The mobility as a service (maas) market - France

1.2 Global market

Globally, the Mobility as a Service (***) market was worth US$***.** billion in ****. Over the period ****-****, the sector is expected to grow by *.*%, reaching US$***.** billion in ****[***].

evolution of MaaS market size Worldwide, ****-****, US$ billion Source: ****

This growth is expected to be driven by the growing demand for digital payment solutions, as well as by the craze for micro-mobility, i.e. over short distances and by light means of transport, such as bicycles and scooters. In addition, this concept of passenger transport has historically been encouraged by the Finnish government, which saw it as a means of promoting alternatives to the car, with a view to combating air pollution[***].

By ****, the sector could generate a quarter of total revenues in the transport market[***].

1.3 Domestic market

To estimate the size of the MaaS market in France, we're going to break down the mobility sector according to the means of transport it encompasses. Four segments will be selected and aggregated:

The VTC offer, generating *.* billion euros in ****[***] ; Public transport, including trains, buses and other means of public transport, generating ** billion euros in ****[***]; Micro-mobility, adapted to short or even very short journeys (***), which is booming, with sales of €*** million in ****[***] ; Shared mobility, representing ** million journeys in ****, or €*** million in sales[***].

MaaS platforms have a wide variety of monetization strategies, which makes it difficult to assess the sector's weight in software terms. However, based on the orders of magnitude mentioned above, we can estimate that MaaS will drive an urban mobility market equivalent to ** billion euros by ****. Of these figures, public transport is the least likely to grow, while micro-mobility is being rolled out nationwide.

The use of MaaS digital platforms is particularly prevalent in French metropolises, for which Cerema's MaaS Observatory has quantified the frequency of visits to sites or applications in its **** report on "Usages du MaaS":

Monthly audience for MaaS sites and applications France, ****-****, thousands of unique visits Source: ****

MaaS sites recorded one million unique monthly ...

1.4 Consequences of the health crisis

Public transport ridership fell by **-**% in all major cities in ****. Firstly because of confinement, then because of social distancing measures that have mechanically reduced bus, train and streetcar use.

However, the coronavirus crisis has catalyzed transformations in work and travel patterns. The health crisis proved to be a formidable growth lever for the deployment of MaaS. Demand for micro-mobility (***) is particularly strong. [***]

In addition, the crisis has reinforced the digitization of mobility operators. This is leading to ever-greater dematerialization of ticketing, which will result in the gradual disappearance of physical sales outlets. So, to the question "Have you seen an increase in the use of your digital services since Covid?", over **% of respondents answered "Yes".

Increase in use of digital services from Covid-** France, ****, % of total Source: ****

To bolster the public transport sector, the French government has provided *.* billion euros in financial support to transport companies in the Paris region, at a time when they were suffering a **% loss in sales. [***]

2.1 The multimodal platform as an alternative to the car

Faced with increasing urban density and the need to reduce CO* emissions, metropolises are looking to promote alternatives to the private car. MaaS is attracting the attention of public authorities, making it credible to sustain a multimodal public transport offer. Cerema has published two guides designed to encourage municipalities to promote soft mobility (***) in urban areas.

In fact, many municipalities have taken advantage of the health crisis to develop bicycle paths and pedestrian zones, measures that have been accepted by the French. The trend is therefore towards a gradual reduction in the use of private cars in city centers.

Acceptance of soft mobility measures implemented in city centers during the crisis France, ****, % (***) Source: ****

According to data collected by FreeNow, **% of Europeans would like to see a reduction in the number of cars on the road. In a city with ***% shared mobility, **% of the current car fleet would become redundant. This drastic reduction in the number of cars would make congestion a thing of the past in metropolises, as well as saving space on former parking spaces. [***]

2.2 The rise of micro-mobility

In recent years, micro-mobility has been the sector's most dynamic segment, with the deployment of electric scooters, bikes and scooters in most of France's major cities. In Europe, according to data collected by mobility services company FreeNow, these first two modes of transport saw a ****% increase in journeys between **** and ****, compared with ***% growth for scooters.

