Mobility-as-a-Service (MaaS)

Mobility-as-a-Service (MaaS) represents a paradigm shift in urban transportation, offering a user-centric, integrated, and sustainable approach to mobility. At its core, MaaS is built on three key principles: the seamless integration of various transportation modes, a frictionless user experience, and the use of digital platforms to plan, book, and pay for journeys. This innovative model is gaining significant traction in urban Australia, driven by a confluence of factors, including rapid urbanization, pressing sustainability goals, and evolving consumer preferences.

To understand the growing relevance of MaaS in the Australian context, it's essential to consider the projected growth of shared mobility. According to recent market forecasts, the shared mobility market in Australia is expected to reach a staggering US$20.32 billion in revenue by the end of this year (Statista, Shared Mobility Market Insights). This figure underscores the immense potential of MaaS to reshape the urban mobility landscape and address the multifaceted challenges faced by Australian cities however consider that over 50% of this figure is via Flight spend.

Australia's urban centres are grappling with the implications of population growth and urbanisation. Current projections indicate that by 2060, an astounding 75% of the predicted 45 million population will reside in the four largest cities, placing unprecedented strain on existing transport infrastructure. This demographic shift is exacerbating long-standing transportation challenges, such as congestion, an over-reliance on private vehicles, high prices of public transport in certain cities and inadequate public transport coverage.

To illustrate the severity of these issues, consider the following statistics: in Sydney, the average commuter spends 71 minutes per day in traffic, equating to nearly 300 hours per year. Meanwhile, in Melbourne, the economic cost of congestion is projected to reach $10.2 billion by 2030, double what it was in 2020 (SGS Economics & Planning). These figures paint a stark picture of the inefficiencies and productivity losses associated with current urban mobility patterns.

Moreover, the rising cost of living in Australian cities is significantly influencing transportation choices. As housing affordability declines, many residents are forced to live further away from city centres, leading to longer commutes and increased reliance on private vehicles. This trend not only compounds congestion but also contributes to social inequity, as lower-income households often have limited access to reliable and affordable transportation options.

The adoption of MaaS in urban Australia is being propelled by a combination of consumer demand, technological advancements, and supportive government policies, but there is still a lot more needed to be done.

Firstly, there is a growing consumer appetite for convenient and sustainable mobility solutions, particularly among younger demographics. Millennials and Generation Z, who have grown up in an era of rapid technological change and heightened environmental awareness, are increasingly prioritising access over ownership. For these cohorts, the flexibility and affordability of shared mobility services are more appealing than the financial burden and environmental impact of car ownership. They have grown up in a world where they have witnessed the shifts in various industries to subscription models and instant gratification, a lot of the time they do not have the willingness to wait for access via saving, but look to it instantaneously, this need for instant gratification and variety without lock in will be critical to driving growth in MaaS.

Secondly, the rapid pace of technological innovation is enabling the development of sophisticated MaaS platforms. Advances in artificial intelligence, machine learning, and real-time data analytics are allowing MaaS providers to optimize transport networks, personalise user experiences, and seamlessly integrate multiple modes of transport. For example, machine learning algorithms can analyse vast amounts of data on traffic patterns, user behaviour, and vehicle availability to dynamically route vehicles and minimise wait times.

Thirdly, government policies and investments are creating a conducive environment for the growth of MaaS in urban Australia. In the 2024-25 budget, the Australian government allocated an impressive $16.5 billion for public transport infrastructure, demonstrating a strong commitment to sustainable urban mobility. Whilst the Victorian Government is investing $90 billion in major transport infrastructure and smart technology projects underway to build more capacity on existing networks and fund improvements across road, rail and port. This funding will support forming the backbone of MaaS ecosystems. However the challenge with this lies in timing and effective management of the spend, which is consistently an issue in government projects globally.

Urban Australia is witnessing the emergence of diverse MaaS models that showcase the potential for integrated, multimodal transport solutions.

Shared mobility services, such as ride-hailing, bike-sharing, car-sharing, and e-scooter-sharing, are increasingly being incorporated into MaaS platforms. These services offer users on-demand access to a range of vehicles without the burden of ownership. For instance, Uber, the global ride-hailing giant, has partnered with the Australian startup Splyt to integrate its services with public transport apps, enabling users to plan end-to-end journeys that combine ride-hailing with trains and buses.

Pilot programs are also exploring the integration of public transport into single apps or platforms for seamless journey planning and payment. In Sydney, the TripGo app allows users to plan, book, and pay for trips across multiple modes, including trains, buses, ferries, and shared mobility services. This integration streamlines the user experience and encourages the use of sustainable transport options.

Furthermore, the development of smart infrastructure is supporting the growth of multimodal transport options. Cities are investing in EV charging stations, dedicated cycling lanes, and pedestrian-friendly zones to create an enabling environment for MaaS. For example, the City of Melbourne has committed to installing 200 new EV charging stations by the end of this, making it easier for MaaS providers to incorporate electric vehicles into their fleets. The public and private sector still needs to look at their strategy in regards to rural areas, and the vastness of Australia will be the critical challenge to EV adoption across the nation.

 Benefits of MaaS Implementation

The implementation of MaaS in urban Australia offers a range of compelling benefits, spanning environmental impact, economic efficiency, and social equity.

