DELOITTE - Digital-Age Transportation by riteshbhansali


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The Future of
Urban Mobility
Digital-Age Transportation: The Future of Urban Mobility

About the author
             Tiffany Dovey Fishman
             A manager with Deloitte Research, Deloitte Services LP, Tiffany Dovey Fishman is responsible
             for public sector research and thought leadership for Deloitte’s public sector industry practice.
             Her research focuses on how emerging issues in technology, business, and society will impact
             public sector organizations. She has written extensively on a wide range of public policy and
             management issues and her work has appeared in a number of publications, including Public
             CIO, Governing and EducationWeek. Tiffany can be reached by email at
             or twitter @tdoveyfishman.

             A number of Deloitte colleagues generously contributed their time and insights to this report,
             including: William Eggers, Allen Hockenbury, Jessica Blume and Felix Martinez of Deloitte
             Services LP; Jim Ziglar of Deloitte Financial Services LLP; Stephen Keathley, Jim Templeton,
             Alene Tchourumoff, Bryan Rodda and Matthew Bulley of Deloitte Consulting LLP; and Ian
             Simpson of Deloitte UK.
             The report benefited immensely from the insights of Sean O’Sullivan of Avego, Chris Borroni-
             Bird of General Motors, Paul Minett of the Ridesharing Institute, Marcus Bowman of 3G
             Mobility, LLC, Jeffrey Chernick of RideAmigos Corp, Rob Zimmer of Battelle, Susan Grant-
             Muller of the Institute for Transport Studies at University of Leeds, Ryan Popple of Kleiner Perkins
             Caufield & Byers, Kari Watkins of the Georgia Institute of Technology, and Susan Shaheen of the
             Transportation Sustainability Research Center at the University of California, Berkeley, and from
             the writing talents of Rob Gurwitt.
             In addition, thanks go to all of the innovators, policymakers, technologists, and subject matter
             experts at the forefront of the transformation of mobility who participated in Deloitte’s session on
             the future of transportation.
             Lastly, thanks must be extended to Troy Bishop of Deloitte Services LP for the development of the
             report’s layout and infographics and to Aditi Rao of Deloitte Support Services India Pvt Ltd for the
             copy editing of the report.
Foreword | 2

Executive summary | 3

Introduction | 6

Features of digital-age transportation systems | 11

Three scenarios for digital-age transportation | 23

Looking ahead | 35

Appendix: Forum participants | 36

Endnotes | 38

Digital-Age Transportation: The Future of Urban Mobility


             C    HANGE is coming to transportation,
                  whether we’re ready for it or not. You can
             see it in automakers’ focus on next-generation
                                                               contain if we take full advantage of the techno-
                                                               logical and organizational breakthroughs that
                                                               are already apparent.
             vehicles, in the arrival of services that help        This report builds from that session. It
             urbanites get around without owning a car, in     consists of three parts: a brief discussion of the
             the widening recognition that the “informa-       forces and innovations that underlie the quick-
             tion everywhere” world will utterly disrupt the   ening pace of change; the basic features of the
             transportation status quo.                        coming system that are likely to shape the ways
                 Every feature of the automobile, from its     in which we get around; and three different—
             drive train to its communication with the         though often complementary—scenarios for
             world around it, is being rethought. “Smart       what that system might look like. Its purpose is
             infrastructure” projects are becoming com-        not to discern the details of the future. Instead,
             monplace. Sharing rides, bikes, and cars and      it recognizes that the future is fast approaching
             other entrepreneurial business models are         and that whatever it looks like, the regulatory,
             spreading, built on the recognition that empty    tax and funding structures we rely on today
             car seats and idle vehicles form an immense       were built for a transportation system that is
             “wasted asset.” The ability to gather road and    being superseded. To be sure, infrastructure
             transit mobility data—from smartphones or         itself is notoriously slow to evolve—whether it’s
             dedicated transceivers—and push informa-          expanding in the face of congestion or adapt-
             tion back to users is changing everything         ing to new transport capabilities—and on that
             from infrastructure planning to commuters’        front change is arriving more slowly.
             daily experience. The question of who pays            But new ways of using existing infrastruc-
             for transportation—and how, and under what        ture more efficiently are coming on the scene
             circumstances—has become ever more lively as      with great speed. They offer the chance to
             the ability to track vehicles and to use elec-    rethink our mobility challenges—and prepare
             tronic means of payment spread.                   for a transportation system undergirded by a
                 With all this in mind, Deloitte convened a    very different set of features from the one we
             session following the Transportation Research     grew up with. The challenge that policymak-
             Board’s 2012 annual meeting in Washington         ers face—and that everyone from auto manu-
             DC to consider the various permutations           facturers to transit officials to for-profit and
             of what lies ahead. The session included a        nonprofit entrepreneurs confront every day—is
             distinguished array of transportation vision-     how to respond. This report is an effort to
             aries, thinkers and doers (see appendix for       begin to lay out an answer.
             a full list of participants). The wide-ranging
             and thought-provoking discussion produced         William D. Eggers
             intriguing points of agreement about the fea-     Global Director, Public Sector Research
             tures and qualities that the coming transporta-   Senior Advisor, GovLab
             tion system might contain—or, at least, might

Executive summary

I NCREDIBLE innovations within the trans-
  portation sector are being driven by the
growing recognition that cars, once synony-
                                                    go from conception to delivery. Yet there are
                                                    innovative new ways of making more efficient
                                                    use of existing infrastructure already coming
mous with freedom and ease of mobility, have        onto the scene.
become a victim of their own success. In cities         With this in mind, Deloitte convened a
around the world, congestion is undermin-           distinguished array of transportation visionar-
ing mobility, imposing huge costs not just on       ies, thinkers and doers to consider the various
commuters or people out                                                     permutations of what
to run a simple errand                                                      lies ahead. The wide-
but on society as a whole.
According to the Texas
                                 The arrival of                             ranging and thought-
                                                                            provoking discussion
Transportation Institute,
the average American
                                 the “information                           produced intriguing
                                                                            points of agreement
commuter spent 34
hours delayed in traffic in
                                 everywhere” world                          about the features and
                                                                            qualities that the coming
2010, up from 14 hours
in 1982. If things don’t
                                 has opened up new                          transportation system
                                                                            might contain—or, at
change, commuters can
expect to spend more
                                 opportunities to                           least, might contain if
                                                                            we take full advantage
than 40 hours annually
sitting in traffic by 2020.1
                                 make the existing                          of the technological
                                                                            and organizational
All told, the annual cost
of congestion in America
                                 transportation                             breakthroughs that are
                                                                            already apparent.
alone now exceeds
$100 billion.2
                                 network far more                               The arrival of the
                                                                            “information every-
    The problem that
confronts transportation
                                 efficient and                              where” world has
                                                                            opened up new oppor-
planners is that adding
new infrastructure capac-
                                 user friendly.                             tunities to make the
                                                                            existing transportation
ity to relieve conges-                                                      network far more effi-
tion is notoriously slow                                                    cient and user friendly.
and costly. Given the environmental issues          Coupled with new transportation capacity, the
to be explored, land to be acquired, permits        changes spurred by technological change and
obtained, people moved, and construction            the innovations it inspires will help preserve
undertaken, it can take years, if not decades, to   freedom of mobility in the 21st century.

Digital-Age Transportation: The Future of Urban Mobility

                  Services like real-time ridesharing and car                 access, consume, create and share information
               sharing, for instance, are helping urbanites get               with other vehicles and surrounding infra-
               around without owning a car—and are mak-                       structure in real time—improving traffic flow
               ing the private vehicle a de facto extension of                and safety. And dynamic pricing mechanisms
               the public transportation system. New apps                     for roads, parking spaces and shared-use assets
               are allowing commuters to compare the time,                    are helping balance supply and demand, much
               cost, convenience, carbon footprint and health                 the same way the airline and hotel industries
               benefits across all modes of public and private                have been pricing seats and rooms for years.
               transport, broadening their range of choices                       The result of these innovations—and of the
               and allowing for on-the-fly decision making                    ecosystem of creative players that have been
               that takes into account real-time conditions.                  drawn to transportation, from information
               For their part, automakers are focused on                      technology companies to ridesharing pioneers
               next-generation “connected vehicles” that can

Figure 1. Preparing for the future urban transport system: A roadmap for public transportation officials

                                                                             LEVERAGE THIRD PARTY TRAFFIC DATA
                                                                             and analytics for real-time traffic management
SHIFT FROM A CULTURE in which state and                                      and incident response
local transportation department employees
identify as ‘builders of transportation                                        New Jersey uses a crowdsourced traffic data
infrastructure assets’ to one in which                                         solution that gives the state real-time visibility into
agency employees view their role                                               traffic conditions across the state road network.
more broadly as ‘managers of the
transportation network’

                                                                                            PUBLISH PUBLIC TRANSPORTATION DATA
                                                                                            as a GTFS feed
    DEVELOP MULTIMODAL TRIP PLANNERS                                                           City-Go-Round provides the public with
    to help citizens compare all modes of                                                      access to useful transportation apps that
    public and private transport                       OPTIMIZE THE                            have been developed using open
      Century City’s “Virtual TMO” allows            PERFORMANCE OF                            government data.
      commuters to compare the time, cost,             THE NETWORK
      convenience, carbon footprint, and health
      benefits of different modes of public and                                                    EXAMINE HOW EXISTING BUSINESS
      private transport.                                                                          MODELS CAN BE RE-IMAGINED
                                                                                                  in light of digital disruption
                                                                                                      Boston’s “Street Bump” app uses
                                                                                                      smartphones to identify potholes
                                                                                                      and streets that need repaving as
                                                                                                      their owners drive over them.

