance or time. a city or region is critical for achieving a sustainable solution.
Likewise, public transport infrastructure must be accessible (with Further work includes a follow-up with FOT participants regard-
appropriate levels of service) because it is generally one of the pri- ing their post-UbiGo travel behavior. As for the future of the UbiGo
mary alternatives for work and school commutes and is specifically mobility service, although it was the original vision that a formal
the core of the UbiGo service. In such areas where there are per- company be established to continue the mobility service directly
ceived or real gaps in public transport service, perhaps other types after the completion of the FOT, local authorities have decided to
of schemes to lower private car ownership (or use) will be more proceed with the concept via a public procurement of innovation.
appropriate, such as local ridesharing.

Acknowledgments
Concluding Remarks
Vinnova (Swedish Governmental Agency for Innovation Systems)
The importance of involving public and private actors to create inte- and the Chalmers Area of Advance Transport are thanked for fund-
grated solutions, according to the Arthur D. Little et al. report, The ing this research. Also acknowledged are the project partners for
Future of Urban Mobility 2.0 (1), is needed to address the challenges their work, and the project participants for their data contributions.
associated with future urban mobility. This paper has described
experiences from a field operational test of a new mobility service
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