From an environmental perspective, MaaS has the potential to significantly reduce carbon emissions by promoting shared and electric mobility solutions. By encouraging users to shift away from private vehicle ownership and towards more sustainable modes of transport, MaaS can help mitigate the climate impacts of urban mobility.

Decarbonising shared mobility: The potential of shared electric vehicles (Read more here)

Economically, MaaS can deliver substantial cost savings for consumers by reducing reliance on private vehicles and offering flexible payment models. Subscription-based MaaS services, for instance, allow users to pay a fixed monthly fee for access to a range of transport options, providing greater predictability and affordability compared to the high upfront costs of car ownership. Additionally, MaaS can optimize the utilisation of existing transport assets, leading to improved efficiency and reduced congestion-related productivity losses.

Moreover, MaaS has the potential to enhance accessibility and social equity by providing affordable, reliable, and convenient transportation options for underserved communities. By integrating multiple modes of transport, including shared mobility services and public transport, MaaS can improve connectivity for areas that are currently poorly served by traditional transport networks. This enhanced accessibility can unlock economic opportunities, improve access to essential services, and promote social inclusion.

While the potential benefits of MaaS are significant, there are several challenges that must be addressed to ensure successful implementation in urban Australia.

Regulatory hurdles pose a significant obstacle, as existing policy frameworks often struggle to keep pace with the rapid evolution of MaaS models. Issues such as data privacy, safety concerns, and equitable access to MaaS services require careful consideration and proactive regulation. Policymakers must strike a delicate balance between fostering innovation and protecting public interests, ensuring that MaaS platforms operate within a fair and transparent framework.

 Infrastructure gaps, particularly in terms of EV charging stations and cycling infrastructure, present another challenge. The limited availability of charging points in certain regions can hinder the adoption of electric vehicles within MaaS fleets, while inadequate cycling infrastructure can deter users from embracing active transport modes. Addressing these infrastructure deficits will require significant investment and coordination between government agencies, transport operators, and private sector stakeholders. True leaders in this space include masterplanned cities like the city of Springfield, the vision and creation of Maha Sinnathamby AM.

Perhaps the most significant challenge lies in shifting deeply ingrained consumer behaviours and attitudes towards private vehicle ownership. For many Australians, car ownership is associated with values of independence, status, and convenience. Encouraging a transition towards shared mobility will require comprehensive education campaigns and incentives to highlight the benefits of MaaS and challenge entrenched cultural norms. However, we will see a natural shift as mentioned due to generational differences.

As MaaS continues to gain momentum, the future of urban mobility in Australia promises to be transformative. Scaling up pilot programs to fully integrated MaaS ecosystems across major cities like Sydney and Melbourne will be a critical step in realising the full potential of this model. This will involve the seamless integration of multiple transport modes, real-time data sharing, and user-friendly interfaces that enable end-to-end journey planning and payment (please Melbourne, get ride of Myki I beg of you).

Public-private partnerships (PPPs) will play a pivotal role in delivering MaaS at scale. Collaboration between governments, transport operators, and technology providers will be essential for creating interoperable platforms, standardising data protocols, and ensuring a consistent user experience across different services. These partnerships can leverage the strengths of each stakeholder, combining the public sector's regulatory oversight and infrastructure investments with the private sector's innovation and agility.

Looking further ahead, the integration of autonomous vehicles into MaaS ecosystems could revolutionise urban mobility. Autonomous shared vehicles have the potential to optimise traffic flow, reduce accidents, and provide affordable, on-demand transportation. As the technology matures, MaaS platforms could incorporate autonomous vehicles alongside traditional transport modes, offering users an even greater range of options. This isn't the stuff of dreams anymore, look at the work that Waymo is doing in San Francisco to see it in action, it won't be long before we get access to similar hopefully!

Moreover, the growing prevalence of data analytics and artificial intelligence will enable further personalisation and optimisation of MaaS services. By analysing user preferences, travel patterns, and real-time conditions, MaaS platforms can deliver tailored recommendations, dynamic pricing, and predictive demand management. This data-driven approach can enhance user experiences, improve operational efficiency, and contribute to the development of smarter, more responsive cities.

Conclusion

The rise of Mobility-as-a-Service in urban Australia presents a transformative opportunity to address the pressing challenges of urban mobility. By integrating multiple transport modes, leveraging digital platforms, and prioritising user-centricity, MaaS offers a pathway towards more sustainable, efficient, and equitable cities.

However, realising the full potential of MaaS will require concerted efforts from all stakeholders. Policymakers must create enabling regulatory frameworks that balance innovation and public interest. Transport operators and technology providers must collaborate to deliver seamless, integrated services. And consumers must be willing to embrace new modes of mobility and challenge long-standing cultural norms around car ownership.

As we look to the future, the imperative for change is clear. With rapid urbanisation, climate change, and evolving consumer expectations, the status quo of urban mobility is no longer sustainable. MaaS offers a compelling vision for a more liveable, connected, and resilient urban future. By embracing this model and working together towards its successful implementation, Australia can position itself at the forefront of the global mobility revolution.

The time for action is now. Policymakers, businesses, and individuals alike must seize this opportunity to shape the future of urban mobility. By investing in MaaS, fostering innovation, and driving behavioural change, we can unlock the immense potential of our cities and create a more sustainable, equitable, and prosperous future for all Australians.