The Business Case for a Journey Planning and Ticketing App—Comparison between a Simulation Analysis and Real-World Data

Gillian Harrison, Astrid Gühnemann and Simon Shepherd
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Gillian Harrison: Institute for Transport Studies, University of Leeds, Leeds LS2 9JT, UK
Astrid Gühnemann: Institute for Transport Studies, University of Natural Resources and Life Sciences (BOKU), Peter Jordan Strasse 82, 1190 Vienna, Austria
Simon Shepherd: Institute for Transport Studies, University of Leeds, Leeds LS2 9JT, UK

Sustainability, 2020, vol. 12, issue 10, 1-21

Abstract: Successful development of “Mobility-as-a-Service” (MaaS) schemes could be transformative to our transport systems and critical for achieving sustainable cities. There are high hopes for mobile phone applications that offer both journey planning and ticketing across all the available transport modes, but these are in their infancy, with little understanding of the correct approach to business models and governance. In this study, we develop a system dynamics diffusion model that represents the uptake of such an app, based on one developed and released in West Yorkshire, UK. We perform sensitivity and uncertainty tests on user uptake and app operating profitability, and analyse these in three key areas of marketing, competition, and costs. Comparison to early uptake data is included to demonstrate accuracy of model behaviour and would suggest market failure by month 12 without stronger marketing, even if additional tickets and functions are offered. In response to this, we offer further insights on the need for direct targeted marketing to ensure mass market adoption, the importance of understanding a realistic potential adopter pool, the awareness of competing apps, and the high uncertainty that exists in this market.

Keywords: system dynamics; mobility-as-a-service; mobile phone application; business models (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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