Mobility as a service (MaaS) incorporates the elements of an emerging and new transportation model - particularly in urban areas - that removes the need for private vehicle ownership by offering bundled transportation options as a service.  

MaaS promises to revolutionize transportation by building and leveraging platform technology to connect and improve all aspects of travel. Through an integrated effort of public and private organizations, travelers can embark on personalized and optimized transportation routes using a variety of different transportation modes including cars, buses, trains, bikes and scooters. The philosophy can be applied across a broad range of technologies from autonomous cars to connected cities. Another key element for MaaS is providing users with a single digital payment method: only one transaction necessary for an end-to-end trip rather than paying for individual modes of transportation. 

For businesses, MaaS initiatives aim to unify all modes of transport for a business into one simple and easy to use platform with the objective of improving cost and efficiency through shorter travel planning and cost comparison. For families or solo travellers, Mobility as a Service aims to improve the planning and management of travel into a customized journey without the challenge of searching through multiple booking search engines. 

The core elements of Mobility as a Service 

At its core, MaaS relies on a digital platform that integrates end-to-end trip planning, booking, electronic ticketing, and payment services across all modes of transportation, public or private. It’s a marked departure from where most cities are today, and from how mobility has been delivered until now. 

Rather than having to locate, book, and pay for each mode of transportation separately, MaaS platforms let users plan and book door-to-door trips using a single app. By answering the question of how best to get individual users where they’re going based on real-time conditions throughout the network, taking account of all the possible options and each user’s own preferences (for example, time and convenience vs. cost), and facilitating seamless mobile payment, MaaS starts to move us toward a more user-centered mobility paradigm. 

Making moving around easy and sustainable 

An ambitious initiative is taking shape in Finland’s capital, aiming to make it unnecessary for any city resident to own a private car by 2025. Since 2016, Helsinki residents have been able to use an app called "Whim" to plan and pay for all modes of public and private transportation within the city, be it by train, taxi, bus, carshare, or bikeshare. 

Anyone with the app can enter a destination, select his or her preferred mode of getting there or, in cases where no single mode covers the door-to-door journey, a combination thereof and go. Users can either pre-pay for the service as part of a monthly mobility subscription, or pay as they go using a payment account linked to the service. 

The goal is to make it so convenient for users to get around that they opt to give up their personal vehicles for city commuting, not because they’re forced to, but because the alternative is more appealing. According to Sampo Hietanen, CEO and Founder of MaaS Global, and the visionary behind Whim, "We want to prove that we can beat the service level of a car. Or at least be comparable to it. We want to show that people want it, not just that we can do it." 

Following the success Whim saw in its home market, it has spread its operations to Birmingham, UK and Antwerp, Belgium. We have to keep in mind that platforms like these are in their infancy, but the concept has been proven in multiple regions. There will be challenges in scaling this across different societies with different consumer habits, varying levels of digital adoption, and mixed travelling patterns. 

There are clear benefits to the customer. Firstly, the payment amount is clear and the payment method is secure and digitalised. The application automatically calculates the price you pay based on your subscription level, or offers a pay-as-you-go option. 

The route is planned and displayed in detail, whilst offering flexibility for changes of circumstance or delays. Real-time data feeds keep the whole process accurate and reliable. The objective is to provide carefree travel. This is the primary result of MaaS. 

Solving the monetization equation 

Every business model requires a monetization method. Mobility as a Service on the surface has a straightforward model: MaaS providers charge either a fixed-rate or variable rate for different service options. By way of illustration, Whim enables travellers to choose between three mobility options: a full-access subscription, a basic membership with reductions on taxis and car sharing, and a pay-as you go model. 

However, things often get complicated due to the interconnectivity of the system. While specific roles maintain traditional revenue models, transportation providers rely on a complicated method for dividing up payments.?This method hinges upon many variables including rides per day, distance traveled, cost per trip, etc. Taxis generally charge according to distance travelled and the duration of the journey, while buses have fixed prices per area. Combining multiple modes of transportation requires precise calculations and the price estimations are only as good as the computation algorithm is. How much would the price differ when booked through the application rather than buying tickets straight from the operator? How are delays managed from a price perspective? Stakeholders will need to evolve towards a equitable system that makes MaaS profitable for all those involved.

New culture 

With the widespread appetite for MaaS, a new way of thinking must emerge. A culture of collaboration, trust, and non-competitiveness is needed to build the shared platforms that travellers need. The payments industry must ensure that stakeholders get their share quickly, accurately, and consistently. 

MaaS implementation requires the involvement of trusted third-party authorities who drive the innovation and mediate between key players. In a competitive environment, it’s important to create win-win scenarios for everybody. This will require tough diplomacy, and expertise in technology for payments, scheduling, and more. MaaS is a mindset change. Industry stakeholders must adopt a truly customer-centric approach, and travellers must think about mobility in a holistic way.