An introduction to Mobility-as-a-Service in the U.S.

Today, market changes, social trends and modern technology have reshaped the way that we think about transportation. This includes the evolution of travel – and how consumers expect transportation to be delivered.

A decade ago, it was hard for people to fathom the technology that goes into automating a Tesla or trusting strangers to drive them to their destination. These new technologies and customer expectations are shaping the future of mobility, which will represent the market shift from privatised vehicles to a Mobility-as-a-Service model (MaaS). But what does Mobility-as-a-Service actually mean, and how does it impact the future of transportation?

What is MaaS?

Simply put, Mobility-as-a-Service can be defined as the frictionless movement of people and goods. The primary objective of MaaS is to enhance transportation offerings, whether that be by car, bike, scooter, bus, etc.

Its recent momentum has the potential to disrupt the transport and mobility sector, similar to the ways that Netflix, Amazon and Doordash have impacted traditional service models. Like these subscription plans, MaaS can offer travellers access to different modes of transportation, which can be easily accessed from users’ smartphones.

MaaS envisions a shift away from privately-owned vehicles, where car ownership is no longer required. These mobility services would be ‘on-demand’ with a Pay-As-You-Go (PAYG) model, so consumers can use them as needed. Users can also plan travel routes, book and pay for each trip all on one mobile platform, making transportation more accessible and efficient.

Advances in technologies like 5G, Internet of Things (IoT) and Cloud Computing – what we understand as connectivity – are what make this MaaS future possible. Other foundational pieces of the backbone for MaaS include frequent, accessible and cost-effective mass transit, frictionless payments and all-new forms of insurance.

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