Bicle.com - Commuters are willing to pay more for door-to-door Smart Mobility Services

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Consumer satisfaction

The main question is: are consumers ready for smart mobility in businesses? Oliver Wyman conducted research into this question and found the following: “The percentages of consumers who consider smart mobility important are overwhelming: In China, a stunning 98 percent of those surveyed ranked it as important or very important; in Europe, 93 percent; and in the United States, 83 percent. Among respondents 18 to 35 years old whose principal transportation is a private car, 97 percent said they would consider switching to public transportation to gain access to smart-mobility services. Even among those 65 and older, 76 percent said they would consider a change. For those who use public transportation, similar percentages would move to automobiles for smart-mobility advantages.”

The consumer seems willing to consider a change in their day to day life and willing to invest to gain a better future. According to the report Oliver Wyman produces, the access to smart-mobility services is a very important factor in transportation, and in that aspect, businesses could thrive: “Among commuters, many said they were willing to add a flat fee on top of their current transit bill each month for a bundle of smart-mobility services, similar to the way they opt to add premium channels to monthly cable charges. On average, commuters said they would pay 4.1 percent above their monthly commuting cost for multimodal, door-to-door journey planning and 2.9 percent more for real-time travel information and rerouting to avoid delays.

People also are willing to pay more for long-distance travel that involves smart-mobility services. Long distance, in this case, is defined as a trip of more than 100 kilometers. With these trips, consumers indicated they would pay on average 3.3 percent more, and as much as 5.8 percent more, for multimodal, door-to-door journey planning, and 2.4 percent more on average for real-time information and rerouting.”

Smart mobility services
Regarding those smart mobility services, we are focussing here on services in the transportation market. It could be an app that connects ride-sharing with a train or bus station. But it also could entail activities that keep the consumer entertained whilst being on that particular journey. You could think of an internet connection that is stable enough to provide the consumer with music and videos. Other services could include information into data: how much have you travelled? How much will it cost you? Are their any roadworks ahead? - this could all be incorporated in a digital platform just for this particular set of smart mobility services.