THE concept of mobility as a service (MaaS) has been gaining increasing transaction amid a combination of improving technology, environmental concerns and the secular move away from outright vehicle ownership.
MaaS refers to the combination of different types of transportation into a single service that is accessible on demand. Through a MaaS platform, accessible via a smartphone and/or desktop app, users can plan, book and pay for their journeys, selecting from various transport options.
While MaaS is still in its early stages of development, a system that enables users to choose journey options from a range of public, private and shared transport modes has the potential to reduce costs and improve the efficiency of their travel.
Traffic congestion and parking restrictions in some urban areas are obvious reasons why the car may not be the most efficient choice for some journeys.
Finland-based MaaS Global launched its mobility-as-a-service Whim app to users in the West Midlands in 2018. Within Europe, the app is also currently on offer to users in Helsinki, Antwerp and Vienna, as well as being available in Asia to the citizens of Tokyo and Singapore.
Pay as you go
The pay-as-you-go offering was launched to UK users at £349 per month, which includes up to 30 days car hire per month, all taxi rides within a three-mile radius and unlimited public transport.
A cheaper option from Whim, at £99 per month, offered “best price car hire”, along with the taxi rides and unlimited public transport.
The same year Fleetondemand launched its Mobilleo mobility-as-a-service app for business, with the intention of integrating thousands of public and private transport providers into a single platform.
Mobilleo is designed to enable business users to plan, book and pay for their entire journey, including car hire, parking, flights, trains, accommodation, restaurants, car clubs, busses and taxis.
Such apps could lead some businesses to question the wisdom of relying on the company car alone if at the touch of the button they can find a quicker, more efficient option for the same trip.
Opportunities for leasing companies
There could be opportunities for leasing companies, however, if the latter are prepared to link up with such apps, or even set up their own app-based offerings.
Car leasing solutions provider Arval, which last year became one of the latest firms to sign up to the MaaS Alliance, a public-private partnership that aims to create the foundations for a common approach to MaaS, points to the growing demand for green, digital products from businesses and individuals.
The 2019 Arval UK Mobility Observatory survey also suggested corporate interest in mobility solutions was high. However, Arval also concluded from the same research that the company car was on course to remain the most important mode of business transport for the foreseeable future.
Arval expects an increasing number of fleet managers will become “mobility managers” over the coming years, where different solutions are used in combination with the company car.
The leasing provider nevertheless believes the company car will remain the default option for some time because research suggests employees continue to place significant value upon on it.
Arval’s survey found the company car was still firmly the most practical solution for many journeys, especially those involving multiple stops.
Rather than a direct threat, the signs are that for now at least, the car leasing industry should view MaaS as a complimentary offering.
