The Future of Mobility: Cities, cars, and the desire to share

There is no shortage of mega-trends shaping the future of mobility. From sharing models and micro-mobility to intermodal travel – new solutions and business models are needed to prevent gridlock in our cities. What's more, they have to provide people in rural areas with an environmentally friendly and reliable alternative to personal cars.

"The Future of Mobility – and how cities and cars are changing"

With this webinar Arvato Financial Solutions invited interested viewers in February 2022 to delve into this exciting topic. Don Dahlmann's outlook on the future of mobility leaves no doubt that there is growing pressure to change how we get around. According to the INRIX study, traffic jams cost German cities 2.8 billion euros in 2019. Cars are also a real dilemma for environmental reasons. Ranking behind travel by foot as well as bicycle, bus, train or taxi, the use of a personal car takes last place in terms of sustainability and costs. But what will, and indeed must, change in the future of mobility?

Here are my three main takeaways from my fascinating conversation with Don Dahlmann:

1:Future of mobility:  Each city needs its own tailor-made mobility solutions

Consider Berlin. The key to transforming mobility in Germany's capital is the sharing economy. Berlin has provided a playground for implementing new ideas for a number of years now. Around 35 percent of the inner city is currently covered by nine car-sharing companies, five sharing providers for e-scooters, two driving services, as well as a local transport network company that offers ride shares. Dahlmann notes: "When shaping the future of mobility, you want a city where cars play only a minor role. For Berlin, this means transformation in infrastructure: less space for cars and more space for alternative modes of transport like bikes."

2: Future of mobility:  Mobility transformation is stepping up a gear around the world

As a pioneer in the EU, Paris is banning diesel cars by 2024 and petrol cars by 2030 from large parts of the city. A wide range of strategies are used to realize mobility transformation, including the elimination of around 70,000 parking spaces. Another idea is the "15-minute city." Dahlmann explains: "People should be able to meet all their basic needs within 15 minutes on foot or by bike from their home." Mobility is also being transformed beyond Europe. In Dar es Salaam, Tanzania, the city is developing a dedicated road network spanning more than 130 kilometers for express bus traffic. This is how 90 percent of the urban population are to get from A to B in the future.

3: Future of mobility:  A hyper-mobile world calls for hyper-mobile mobility

Smartphones and the internet have completely changed the way we see the world. "We now also expect maximum flexibility from our mobility," Dahlmann says. Besides smart transport solutions like autonomous cars, another trend is that people are starting to reject the idea that they need to own a car. Instead, they demand tailor-made mobility solutions. This is where Dahlmann sees a boom ahead: "We need mobility that supports us in any situation, such as the use of multiple modes of transport with individual mobility subscriptions. They enable us to be mobile at any time and place using an app – all without the need to have our own car."

The automotive industry is already reacting to the mobility trend. Volvo now sells ten percent of its cars in a subscription model, thereby increasing its revenues. Other manufacturers are sure to follow. For good reason, according to a recent CAR study: car subscriptions have a high degree of growth potential. And they are helping advance e-mobility. People who already have a car subscription can easily imagine driving an electric car with this model. 93 percent would consider such a switch, according to the study.

Financial transactions jump-start this mobility transformation

From prepaid mobility packages enabling easy use of different forms of transport to car-sharing subscriptions: complex financial transactions that run in the background make these new mobility offers possible. Sharing mobility and multi-modal services require digital solutions that ensure maximum security of private mobility data, while meeting all the needs of their providers and users. That's because these needs should always be the focus of the mobility ecosystem – whether in the choice of mode of transport or in parking, charging or sharing.

Financial transaction processes are an essential part of mobility transformation. This includes flexible billing models, digital dunning, and debt collection, while the fee models are just as varied as the services offered by mobility providers. Sharing services may be billed per kilometer, day, hour or minute, and prices may vary by time of day, with users billed after every journey or on a monthly basis.

Scalable technology platforms for satisfied customers

Scalable technology platforms allow these services to be provided and used in a frictionless and reliable manner. They cover all processes, from customer management to claims for payment. Moreover, digital payment systems offer shared mobility providers the possibility to reproduce all processes exactly. And they help reduce payment costs including default rates. Especially when it comes to smaller amounts, the better the sharing providers manage this process, the more effective they will be and the better the user experience.

Want to learn more about the future of mobility? Go ahead and listen to the recorded webinar with Don Dahlmann: