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Business models for mobility management. How do we make MM measures financially viable in development areas?. Session overview. Background business models for MM Introduction business models MM measures for development areas Group assignment Closing. Why do we need business models?.

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business models for mobility management

Business models for mobility management

How do we make MM measures financially viable in development areas?

session overview
Session overview

Background business models for MM

Introduction business models

MM measures for development areas

Group assignment


why do we need business models
Why do we need business models?

In a context of deregulation we can´trely on public authoritiestosupplymeans of travel, tosecure a satisfyingsupplystakeholderswillneed an answerto the question; What´s in for us?

Why mobility management in development areas? Moving flats meansbreaking old habits, a window of opportunitytopromotesustainable transport modes

But.. Mobility services needsto be operational from dayone, otherwise the resultmay be the opposite

Creates a problem, services aremostimportantwhentheyare the least profitable, business models areneeded

what is a business model
What is a business model?

Description of means and methods a firm employs to earn the revenue projected in its plans. It views the business as a system and answers the question, "How are we going to make money to survive and grow?"

exempels of business models
Exempels of business models

Bricks and clicks

Business model that integrate offline (bricks) and online (clicks) presence. For example when a business sells a product online and the customer picks it up in physical store.


Companies or organizations who operates in the same or related areas share resources, information or offer other advantages for their customers


A model developed by IBM to analyze the relationship between a company´s strategy and their organizational ability and investments in order to define abundant or overlapping units

exempels of business models1
Exempels of business models

Cutting out the middleman

A model where a company sells there product directly to their customers instead of supplying through stores


Several different types of models, franchise, 7Eleven and McDonalds. Freemium, common in digital sales, demo version is free but to use the full version with more functions you have to purchase the product


Spotify a freemium that changed a market

Free with commercial or monthly fee. Gathers a huge range of different music suppliers (labels) underneath the same cloud. The user only needs one portal to reach everything. Spotify collects revenue and distributes to suppliers.

private public partnership
Private Public Partnership

“As much value as possible to taxpayers”

Does not necessarily have to be financial revenue. A useful service that makes a transportation easier for the public is good value.

Having public stakeholders owning processes can ensure longevity for services, however business models can be developed to include private stakeholders in order to cut costs to maintain the system.

mm measures for development areas
MM measures for development areas

Car Clubs

Bike hireschemes

Commuter parking for cyclists

ICT solution

Travel plans

Informations packs

car clubs
Car Clubs


Must be in place as part of the environmental ambtions and constrained infrastructure

External Actors

The City: Needs to ensure presence of Car Clubs

PT operator: May want offer customers Car Clubs as part of their service.

Car Club operators: Wants as many users as possible per car, wants the service to be profitable from day one.


Wants as small amount of users as possible per car to ensure availability. Wants as cheap service as possible. Wants service to be in place from day one

rental bikes
Rental bikes


Need to be in place to cater for short trips within the area.

External actors

The City: Wants to make sure short trips are made by bike.

PT operator: Have an agreement with a supplier as service for their customers

Supplier: Wants as much commercial exposer for their stations as possible



Companies: Wants their visitors to be able to use the bikes, need stations outside their buildings

Inhabitants: Wants stations as close as possible to their flats to make commuting smooth

commuter parking for cyclists
Commuter parking for cyclists


A certainamount of parkering needsto be in placeoutside the subway station based on the amount of travellers


The City: land owner

PT Companies: service needed for thiercustomers


Long distance, expensive bikes, WTP moderate ifsecure

Short distance, WTP mostlikelynothing



Needsto be in placeto make travellingwithsustainable modes as easy as possible.


All suppliers of travel services wantstoexposetheirproducts

The Municipalitywantsto make sure the system runssmooth for the inhabitants


Wants it all in oneplace

travel plans
Travel Plans


The Municipalitycanuse the possibilitytolower the amount parking if the buildingcompaniesdeveloptravel plans


Buildningcompanies, wantstobuild as cheap as possible

Landlords, wantstomaximizeincome from tentants, do not wanttoexcludeanypossibletenants

travel plans1
Travel Plans


Tenants, wants offices that fits their needs, both in terms of environmental policy and accessibility.

information packs
Information packs


The Municipalitywantsto make sure the inhabitants gets offers and information goodenough for themtoavoidgetting a car


All transport providerswantsto get their services exposed


Inhabitantsthatrecently has movedto the area


the case
The Case

New development area

Central location, 3 km to central station

10 000 apartments 30 000 work opportunities

Infrastructure already strained

High environmental ambitions, 1,5 ton CO2 per inhabitant by 2020

Served initially by subway and buses and later by streetcars

High income, usually means high car use

the assignment
The Assignment

Develop business models for MM measures:

Use different business models

May be public, private or PPP

Becuse of the highenvironmental ambitions the City is willingtoinvest, buttheywantsexternalactors and userstocarry as much as possible of the cost.

external stakeholders

Identify and list the externalstakeholder

Whywouldthey be interested?


What is their business plan?


What different kind of usersgroupswillthere be for the service?


What is the willingnesstopay (WTP)

business model
Business model

Motivewhy the business model is profitable for all