Research warns that until users trust the proposition of a subscription-based transport service, mobility-as-a-service platforms must ensure pricing models are flexible.
Juniper Research forecasts that subscriber revenue for mobility-as-a-service (MaaS) platforms will generate $53bn in subscriber revenue, rising from $5.3bn in 2021, marking a 900 per cent increase by 2027.
The research identified a monthly subscription model as key to increasing adoption of MaaS among consumers.
The analyst cautioned though that, until users trust the proposition of a subscription-based transport service, MaaS platforms must ensure pricing models are flexible, for instance, by offering pay-as-you-go journeys and short-term subscriptions.
MaaS is the provision of multimodal end-to-end travel services through single platforms, by which users can determine an optimal route and price.
The report, Mobility-as-a-Service: Business Models, Vendor Strategies & Market Forecasts 2021-2027, recommends that platform providers leverage account-based ticketing to provide flexible pricing models. Account-based ticketing allows travellers to be billed on account, with smartphone apps, travelcards, and wearables used to prove travel eligibility.
The research also highlights that account-based ticketing will require significant digitalisation of transportation networks, which is already widespread in Europe and Asia Pacific. It accordingly predicts that more than 85 per cent of MaaS subscriber revenue will be attributable to these regions by 2027.
“Account-based ticketing is an essential prerequisite for MaaS, given that it enables multimodal interoperability and supports the accurate apportionment of revenue between transport operators, both of which are key to driving mobility partnerships and buy‑in from local authorities,” said Adam Wears, author of the report.
The report also forecasts that business travellers globally will use MaaS platforms to complete 25.7 million business trips annually by 2027, as companies look to minimise spend associated with corporate travel, such as fleet maintenance.
It highlights, however, that for the financial benefits of these programmes to be appreciable, businesses must have a high level of travel spend and a large number of employees.
It therefore recommends that when targeting this segment, MaaS platforms emphasise the societal benefits of their offerings, to attract corporations looking to reinforce their environmental credentials.
Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.
Source: IOT NETWORK NEWS