3 Jan 22

Four scenarios for MaaS success

Historically, lease companies have focused solely on cars. To stay relevant, they’ll have to do much more. In a new Fleet Future report, Bynx explains how Mobility-as-a-Service (MaaS) will generate new revenue streams for lease companies – and transform corporate mobility in the process. But how? The report details four scenarios for success. 

Company cars won’t go away. They’ll just become one part of a wider range of employee mobility options, that compensate for the increasing range of disadvantages associated with car usage. 

Ten-fold increase

Those include but are not limited to: rising cost, the problems of parking, pollution and congestion, and a utilisation rate that is shockingly low – as little as 3% for private cars.

The MaaS principle opens up a wide range of transport options, typically accessed via smartphone. According to Juniper Research, MaaS will generate $53 billion in revenue globally by 2027 – a ten-fold increase in just five years – with MaaS platforms used to complete tens of millions of business trips per annum.   

The tilt of corporate transport towards MaaS has been accelerated by the pandemic, which has led to a boom in working from home – and a re-examination of old habits. For example, 65% of travel to work is in single-occupancy cars, a figure that is increasingly unjustifiable, for both environmental and economic reasons. 

Key driver

The goal: a much more flexible mobility paradigm, with a variety of more sustainable transport solutions, which can be combined at will. But how to get there? The Bynx report identifies the mobility budget as a key driver to implement B2B MaaS solutions. But only if those solutions – e-bikes, scooters, and car-sharing are popular options – are easy to use and simple to administer. 

MaaS is already transforming corporate mobility across Europe. But in a sense, MaaS is a victim of its own success. The term covers a wide variety of solutions. Hence the main issue: how to consistently generate sufficient volume to turn a profit?

There are technical answers to that question – high-performance software, open data, good wifi coverage, physically connecting the various transport modes. But behind the obvious target of achieving better interoperability lurks the desire of each company to protect its own market share and fence off its own client base.

Four scenarios

That’s why the direction of MaaS remains unclear. The report cites CapGemini, who have defined four possible scenarios for the future:

  1. Data-rich companies take all: MaaS relies on access to data, so under the “winner takes all” scenario, data-rich companies like Google, Apple and Uber will dominate the market, with heavy investment in user-friendly platforms that make journey planning and booking simple.
  2. Employee-centric mobility: Increasingly, governments require employers to reduce their carbon footprint. MaaS can be an answer. The B2B model directly targets employers by providing them with closed platforms for journey management, backed by a mobility budget and dedicated payment cards. MaaS players already specialising in this area include SkipR in Belgium.
  3. Local authorities in the lead: As travellers discover quicker and cheaper alternatives to car travel, MaaS becomes a powerful public policy tool. Local authorities, also data-rich with insights on public transport and traffic levels, develop MaaS platforms, and become the ‘control tower’ of MaaS. They implement flexible mobility policies, for example with route recommendations that are adjusted according to the needs of the city, including promoting public transport.
  4. A varied ecosystem: According to Capgemini, this is the most likely scenario: a variety of MaaS models will coexist, across consumer, B2B and public-sector applications. However, this requires a high level of platform interoperability and data standardisation. Local authorities have a key role, by opening access to public-transport data for the entire mobility ecosystem, and by developing a MaaS back end, to which any operator can connect.

As the report points out, MaaS is not the end destination. The mobility paradigm will continue to evolve, ultimately towards Unified Mobility Management, i.e. “truly integrated (…) sustainable, resilient mobility systems that revolve around customer needs.”

Image: Shutterstock

Authored by: Frank Jacobs