1 / 25

Future of Urban Mobility

Urban mobility is undergoing a significant transformation with the advancement of technology and the increasing need for sustainable transportation solutions. In this article, we will explore the future of urban mobility and the various innovations that are shaping this field.

amchamindia
Download Presentation

Future of Urban Mobility

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Futureof UrbanMobility May2023 IntegrationofPlatforms

  2. TableofContents Foreword-AMCHAM....................................................................................................................................................03 Executive Summary..........................................................................................................................................................05 I. EmergenceofSharedMobilityPlatforms...........................................................................................07 II. ImpactofSharedMobility..............................................................................................................................09 A.EconomicImpact/Empowerment09 1.LivelihoodGeneration..........................................................................................................................09 2.Multipliereffectofridesharingoneconomicactivity..................................................11 B.ComplementingPublicTransportation........................................................................................... 11 C.Raisingthebarforsafetyinpassengertransportation.......................................................11 III. NewMobility...............................................................................................................................................................13 A. Bike Taxis..................................................................................................................................................................13 B..HCVs........................................................................................................................................................................15 IV. FutureofMobility....................................................................................................................................................16 A.Sustainability&Electrification..................................................................................................................16 B..CitiesthatMove.................................................................................................................................................18 V. PolicyRecommendations................................................................................................................................21 VI. Conclusion...................................................................................................................................................................22

  3. ForewordbyAMCHAM India'sfast-growing economy isset to become one of the top threeglobal economic powerhouseswithinadecade.Progressivegovernmentpoliciesandtheemphasisoneaseof doingbusinesshavemadeIndiathe7thtopdestinationforforeigndirectinvestment(FDI)with the U.S.amongthetop3investorcountries. A world-class infrastructure is the way to achieve a $5 trillion economy, as envisaged by the GovernmentofIndia,andthepoliciesofthegovernmentaimedtotransformtransportplanning areplayingapivotalroletoencourageamalgamationoftechnologyintransportationtoprovide safe and efficient transport solutions across the country. Zero emission mobility platforms to achievecarbonneutralitybybringingintheEVpolicyandintegratedsolutionscreateseamless experiences to passengers for the first and last mile connectivity. These laudable initiatives culminateinaidingtheeaseofliving. U.S. companies in India are keen to forge innovative and tested partnerships to support the vision of the Government of India for the application of the world’s best and most advanced technologiesinthetransportationsector. U.S. companies in India have created extensive gainful employment from high technology to the grassroots level contributing to GDP growth. The AMCHAM-UBER knowledge paper on theFutureofMobilityquantifiestheexistingmobilityscenarioinIndiawithrecommendations toenhancesustainablelivelihoodsthroughfasterdevelopmentofthisverysignificantsectorof theeconomy. RanjanaKhanna DirectorGeneralCEO AMCHAMIndia |03

  4. ExecutiveSummary TheNeedForSharedMobility: As India’s cities expand at an incredible pace, its local, state and national governments have sought to guidetheirdevelopmentundertheprinciplesof smartgrowthinanefforttosupportmultiplegoalsof facilitatingeconomicgrowth,controlurbanemissionsandimprovingurbanairquality. Indian cities are currently witnessing increasing ownership of private vehicles and decreasing use of public and non-motorized transport. In order to curb the growth of private vehicles, while reducing carbon emissions and driving livelihoods, it is necessary to adopt shared mobility. The shared mobility ecosystem in India has created immense value for the economy, and created income generating and augmentingopportunitiesformillionsofIndians. GeneratingLivelihoods: Ride Hailing is one of the most prominent and well established sectors of gig work, and the platform economy. The segment has helped create hundreds of thousands of livelihood opportunities in the country.Theplatformisaninclusiveandflexibleoptionforindividualstohaveagainfullivelihood.Overthe years,Uber’splatformhasbeenattheforefrontofprovidingarangeofbenefitslikeinsurance,microcredit andeaseofaccesstogovernmentschemes. 500,000 500,000+drivers remainedactiveon theplatformsin2022, therebyearning income. 2million AmericanplatformslikeUberaimtoquadrupleactivedriversto 2 million to contribute to India’s growth. The numbers are staggeringonceyouconsidermoreurbanmobilityplatforms, and even more so when gig platforms outside mobility like Amazonarefactored. SustainableMobility: Transportationdecarbonizationcanbeachievedthroughacombinationoftwocrucialstrategies-useof cleanfuelvehiclesorZEVsandshifttosharedmodesofmobilityincludingpublictransportation. RidesharingplatformsinIndia,combinethesetwostrategiesby committingtoelectrifytheirfleets,whicharehighkilometervehicles. 36,537tonnes Whileitwasactive,aserviceuberPOOL hadhelpedcurbover36,537tonnesof CO2emissionsinIndia.1Theexplosionof thesharedmobilityspaceisexpectedto havehadameaningfulimpacton vehiclessincevehiclesonthese platformsencouragecleanerfuelslike CNGasopposedtopetrolanddiesel whichisthenormamongprivatevehicles. 25,000+EVs ThroughapartnershipwithTataMotorsisexpectedto addanother25,000furtherelectriccarstothe platform by 2025. Platforms and the commercial vehiclesegmentcanoffergreatopportunitiesforthe EV portion of the Make in India effort as they aggressivelylookforvehiclesthat fittheIndianroads. "UberPOOLhassaved$4.5millionworthinfuelimportcostsinIndiasincelaunch"EconomicTimes.Jun05,2018 |05

