Mobility-as-a-Service is next disruptive wave in smart mobility

SINGAPORE cemented its status as a pioneer in smart-mobility innovation in 1975, by becoming the world's first user of road pricing to reduce congestion. This was done by the government through the introduction of the Area Licensing Scheme (ALS), aimed at managing the growing traffic congestion in the Central Business District resulting from rising car ownership.

Smart mobility encompasses transport solutions aimed at reducing urban congestion and fostering more convenient, cheaper and more sustainable transportation options. Despite being a long-standing concept, it is clear that the smart-mobility movement has accelerated only in the past decade (no pun intended). This is particularly evident in the rise of mobility players such as Uber and Grab, which have disrupted the transportation industry by offering improved commuter convenience and experience, and, in some cases, a means to reduce congestion in cities.

So what is fundamentally driving this recent flurry of activity in the mobility space? We observe a common pattern emerging in cities where significant mobility disruption has occurred. Firstly, at the core is a demand-supply gap, creating a market need for innovative transport solutions. Transport demand is increasing, fuelled by rapid urbanisation and a greater diversity of travel journeys by time of day, destination of travel and commuter spending capacity. On the supply side, conventional public transport infrastructure is, by nature, relatively fixed.