Increase in journeys by mode of transport Europe, ****-****, % of total Source: ****

increase in the size of the fleet available

***,*** in ****

Increase in sales of electric scooters France, ****-****, units and value in € thousands Source: ****

2.3 Trend towards sustainable urban transition

Reducing urban pollution is becoming a necessity as cities become ever denser and the planet warms up.

In an increasingly urbanized world, building new roads and parking spaces is not always the best solution when it comes to transportation: historically, it has only increased pollution and congestion in urban centers, making them less desirable. MaaS could therefore be the solution to making cities more liveable, at a time when some projections put the number of urban dwellers in the world at almost **% by ****.

evolution of global urbanization World, ****-****, % (***)

increase in the distances

awareness

green, sober transport

accounts for **% of greenhouse gas emissions

evaluation of the effects of the car and pollution France, ****, % of total Source: ****

2.4 A solution driven by the digitization of society

MaaS is based on IT systems that handle large quantities of data. Its deployment requires a number of prerequisites:

Widespread penetration of smartphones connected to *G and *G networks; High levels of connectivity; High-quality, reliable and up-to-date information on available routes and timetables; Online payment systems. [***]

Smartphone equipment rate France, ****-****, % [Deloitte Source: ****

MaaS could also benefit from the development of smart cities, and in particular from the massive investments currently being made in autonomous cars.TotalEnergies] Both trends are based on the objective of creating intelligent, shared and flexible mobility.

3.1 MaaS: a one-stop mobility shop

MaaS players aim to become the essential interface between transport providers and users. They are deploying a variety of business strategies to disseminate their offerings: while B*C is the most common formula, profitability is not always forthcoming, as competition with incumbent transport operators is fierce. MaaS companies are therefore increasingly exploring B*G (***) solutions, which correspond to consulting missions for decision-makers to help them deploy a MaaS strategy in their territory, or B*B, in the form of mobility packages paid for by companies for their employees, often replacing company cars. [***]

Source: ****

3.2 Future prospects for MaaS

To answer the question "Which MaaS model will succeed?", Capgemini proposes four possible scenarios:

Source: ****

4.1 A wide range of billing options

What's special about the MaaS offering in France is that, for the moment, it's still largely free. There is no charge for using Waze or Citymapper, and it is not yet possible to make a direct transaction to obtain a travel pass or ticket. This is why Waze, owned by Google, makes its money by selling its data to the advertising industry.

The reason is that incumbent transport providers are resisting these new players in the mobility sector, and are offering their tickets and season tickets on their own platforms, as is the case with SNCF and RATP. It may therefore be interesting to examine successful billing models and other value-added projects in progress:

Source: ****

4.2 Continuous addition of new services

To meet their users' strong demand for simplicity, digital mobility service platforms are constantly adapting their offerings. In a Cerema **** report on the uses of MaaS, **% of local authorities and operators surveyed answered "Yes, in the next two years" to the question "Are you planning to enhance your digital services with new services and/or new functionalities?".

Strong diversification of digital offerings in the mobility sector France, ****, % of total Source: ****

which area

New services envisaged France, ****, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

5.1 European and French legislation governing MaaS

In Europe, MaaS is governed by numerous laws:

Source: ****

In France, the Mobility Orientation Law n°****-**** (***) has several effects:

Complementing the MMTIS regulation to deepen data openness (***) ; New rights and obligations for Digital Multimodal Services (***); Confer a supervisory role on the Autorités Organisatrices de moobilité (***); Confer supervisory and control powers on the Transport Regulation Authority (***).

6.1 Segmentation

Jana Sochor's work, "A topological approach to Mobility as a Service: A proposed tool for understanding requirements and effects, and for aiding the integration of societal goals" (***), identifies different actors according to the nature of the service they offer [***]:

• Société nationale des chemins de fer français (SNCF)
• Google
• Citymapper
• Waze
• RATP
• Transdev
• EasyMile
• Ubitransport
• BlaBlaCar
• Coyote
• Europcar
• STEP (Hype)
• Zity
• Dance Vélo
• Plume Mobility
• Smovengo Velib
• Otoqi