     PUT LEGISLATION IN PLACE                                                                             CHANGE THE METRICS
     to promote new forms of                                                                              from vehicle throughput to
     public-private collaboration                                                                         people throughput to reinforce
                                                                                                          a broader view of mobility
        In 2012, the U.S. Congress expanded the definition
        of carpool projects to include real-time ridesharing.
                                                                         ADOPT A
PROMOTE NEW MULTIMODAL payment mechanisms to
facilitate easy transfers across different modes
    Singapore’s ez-Link card allows for secure, contactless payments for                          TIE TRANSPORTATION FUNDING
    buses, trains, and certain taxi services; drivers can use the card for                        to improvements in overall
    electronic road pricing and electronic parking system payments.                               transportation system performance

to app makers—is that the mobility field will                       •	 Reliant on new models of private-public
look very different going forward. It will be:                         collaboration, which take advantage of the
 •	 Massively networked, with ubiquitous con-                          increasingly diverse ecosystem of public,
    nectivity throughout the system                                    private, and nonprofit entities that are
                                                                       working to meet the mobility challenges of
 •	 Dynamically priced, so as to balance sup-                          the 21st century
    ply and demand
                                                                      To take advantage of these innovations,
 •	 User centered, taking into account users’                      policymakers must start laying the ground-
    needs, priorities, data flows, and dynamic                     work for a digital-age transportation system
    responses to conditions                                        (see figure 1).
 •	 Integrated, so that users can move eas-
    ily from point A to point B, regardless of
    mode, service provider, or time of day

                  to new mobility services
                     California passed legislation designed to facilitate
                     personal vehicle sharing arrangements, exempting
                      automobile owners from insurance regulations                              PROTECT CITIZENS
                            that prohibit the rental of personal vehicles                       by understanding the privacy
                                  to others unless the car is classified as                      issues related to location-based
                                       a livery vehicle.                                        data, and developing adequate
                                                                                                privacy safeguards with a focus on
                                                                                                educating citizens and consumers
                                                                                                about what data is being collected
                                                                                                and how it’s being used
                                                                                                   The White House’s digital privacy
                                                                                                   framework and “consumer
                                                                                                   privacy bill of rights” are helping
                                                                                                   to shape the U.S. federal
ADDRESS THE                                                                                        government’s response to the
CYBERSECURITY ISSUES                             LAY THE GROUNDWORK                                ongoing challenges of privacy in
related to connected                                                                               the digital age.
                                                 FOR NEXT-GENERATION
vehicle technology
                                                     VEHICLES AND

         AND REGULATORY FRAMEWORKS                                           pilots to balance supply of road and
         for the development, testing and operation                          parking assets with demand
         of next-generation driverless vehicles                                 San Francisco’s SFpark program uses networked
            California, Nevada and Florida have passed                          parking meters to sense the occupancy of each
            autonomous vehicle legislation.                                     space in real time and communicate it—not just
                                                                                to potential parkers, but to parking managers
                                                                                who can adjust prices based on demand.

Digital-Age Transportation: The Future of Urban Mobility


             Y     OU might begin by asking the question,
                   “Who says that the current transportation
             system is being superseded by a new one?” For
                                                                    Yet this does not mean that the future is
                                                                secure for gasoline-powered automobiles that
                                                                can carry at least five people and a trunkful
             most people in the United States, this doesn’t     of luggage but usually don’t. There are power-
             seem to be the case. Americans, for example,       ful forces at work changing the average trip
             take 1.1 billion trips a day, according to the     taker’s—and car buyer’s—calculus.
             federal Bureau of Transportation Statistics,           For one thing, the world as a whole is
             and the vast majority of them are on roads and     urbanizing: the United Nations expects that
             highways: 87 percent of trips are in personal      60 percent of the global population will live
             vehicles (cars or light trucks) unless you’re      in urban areas by 2030, and residential den-
             just talking about commuters, in which case        sity generally means reduced vehicle owner-
             the figure rises to 91 percent.3 There’s nothing   ship. In the United States, nearly 85 percent
             new there.                                         of Americans are expected to live in urban
                 Nor does it look like the automobile is        areas by 2020, with over a quarter of them
             going to be replaced anytime in the foresee-       living in areas with more than five million
             able future as the “personal vehicle” of choice.   people.6 Failure to create smaller, cleaner and
             As Chris Borroni-Bird, director of Advanced        smarter vehicles for dense cities, Borroni-Bird
             Technology Vehicle Concepts at General             observes, “may result in declining automobile
             Motors (GM), puts it, “No other means of           ownership as cities may take further actions
             transportation offers the same valued combi-       to promote bicycle and public transport
             nation of safety, comfort, convenience, utility    usage and to deter usage of conventional
             and choice of route and schedule.”4 Americans      automobiles.”7
             go every which way every day, and cars help us         There is a robust debate among thinkers
             get where we want to go when we want to go.        focused on the urban future about whether the
             Whether because of personal choice or com-         growth of central cities like Atlanta, Chicago,
             munity design, the vast majority of Americans      and San Francisco represents a permanent
             consider everything else—at least for their        shift away from the auto-dependent suburb
             daily trips—a second-best option. Between          or reflects a mere subset of relatively affluent,
             1990 and 2009, personal vehicle use remained       college-educated elites who are separating
             the transportation mode of choice, accounting      themselves from the middle-class majority that
             for 83.4 percent of trips in 2009.5                prefers the suburbs. To at least one venture

capitalist betting on the future, the trends                         creating an increasingly serious problem for
favor density. “Transportation is becoming                           businesses that rely on efficient production
an increasingly wasteful and unsatisfactory                          and deliveries.9 The annual cost of congestion
experience,” says Ryan Popple, a partner at the                      now exceeds $100 billion.10 And this was all
venture capital firm of Kleiner Perkins Caufield                     in the midst of a recession; the problem will
& Byers (KPCB). “If you look at where young                          only get worse once the economy is working
people want to live when they’re coming out of                       at full steam (see figure 2). Efforts to improve
school, where a lot of businesses are setting up                     matters by building or widening roads can take
and where real estate has maintained value, it’s                     years to get into the funding pipeline, much
around more efficient lifestyles. Time is more                       less complete.
valuable. People want to live closer to where
they work.”8
    This may be because, whether within cit-
                                                                     New transportation landscape
ies or in the expansive suburban ring around
them, the United States, as well as other coun-                      W       HAT is most striking about the mobil-
                                                                             ity world these days, however, is not
                                                                     that people are being forced to change their
tries, has shown little ability to get a handle
on traffic congestion. According to the Texas                        behavior, but that the enticements to change
Transportation Institute, the average American                       are growing exponentially. New possibili-
commuter spent 34 hours delayed in traffic in                        ties and opportunities are transforming the
2010, up from 14 hours in 1982. Congestion                           transportation landscape (see figure 3). These
is becoming a bigger problem outside of                              range from the technological (the rise of social
‘rush hour,’ with about 40 percent of the delay                      networking and peer-to-peer networking, the
occurring in the mid-day and overnight hours,                        spread of smartphones, and the development

Figure 2. The cost of congestion in the United States


                                                       ANNUAL COST OF CONGESTION

                                      2010                                 2015                          2020
Source: 2011 Urban Mobility Report, Texas Transportation Institute

Digital-Age Transportation: The Future of Urban Mobility

“    If we do nothing, the sheer number of people and
cars in urban areas will mean global gridlock. Now
is the time for all of us to be looking at vehicles the
same way we look at smart phones, laptops and tablets:

as pieces of a much bigger, richer network.
— Bill Ford, executive chairman, Ford Motor Company

             of connected vehicle technology) to the cul-       vehicles’ that access, consume, and create
             tural (growing willingness—especially among        information and share it with drivers, pas-
             younger Americans but by no means limited          sengers, public infrastructure, and machines
             to them—to engage in so-called “collaborative      including other cars.”11
             consumption”) to the entrepreneurial (the rec-         San Francisco’s SFpark program has
             ognition that governments alone are unable to      installed sensors in the street below thousands
             solve mobility challenges opens huge opportu-      of parking spaces and in garages, collects
             nities for business).                              the information, and makes it available to a
                 These changes are promoting new modes          Website and app allowing drivers to get real-
             of transport, from next-generation autono-         time data about open spaces. Waze relies on
             mous, connected vehicles under development,        its users to crowdsource road conditions and
             to an array of new services: renting fractions     show real-time information about speed, traf-
             of a Zipcar’s time; using Avego to share rides     fic jams, directions, and even the location of
             with strangers or GoLoco to share them with        speed traps.
             friends; using peer-to-peer car sharing services       The arrival of “big data” is helping traffic
             like RelayRides or Getaround, and new, on-         control centers respond more quickly to acci-
             demand car services like Uber.                     dents and backups, while helping individual
                                                                travelers navigate their moment-by-moment
                                                                decisions. According to David Hornik, a
             Digital-age transportation                         general partner at venture capital firm August

             T    HE most revolutionary changes are com-
                  ing from the encounter of information
             technology (IT) with... well, you name it.
                                                                Capital, “Everything is a big-data problem
                                                                right now. [T]he biggest change is that every
                                                                device, every vehicle, everybody is manufac-
             According to Thilo Koslowski, who leads the        turing huge amounts of information.”12 Cities
             automotive practice at the Gartner Group,          are beginning to use the digital exhaust gener-
             “Similar to the way telephones have evolved        ated from these devices in powerful new ways.
             into smartphones, over the next 10 years           Boston, for example, developed an app called
             automobiles will rapidly become ‘connected         Street Bump that uses smartphones to identify

Figure 3. Battling urban gridlock

There’s no silver bullet solution to the problem of gridlock—next generation
urban transport systems will connect transportation modes, services, and
technologies together in innovative new ways that pragmatically address a
seemingly intractable problem.

