Interviews
21 Sep 17

MaaS Global, building the iPod of multimodal transport

MaaS Global is a Finnish startup with a clear mission: to provide a multi-modal mobility solution that is both all-encompassing and very easy to operate. For an analogy, look no further than the iPod. Co-founder Kaj Pyyhtiä explains.

By the time Apple launched that device, there were already some 50 MP3 players from rival manufacturers on the U.S. market. Some had a three-year head start, yet all were rapidly eclipsed by the iPod, which became the fastest-selling and most successful MP3 player of all time. Why? Business analysts say the iPod’s triumph lay not so much in its design, but in its seamless synchronicity with the iTunes software and catalogue of songs. Not only did iTunes provide an encyclopedic choice of music, but storing tracks and arranging them was infinitely simpler than with other operating systems.

€89 per month

This same push to provide a complete solution characterises MaaS Global (MaaS stands for ‘Mobility as a Service’), the Finnish company behind the Whim app. Where other mobility companies have focused on a single link of the travel chain, such as ride-hailing, car clubs or bike-share, MaaS aims to deliver a joined-up solution for private and business customers. Whim delivers route, fee, ticket, timetable, booking and travel options so travelers can select the quickest, cheapest or most convenient means of transport for their journey, and pay for it either on use or via monthly subscription.

During its pilot in Helsinki, for example, a fee of €89 per month bought unlimited transport on public transport as well as two taxi trips of up to 10km. Customers who upgraded to the most expensive package, at €389 per month, received 10 taxi trips and five days of car hire, as well as free public transport.

Nowhere to park

It’s easy to see how a city-based worker with nowhere to park a car at home and easy access to public transport might prefer the flexibility of the Whim solution to the cost and hassle of owning a private or company car. “Our first target group were private consumers, but we have been talking to a lot of businesses,” said Kaj Pyyhtiä, co-founder and CXO of MaaS Global.

“There is a huge interest among businesses to take MaaS as an alternative to cars, whether owned or leased. Lease cars are a long-term commitment and a lot of their benefits are left unused – car utilisation is fairly low, they’re used about 4% of the time, so they’re not really offering that good a benefit to employees.”

B2C to B2E

As a result, while Whim launched as a B2C (business to consumer) service in Helsinki, it will adopt more of a B2E (business to employee) approach in the UK when it launches in the West Midlands. A recent bid for more funding, which attracted investment from, among others, Toyota Financial Services, will also see MaaS Global develop similar solutions in the greater Amsterdam region in the Netherlands.

The challenge, as everywhere, is to forge a coherent network of transport suppliers in order to present consumers with a simple, seamless approach to travel – the iTunes example. Pyyhtiä concedes that because MaaS is making the market, it is having to convince all the players that they should join, so negotiations that take time and effort: “But most suppliers now understand this disruption and that it’s going to happen,” he said.

More business

Interestingly, when the car is no longer the default travel option, Whim customers are using modes of transport they have rarely if ever used before, bringing more business to the different travel suppliers. “Transport companies will get better utilisation of their fleets,” said Pyyhtiä. “They will have new customers who did not use buses or trains before; car rental companies did not see people rent a car in their home towns, but our customers do.”

People who used to drive to work because they needed their car in the afternoon or evening can now use public transport for their commute and take a hire car or car club vehicle after work.

Global roaming

MaaS Global has ambitious growth plans, and aims to scale its services to all forms of transport worldwide within the next five years. “In the future, you will be able to move anywhere, at any time and by any mode of transport without needing to own a vehicle. Our goal is to build a global roaming system for transport which people can use to travel from, say, Helsinki to Brussels using one app,” said Sampo Hietanen, co-founder and chief executive officer of MaaS Global.

“Private car ownership will not be pleasant in cities for much longer: it is slow, expensive and environmentally unfriendly. The technology for seamless consumption of mobility services is already here.”

Jonathan Manning

Image: MaaS Global