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Understanding Transportation as a Service’s potential to reduce car ownership

December 6, 2018

More users but fewer cars on the road is the estimated end result of the oncoming Transportation as a Service (TaaS) model, according to the Hon. Jennifer M. Granholm. TaaS is an attractive option for those looking for easy, flexible transportation without the hassle or cost of owning a personal vehicle.

During her presentation at 2018’s Behavior, Energy and Climate Change conference, Granholm, a former two-term governor of Michigan, cited a 2017 RethinkX transportation study as she shared reasons why TaaS will be cheaper than personal cars by 2030. A self-proclaimed “independent think tank,” RethinkX tackles technology-driven subject matter and its implications for society in general.

TaaS, sometimes called Mobility as a Service (MaaS), refers to widespread deviation away from personal vehicles and towards service-based transportation. This includes rideshare options like Uber and Lyft, e-scooters, bike sharing, and many more.

TaaS has numerous benefits, from economic to social, environmental, and geopolitical. It’s estimated that families will see transportation savings of around $5,600 annually by embracing TaaS. Savings include vehicle registration and maintenance, as well as fuel and parking costs. Further, “TaaS will dramatically lower transportation costs, increase mobility and access to jobs, education, and healthcare…and contribute to cleaner, safer, and more walkable communities,” according to the RethinkX study.

TaaS means fewer licensed drivers on the road

The iGeneration, defined as the post-millennial generation, is largely fueling the TaaS revolution. RethinkX reports that only a quarter of 16-year-olds in the U.S. had a driver’s license in 2016, down from more than 50 percent in 1983. Similar numbers were reported among U.K., Scandinavian, and Australian drivers. And many of those unlicensed young people are utilizing TaaS for everything from transportation to shopping and dining out, according to data from StreetblogsUSA.

The TaaS model isn’t without controversy, however. Autonomous vehicles are an actionable component of TaaS, yet most Americans don’t trust the technology.

TaaS also comes with some technical challenges, including possible privacy issues. For instance, when all of your transportation needs are handled by in-phone apps, can your data be compromised? Cybersecurity concerns are a major roadblock to widespread TaaS implementation. Yet tech experts say that keeping personal data secure, no matter what app you’re using, is simple and requires just a few steps, such as changing default passwords and permissions as soon as the app is downloaded.

Anticipating change in the face of widespread TaaS implementation

The biggest takeaway from the emerging TaaS revolution is the idea that cities should prepare now for the onslaught of modification to the current transportation model. Rethinking transportation involves adapting existing planning, logistics, and infrastructure to a TaaS world.

The need for parking will go down with less vehicles on the road; thus, the need for parking garages will dwindle. Carpooling lanes may need to be expanded, and major transportation depots may need to implement a layout that accommodates bicycles, buses, and shared-use vehicles in equal measure.

However, a lowered potential need for parking garages is just part of the overall TaaS picture: Transit advocates including Jarrett Walker claim that traffic will increase under the Taas model. The problem is that of basic geometry, according to Walker, adding that urban areas cannot be expanded to accommodate heavier traffic and an influx of Taas vehicles on the road.

According to RethinkX, 247 million vehicles worldwide will be part of a TaaS platform by 2020. However, that’s just a small percentage of the more than 1.1 billion estimated cars on global roadways.

This article is from our new series exploring the connections between behavioral economics and transportation. This week, we’ll be breaking down behavioral economics research to understand why people make the transportation decisions they do – and how we can build a transportation network that works for everyone. Press the image to see the series. 

 
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