  5. PolicyRecommendations: PromotingEaseofDoingBusinessforhighoccupancyvehicles Forpromotinghighoccupancyvehicles,contractcarriagepermitsystemsmayneedtobereviewed inordertoallowmoreflexibilityto stategovernmentstosupport differenttypesofshared mobility models. Further inspiration may be found right withinthe Indian subcontinent, with the digital enlistmentmodelinstitutedbytheBangladeshRoadTransportAuthority.Asinglewindowclearance orlicensingmaybelookedatforplatformsofferingmobilityservicestherebyencouragingthemto expandtomoremodeswithoutadditionalcomplianceburdens. Livelihoods Measures should be considered to promote individual entrepreneurs or gig workers to enter the sharedmobilitymarket.Easymobilizationofassets forpassengerorgoodstransportusewillplaya key role here as well as easy access to credit. To make sure workers in this space are secure from shocks,thegovernmentmustoperationalisetheCodeonSocialSecurity,2020attheearliest. FutureReadyCities WithanexplosionofcarownershiponthehorizonitisimportantforIndiatogetourcitiesreadyfor the changes. Low emission zones, public charging infrastructure, well designed streets and curbs, multi-modality,etc.aresomeoftheverybasictenantsofurbanmobilityofthefuture. "Privatecarsoccupyalmost50%ofcityroadspacenow"TimesofIndia,Mumbai;May25,2022 |06

  6. SectionI EmergenceofSharedMobilityPlatforms As India’s cities expand at an incredible pace, its local, state and national governments have sought to guidetheirdevelopmentundertheprinciplesofsmartgrowthinan effort tosupport multiplegoalsof facilitatingeconomicgrowth,controlurbanemissionsandimprovingurban air quality. Collectivelythese programmes seek to expand public transport, electrifyvehiclefleets,encourage non-motorised transportanddevelopequitableaccesstomobilityoptions. Indian cities are currently witnessing increasing ownership of private vehicles and decreasing use of public and non-motorized transport.2These trends have implications on India’s energy consumption, energysecurityandeconomy,pollution,congestion,health,andsafety. The NITI Aayog in 20183, considered ridesourcing as one of the most effective means forshared mobility. Ridehailing/Ridesharing/Ridesourcing refers to on-demand services that linkriders to hire driverswhoareusing theirownvehiclesascommercialvehicles.Theseservicesuseonlineplatformsto link drivers with riders and facilitate direct payment. These services operate on dynamic routes (i.e. not fixedrouteslikemostpublictransit)andfares. Acrosstheworld,sinceitsinception,e-hailinghasbeenakeydriverinthesharedmobilityecosystem. E-hailingdrovetheprepandemicmarketforsharedmobility. Estimatedglobalmarketsizein2019(prepandemic),$billion1 120-130 E-hailing Dynamicshuttleservices andpoolede-hailing 1-2 4-6 Carsharing P2P2carsharing andridesharing 3-4 1-3 Sharedmicromobility Source:McKinsey,Sharedmobility:Whereit stands,whereit’sheaded,2021 Shared mobility has a number of benefits, most of which arise from an increase in system efficiency throughhigherassetutilizationandimprovedconnectivity.Whereasprivatevehiclesoftensitidle,orwith lowoccupancy,sharedvehiclesareoftenbetter utilized,withmorepassengersandgoodsinavailable vehicle space and higher utilization, lower fuel consumption, reduced emissions and lower cost of transportation. 3NITIAayog,RockyMountainInstitute, andObserverResearchFoundation.MovingForwardTogether:EnablingSharedMobility in India.2018 |07

  7. CO2EMISSIONS 600 550 500 450 CO2EMISSIONS(MTONS) BAU 400 350 Highsharing 300 250 200 Highsharing+ highEVadoption +cleangrid 2019 2021 2023 2025 2027 2029 2031 2033 2035 Figure8:CO2emissionsinBAU,sharedmobilityfuture,andsharedmobilityfuturewithhighrenewablysourcedenergygenerationinIndia Source:NITIAayog,RockyMountainInstitute,andObserverResearchFoundation. MovingForwardTogether:EnablingSharedMobilityinIndia.2018 Sharedmobilityhasexpandedtomoremodesoftransportandnowencompassesalmosteverytypeof vehicleensuringconsistentdemand,supplyandoptimumassetutilizationwhilegeneratinglivelihoods. Postpandemic,theindustryhaswitnessedashiftinmobilityusecases,whilecabswerethemostpromi- nent form of shared mobility, new low cost options, such as, auto-rickshaws, bike taxis and HCVs have gainedprominenceamongstusers. Theridesharingplatformsbeganofferingautoservicesthroughtheirappsandhaveseenathrivinge-hail- ing auto sector take shape because of the value the service brings to drivers and riders alike. In 2021, multiplecities,suchasMumbaiandBhubaneswar,sawa2xdemandinautoridesasridersprefere-hailed autosasasafe,convenient,andaffordabletransportmodetomovearoundtown. GrowthPotentialoftheRidesharingIndustry $35B TAM Theride-sharingindustryhasatotal addressablemarket(TAM)of$35Bn acrossdifferentproducts/use-cases withonly~25%organized.Therefore, evenafteradecade,thereisagreat potentialofgrowthfortheindustry. Organised market $9B Uber Penetration |08