                          CAR SHARING              RIDE SHARING

(DISCOUNTS, TRAVEL                                                  SMART
  VOUCHERS, ETC.)                                                  PARKING
                                           P2P CAR

                                                                                REAL-TIME TRAFFIC

                                                                                     ROAD USER
 PERSONAL TRAVEL                                                                     CHARGING

                                    BIKE SHARING

         MULTI-MODAL                                                                CONNECTED
        TRANSPORTATION                        REAL-TIME TRAVELER                     VEHICLES
           SOLUTIONS                             INFORMATION

Digital-Age Transportation: The Future of Urban Mobility

             The challenge, then, is to harness the extraordinary
             innovation taking place to make far more efficient
             use of the existing transportation system.

             potholes and streets that need repaving as their     services, bus and light rail arrival apps, parking
             owners drive over them.                              space sensors are all making getting around far
                 There is no aspect of travel that is not being   easier than ever before.
             transformed by IT. Route planning, finding               This does not, however, mean that we’ve
             one’s way while in the car or on foot, collect-      figured out how to use these developments
             ing fares or tolls, congestion and road pricing,     to make travel uniformly more enjoyable
             traffic management, deciding among different         or convenient. “Despite the proliferation of
             transportation options for a given trip, reduc-      innovation across [the transportation sector],
             ing trips through telecommuting—all are              holistic solutions are just not coming together
             evolving at dizzying speed.                          in a way that works for the user door to door,”
                 Many of the innovations affecting trans-         notes Susan Zielinski, managing director of the
             portation are geared toward giving individu-         Sustainable Mobility & Accessibility Research
             als greater choice in how to get around. GM’s        & Transformation (SMART) program at the
             prototype autonomous electric vehicle, the           University of Michigan.14
             EN-V, isn’t likely to become the only vehicle            The challenge, then, is to harness the
             people own, Borroni-Bird said, but “maybe            extraordinary innovation taking place to make
             you have a larger vehicle and then for a large       far more efficient use of the existing trans-
             fraction of your trips—say for driving around        portation system. Just what that will look like
             the city center—you own or share a second,           is uncertain. But, it is certain to have some
             small vehicle.”13 Ridesharing services, mapping      basic features.

Features of digital-age
transportation systems

G     IVEN the pace of innovation and the sheer
      complexity of transportation systems, it
is foolish to venture hard-and-fast predictions
                                                   to know when the next possible ride is com-
                                                   ing along. Planners and financial officers need
                                                   to know how much it costs to operate a given
about exactly what these systems will look         stretch of road or transit route at any given
like in coming years. But several key themes       time of day.
are emerging—not so much predictions as                In a real sense, information under-
extrapolations from current developments.          girds mobility. So it shouldn’t be a surprise
    To take advantage of emerging technolo-        that the movement of networked IT into
gies, broader social shifts and new business       everyday objects—the so-called “Internet
models, a reenvisioned urban transportation        of Things”—creates vast possibilities for
system is likely to have five key features (see    reimagining mobility.
figure 4).
                                                   Networked cars
Massively networked                                   The Internet of Things is already transform-
                                                   ing automobiles.15 Though automakers have

I NFORMATION is as much a part of the basic
  infrastructure of transportation as roads
and rails are. Travelers need to know where
                                                   focused much of their attention on connecting
                                                   cars to existing voice and data networks, the
                                                   real payoffs will come as vehicles become capa-
they are and how to get where they want to go,
                                                   ble of sensing each other, and their surround-
whether on foot, by bike, by car, or by transit.
                                                   ings and of communicating with their drivers,
Traffic managers and drivers want up-to-the
                                                   each other and the infrastructure around them.
minute data on accidents, weather conditions,
                                                      The true value of these technological
and traffic flows. Transit passengers want to
                                                   advances lies not so much in their technology,
know when the next bus or train will arrive
                                                   however, as in their being networked. As Paul
and how to get where they’re going once
                                                   Didier, a manufacturing solutions architect at
they’re dropped at their stop. Ridesharers want
                                                   Cisco, puts it, “The value of devices (and the

Digital-Age Transportation: The Future of Urban Mobility

Figure 4. Key features of digital-age transportation systems

                    MASSIVELY                                          USER CENTERED
                    NETWORKED                                         A mobility paradigm
                Ubiquitous connectivity                            centered around the user’s
        throughout the transportation system                       needs, priorities, data flows
      between vehicles (V2V), between vehicles                       and dynamic responses
      and their surrounding infrastructure (V2I),
            and between transportation
               systems and their users

        A well-connected
     system of systems that
     enables users to easily
      move from point A to
      point B regardless of
          mode, service
          provider, etc.

                             ICALL                                       ON NEW
                      DY NAM D
                          PRICE of road,
                                                                     OF PUBLIC-PRIVATE
                     Va riable nd shared ply                          COLLABORATION
                            ng a        sup
                      parki o balance                          Transportation needs will be met by
                            s t         d
                      asset nd deman                           an increasingly diverse ecosystem of
                                                               public, private and nonprofit entities

capabilities they represent) increases exponen-        More advanced communication capa-
tially when they can communicate with other        bilities are not far off. The US Department of
devices and systems.” Sensing an obstacle in       Transportation (USDOT) has been working
the road, he points out, does no good without      for close to a decade to seed V2V technology
letting the driver know the obstacle is there or   development with an eye toward improv-
signaling the brakes or steering system to take    ing safety—trying to define standards, work
action. Even better would be alerting other        with automakers and IT firms to craft pilot
cars and transportation authorities that there’s   programs, and deploy enough models to
a problem. “I like to think of it as on-machine,   determine whether the technology works as
between machines and machine-to-cloud (or          hoped.19 In August 2012, the USDOT launched
data center) communication,” Didier says.16        the largest road test of connected vehicle crash
    The benefits of linking cars’ informa-         avoidance technology to date. The National
tion—speed, direction, sudden braking—and          Highway Traffic Safety Administration will use
essentially creating safer, more efficient, and    the data collected from the first-of-its-kind
more orderly traffic on the road are signifi-      test to assess if and when connected vehicle
cant. As executive chairman of Ford Motor          safety technology should be incorporated into
Company Bill Ford describes it, “It will be the    the fleet.20
closest thing the industry has ever developed
to autopilot.” Moreover, he argues, “such ad       Benefits of a smart
hoc vehicle networks could be integrated with      transportation network
other transportation networks, from pedes-            While automotive advances are reshaping
trian cross-walk systems to connected bicycles,    the driving experience—ultimately, perhaps,
making your car a single node in a giant grid      turning drivers into de facto passengers—
of multi-modal transit intelligence.”17 Ford is    opportunities for transformation are arriv-
among the automakers developing “adaptive          ing on the heels of the explosion of mobile
cruise control” (ACC) systems, which automat-      technology and especially the rapid spread of
ically keep a set distance between a car and the   smartphones. In a sense, formerly clear lines—
vehicle in front of it. Simulations have found     between humans and machines, between
that certain traffic jams could be prevented       ownership and nonownership, between goods
by harmonizing speeds and smoothing driver         and services—blur when information gener-
reactions if 20 percent of vehicles on a highway   ated and used interchangeably by people and
were equipped with advanced ACC.18                 machines becomes ubiquitous.

In a sense, formerly clear lines—between
humans and machines, between ownership and
nonownership, between goods and services—blur
when information generated and used interchangeably
by people and machines becomes ubiquitous.

Digital-Age Transportation: The Future of Urban Mobility

             New transport models made possible by mobile
             phones, apps, and smart card technology, like
             car sharing, are taking a good that sits idle most
             of the time and turning it into something else.

