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Competition effects of MaaS investigated

MOBILITY

20 July 2018
 

The DfT is commissioning a study of the competition implications of mobility aggregator platforms, such as Mobility as a Service (MaaS) and ride-hailing apps. 

“The rise of mobility aggregator platforms could result in significant opportunities for consumers, for example through reduced transaction costs, increased accessibility, and better journey planning information,” says the tender notice. “Multimodal mobility aggregators, such as MaaS-type business models ... could also improve transport network efficiency, for example through the promotion of on-demand and shared mobility, which could enable more efficient asset utilisation and reduced costs.” 

But the DfT says the platforms also “pose a number of potential competition risks”. “These could include market advantages in access to data, which allow companies with access to existing data sources a first-mover advantage over potential competitors. 

“Consumer capture may also occur if incumbents are able to provide significantly higher service quality (through for example coverage or response times), increasing barriers to entry for new players. 

“Consumers encounter frictions when setting up accounts with new providers, which could reduce willingness to switch providers,” it adds.

The UK’s first MaaS service was launched in Birmingham in April by Whim (LTT 3 Apr). For £99 a month Whim Everyday offers unlimited use of public transport in the West Midlands conurbation (train, tram, bus), a maximum price of £49 a day for Enterprise car hire, and use of the conurbation’s soon-to-launch public bike hire scheme. 

Whim Unlimited is priced at £349 and offers unlimited public transport within the conurbation; unlimited taxi rides via the Gett Taxi app within a three-mile pick-up of Birmingham city centre; unlimited Enterprise car hire; and access to the bike hire scheme. 

Whim is promising a Whim Everyday bus-only payment plan.  

Specialist Transport Services Manager
Warrington Borough Council
Warrington
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Specialist Transport Services Manager
Warrington Borough Council
Warrington
GRADE 13 (£58,797 - £63,735)
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Wigan Council
Wigan
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