  8. SectionII ImpactofSharedMobility A.EconomicImpact/Empowerment 1.GainfulLivelihoodGeneration The digital economy has seen rapid growth over the last couple of decades, particularly driven by the pace of adoption of smartphones across populations in developed and developing economies. A recent report pegged the number of smartphone users inIndia alone at500 million.This rapid digitization has also changed how we work and procure services, leading to the emergence of the sharing economy and the ‘gig economy.’ India, with its large informal economy and workers, has always had the equivalent of gig work – and the current scenario presents an opportunity to formalize and organizeit. UndertheCodeonSocial Security,2020,theterm'gigworker'hasbroadlybeendefinedas"aperson who performs work or participates in a work arrangement and earns from such activities outside of traditionalemployer-employeerelationship."Thecode hasalsodefined'platformwork'as"an employment forminwhich organizationsorindividualsuse anonlineplatformtoaccess other organizations or individuals to solve specific problems or to provide specific services in exchange for payment."Thecodealsoindicatesthatsuchworkers,albeitnotemployees,maybeprovidedwithcertain socialsecuritybenefitsasdeterminedbythecentralgovernment.Thesemayincludelifeanddisability cover, accident insurance, health and maternity benefits, old age protection, crèche and childcare services,andotherbenefits. TheCodeonSocialSecurityisaglobalfirstgoverningdocumentwhichcansuitablyregulatethesector andenshrinebenefitstothemillionsofgigworkersinIndia.TheCode, ifimplemented,hasthepotential to impact policy across the world, and institutionalize a forward-looking arrangement beyond the employee,andwagelaborstandards. TheNITIAayogreleasedthefollowingestimatesforGigWorkinIndia: 77lakh In2020-21,77lakh(7.7 million)workerswere engagedinthegig economy. 2.35Crore Thegigworkforceis expectedtoexpandto2.35 crore(23.5million)workers by2029-30. 47% Atpresentabout47%of thegigworkisinmedium skilledjobs,about22%in highskilled,andabout31% inlowskilledjobs. Trendshowstheconcentrationofworkersinmediumskillsisgraduallydecliningandthatofthelow skilledandhighskilledisincreasing.Itmaybeexpectedthatwhilethedominationofmediumskills wouldcontinuetill2030,gigworkwithotherskillswill emerge. RideHailingisoneofthemostprominentandwellestablishedsectors ofgigwork,andtheplatformeconomy.Uberandmanyothermobility service companies have helped create hundreds of thousands of livelihoodopportunitiesinthecountry.Theplatformisaninclusiveand flexible option for individuals to have a gainful livelihood. Over the years, platforms like those from Uber have been at the forefront of providingarangeofbenefitslikeinsurance,healthcheck-ups, microcreditandeaseofaccesstogovernmentschemes. Uberhashalfa milliondriver partnersassociated withthe platform,andaims toquadruplethe growthto2million.7 4BCG,andMichaelandSusanDellFoundation,UnlockingthePotentialoftheGigEconomyinIndia,2021.5MinistryofLabourandEmployment,2020 6 NITIAayog,India’s BoomingGigandPlatformEconomy:PerspectivesandRecommendationsontheFutureofWork.June,2022. 7"UberpositivelyconfidentofquadruplinggrowthinIndia:CEO"TheHinduBusinessline;April26,2022 |09

  9. Table:ApproximateLivelihoodGenerationOpportunitiesCreatedinIndiabyUberoverlast9yearsTable:ApproximateLivelihoodGenerationOpportunitiesCreatedinIndiabyUberoverlast9years • AstudybyIIM-BangaloreonLivelihoodOpportunitiesonGigPlatformsprovidedinsightsontheearning opportunitiesontheUberplatform.Someofthenotablefindingsofthestudywere: • Irrespective oftheyearsthat they havebeen drivingontheplatform,respondentsofthestudy statedbetterearningopportunitiesandflexibleworkinghoursasthemainreasonsforengaging withcompanieslikeUber. • Ithas been observed that earnings on the Uber platform are comparatively higher than in entry-levelformaljobsandinformalwork. • In states such as Maharashtra, Karnataka, West Bengal and Telangana, several drivers have received governmentsubsidiestobuyassetssuchascarsandauto-rickshaws.Thesegovernmentsubsidieshave beenextremelyimpactfulandhavehadatransformativeimpactonthelivesofpeople,whountilnowdid not have access to such an asset or the opportunities that the asset could open up. U.S. companies in India,such as Uber,havebeen attheforefrontof partneringwithgovernments to creatework opportunitiesformarginalizedcitizens. • AMCHAMmembershavealwaysbeenontheforefrontforcontributingtosustainablelivelihoodsinIndia. There have been multiple other driver welfare initiatives such as the Uber Care program. Launched in 2018, the program provides easy access to life insurance, family health insurance, micro-loan(s), etc. to thousandsofdrivers.Thetop5cities where themaximum numberofdrivers wereimpactedareDelhi, Bangalore,Mumbai,HyderabadandPune.MajorUberCareMilestonesinclude: 35.6crore Micro-loansworth INR35.6crore 95lakhs 34,000carservicingpackagesresulting inoverallsavingsworthINR95lakhs 92,000 Over92,000drivershavesignedupwith DocsAppforfreedoctorconsultations, subsidizedprescriptionmedicines,andlabtests 600 Uberpartnered withIndusAction tohelp morethan600 childrenget admissioninto schoolstilldate throughRTE 38.7Crore INR38.7crorefuelcreditswith IndianOilhavebeenfacilitated |10