                 Social media, in particular, creates all sorts   director Sean O’Sullivan. “All these approaches
             of new possibilities. Susan Grant-Muller, direc-     are enabled by cheap, connected computers.”
             tor of research at the Institute for Transport          The models enabled by a networked sys-
             Studies at the University of Leeds, argues that      tem have great potential to deliver concrete
             social media turns travelers both into consum-       financial benefits to society. By Deloitte’s
             ers of information and a particularly useful         calculations, doubling the number of rideshare
             form of sensor. “With mobile technology,” she        commuters (which would simply bring the
             says, “it’s possible for people to build up pro-     percentage back up to 1970 levels) and shifting
             files of our transport behavior.”21                  10 percent of lone drivers to car sharing, could
                 New transport models made possible by            take nearly 16 million lone drivers off the road
             mobile phones, apps, and smart card technol-         and save 757 million hours annually wasted in
             ogy, like car sharing, are taking a good that sits   congestion. Carbon dioxide emissions would
             idle most of the time and turning it into some-      decline by roughly 2 percent in the United
             thing else. “You have to think of [the vehicle]      States alone. If the government tried to match
             as a service now,” said Adam Greenfield,             these savings by building new public transit,
             managing director of the boutique design             the bill would run over $27 billion.23
             firm Urbanscale. “It is not so much a product
             in space and time but... a proposition that is
             accessible by multiple people, at different rates
                                                                  Dynamically priced
             and different times. Eight, ten or twelve people
             can use that car.”22                                 T    ODAY’S consumers do not bear the true
                                                                       costs of mobility, and the consequences of
                                                                  this are profound. As Cisco’s Andreas Mai and
                 A massively networked system is already
             creating new ways of maximizing the potential        Dirk Schlesinger observe:
             of existing vehicles and infrastructure. This         •	 We consume as much as we can because we
             system is the linchpin of the entire “collabora-         perceive [road and traffic services] as “free.”
             tive consumption” movement, allowing Zipcar,          •	 Because the true cost of the inflated demand
             Getaround, Avego, and their counterparts                 is not recovered, the public service provider
             in other countries to operate. “It’s taking the          is underfunded.
             weight of the $8,000 a year we all spend on our
                                                                   •	 The resulting demand/supply imbalance
             cars and sharing the costs among the people
                                                                      cripples road infrastructure and significantly
             actually using them,” says Avego managing
                                                                      inflates the societal cost of mobility.24

    In its final report, the National Surface       fine-grained in their spatial resolution, and fre-
Transportation Infrastructure Financing             quent in their adjustment of prices as conges-
Commission wrote, “All too often the prices         tion levels fluctuate.”28
paid by transportation system users are
markedly less than the costs of providing the       Parking lessons
transportation services they use (including             While dynamic pricing may still be in
pavement repair)—much less the total social         the future when it comes to driving, it’s fast
costs (including traffic congestion and pollu-      arriving for parking. Donald Shoup, an urban
tion).”25 In 2006, the report noted, user fees,     planning professor at University of California,
including the gas tax, covered just 58 percent      Los Angeles, and the author of The High Cost
of highway funding, while farebox revenues          of Free Parking, notes that not only do parking
provided just 35 percent of transit funding.26      space regulations waste valuable urban land,
    With the rise of mobile technology and the      but at any given moment, an average of 30 per-
Internet of Things, new dynamic pricing mech-       cent of the cars in congested downtown traffic
anisms that would have been inconceivable           are actually just looking for a place to park.
just a decade ago are now possible—enabling         “Free curb parking in a congested city gives a
pricing based on such variables as time of day,     small, temporary benefit to a few drivers who
road congestion, speed, occupancy, and even         happen to be lucky on a particular day, but
fuel efficiency and carbon emissions. By pric-      it imposes large social costs on everyone else
ing different stretches of road or transit routes   every day.”29
differently—based on up-to-the-minute condi-            For that reason, San Francisco is garnering
tions—cities can divert drivers and passengers      great attention for its SFpark program, which
to cheaper routes, as well as collect payment       has installed networked meters that can sense
for what it actually costs to maintain a roadway    the occupancy of each space in real time and
or system.                                          communicate it—not just to potential park-
    In their book Reinventing the Automobile,       ers, but to parking managers who can adjust
William Mitchell, Chris Borroni-Bird and            prices based on the overall occupancy of a
Lawrence Burns lay out the rationale for            given block and aim to set a price that keeps
dynamic pricing: “Clear, rational, responsive       one or two spaces free on each block. As Shoup
pricing of trips provides a sound basis for both    writes, “SFpark embodies two important
individual decision making and the optimiza-        ideas. The first is that you cannot set the right
tion of overall system behavior for society as a    price for curb parking without observing the
whole. From a driver’s perspective, it makes the    occupancy.... The second is that small changes
total costs of trips accurately and clearly evi-    in parking prices and location choices can
dent and enables well-informed choices among        lead to big improvements in transportation
alternative trip departure times, routes, and       efficiency.”30
destinations. From an urban systems perspec-
tive, it enables the effective management by
price of available urban space and infrastruc-      User centered

ture while providing tools for achieving social          HERE’S a reason the automobile is as
equity and other policy objectives.”27                   popular as it is: It puts the user’s needs at
    The only way to do this, though, is to use      the center of a trip. You don’t have to worry
emerging technology. Existing systems, they         about a transit agency’s schedules, whether
point out, adjust prices only at relatively long    you’ll get a seat, whether it’s raining or whether
intervals and tend to cover only portions           (in most cases) you can actually get to your
of a road network, thus displacing traffic to       destination. For that comfort and convenience,
untolled roads. The goal, they write, “is to        most Americans are willing to put up with the
make congestion pricing systems citywide,

Digital-Age Transportation: The Future of Urban Mobility

             The technological developments of the past couple
             of decades offer the prospect of a very different
             paradigm—mobility centered around the user.

             inconveniences of traffic, finding parking, and   it, “We should not modify people’s behavior–
             the cost of gasoline.                             the system should be able to accommodate
                 There’s another reason the car is so popu-    the person. It needs to provide choices for the
             lar: It gives its user the widest-seeming set     user.” Others point out that one purpose of
             of options within the existing transportation     dynamic pricing is, in fact, to encourage users
             system. At the moment, transport solutions        to modify their behavior: to walk or take tran-
             are designed, developed, and controlled by        sit when streets are congested, to park farther
             providers and government agencies, and users      away from their destination at times when the
             slot themselves into that system. Where roads     block it’s on is heavily used, or to wait an extra
             go, when trains run, where metro stops are        half hour before using rail transit.
             located, which bus routes get the most frequent        Still, the overall system needs to provide
             service—all impose constraints on the choices     choices that not only permit everything
             that users can make.                              today’s system permits, but that improve on
                                                               it, whether it’s a trip to the grocery store or
             More choices                                      to visit family or the daily commute. It needs
                The technological developments of the          to meet the needs of an aging population (it’s
             past couple of decades offer the prospect of a    hard to imagine the baby boom generation set-
             very different paradigm—mobility centered         tling for being shut-ins or relying on the occa-
             around the user. According to Buzzcar and         sional paratransit ride), and of the disabled, of
             Zipcar founder Robin Chase, “The combina-         the regular commuter traveling a fixed route
             tion of the Internet, which holds the world’s     at the same time every day, of people running
             knowledge; wireless, which gives us ubiquitous    errands or rushing to a last-minute meeting, of
             and low-cost access to it; and smartphones        pedestrians and bicyclists, of people who like
             that make our interfaces portable and cheap, is   owning their own vehicles, and of people who
             transformational.”31                              wouldn’t be caught dead owning a car. In other
                Some transportation experts take a dim         words, it needs to answer to the world as it is.
             view of forcing users to adapt to the system’s    Travel behavior is dynamic and multifaceted,
             needs, rather than the other way around. As       and the provision of more choices that actually
             Marcus Bowman, founder of 3G Mobility puts        entice people—rather than forcing them into

one mode or another—ought to lead to a more         Transportation data needs to be provided in
balanced, optimally used system overall.            an open format, up to the minute, and readily
    “We must have a wide range of options in        accessible to anyone who needs it.
transportation,” says Chase, “because people go
from being 0 years old to being 90; they have
different amounts of money, different amounts
of ability to move, different amounts of inde-
pendence, different amounts of income. How          I F you live in an urban area, here’s where
                                                      you want the system to end up: You have
                                                    got a mobile device, and it knows where you
you move a 2-year-old is not how you move a
28-year-old, or a 48-year-old with children. ...    are because it’s location aware. So you enter
To answer transportation issues we really, truly    where you want to go and it gives you all your
do need to have a variety of possibilities.”32      options, based on what’s going on right now:
                                                    it knows the best route, the existing traffic
Real-time information                               conditions, how much parking is available
and open data                                       close by to where you’re going, how the buses
                                                    and trains are running, where the closest bike
     Making a dynamic, multi-modal transpor-
                                                    shares, Zipcar spots, and peer-to-peer car
tation system possible
                                                                                  shares are located,
requires a fundamental
                                                                                  and when someone
change in who controls
information and how             The goal is clear:                                in your ridesharing
                                                                                  network is going to
it is shared. Without
comprehensive infor-            Transportation data                               be coming by. And
                                                                                  it can tell you what
mation at their finger-
tips—whether it involves        needs to be provided                              the best option is
                                                                                  right now: Traffic
public or private
services—transportation         in an open format,                                is backed up, and
                                                                                  there’s a breakdown
users can’t make the best
choices for travel. So to       up to the minute, and                             on the light rail line
                                                                                  you would need, but
understand their choices
and make quick deci-            readily accessible to                             there’s a bike shar-
                                                                                  ing station three
sions, users need access
to freely shared, up-to-        anyone who needs it.                              blocks away from
                                                                                  you, so right now
the-minute information.
                                                                                  that’s your best bet
     On the roads, this is
                                                                                  (see figure 6). You
precisely what companies such as INRIX and
                                                    walk over, wave your credit card or smart-
TomTom aim to provide: real-time information
                                                    phone over a reader, and you’re on your way.
for subscribers about current traffic conditions.
                                                        It’s a delightful prospect—and no longer
And within cities, the “open data” movement is
                                                    as impossible as it might have seemed five
pressing public transit agencies to make their
                                                    years ago.
data freely available in the widely used General
                                                        One vision of how to get there has been
Transit Feed Specification (GTFS) format so
                                                    developed by RideAmigos Corp, which
that developers can build route, schedule, and
                                                    has developed the virtual Century City
other applications on top of it. Success has
                                                    Transportation Management Organization
been mixed, as City-Go-Round, a website that
                                                    (CCTMO) in Los Angeles. Its dashboard
provides access to “useful” transit apps, makes
                                                    allows users to compare alternatives—transit,
clear: Only 220 out of 844 transit agencies in
                                                    ridesharing, bicycling, walking—for cost, time,
the United States have open data, though more
                                                    distance, and carbon dioxide output; tracks
are being added regularly.33 The goal is clear:

