Insight

Efficient mobility: 3 levers for enhanced efficiency and resilience

Published January 16, 2024

  • Change Management
  • IT Strategy & CTO Advisory
  • Sustainability
  • Travel, Transport & Logistics

Mobility providers are currently facing a multitude of challenges, including rising prices, recurring supply bottlenecks, and the pressure to drive the mobility revolution, necessitating the development of more innovative mobility solutions. However, these challenges represent only part of the equation, as mobility providers must also navigate the delicate balance between public service, profitability, and efficiency. Fortunately, there are three key levers that can help address this tension and enable efficient mobility, even with limited resources.

The balancing act between expanded mobility services and economic efficiency

Mobility providers are facing the yearlong challenge of a shortage of skilled workers, which is impacting their ability to find suitable personnel. For instance, there is currently a nationwide shortage of over 5,000 bus drivers. Due to the envisioned mobility transformation this number is projected to rise to approximately 76,000 by 2030, and it does not even include buses used for rail replacement services.

Moreover, the shortage extends beyond personnel to vehicles. Global supply chain disruptions have resulted in the unavailability or significant delays in obtaining crucial vehicle parts. Additionally, rising energy prices are adding to the cost pressure.

In addition to resource constraints, there are also financial challenges to contend with. The introduction of the 9-euro ticket, a nationwide short-notice initiative implemented in summer of 2022, has presented significant implementation challenges for mobility providers. Furthermore, it has created cost structure imbalances, as the uniformly low price has led to substantial revenue loss while costs remain unchanged. The successor, the 49-euro ticket, emphasizes the need to optimize the utilization of existing resources to maintain cost-effective mobility operations in the current situation.

Digital transformation and data make it much easier to tap new potential enhance the efficiency of mobility.

Dr. Isabella Geis

Efficient mobility: What can mobility providers do about it?  

One thing is certain: neither the shortage of personnel nor the financial constraints can be fully resolved in the short or medium term. However, there are ways for companies to enhance their positioning and increase resilience in the face of these challenges:

For a long time, rigid timetables and schedules with minimal adjustments have been the response to traveler demand. However, this approach was based on nothing more than limited empirical data and trial and error. Fortunately, today we have a much better understanding of demand thanks to improved data sources: mobile phone data, automatic passenger counting systems, and booking data from apps provide valuable insights into how demand is actually shaping up. So, what if we leveraged this new data foundation to gain a deeper understanding of demand?

New technologies are facilitating effective management of big data and enabling intelligent mobility solutions. We are already familiar with predictive maintenance, so why not apply predictive demand as well? By predicting demand, mobility services can be adjusted accordingly, whether on a week-by-week basis or even a day-by-day basis. This has the potential to revolutionize on-demand mobility, eliminating empty runs or rejected bookings caused by insufficient or excessive demand on too many or too few vehicles. As a result, mobility services will become more efficient and demand-oriented.

Digital transformation and data enable efficient mobility

The future of mobility undoubtedly poses numerous challenges, but efficiency is a key lever to overcome these challenges profitably and realize a successful mobility transformation. The good news is that digital transformation and data make it easier to unlock new potentials. They are essential for the mobility revolution to succeed.

Shared mobility and on-demand mobility are increasingly important in smart and connected mobility. Ensuring their efficiency is crucial for establishing them as sustainable long-term options and avoiding economic obstacles. Scheduled transportation itself is one of the most efficient means of travel, transporting a maximum number of passengers at short intervals, even during peak times. However, there are challenges that can be addressed through predictive demand analysis and collaboration with private providers to make capacity adjustments. This requires moving away from isolated thinking and embracing networking: integrating services, providers, vehicles, and infrastructure. This approach saves resources and energy, emphasizing the close relationship between energy and mobility transformation.

Today, we have better chances than ever before to enhance mobility efficiency. We have both the technical capabilities and the determination to bring about change. Now, it is time to tackle this challenge together.

Author

  • Dr. Isabella Geis

    Associate Partner – Germany, Frankfurt am Main

    Wavestone

    LinkedIn