  10. 2.Multipliereffectofridesharingoneconomicactivity Therelationshipbetweenmobilityandeconomicactivityisnotbyanymeansnovel.Intheearlystagesof the country’s recovery from the pandemic in Jan 2021, after vaccination and resumption of economic activity, increased mobility was listed as a key factor expected to lead the economy towards a path of recoverybytheFinanceMinistryinitsmonthlyeconomicreport8.Byfacilitatingamoreconvenientand on-demand form of transport, platforms can help save time, expand mobility, and provide flexible earningopportunitiesforthousandsofdriver-partnersinIndia. InananalysisdonebyUKbasedpolicyfirmPublicFirstin20219,itwasestimatedthatUberaloneunlocked an estimated ₹446 billion in economic value for the Indian economy. This includes both the impact of earningsofdriver-partnersandthe wider indirectandinducedmultiplier effect createdthroughoutthe company'swidersupplychain.In2021,theyestimatedthatridesharingwithUberproduced₹1.5trillion in consumersurplusforIndians.Intotal,in2021,theyfoundthatdriver-partnersearnanadditional₹17billion ayearinhigherincomethroughUber,oranaverageof49%morethantheirnextbestalternativesourceof incomeorwork. B.ComplementingPublicTransportation Public transportation is the backbone of cities across the world, affording people access to social and economicopportunitiesinamannerthatisbothlowcosttotheriderandenvironmentallyfriendly.Most importantly,publictransportation,morethananyothermode,facilitatesthemovementoflargenumbers ofpeoplethroughsmallspaces,enablingcitiestoachievethedensitythatmakesthemsuchviableand attractiveplacesto live. Citiesandridersbenefitwhenplatformsandprovidersareabletoseamlesslyintegrateitintothesuiteof options they provide to create a seamless transit experience. A multimodal transportation system, centeredaroundpublictransportationinconcertwithridehailing,newmobility,andactivetransportation, has tremendous potential to compete more vigorously with the private car than public transportation alone.Reducingtheuseofprivatecars,whileexpandingamultimodaltransportationsystemcanleadto moreequitableandenvironmentallysustainablecitiesaccessiblebyall. As found by researchers atthe Smart Public Transport Lab at TU Delft, 10ride hailing can serve as an importantcomplementtopublictransportationtoimproveaccesswithinacity.Platformscouldworkwith public transportation authorities to more seamlessly integrate their own offerings to further achieve this ideal.PlaceslikeSeattle11 thathaveseengrowthinpopulation,jobs,andmobilevehicletrips,haveatthe sametimewitnessedgrowthinpublictransportationridershipandadecreaseinvehicle-milestraveled. C.RaisingtheBarforSafetyinPassengerTransportation Road safety has been a primary concern for the Government of India.According to World Bank estimates12,withonly1%oftheworld’svehicles,Indiaaccountsforalmost10%ofallcrashrelateddeaths. Thepoorhouseholdsbear a higherproportionofthesocio-economicburdenofroadcrashesdueto loss of income (over 70% of crash victims in poor households), high medical expenses and limited access to social safety nets. According to a World Bank study, road crashes are estimated to cost the Indianeconomybetween5%to7%ofGDPayear.Officialgovernmentdatashowthateachyearroad crashesinIndiakillabout150,000peopleandinjuresanother450,000.Morethanhalfofthevictimsare pedestrians,cyclists,ormotorcyclistsandalmost84%ofallfatalitiesareamongroadusersbetweenthe workingagesof18-60years. A key, butoftenforgottenaspectofroadsafetyisvisioncorrectionfordrivers.Enhancingrideranddriver safetycontinuestoremainatoppriorityfortheMinistryofRoadTransportandHighways(MoRTH).Uber partnered with the MoRTH, and various state governments for sharing the costs of providing free eye-tests,andsubsidizedvisioncorrectionandreadingglassesworthINR1.5croretodriversacrossIndia, "Recoverytobankon economic activities,increasedmobility"IndianExpress,New Delhi;January6,2021 |9 UberTechnologiesInc:TheImpactofUberinIndia,2022. 10 Uber Technologies Inc:Uber and public transport interaction: An analysis of empirical evidence.|11Uber Technologies IncUber and the Evolving Mobility Landscape in Seattle. "WorldBankApproves$250millionProgramforMakingIndia’sRoadsSafer"WorldBank;June24,2022 |11

  11. starting with Delhi NCR. Additionally, there is also an educational video for the driver community, which listsmeasuresthattheymustfollowforenhancingbothdriverandridersafety. Bytheendof2022,over15,000drivershavereceivedfreeeyetestsandeyewearunderUber’scommit- mentin8citiesinIndia-Delhi,Mumbai,Bangalore,Hyderabad,Kolkata,Jaipur,PatnaandGuwahati. TechnologyLedSafetyInitiatives As tech platforms are central to the shared mobility ecosystem, it has been the need of the hour to introduce technology led interventions which can make mobility safer. A total of 16,397 persons were killedinroadcrashesin2021duetonotwearingseatbelts,ofwhich8,438weredriversandtheremaining 7,959werepassengers,accordingtoareportbytheMinistryofRoadTransportandHighways(MoRTH).13 Akeytechinterventiontakeninthisregardistheaudio-seatbeltreminderbyUber.WhenanUberrideis booked,the driver’s phonewillplayanaudioreminderaskingpassengersto“Pleaseuserearseatbelt foryoursafety.” Thepassengerwillalsoreceiveanin-appnotification.14 Additionally, Uberhasalsoannouncedthefirst of many SOS support integrations with the local police, beginning with Hyderabad. This will provide publicsafetyauthoritieswithreal-timeactionabledataincaseofan emergency on its platform. Further, applications like Uber also use GPS based technology to create innovations like RideCheck to identify and flag deviations in the route adopted and share live location withcontactsforgreaterconfidenceandconvenience. GenderSensitizationTrainings Across the world, men and women differ in the way they use public transport. In India, in particular, womentendtotravelmoreatoff-peakhoursthanmen,keepwithinalimitedarea,oftenhavechildrenin tow,andmakeseveralshorttripstocompletehouseholdchoresorfetchchildrenfromschool.15Only9% ofwomenin Indiancitiesfeelpublictransportiscompletelysafe, while3%claimitiscompletelyunsafe, accordingtoareportwhichsurveyed9,000womenin11citiesofIndia.16In2018,aspartofcommitment to safety, Uber and Manas Foundation, a leading expert deployed gender sensitization workshops for thedriverpartnersontheplatform.Sincethelaunchofvirtualtrainingspostthepandemic,ithasgender sensitizedover100,000drivers.Thesesessionshelpdriversunderstand,andbesensitive,totheneeds ofwomenriders. Drivers on the Uber platform across 34 Indian cities have benefited from this initiative. Today, 97% of femaleriderssaythatsafetyisanimportantfactorintheirchoicetousethecabaggregators,and76%of femaleridersagreethatitisnoweasiertogethomelateatnight. 13TheHindu,December2022.|14HinduBusinessLine,April2022.|15India:Makingpublictransportmorewomen-friendly,WorldBank,2022.|16Ola,WhatDoWomenAndGirlsWantFrom UrbanMobilitySystems?,2019. |12