Digital-Age Transportation: The Future of Urban Mobility

Figure 6. Illustrative multi-modal commuter dashboard

     Commute Planner                                                                       2,350
                                                                              MY TOTAL POINTS



                                                                                  MY RANK
               WEEKDAY                                9:00AM
                                                                         POINTS NEEDED FOR
                                                                               NEXT AWARD   150
                                                    TRIP DASHBOARD

     TIME         4.1 hrs            54 mins           27 mins        29 mins           48 mins
     COST            free               free               $6.85        $1.50             $1.50          2 shared
     MILES       10.2 mi             10.5 mi           11.0 mi         9.1 mi             9.5 mi         available
     LBS CO2      0.0 lbs             0.0 lbs              9.1 lbs     2.6 lbs            5.3 lbs
     POINTS         50                 35                    0           25                20                  20

      DIRECTIONS                                           MAP                       POINTS OF INTEREST
      1. Start out going northeast on     0.44 mi                                        Bike racks
        Culver Blvd. toward Lafayette Pl.                                                Bicycle shop/repair
      2. Turn right onto Venice Blvd.     2.78 mi
                                                                                         Shower facilities
      3. Keep right at the fork to          0.68 mi                                      METRO Stops
        continue on Venice Blvd.
      4. Turn slight right onto Lomita St. 0.32 mi
      5. Turn left onto West Blvd.          0.25 mi                                      GetThere

               commutes; provides options for buying transit         transition from one system to the next is
               passes; lists bike rack locations and shower          painless. According to SMART’s Zielinski,
               facilities; matches carpools and vanpools             “Transportation is not simply one mode that
               within a user’s company or throughout the             moves a person or a good from A to B. It is
               community; and provides business listings,            much more interesting and useful than that.
               weather, traffic alerts, and so on.34                 It is a system, or rather a ‘system of systems’
                                                                     connecting modes, services, technologies and
               Connected system of systems                           designs according to the best option for the
                   The world is catching up to the notion that       purpose.”35
               the centerpiece of a transportation network                This is hardly far-fetched, given how ubiq-
               is the person or good that has to be moved,           uitous this kind of connectivity has become
               not the idiosyncratic needs of the organiza-          in our lives. Take banking and retail, for
               tion that runs a particular mode of travel.           example. As former IBM chairman and CEO
               Making movement as easy as possible means             Sam Palmisano, points out, “We take it for
               integrating a range of systems so that the            granted that we can transfer funds and make

payments among institutions. …We take it for           ordinary users to travel easily, fully aware of
granted that we can use the same payment and           their options.
billing systems, regardless of store, website or          In other words, says Georgia Institute of
industry. All these systems have standards and         Technology assistant engineering professor
interfaces that permit information to flow.”36         Kari Watkins, who helped create the Seattle-
    Transportation, he argues, isn’t even close.       area transit app OneBusAway as a graduate
The connections simply don’t exist among               student, “You need the underlying infrastruc-
vehicles and “pathways,” government agencies,          ture where you’re measuring all these things;
regulators, providers, and carriers, and to the        you need agencies that are forward-thinking
goods and people being moved.”37                       enough to share this data; and then you need
                                                       folks who are innovative enough to figure out
Total information awareness                            how to develop the applications that lay on
    Establishing a well-connected system of            top of each other, so that we can get a system
systems will take work. It means making sure           where the focus really is on mobility itself and
that a number of capabilities are in place:            taking care of transportation customers.”38
Roadways, parking spaces, cars and tran-
sit vehicles are equipped with sensors. Ride          Activating network effects
share, car share and bike share systems know          requires system coordination
their assets’ availability. Payment systems are            The development of discrete systems is only
integrated so that regardless of whether you’re        a first step; it is their integration and spread
using a bicycle, taking a subway, or paying            that will produce real benefits. As Stephen
road tolls in three different states, you can do       Ezell of the Information Technology and
so electronically using just a single card or          Innovation Foundation points out, “If a region
device. And the agencies—public or private—            or state makes all its roadways intelligent with
that run the various systems make their data           real-time traffic data, such efforts do little good
available so that others can use that data to          if motorists do not have telematics in their
build the applications that make it possible for       vehicles (or on mobile phones) to receive and
                                                       act on that information.” Similarly, a collection

“    Transportation is not simply one mode that moves a
   person or a good from A to B. It is much more interesting
   and useful than that. It is a system, or rather a ‘system of
   systems’ connecting modes, services, technologies and

   designs according to the best option for the purpose.
  — Susan Zielinski, managing director, SMART, University of Michigan

Digital-Age Transportation: The Future of Urban Mobility

“   We’re focused on vehicle throughput, but we have
to care about people throughput. We don’t look at
this big mobility picture and how can we get people

around the entire community in a better way.
— Kari Watkins, assistant professor, Georgia Institute of Technology

             of independent electronic toll collection                 Interestingly, you can see the outlines of an
             systems is far less efficient or convenient for           answer in the status quo.
             travelers than one that covers jurisdictions all              The assumption about most roads, bridges,
             across the country. “Thus,” Ezell says, “many             and other auto-related infrastructure in the
             intelligent transportation systems are subject            United States, has always been that they
             to network effect and scale challenges, thus              are a public good, and therefore should be
             requiring extensive system coordination.”39               funded partially by users through gasoline
                  The problem is not just that such coordina-          taxes and tolls, and partially through public
             tion and integration don’t yet exist but also that        subsidies ultimately paid by the general tax
             it is unclear whether the organizations cur-              base. Financing has been largely provided by
             rently overseeing the system of transportation            the private sector in the bond markets. But in
             systems in the United States or other countries           recent years, as the gap between available pub-
             know how to make it happen. “We’re focused                lic funds and infrastructure needs has grown
             on vehicle throughput, but we have to care                ever wider, another model has taken hold:
             about people throughput,” says Watkins. “We               the public-private partnership, or PPP, which
             don’t look at this big mobility picture and how           involves the use of private sector equity and
             can we get people around the entire commu-                risk sharing. This has been the force behind
             nity in a better way.”40                                  the creation of high-occupancy toll lanes near
                                                                       Fort Lauderdale, Florida; the new management
                                                                       of the Indiana Toll Road (a deal in which the
             Reliant on new models of                                  Cintra-Macquarie venture is paying the state
             public-private collaboration                              $3.8 billion to lease the road over 75 years);

             T   HE hardest question when looking at the
                 future of transportation, of course, is how
             change is going to be organized and paid for.
                                                                       and the creation of HOT lanes in the DC sub-
                                                                       urbs of northern Virginia.
                                                                           If a new transportation system is going to
                                                                       come into being, government will neither be

able to fully fund it nor take primary responsi-        expanded the definition of carpool projects in
bility for it at current taxing or toll levels; it is   2012 to include real-time ridesharing.
having enough trouble just keeping up with the              ITNAmerica, a not-for-profit, has devel-
status quo. Moreover, the sheer complexity of           oped an innovative business and payment
a transportation system that works for every-           model geared toward improving mobility for
one—unlike the current system—argues that               seniors, regardless of their income. Similarly, a
many players will have to be involved.                  small constellation of firms—TomTom, INRIX,
    One way that government can prime the               Garmin and others—are exploring differ-
private sector’s creative pump is through chal-         ent ways of guiding and informing drivers,
lenges that arrive at transportation solutions          whether through dedicated dashboard devices
without calling for heavy public spending on            or smartphone apps or the new data hubs
research and development. The USDOT has                 being installed in cars. Different aspects of
a handful of such challenges, though only               mobility, in other words, are generating their
one—asking for innovative uses for DSRC                 own “ecosystems” of players.
wireless technology—has really tackled a core               Venture capitalist Ryan Popple and his
mobility issue.41                                       firm, KPCB, got into transportation because
                                                        they saw a similarity to a field they had been
The new transportation ecosystem                        investing in—smart grids and renewable
    A transportation system that works for              energy. “As we spent time in those sectors and
everyone must be complex and fine-grained               realized how much waste was in the basic grid,
at multiple levels—which means that there               we found some great software and hardware
are a multitude of potential niches for private-        companies that were really the IT of the grid,”
sector involvement. In almost every aspect of           Popple says. “The more time we spent around
transportation—from electrification of cars             the [transportation] system we realized the
and up-to-the-minute information for drivers            paybacks and the return-on-investment
to ways of reducing the “wasted capacity” of            around just eliminating waste were huge. We
empty seats and improving the experience of             like the comparison of finding the smart-grid
public transit passengers—new, private efforts          companies of the highway and roads system.”43
are pouring into the field. There is a sense of         And at this particular moment, he believes, the
great entrepreneurial possibility in addressing         field is wide open—or as he puts it, “We think
the myriad problems created by the current tilt         there are lots of ‘ands’ and fewer ‘ors’ in the
toward the single-occupancy vehicle model.              market.”
    Take just one small slice of the emerg-                 Which is why there is also great oppor-
ing transportation market: ridesharing.                 tunity for the public and private sectors to
“Whatever’s going to happen, there’s a whole            collaborate—for each to help the other where
bunch of players who need to work together              appropriate. The US federal government,
in helping these technologies be adopted                through the DOT’s Research and Innovative
by the world,” says Avego managing direc-               Technology Administration, has already been
tor O’Sullivan. His company happens to be               a significant player in promoting V2V and
focused on the daily commute. Carpooling.               V2I technology, while the Federal Highway
org, which lets drivers offer up their empty            Administration has seeded everything from
seats online and passengers book them much              new toll highways and rail corridors to bus
the same way they would a train ticket, already         rapid transit projects and ridesharing pilot
has 3.6 million members.42 There are others             programs around the country.
that appeal specifically to students on college             There are clear payoffs to cooperation
campuses, or to people looking for intercity            between the public sector and a company like
transportation. For its part, the US Congress           Avego, which has worked with local govern-
                                                        ments and the federal government to launch

