On-demand mobility is yet to achieve its full potential and all players need to transform themselves to maximise the opportunities, according to a new report from management consulting firm Arthur D. Little (ADL).
Rethinking on-demand mobility from ADL’s Future of Mobility Lab analyses the opportunities and threats for ride-hailing platforms such as Uber and Lyft, as well as traditional taxi providers, public transport operators and regulators.
Private ‘on-demand’ ride-hailing platforms have disrupted the entire mobility industry, thanks to ubiquitous connectivity, ever more powerful smartphones and cloud-hosted applications, ADL says.
Yet despite their growth, most most ride-hailing platforms are currently still loss-making – requiring them to evolve their business models to become profitable.
Meanwhile, traditional mobility providers – particularly conventional taxi companies – must reinvent themselves to differentiate and stay relevant in the digital age. According to ADL, taxi firms have two options: internal transformation to keep full control of the mobility value chain, or partnerships with taxi e-hailing platforms.
At the same time, mass transit operators must prepare for the future by investigating to what extent on-demand mobility can positively complement, or even replace, public transit.
For regulators, the report calls for a ‘test and learn’ approach – devising requirements and testing them in the field with selected operators — that underpins a level playing field to benefit consumers and cities alike.
“In a short period on-demand mobility has transformed, moving the market from conventional taxis and private hire vehicles to the ride-hailing platforms now available in cities around the world,” said François-Joseph Van Audenhove, partner and global head of the Future of Mobility Lab at Arthur D. Little.
“However, despite its progress, on-demand mobility is yet to achieve its full potential of improving the overall performance of urban mobility systems. At different levels, all players face challenges and need to reinvent themselves if they are to deliver the key benefits of improved relevance, quality and performance, leading to enhanced consumer experience and sustainable business models for all.”
Tags: on-demand mobility