Making Mobility-as-a-Service a reality: Challenges and opportunities

Mobility-as-a-Service (MaaS) has been an aspiration for more than a decade, aiming to integrate various transportation modes into a seamless, door-to-door travel experience. The concept envisions a system where users can plan, pay for and be guided through multimodal trips with contextual and real-time notifications. This ambitious vision promises to streamline urban transportation to reduce congestion and enhance mobility. However, despite the potential benefits, MaaS has faced significant challenges preventing its widespread adoption. 

Urbanization and the need for MaaS 

One of the primary drivers for MaaS is the rapid growth of urban populations. At the turn of the century, about 35 percent of the global population lived in urban areas. Today, that figure has surged to around 55 percent, with some regions experiencing even higher concentrations. This influx has led to increased congestion and a greater strain on urban infrastructure. Traditional car-based transportation systems are no longer viable in densely populated areas due to space limitations and the resulting traffic jams. 

As urban populations grow, so does the demand for efficient public transportation systems. However, the expansion of public services has not kept pace with population growth. This gap has given rise to alternative mobility solutions like ridesharing, bikesharing and micromobility options. To manage these diverse modes of transport, there is a pressing need for an integrated system that combines public and private transportation services into a cohesive network. 

Challenges in implementing MaaS 

Despite the clear need, MaaS has struggled to gain traction due to several challenges: 

• Legacy systems: Existing transportation systems and software were not designed for interoperability with MaaS platforms. Integrating these outdated systems with new technology has proven difficult and costly. 
• Technological hurdles: Developing a seamless user experience that integrates data, tickets, payments and real-time guidance is technologically complex. While many MaaS platforms have made significant advancements, they often fall short of providing a fully integrated service. 
• Financial viability: Many early MaaS initiatives struggled to achieve commercial success. The initial investments required for development and the ongoing costs of integrating and maintaining various systems have deterred widespread adoption. 
• Pandemic impact: The COVID-19 pandemic significantly impacted mobility, disrupting revenue streams for MaaS providers and delaying progress. However, it also accelerated the shift towards digital solutions and contactless payments, highlighting the need for more flexible and resilient systems. 

The turning point 

Recent developments suggest MaaS is now poised for success. The pandemic has changed consumer behavior, increasing the demand for digital and contactless payment solutions. Cities and transportation operators have recognized the limitations of proprietary systems and are moving towards more flexible, cloud-based and software-driven solutions. This shift is driven by the need to reduce costs and improve service quality for both operators and users. 

Benefits for operators and riders 

For transportation operators and cities, adopting MaaS offers numerous advantages: 

• Cost reduction: By transitioning to software-based systems and utilizing off-the-shelf hardware like smartphones to accept contactless payments or ticket validations, operators can significantly reduce maintenance costs and hardware investments. 
• Improved flexibility: Modern MaaS platforms provide greater flexibility in managing operations, allowing for easy adjustments to routes and services. 
• Enhanced data utilization: Integrated data systems enable operators to use the same data for multiple purposes, from ticketing to operational management, enhancing efficiency and decision-making. 

For riders, MaaS simplifies the travel experience by offering: 

• Seamless payments: Contactless payment systems that work across multiple transportation modes eliminate the need for queuing and purchasing multiple tickets, allowing travel using a contactless bank card or a smartphone. 
• Comprehensive travel options: MaaS platforms provide users with a variety of transportation options, making it easier to plan and complete journeys using the most efficient modes available. 
• Reduced car dependency: By making public and shared transportation more accessible and user-friendly, MaaS can help reduce the number of cars on the road, alleviating congestion and pollution. 

The future of MaaS 

The landscape of urban transportation is changing, with cities worldwide taking bold steps to reduce car dependency and promote sustainable mobility. Successful examples include the adoption of contactless payments and extensive bikesharing programs.  Other initiatives like congestion pricing are being implemented in cities like Dublin and Barcelona, reflecting a global trend towards more integrated and efficient transportation systems. 

As MaaS platforms continue to evolve, the industry can  expect increased competition and innovation, leading to better services for riders and more efficient operations for cities and transportation providers. The focus will be on creating systems that not only meet the immediate needs of urban populations, but also contribute to the long-term sustainability of urban environments. 

While MaaS has faced significant challenges, the current technological and infrastructure advancements together with the change of consumer behaviors present an unprecedented opportunity to makeMaaS a reality. By leveraging modern digital solutions and fostering collaboration between public and private sectors, it’s possible to create a transportation ecosystem that benefits everyone.