Digital-Age Transportation: The Future of Urban Mobility

             “     We are making the private car part

                 of the public transit network.
                — Sean O’Sullivan, managing director, Avego

             pilot ridesharing initiatives around Seattle,         network. The single car becomes a public/
             in northern Virginia and elsewhere. Avego             microprivate partnership where the consumer
             benefits from the knowledge it gains at each          is making their asset, empty seats, usable.”44
             iteration of its rideshare efforts, as well as from       Public transit agencies have for the most
             government’s help in building a critical mass         part embraced this notion, O’Sullivan says,
             of drivers and passengers—a crucial element           because rush hour is their most expensive time
             of success in ridesharing. The public sector,         period—so adding commute capacity without
             in turn, gets a chance to explore a new way of        adding buses or trains helps them keep their
             looking at “public” transit.                          costs down. The public-private partnership
                 As Avego’s Sean O’Sullivan explains, “The         can also be more explicitly visible, as in a
             average American commutes 17 miles from               pilot project funded by the Federal Highway
             their home to work. If we automatically make          Administration and the Virginia Department
             available stops along that route... it makes it       of Transportation, and managed by the
             very convenient for people traveling along            Northern Virginia Regional Commission, to
             the road as they normally do to just let the          recruit Department of Defense personnel to
             computer tell them to pull over in 500 meters,        use Avego’s ridesharing app in an effort to cut
             there’s somebody waiting for a ride. We are           down congestion along Northern Virginia
             making the private car part of the public transit     commuting corridors.

Three scenarios for
digital-age transportation

S    O what do these five features—massively
     networked, dynamically priced, user
                                                          Scenario 1: The Internet of cars
centered, integrated, and developed by both
public and private players—add up to? It may
                                                          I F you were plucked from 1912 and set
                                                            down on a city sidewalk today, you’d know
                                                          immediately what you saw driving past in the
be a fool’s game to make confident and detailed
                                                          streets. The cars might not look like the Metz
predictions about the future of urban mobil-
                                                          Runabouts and Brush roadsters of your day,
ity, but it’s not so hard to extrapolate from
                                                          but there’d be no doubt they were cars.
current trends.
                                                              As GM’s Chris Borroni-Bird notes, “The
    What follows are less alternative scenarios
                                                          same DNA is in today’s autos as in the autos
than parallel ways of grouping developing
                                                          of 100 years ago.” They have four wheels,
trends. Indeed, the future is likely to con-
                                                          an engine in front with a passenger com-
tain elements of all three: widely connected
                                                          partment behind, an internal combustion
vehicles, or “the Internet of cars”; pricing that
                                                          engine fueled by petroleum, mechanical
aligns supply with demand; and the spread of
                                                          controls that rely on a driver, and drivers who
social networking into transportation decision-
                                                          are unconnected to other drivers and the
making (see figures 7-9). How these ultimately
                                                          surrounding infrastructure.
take shape will depend on the complicated
                                                              Now, Borroni-Bird points out, all this is
interplay of a range of players—the public sec-
                                                          changing. Power sources are diversifying to
tor, manufacturers, entrepreneurs, and a host
                                                          include biofuels, electricity, and hydrogen fuel
of others—and how they go about resolving
                                                          cells. Cars can be controlled electronically
the issues that each “scenario” presents.

Figure 7. The future of urban mobility: Scenario 1

          1                              4   You are connected to everything you need
                                             while you travel in a car personalized for you
          You call your
          (autonomous driving)
          car to pick you up

                                                                                              5   You are dropped off
                                                                                                  at the doorstep and
                                                                                                  the car parks itself

2   You enter your destination and are
    dynamically routed to work based
    on traffic flows through the system
                                             3    Your car travels down an automated
                                                  roadway with platooned vehicles

Digital-Age Transportation: The Future of Urban Mobility

             and his company and others—most notably          car-specific services: GM’s OnStar division
             Google, along with Massachusetts Institute       offers “concierge” services and roadside assis-
             of Technology’s CityCar effort—are work-         tance for drivers; the Mercedes-Benz mbrace
             ing on the suite of capabilities that would      app allows remote doorlocking and services
             allow cars to drive themselves. As revolu-       such as driving directions and restaurant list-
             tionary as all this may be, though, perhaps      ings through the navigation system; Nissan’s
             the most game-changing possibilities lie         CARWINGS allows electric-vehicle drivers to
             in the fact that cars are about to join the      control functions remotely.
             information superhighway.                            But the possibilities inherent in vehicles
                 “It is no longer enough to sell personal     connected to each other, to the infrastruc-
             transportation,” write Cisco’s Andreas Mai and   ture around them, and to data streams go far
             Dirk Schlesinger. “People want a personalized    beyond entertainment, navigation, and road-
             driving experience that keeps them connected     side assistance. Cars might automatically scan
             to everything that is important to them—         the Web, for instance, for information about
             friends, information, music, maps, schedules,    problems ahead or parking spaces at one’s des-
             and more. Connected cars could do for the        tination and suggest alternative routes or even
             automotive industry what smartphones did for     switching to a different mode of travel if traffic
             the phone industry.”45                           is too heavy.

                                                              You have a tweet from…your car

    Connected cars could do                                       Toyota has joined forces with
                                                     to allow its electric vehicles and
  for the automotive industry                                 plug-in hybrids to communicate with their
                                                              owners—“Hey, your battery needs recharg-
  what smartphones did for                                    ing”—through Twitter and other social net-

                                                              working tools. Car sharing, more efficient fleet
  the phone industry. 46                                      management, the capture of real-time traffic
                                                              data—all are made possible by connected vehi-
 — Andreas Mai and Dirk Schlesinger, Cisco                    cles. So, too, is what GM calls “a sophisticated,
                                                              integrated, intelligent transportation system
                                                              that dynamically manages large transportation
                 The market has recognized this. According    flows using the latest communications and
             to a recent report by Globis Consulting,         computer controls.”48
             “Vehicles are the last major market for con-
             nectivity, now that homes and businesses are     Automated driving
             linked to the Internet.”47
                                                                 Finally, of course, there is the possibility of
             Beyond infotainment                              the “automated roadway,” platooned vehicles
                                                              and, when combined with advances in sensing
                 At the moment, much of the action is hap-    technology, fully autonomous driving—all of
             pening piecemeal, and much is focused on         which, their supporters argue, will make driv-
             infotainment. Cell phone calls can be handled    ing safer, more convenient, less wasteful, and
             through the audio system; some manufacturers     more efficient. “It may not be obvious,” says
             are using embedded modules to connect cars       Borroni-Bird, “but platooned vehicles might
             to mobile phone and data networks; others        even match or exceed the passenger through-
             are making it possible to connect to social      put of rapid transit bus systems.”49
             networking sites, Internet radio, and the Web
             in general. Still, some firms have focused on

