Integrated mobility solutions are expected to compete with private car ownership and public transport, business consulting firm Frost & Sullivan said.
“With a goal to offer more convenience in transportation in which people can choose the most logical means of transport, the idea of integrated mobility services is emerging. Integrated mobility business models will create a single proposition that is competitive to private car ownership and public,” said Frost & Sullivan analyst Albert Priya.
“With OEMs (original equipment manufacturers) shifting to the car-as-a-service business model, mobility-as-a-service is expected to take off,” Priya said.
His analysis noted that technology was facilitating a rise in new mobility business models, particularly app-based, on-demand services that encourage access instead of ownership.
The evolution involves the shift from “car as a product” to “car as an enabler” of a connected living system.
“In the long term, user experience will shift from a product-based experience to a service-based one, and the focus will be on connectivity,” Priya said.
“Cities are launching smart city initiatives across the world and shared mobility will be at the core, providing first- and last-mile connectivity,” Priya said.
In the Philippines, the Bases Conversion Development Authority has said that Clark Global City will be the country’s first smart city, comparable to Singapore, Incheon, Songdo and other modern cities in the world.
The BCDA has signed an agreement with China’s Huawei to design the necessary smart ICT infrastructure. The agency is also looking at the Asian Development Bank to help link it with the best providers of smart transportation technology.
Philippine regulators have acknowledged the legality of app-based transport network companies such as Uber, Grab and U-hop but have stopped accepting applications for new drivers.