  12. SectionIII NewMobility A.On-Demand(E-Hail)BikeTaxis CongestioninIndianCities Rapidurbanizationand economicopportunitiesarefuelinggrowthinIndiancities.Whilethe Government of India and State Governments have made significant investments in improving road conditions,congestioncontinuestobeanissueofrisingconcernin Indian cities.AsperaBCGStudy18, the level of congestion is significantly higher in Indian cities than comparable cities around Asia. This is partlyattributabletoIndia'slargepopulationandhighpopulationdensity,aswellasanunder-developed publictransportationnetwork(especiallymassrapidtransitsystems). Amajorcauseforconcernthatexacerbatestheproblemofcongestionisthesinglepassengerridership in private vehicles (studies estimate usage of private vehicles at only 4%), occupying critical space on roadsandparkingplaces. Among the several available paratransit alternatives in India, bike-taxis— motorbikes that operate as taxis—must be popularized for use. Although some Indian states have allowed bike-taxis to operate, manyothers are stillconsideringtheoption,particularlybecauseofthelackofclarityintheregulations regardingmobilityasaservice.19 As an affordable mode of transport, bike taxis can make transportation more affordableandaccessibleforall.Theyareoftenavailableinride-sharingformsandvia mobile-basedridehailingapps,enhancingtheiraccessibility. BikeTaxisAroundtheWorld Various countries around the world have permitted the use of motorbikes as taxis.Bike-taxis are particularlypopularinspecificregionsinLatinAmericancountriessuchasMexico,Colombia,andBrazil. Bike-taxisarewidelyprevalentinmany Southeast Asian countries,such as Cambodia, Thailand, Indonesia,andVietnam,particularlyonaccountoftheassociatedlowcostsandquicktraveltime.20 18BostonConsultingGroup,‘UnlockingCities:TheImpactofRIdesharingacross India’2018.|19ORF,“ThecaseforBikeTaxisinIndian Cities”, June2022. 20TERI,EmergingRoleofBikeTaxis,2020 |13

  13. FirstandLastMileConnectivity Bike-taxiservices providefirstand lastmileconnectivityto publictransit.The smallsizeofthe two-wheelersandtheabilitytooccupylessroadspacehelpsbikesnavigateanypartofacity.Further,the demandresponsivenessandaffordablenatureofbike-taxismakethemtheusefultoincreasethereach ofpublictransititselfsincetwo-wheelerscanbeusedasfeederservice. Notably, one in three bike-taxi rides in Gurugram are to and from metro stations. City authorities and planners may, thus, improve the linkage with public transportation (PT) systems by integrating bike-taxi operations at the design stage itself.21This includes providing designated pick and drop spots at PT stations/stops,parkingandcurbspacesforbike-taxiservices,anddigitalintegrationwithPTforticketing andpaymentpurposes,andmore. AccesstoMobility Studies22 conducted in cities that have bike taxi operations illustrated that 89% of female respondents found bike taxis to be a safe mobility option. Women in urban India have relatively limited access to affordable transportation which has an adverse impact on their capacity to generate income.23In the samestudy,88%ofwomenrespondentswhohadneverusedabiketaxiwere willingtouseit,ifthe fare wasmoreaffordablethan existingmodes.Withmorewomen engaging ineconomic activities, transportationbymotorcyclespresentsanexcellentaffordablemodeoftransportforthemtoutilize. AssetUtilisationandLivelihoodGeneration In India, the penetration of two-wheeler vehicles is approximately 45% in urban areas and 25% in rural areas. Till early 2020, 72.4% of the registered vehicles in India were two-wheelers. The large number of motorcyclesandscootersinIndiaisprimarilyduetotheiraffordablepurchasepricesandlowrunningand maintenancecosts.Vehicularassetsareoftenidleforalargesectionofusers,thesewhenbroughtonto bike taxi platforms have efficient utilization of the vehicle (in this case two-wheelers). The fuel usage for bike taxis would be much less than the other modes of public transportation, which is a key factor in determiningfares,whicharebasedonincreasingfuelprices. Assetownerscanleveragean idleassettogenerate additionalincomefortheirhousehold.Peoplecan become transportation providers withlower cost of entry barriers.likethe cost of new transport (commercial)vehicles.Easeofenteringthisbusinessimprovesmanifoldwithreductioninentrycost,time andeffort. 21OlaMobilityInstitute,ThePowerofTwoWheels:India’sNewSharedMobilityFrontier.2020.|22TERI,EmergingRoleofBike Taxis,2020. 23India’swomencommutersarethepillarsofPublicTransport |14

  14. B.TheNewFrontier-HCVs TheuseofHighCapacityVehicles(HCVs)suchasbusesforpublictransportationhasbeenthemost sustainable, economical and viable method of transportation for multiple decades. However, with mobility as a service becoming a promising option, there are new frontiers to explore withthe introductionofon-demandbuses,ordemandresponsivebuses. Studies24 havefoundthataDemand-ResponsiveTransit(DRT)serviceiscomplementarytoafixedroute systemthatoperatesavehiclealongaprescribedrouteaccordingtoflexiblescheduleand timing. Itis anadvancedformofpublictransportwhichhasmanyadvantagesoverafixedroutesystemasproviding fixedserviceonstaticroutes will notsolvetheproblemofcapturinguserdynamicdemand. On-demand transportation leverages technology to connect an HCV in the vicinity with a passenger looking to travelinthe same direction, ina demand responsive route.Convenient pick up aside, on-demandbusesprovidetheirpassengerstheassuranceofseatingforthedurationofthejourney,only allowingasmanytoboardasthereareempty seats. Consequently,accommodatingfewerpassengers onboard,unlikeconventionalbuses,alsomeansfewerstopsandarelativelyquickercommute.25 Therehasalsobeena popularopinionwhichsuggeststhatbusaggregatorserviceswouldsiphonoff thepublic transport options,suchasgovernmentbuses.Astudy26findsthatonly2%ofthesampleof respondentswouldhavetraveledbypublicbusservicesinDelhi-NCRifabusaggregatorservicewere unavailable. Therefore, it can be understood that bus aggregators do not necessarily compete with publicbusagenciesandthattheycanco-exist.Itwouldappearthatbusaggregatorshaveintroduceda reliable new commuting choice for this particular segment of commuters. While states and cities continue to figure out how best to finance the expansion of public transit, HCVs can meet mobility demandsanddemonstratewhereservicecangrow. UberandGurugramMetropolitanCityBusLimited(GMCBL)launchedafirst ofits kindpartnershipmakingitpossibleforcommuterstobookandpayfor their seats in Gurgaon’s public transport buses using the Uber app. This pilot perfectly exemplifies the multi-modal vision for the country and takes one step closer to the vision of gettingmorepeopleinfewervehicles.Suchpublic-privatepartnershipscangoalongwayinreducing congestionandenhancinggreenmobility. 24SayedAnwar,2021“PlanningfordemandresponsivebustransitinIndiancontext”|25WRI,OnDemandbusesinIndia,2017 26WRI,Understandingtheimpactofbusaggregators,2020 |15

