Newsweek

The Rise of the BACK-SEAT DRIVER

HOW PRICEY AUTONOMOUS VEHICLES WILL TRICKLE DOWN TO THE MIDDLE CLASS

- by David Zipper DAVID ZIPPER is a resident fellow at the German Marshall Fund and a partner in the 1776 Venture Fund, where he oversees investment­s in smart cities and mobility ventures.

7KH ɿUVW VHOI GULYLQJ FDUV ZRQŠW EH FKHDS Consumers can expect to shell out around $2 0,000, according to one estimate. (ven if prices fall sharply, the average urban resident probably won’t be able to afford to own one. Instead, most people will occasional­ly hire autonomous vehicles, or AVS, much as we call an 8ber or /yft now. At least at ɿrst, they are likely to be a high-end piece of an urban mobility landscape that includes cheaper and more space-efɿcient modes of transporta­tion, like trains, buses, biking and walking.

It could be possible to knit these modes together to let urban residents purchase a set amount of transporta­tion, regardless of how they move. There is a term for this integrated, multimodal vision mobility as a service, or Maa6.

We’re already starting to see early Maa6 systems emerge. In +elsinki, commuters can download an app called Whim, created by the company Maas Global, that allows users to pay for public transporta­tion and bike-sharing, as well as private taxis and car-sharing. 8sers can buy a limited Whim subscripti­on for 49 euros per month or a more extensive one for 499 euros. Various companies make their trips available to the Whim app, and the app provides customer support if a problem arises (such as helping you board a commuter train if your taxi doesn’t show up and no others are available). According to Maas Global, Whim users had booked some 1.8 million trips as of 2ctober 2018.

The Maas concept is starting to catch on globally, with Whim services rolling out in Singapore, as well as Antwerp, Belgium, and Birmingham, (ngland. In the 8nited States, 8ber and /yft have been among the ɿrst companies to embrace Maas. /yft now offers $299 monthly subscripti­ons that include 0 rides of up to $1 each. In the

future, /yft could augment its subscripti­ons with access to the networks of dockless scooters and docked, shared bicycles that the company operates in cities nationwide. Lyft probably would not offer an umbrella service that, like Whim’s, integrates competing services on one platform, however. (It’s hard to imagine the company allowing customers to book a trip on, say, -ump, 8ber’s e-bike service.) A true Maas platform would compete on the basis of customer service and user experience, not the brands that are held within its walled garden.

If Maas takes off, it could provide an easy way to integrate shared autonomous vehicles into a city’s mobility network. The Maas platforms can simply add the AV services to their subscripti­on offers, perhaps charging a premium to those who want autonomous trips to be available in their monthly package. Car providers would be able to tap into the Maas user base, and the convenienc­e of the services could encourage residents to get rid of their personal vehicle and opt for ride-hailing, freeing up precious urban space currently used for parking.

The vision is enticing, but there is no guarantee it’s attainable. )or one thing, a universal Maas platform would include all available modes, and even +elsinki’s Whim is currently missing 8ber, 'rivenow and others that haven’t signed on. Subscripti­on services could also create congestion, instead of mitigate it, by encouragin­g subscriber­s to use cars, at no extra cost, instead of opting for public transit.

Maas is in its early days; even in +elsinki, Whim accounts for less than 0. percent of trips. But if the concept catches on, it will provide the best AV entry point for the middle class.

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