The promise of connected vehicles:                      This, say Cisco’s Andreas Mai and Dirk
A focus on people, not cars                         Schlesinger, would save 25 percent of the
                                                    one-time hardware and software costs, and
    Ubiquitous connectivity will almost cer-
                                                    another 40 percent each year of operating
tainly speed the day when cars are seen as just
                                                    costs.51 Moreover, they believe that a net-
one piece of the larger transportation system,
                                                    worked vehicle would then open the door to a
not the standalone vehicle of choice they are
                                                    set of capabilities that “could create an annual
now. In other words, transportation will evolve
                                                    benefit pool of $1,400 for each connected
beyond selling cars to integrating cars into a
                                                    vehicle.” Such benefits might include payments
vehicle-to-grid system.
                                                    to traffic-guidance and navigation services,
    One example of this will be the degree to
                                                    emergency services, and insurance companies
which rideshares and peer-to-peer car shares
                                                    able to charge based on miles driven and loca-
become part of a “public” transport system, in
                                                    tion; lower costs to service automobiles; cost
essence weaving what had been private space
                                                    savings to users from spending less time stuck
into the transport options that are publicly
                                                    in traffic and possibly lower fuel and insurance
available at any given moment. Moreover,
                                                    costs; and lower costs to society from fewer
Borroni-Bird notes that vehicle connectivity
                                                    accidents and lower traffic and toll operation
“facilitates communication with the public
                                                    costs.52 If their calculation is right, unlocking
transport system so that drivers could be
                                                    that annual benefit pool will be a key to fund-
made aware of rapidly changing schedules, for
                                                    ing the “Internet of cars.”
example, or make seamless plans for intermo-
                                                        There is no question that both the private
dal transport while traveling.”50
                                                    and public spheres are headed in that direc-
    All this carries with it the implication that
                                                    tion. The USDOT’s Research and Innovative
as vehicles connect to the larger transportation
                                                    Technology Administration (RITA) and its
ecosystem, make their drivers more aware of
                                                    Intelligent Transportation Systems (ITS)
alternatives, and induce industry and govern-
                                                    research program have been funding research
ment to think more systemically, the users of
                                                    since 2004 in a range of arenas: developing sys-
cars, rather than the cars themselves, will come
                                                    tems that can deliver up-to-the minute weather
to be at the center of transportation think-
                                                    and road condition information; collision
ing. Or to use Kari Watkins’s formulation,
                                                    avoidance systems; integrated safety systems;
the system will be more open to focusing on
                                                    and a range of connected-vehicle applica-
people throughput, rather than simply vehicle
                                                    tions.53 RITA’s Connected Vehicle Core System
throughput—on getting users from their multi-
                                                    project is focusing on wireless communications
tude of points A to their profusion of points B
                                                    among pretty much everything that moves
without giving primacy to any particular mode
                                                    along and beside a roadway—cars, trucks,
of travel.
                                                    transit, pedestrians, cyclists—linking them to
                                                    each other and to the infrastructure.54
How do we get there?
                                                        Private sector initiatives, too, are prolif-
1. Combine vehicle communications                   erating. Vehicle manufacturers, of course,
in single platform                                  are heavily invested both in remaking their
    The road to that point, however, is long.       products’ basic DNA and in adding connectiv-
To begin with, a car these days may be fully        ity. Moreover, through the Car Connectivity
connected, but only because of a plethora           Consortium (CCC), leading automotive
of devices for telematics, radio, Wi-Fi, toll       companies are working closely with mobile
paying and so on. It makes far more sense           communications and consumer electronics
to combine vehicles’ communications into a          companies to develop global standards for
single platform.                                    smartphone in-car connectivity. Globis’s Barrie
                                                    Kirk also expects the mobile carrier industry,

Digital-Age Transportation: The Future of Urban Mobility

             app developers, and content providers to play            All this makes the CCC’s willingness to
             significant roles—along with universities,           work on open standards—and especially on
             which as he points out are developing network        the Terminal Mode standard—significant. As
             protocols for vehicle and sensor networks,           Andrew Updegrove, a Boston attorney special-
             as well as ways of diagnosing vehicle mal-           izing in high-tech standard setting, noted after
             functions and transmitting that data to the          the announcement of CCC’s founding, car
             navigation system.55                                 manufacturers seem to have bought into the
                 Of course, there are a host of issues that the   notion that it’s easier to let mobile devices bear
             market will have to sort out as plans develop.       the burden of adapting to changing technology.
             Will consumers prefer wireless embedded in           “True,” he wrote, “the automotive manufactur-
             the car—which allows communication with              ers have had to give up any remaining hopes
             the car even when the driver and their smart-        of tying customers to them via proprietary
             phone are elsewhere, but which might also be         telematic systems, but customers weren’t going
             outdated within a couple of years—or a way of        to buy into that kind of world anyway—they
             linking their smartphones to in-car displays?        simply wouldn’t have bought proprietary
             Nokia and other providers are working on “ter-       vendor options and services—and perhaps the
             minal mode” standards, under which “mobile           cars that offered them—at all. At the end of the
             devices could be tightly connected with in-car       day, the automotive industry appears to have
             systems such as digital displays, steering wheel     decided to take the classic standards route of
             buttons, rotary knobs, and car audio systems.        adopting a standardized platform, and then
             Consumers could use a mobile device via the          preparing to compete on value-added features
             car controls, as if the device and its apps were     and services (some of the latter doubtless on a
             integrated into the car itself.”56                   paid subscription basis).”57
                 There are other questions, too: What kind            Other standards efforts are also underway
             of software—apps or Web-based access—will            at the International Standards Organization,
             developers use? What role will the cloud play?       which has a committee responsible for intel-
             What role will the insurance industry play,          ligent transport systems. Meanwhile, US
             given its interest in standardized usage data—       European, and Japanese auto manufacturers
             as well as in the potentially costly matter of       and government officials have also met to talk
             distracted driving?                                  about cooperating on standards for connected-
                                                                  vehicle technology.
             2. Progress connectivity standards                       But cooperative efforts do not always
                  There are also specific efforts around          translate quickly into concrete progress. On
             connectivity standards—which are already             the automakers’ side, interoperability standards
             underway—that will have to bear fruit. Avego’s       for vehicle-to-whatever communications have
             Sean O’Sullivan points out that the key to           proceeded far enough that some European
             making transit information readily available         manufacturers plan to include the capability
             in many cities was the development of shared         in their 2015 models, while Thinking Highways
             standards for information. Google’s collabora-       associate editor Richard Bishop expects to see
             tion with TriMet (based in Portland, Oregon)         it in US models by 2018. But that may just be
             has produced the open GTFS standard, which           for vehicle to vehicle. While infrastructure
             may serve as a basis for a broader standard.         providers are also working on cooperative
             Google promulgated the standard, urban tran-         systems—especially in Europe—it is far from
             sit agencies wrote their data to conform with        certain that they will be ready anytime in the
             it, and a small army of college students learned     near future. Infrastructure-focused ITS initia-
             how to mine the data and get it to anyone with       tives, Bishop says, tend to take far longer than
             a smartphone.                                        their optimistic boosters anticipate. “I expect

it will occur much slower than anyone on the          tracked by some “Big Brother” agency, whether
vehicle side would prefer,” he argues.58              it’s public or private.

3. Address security
    There remain a host of other issues to
                                                      Scenario 2: Dynamic pricing
address. Clearly, for instance, security will be
vital to every aspect of the system. A hacked
connected-car network would create chaos.
                                                      T    HE world is moving inexorably toward the
                                                           notion that goods and especially services
                                                      need not be priced statically. Airlines and
As GigaOM blogger Kevin Fitchard points               hotels, of course, have been pricing seats and
out, “Such networks aren’t just transmitting          rooms dynamically for years. Electric utilities
information, they’re acting on it. Introducing        have been installing smart meters that will,
false vehicle data into the stream could cause        among other things, allow them to respond to
our cars to respond to phantoms, swerving to          changing demand by changing prices.
avoid vehicles that aren’t there and braking for          Transportation stands on a similar frontier,
gridlock that doesn’t exist.”59 Or as one German      made possible by the spread of mobile tech-
academic says, “Most people would rather have         nology, location-based services, and “contact-
malicious software running on their laptop            less” payment systems.61 These will ultimately
than inside their car braking system.”60              allow for two key values to be embedded in
                                                      transportation pricing:
4. Resolve privacy issues                              •	 Users pay a more direct portion of the
    Issues related to privacy will also need to           actual costs of the services and modes
be resolved. While it’s one thing for electronic          they use.
loops embedded in highways to transmit
anonymous information to monitors about                •	 Prices respond to demand to
vehicle numbers, speed, and so on, when vehi-             increase the overall efficiency of the
cles themselves start transmitting that data,             transportation system.
that’s another matter. As we see later, there is          The benefits, as outlined earlier in the
great public resistance to the prospect of being      features of digital-age transportation systems

Figure 8. The future of urban mobility: Scenario 2

 7:00 a.m.                   12:30 p.m.                     6:00 p.m.                     10:00 p.m.
    ROUTE FINDER                                                PARK ASSIST                   TRAVEL TRACKER
                                                                Open parking                     JUNE 15TH
         16                                                      meters near
         40                                                      destination                       AUTO      $18
                                                                                                   PARKING   $19
         25                       ONE-WAY FARE                                                     TRANSIT    $6
         $10 toll                    Mobile
                                    Payment                                                        INSURANCE $2
           PAY TOLL                 Accepted                      PAY METER

    You are headed to             You have a few           At 6 o’clock, you head        At the end of the day, your
    work and have an            errands to run over          to a bustling part of        mobility cost tracker app
   important meeting           lunch and decide to          town to meet an old       provides an itemized breakdown
   that you cannot be             take the metro.           friend for dinner and     of the costs incurred for vehicle
 late for, so you decide                                       are directed to a         trips (location, time of day,
   to take the quicker,                                    parking spot just steps     number of passengers), transit
 more expensive route.                                       from the restaurant.        costs, parking costs, and a
                                                                                       mileage based insurance cost

Digital-Age Transportation: The Future of Urban Mobility

             Real-time reporting of traffic conditions and
             predictive forecasting should make it possible for
             drivers to be able to choose between the lowest cost
             and the quickest routes to their destination, with
             full knowledge both of their cost and travel time.