  15. SectionIV FutureofMobility A.Sustainability&Electrification The current state of transportation is unsustainable. Transportation emissions have grown fast over the last3decades,anditisoneofthelargestcontributorstoclimatechange.RoadTransportincludingroad passengers and freight is accountable for 15% of total CO2 global emissions. According to the IPCC, without aggressive and sustained mitigation measures, transport emissions could increase faster than anyothersectorbetweennowand2050. Cities depend on a rapid transition to more sustainable modes of transportation to assure their future economic growth while reducing transport CO2 emissions. For platforms, emissions resulting from the useoftheirservicesarethemostmaterialpartoftheircarbonfootprint,makingelectrificationasoneof their key priorities, with companies like Uber committing to 100% ZEV across the world by 2040 and lookingforopportunitiestoworkwithgovernmenttocreatefavorablepolicy.conditions. A well-lauded studyby UC Davisand ITDP fromDecember 2021showed how transportation decarbonization can occur through a combination of two crucial strategies: (1) vehicle electrification (resulting in ~75% of total emissions reduction need), and (2) mode shift towards increased walking, micromobilityandtransitviaurbandensification(~25%ofemissionsreductionneed).27SocietyofIndian AutomobileManufacturers(SIAM)estimatesthat40%newpersonal vehicle sales(including2Ws)and 100%ofnewintracitypublictransport(buses,3Ws)willbeelectrifiedby2030(forcontextbussalesfor publictransportaccountfor lessthan 10%ofoverallbussalesinIndia28). Theseprojectionsare broadly similar to the high adoption scenario projected by theCouncil on Energy, Environment and Water (CEEW)at43%EVsalesby2030.29However,theseestimatesandadoptionwillvarybysegment.Each vehiclesegmentisatdifferentstagesofevolutionandmaturity. 2Ws For example, by most estimates 2Ws are expected to account for 80% of vehicle sales in 2030, their contributiontoIndiaachievingtheEVtargetswillbecrucial.Thefundamentalsforarapiduptakeofe2Ws seem to be falling into place. India has supportive policies and incentives, there is increasing business investmentinsupplyandfinancialsareimprovingaseconomiesofscaleareintroduced.E-2Wsalesare expectedtoleadEVadoptioninIndia.Howeverwemustnote that evenwithinthiscategorymotorized e2W vehicle sub-categories, i.e.,scooters and motorcycles are likely to follow different trajectories. E-motorcycleadoptionisexpectedtolagbehinde-scooteradoptionasthecurrentproductportfolios (vehicleavailability)arenotyetmature. Taiwan,quitesimilartoIndia,hasahighvolumeoftwo-wheelers.MostoftheEVsubsidiesinTaiwanare directedtowardstwo-wheelers,inordertoincentivisereplacementofICEmotorbikes.Staggeredgoals andadetailedcityspecificroadmaptowardscompleteelectrificationarekeyforadoption.Again,quite similar to some Indian state specific policies like Maharashtra, Gujarat and Delhi, Taiwan has elaborate scrappageincentives. 3Ws Thee-3WmarketinIndiahasalreadyachievedanadoptionrateof14%fornewvehiclesalesandleads adoption as compared to other vehicle segments. Positioned as an affordable means of intermediate public transportation of last-mile goods delivery, over short-to-medium distances, the 3W segment is consideredaslowhangingfruitinEVadoption.Similartoe-2Ws,competitivepurchasepricesrelativeto conventionalICEthree-wheelers,presenceof numerousdomesticelectricthree-wheeler manufacturers, enabling policy environment and favorable TCO economics are the prominent factors fuelling the demand for electric three-wheelers in India. Since 3Ws primarily represents commercial fleets,theyareexpectedtoleadtheEVadoptionsequenceaheadofothervehiclesegments. 27ToCombatClimateChange,ElectrificationneedsCompactCitiesforFullImpact. 28https://www.siam.in/uploads/filemanager/114SIAMWhitePaperonElectricVehicles.pdf 29 https://www.ceew.in/cef/solutions-factory/publications/CEEW-CEF-financing-india-transition-to-electric-vehicles.pdf | 16

  16. 4Ws Car ownership in India is expected to increase by 775% over the next two decades. Private cars and commercial car fleets constitute 11% of road transport emissions. Thus, an accelerated transition is extremelycriticalforthissegment. While the e-car market in India is still at a nascent stage, a mature western EV market such as Berlin or London have between 90 to 130 models of e4Ws available in the market.30The silver lining is that investments in this sector are accelerating. Globally, on the demand side, e-cars across commercial applicationssuchasridehailingandemployeetransportarefastmovingtowardselectrification.Asimilar trendwouldbevisibleinIndiainthefutureoncethee4wecosystemmatures. Private adoption is lower when measured as a share of sales, but is now significant enough in absolute terms to start attracting supply side investments. Several new vehicle models are being launched, targetedatboth,theprivateadoption,aswellas,thecommercialfleetadoption. However, due to relatively harsher economics and concentration of car sales at the lower end of the pricingspectruminIndia,mass-marketadoptionmaybedelayedcomparedtoothersegments. Buses The electrification of public buses is an immediate focus of the Indian government to decarbonize public transport to transition the maximum passenger-kilometers of travel with targeted public sector action. The government-led demand has catalyzed investments by various bus suppliers that are increasinglyaiding state-ownedcorporationstotheirfleetsofe-buses.Thisisdrivingvehicle manufacturing and e-bus operation capabilities to be built to meet the public-sector demand. Most large private bus OEMs have already forayed into this market to cater to the emerging demand. We shouldexpectbenefitsfore-busprocurementforthestate-runbusestobeextendedtotheprivatebus marketwithleadinginitiativessuchasCESL’slandmarktenderforbuses. 30Lazer, L., S.Wachche,R.Sclar,andS. Cassius.“ElectrifyingRide-HailingintheUnitedStates,Europe,andCanada:HowtoEnableRide-HailingDriverstoSwitchtoElectricVehicles” WorkingPaper.Washington,DC:WorldResourcesInstitute.Availableonlineathttps://doi.org/10.46830/wriwp.21.00053 |17

  17. B.CitiesthatMove Fortheurbantransportationsector—onesliceofthe climate changeequation—theroadtokeeping below 1.5°C global warming involves both compact cities developed for walking, cycling and public transit,aswellasarapidandstrategictransitiontoelectrifiedvehicles. Thesetwopolicychanges,implementedintandem,arenecessarytolowercumulativegreenhousegas emissionsfromurbanpassengertransportby59gigatonnes(Gt)CO2-eqby2050.Factorsincluding the explosion of renewables with leadership from countries likeIndia on solar and the significant improvementsinbatteryandchargingtechfrommanufacturersacrosstheworldwillactasgreatforce multipliers.Otherpromisingmeanssuchashydrogenaresettoplayabigroleinhighkilometergoods use,butchallengespersistonthepassengerside.Thiscombinationofpolicychangeswouldreducethe sector’s emissions by about 50% over the next 30 years, just below the amount needed to limit the impendingdamagethatclimatechangecanbring. IfEVsaretobethecoreofourtransitiontocleanmobilityincities,therearesomecorebarriersthatmake switching to EVs which need to be overcome. This calls for real change, which will require action from nationalandlocalgovernmentstogenerateasupportivepolicyenvironmentthatremovesbarrierstoEV adoptionandensuresthatEVsbecomeafeasiblechoicefordriversofallkinds.Asignificantleverforthis maybeachievedbymakingourcitiesreadyforsustainablemobility. RighttoPlugforEasyAccesstoChargingStations Charging is a key driver for mass adoption of electric mobility, with growing investments, there is great momentum in the market to address this gap. Maturity in markets can be gauged by the number of publicchargersperrideshare(commercialpassenger)EVwithWRIinitsworkingpaperonElectrifying Ride-Hailingratinggreenonlythosecitieswhichscoredabove 16. |18

  18. addressing parking requirements. is one of the most underrated tools to drive zero emission vehicle adoption.Forrentersandownershousingunitswithoutparking,pass“righttoplug”(or“righttocharge”) laws at the highest level of jurisdiction possible (e.g. national or state) to ensure that any tenant or co-ownerisableinstallachargepointforanelectricvehiclewithouthavingtoobtain(potentiallydifficult) consentfromthelandlordorfromthehousingsociety(otherco-owners). Further, for these individuals without off-street parking and lacking access to nearby public charging — whichwouldespeciallyincludelowerincomeandhigh-utilizationcommercialdrivers—extend“rightto plug” policies and install curbside charging within 3 minutes walk via a public-private demand-driven curbsidechargingprogramcoordinatingbetweenEVdrivers, qualifiedlocalchargepointinstallers and utilities,andcitygovernmentofficials. PoliciestothiseffectexistinSpain,whichhasaRighttoPlugviaHorizontalPropertyBill,orinAmsterdam thathasa10stepprocessfordemanddrivencurb-sideEVinfrastructurepolicy. CongestionPricing/LowEmissionZones InfourofthelargestcitiesinIndia,namelyDelhi,Mumbai,Bangalore,andKolkata, totalcongestioncosts wereestimatedtobeasmuchasUSD22billionperyear.31 PeakHourCongestion(%AdditionalTimetoTravelinPeakHours) % 200 162 171 150 135 134 132 129 112 105 100 79 70 68 6365 67% 57 50 0 Delhi Bangalore SingaporeSurabaya TaipeiBangkokManila MumbaiKolkataHong KualaJakartaHoChi Hanoi kongLumpurMinh Sources: TomTom traffic index; Google API; Uber; Government statistics; BCG analysis. Note:AsiaaveragetakenfromaverageofEastAsiancitiesbasedonTomTomtrafficindex. CostofCongestionAcrossCities Mitigatingcongestionshouldbeahighpriorityandthiscanbecoupledwithincentivising electrification. AnilluminatingglobalexamplewhichishardnottospotlightisLondon,whichhappenstobeUber’smost successfulEVmarketspolicyfordisincentivizingICEtransportacrosstheboard. Firstly, the city has congestion charge zones for all road users, with full or partial exemptions for ZEV drivers untilZEV adoption reaches 50% of on-road vehicles as opposed to applying restrictionssimplytotaxisorselectedroadusers. Secondly, there are ultra-low emissions charge zones for all road users whereby drivers pay for access based on government-rated vehicle fuel economy (e.g. CO2e emissions per mile, or kilometer)orcriteriapollutants(e.g.NOx,CO,PM)permile,andexemptingZEVdriversatalltimes. 31BCG,UnlockingCities:TheimpactofridesharingacrossIndia,2018 |19

  19. ParksnotParking Citieshavededicatedvastamountsoftheirspacetoon-streetparking.Yetasthedemandforcurbspace increases-withtheriseofurbandelivery,sharedmobilityservices,andeventuallyAVs-citiesarelooking for ways to make their curbs safer, more efficient, and more productive. This has become even more pronounced during COVID, when many cities are expanding slow streets and allowing restaurants and storestoexpandtheirbusinessintoparkingspaces.IntheUnitedStates,theremaybeasmanyas2billion parkingspaces32,morethan6timesthenumberofresidents.Andsincetheaveragecarspends95%ofits life parked,manycitiesaredevotinguptoathirdoftheirurbanlandtoparking.Platforms naturallyshould sharecities’goalsofrethinkingcurbsasflexiblespaceandultimatelymakingitsafer,quicker,andeasierfor peopletogetaroundwithouthavingtousetheirowncar. A great reason to promote the combination of mass transit and ridesharing is that with reduced car ownership, land previously used for parking spaces could be re-allocated to enhance living conditions, suchasprovidingadditionalhousingandsocialinfrastructuresuchasparks. In an optimal ridesharing adoption scenario, a reduction of 33%-68% in private cars and congestion reduction by 17%-31% can be achieved across these cities according to one estimate by the Boston Consulting Group. Consequently, they estimated that this could significantly help cities in India improve theiramenitybysavingapproximately760to22,000acresofunnecessaryparkingspaceineachcity. EstimatedSpacethatcanbeSavedbyRideshareAssumingRideshareSubstitutesforPrivateCars ACRESSAVEDWITHRIDESHARE LANDMARKEQUIVALENT Sources:ASEANMaritimeWorkingGroup,Data.Gov.Sg,FIFA,MapDevelopers/GoogleMaps,HDB,HKCensusandStatisticsDept.,LTA,ManilaTimes,Perdana Botanical Garden, URA, Thanhnien News, The Straits Times, Taipei Botanical Garden, expert interviews, BCG analysis. Note: Size of local landmarks vary greatlybetweencities.Arearepresentsestimatedtotalflatareaofallparkinglots(existingandneeded)toserveacity'scarpopulation.Areaestimatedby derivingratioofcars(private+rideshare)toestimatedparkinglotsinSingapore(~2.2)andthenextrapolatingthisratiotocarpopulationsinothermarkets. Assumesstandardparkinglot(19m2),Areasavedunderhypotheticalscenarioinwhichridesharebecomesdisplacesprivatevehiclesintermsofmodalsplit and50%ofrideshareispooling. 1.HCMCZooandGardencomplex. 32https://www.nytimes.com/2012/01/08/arts/design/taking-parking-lots-seriously-as-public-spaces.html |20

  20. SectionV • PolicyRecommendations • Strengthenmasstransit • Incontemporaryurbangovernanceandtransitplanningwork,investinginmasstransitishardlya novel recommendation. However, it is important to make sure we are not guided by our own preconceived notions of whatmass transitought to look like.While metrosystems are appropriate to retrofit most existing large cities, newer modes should consider the vastly cost efficient BRTS or trams. For the bigger metros, as public transit operates on fixed routes and schedules,improvingfirst-andlast-mileconnectivitywillbe paramountinmaintaining,or improving India’s existing mode share of public transit. Improving public transit efficiency and conveniencewithrouterationalizationandbettervehicles will alsosupportpublictransit. • Promoteusecaseswhichencouragehighoccupancyandassetutilization • Evidenceinthispaperpointsto significant benefitsthatcanbeachievedfromensuringhigher utilization of existing transportation assets. For promoting high occupancy vehicles, contract carriage permit systems may need to be reviewed in order to allow more flexibility to state governments to support different types of shared mobility models. Further inspiration may be found right within the Indian subcontinent, with the digital enlistment model instituted by the BangladeshRoadTransportAuthority.Asinglewindowclearanceorlicensingmaybelookedat for platforms offering mobility services thereby encouraging them to expand to more modes withoutadditionalcomplianceburdens. • Enableelectrification • Electrificationisacriticalstrategyfordrivingmoresustainableurban mobility. Governmentsmay urge platforms to conduct self assessment and set targets which may be vetted through independentagenciesliketheScience-BasedTargetsinitiative(SBTi)andselfpublishresults. • EV adoption by drivers using mobility apps is moving fastest in places where government policiesandindustryinvestmentarestrongest.Theremustbe exemplarypoliciesand investmentsacrosscriticalareas: • Growing EV markets,including emerging secondary marketsand improving vehicle selectionandaffordability • PlentifulEVchargingsupply,especiallyinurbanareas. • Thoughtful, scalable user incentives (inc.carbon and road pricing) thatsend strong consumersignalstoshifttozero-emissions • improving access to credit to make all of the above possible through measures, such as theNITIAayogrecommendationsonextensionofPLIScheme • Livelihoods • Measuresshouldbeconsideredtopromoteindividualentrepreneursorgigworkerstoenterthe sharedmobilitymarket.Easymobilizationofassetsforpassengerorgoodstransportusewillplay akeyrolehereaswellaseasyaccesstocredit.Tomakesureworkersinthisspacearesecurefrom shocks,thegovernmentmustoperationalisetheCodeonSocialSecurity,2020attheearliest. • FutureReadyCities • WithanexplosionofprivatecarownershiponthehorizonitisimportantforIndiatogetourcities readyforthechanges.Lowemissionzones,publiccharging infrastructure,well designedstreets andcurbs,multi-modality,etc.aresomeoftheverybasictenantsofurbanmobilityofthefuture. • BikeTaxis • Bikes are by far the largest chunk of vehicles on Indian roads and therefore it is important to maximizeassetutilizationherebothtofightcongestionandalsotohastenelectrification.Rather thancreateanonerousprocess,easeofusemustbeprioritized. • |21

  21. SectionVI Conclusion In conclusion we can say that a holistic, safe and inclusive mobility system is crucial for supporting a well-functioning and prosperous community. In order to meet the transportation needs of the Indian population,whilealsomaintainingsustainabilityandassetutilizationgoals,itisessentialtobuildanecosys- temwhichisconduciveforsharedmobilityplatforms. These platforms complement the existing public transport infrastructureinthecitiesandprovidefirstandlastmilelinkag- es. Today, all such platforms form an indispensable part of everyday life,and also have the potential to mitigate the primaryissuefacingIndiansociety-lackoflivelihoodoppor- tunities. In order to promote livelihoods through such platforms, the existing commercial vehicle permit systems may need to be relooked at.There are multiple models across the world which would allow private vehicleswithappropriatedocumentationandfeepayment,tojoinsuchplatforms.Furtherinspirationmay befoundrightwithintheIndiansubcontinent,withthedigitalenlistmentmodelinstitutedbytheBangla- deshRoadTransportAuthority. Lastly,formalrecognitionofgigworkandestablishingitslegitimization,isessentialforsecuringthemillions oflivelihoodopportunities availableongigplatformsandconsequently.Platform workhasproventobe indispensable to the functioning of cities, and novel measures of the Government of India, such as the CodeonSocialSecuritywouldprovidedignifiedsocialsecuritytogigworkers,overandabovethebene- fitsreceivedfromcorporateplatforms. |22

More Related