             section, would run throughout the system.          for drivers to be able to choose between the
             Drivers and passengers would get clear signals     lowest cost and the quickest routes to their
             about the cost of a given choice, allowing them    destination, with full knowledge both of their
             to make decisions about their timing, route,       cost and travel time.
             and mode of travel that take into account              But there’s an additional consideration:
             both their own needs and the overall system’s.     “Real-world” pricing will also depend on
             Transportation managers and providers would        technological advances that make it possible
             be able to set prices according to availability,   for providers to understand their custom-
             cost, congestion, demand, the desire to attract    ers’ behavior, price accordingly, and facilitate
             customers, and other considerations. Ideally,      switching from mode to mode. In other words,
             the result would be to optimize the efficiency     it should be a simple matter to use a tolled
             of the entire transportation system, lessen-       roadway and then park, switch to rapid transit,
             ing the peaks and valleys for everything from      and hop in a shared ride to your destination.
             seats on a bus to use of a downtown street to
             parking in the most popular shopping and           How do we get there?
             entertainment districts.
                                                                1. Promote wireless payments
             Making trade-offs explicit                             Great strides are being made on the techni-
                                                                cal front. VeriFone is experimenting with
                 In the end, pricing mechanisms for the
                                                                contactless payment cards on bus systems in
             users of transportation services—in other
                                                                Turkey. Austria’s WESTbahn is working to
             words, for drivers, parkers, transit passengers,
                                                                make it possible for travelers with smartphones
             bike-share and rideshare users, among oth-
                                                                enabled with near field communication (NFC)
             ers—should provide clear signals about the
                                                                simply to tap their devices on a conductor-held
             range of options they might consider, using
                                                                iPad to make their payment. China Telecom
             new technologies to make the trade-offs read-
                                                                integrated its mobile network with Beijing’s
             ily apparent. If a subway system is straining
                                                                transport cards, allowing commuters to simply
             under the load of rush-hour passengers right
                                                                swipe their mobile phones to make bus and
             now, you want to make sure that potential pas-
                                                                subway fare payments.62 In the United States,
             sengers know that the amount they pay will be
                                                                New Jersey Transit is working with Google to
             lower if they just wait a half hour—or take the
                                                                bring the wireless Google Wallet payment sys-
             bus instead. Drivers using the relatively scarce
                                                                tem to its routes. The Utah Transit Authority,
             and expensive space of a downtown street at
                                                                which has been a pioneer in contactless pay-
             rush hour should know both the cost and the
                                                                ment, is moving toward using both Google
             relative price and trip time of alternatives.
                                                                Wallet and Isis, a rival NFC-based application.
             Real-time reporting of traffic conditions and
                                                                Southeastern Pennsylvania Transportation
             predictive forecasting should make it possible

Authority is working to introduce its own con-          the top ten U.S. insurance companies now
tactless payment system.63                              offer usage-based plans.67 The point in all this
    The benefits to users in terms of ease of use       is not to discourage driving. Rather, the goal
are obvious, but the benefits to transit agen-          for insurance companies is to more accurately
cies and their planners may be even greater.            price their services, recognizing that previous
“Transit agencies need to understand how                payment models for insurance were essentially
riders are using the system. Right now, it’s hard       blunt instruments.
to tell where riders are going—you can count                PAYD insurance may, however, have
them, but it’s hard to track a full linked trip,”       another side effect: accustoming drivers to the
Utah Transit’s Gerry Carpenter said. “With              idea of reporting their mileage. According to
NFC tapping, each customer has a unique                 Robert Atkinson, president of the Information
identifier— either an ID or credit card—which           Technology & Innovation Foundation, “People
enables us to tell that an individual customer          will get marginally used to the notion of paying
went from point A to point B and arrived at             by the mile. Then it’s less of a big emotional
point C, all without violating their privacy.”64        or intellectual shift.”68 Just as people using the
This capability will, in turn, allow transit agen-      telephone once limited their long-distance
cies to begin introducing more dynamic pric-            calls to nights and weekends to take advan-
ing for their services.                                 tage of lower rates, and airline passengers
                                                        understand that flying on Fridays and Sundays
2. Explore new payment models                           will cost them more than flying on a Tuesday
   Taking a new approach to the issue, the              or Saturday, greater price transparency will
insurance industry and state regulators are             undoubtedly lead drivers and other transporta-
exploring how to link cars’ actual use to the           tion users to change their behavior.
premiums their owners pay. “Pay as you drive”
(PAYD) insurance, or usage-based insurance,             3. Anticipate resistance
has been around for a decade, but insur-                   This is an issue, because there is certain to
ance companies have only recently amassed               be resistance to some aspects of dynamic pric-
enough data to accurately price risk based on           ing. While there is growing acceptance of the
driver behavior. Progressive Insurance’s PAYD           idea of dynamic pricing for parking, driving
program, Snapshot, uses a small on-board                may be another matter. As Ken Laberteaux,
device to measure when drivers use their car,           senior principal research scientist at Toyota
how far they drive, and how often or hard they          Research Institute of North America, notes,
brake, and offers drivers discounts based on            “Any change will look like a stick, rather than a
the data gathered by the device.66 The preva-           carrot, because the current cost of transporta-
lence of PAYD plans is increasing. Eight of             tion for each user is so low.”

Spurred by the harsh reality that as fuel consumption drops, the gasoline tax will be even less reliable a
funding source for infrastructure than it is now, states are interested in finding ways of charging drivers
for miles driven. Minnesota’s DOT, working with Battelle, is testing a mileage-based user fee that relies
on smartphones programmed with a GPS application that allows motorists to submit information.
The idea, says Battelle’s Rob Zimmer, is to keep the strategy as simple as possible. “We hope to
demonstrate that a mileage-based user fee could be successfully deployed using infrastructure that’s
available right now. Consumers are already carrying smartphones with them in their vehicles. There’s
no need for a state to deploy a million-dollar system to do this. We already have the computers in cars
today.”65 The effort, which began in 2011, is aimed at finding ways to reduce the state’s reliance on
the gasoline tax—from which proceeds have been shrinking—as a way to fund roads and highways.

Digital-Age Transportation: The Future of Urban Mobility

                                                                    4. Obtain consensus on what the market
                                                                    in transportation should look like
    Any change will look                                                Finally, there is a larger question that will
                                                                    need to be settled. While there may be overall
like a stick, rather than a                                         agreement about the need for transportation
                                                                    users to pay a higher portion of the cost of
carrot, because the current                                         what they use, there is less agreement about the
                                                                    next step. Should each service or mode—gov-
cost of transportation for                                          ernment-owned or privately-tolled roads, for

                                                                    example, versus transit versus rideshares—sim-
each user is so low.                                                ply set prices without regard to any concerns
                                                                    but their own? In other words, should there
— Ken Laberteaux, senior principal research scientist,
Toyota Research Institute of North America                          be an entirely free and potentially competitive
                                                                    market in transportation? Or should the pric-
                                                                    ing of different modes also reflect community
                                                                    or social benefits—so that if, say, you make
                 Indeed, according to a survey commis-              choices in your commute that produce an envi-
             sioned by the task force studying Minnesota’s          ronmental or congestion benefit, you get cred-
             mileage-based user fee (MBUF), “Minnesotans            ited for that choice in some way? If so, who
             tended to be unfavorable toward an MBUF                determines what counts as a “benefit” and what
             system that charges differential rates based on        as a “detriment” or “negative externality”? How
             time of day, level of congestion, [and] loca-          do you make sure that in setting prices, the
             tion of driving.”69 Since those are precisely the      overall impacts get weighed: the contribution
             variables most likely to come into play in any         to economic vitality that a robust road network
             dynamic road pricing scheme, the politics of           and the freedom to drive provide, for instance,
             instituting such a scheme could get sticky. A          versus the economic cost of congestion? And
             set of focus groups conducted by the Texas             if we’re going to reap the greatest benefits of
             Transportation Institute (TTI) found great             dynamic pricing, shouldn’t operators of each
             skepticism about the need to switch from the           mode be in constant touch with each other—
             gas tax to user fees and cynicism about govern-        along with the banking sector—so that they
             ment’s ability to administer fees effectively          can all adjust pricing according to the realities
             and fairly.70                                          of the entire system at any given moment?

             PRIVACY: A BARRIER
             As the TTI’s focus-group members in the United States point out, privacy will also become an issue.
             Many cellphone users are happy to have their locations tracked as long as the service is useful to
             them alone. But there is great resistance to the notion that the government or private companies
             should also be able to hold onto and use that data. When a story broke last year about companies
             collecting location data from smartphones without users’ knowledge, the result was hearings on
             Capitol Hill and the introduction of several bills to strengthen privacy protections for location data—
             both from cars and from mobile devices.71 Transportation experts, though, worry that the bills might
             also limit “the collection of aggregate and anonymous location data of the kind that is critical for
             vehicle probe data services for generating real-time traffic reports.”72 It remains to be seen whether
             drivers will allow themselves to be tracked by the government for other purposes, such as paying
             user fees. There are, to be sure, technical ways of overcoming this problem, including having an
             onboard data unit simply talk to a gas pump, so that the fee is calculated from one fill-up to the next.

Figure 9. The future of urban mobility: Scenario 3

1   After telecommuting from home in the                                             COMMUTE PLANNER
    morning, you need to get across town
    for an afternoon meeting with a client.
                                                                         LBS CO2
                                                                      AWARD PTS.

                                                                        2    A quick comparison of the time, cost, carbon

    3   It’s raining when your meeting wraps up, so                          footprint, health-benefit analysis, and awards
        you opt to share a ride to the gym after work.                       points associated with all of your possible travel
        You pull up your                                                     options, you see that there are shower facilities
        real-time rideshare                                                  and bike rack within a couple blocks of your
        app and see that a                                                   client’s office and opt
        driver headed in the                                                 to grab a bikeshare
        same direction is just                                               across town.
        a few blocks away.

                                                                              5    When you get home,
                                                                                   you log the day’s
             4    When you get out of the locker room you have
                  an alert from your personal travel assistant that
                  indicates there’s been an accident a half mile
                                                                                   trips and see that
                                                                                   you are close to the
                                                                                                              MY TOTAL POINTS
                                                                                                                 MY RANK
                  from your apartment and traffic’s at a stand                      top of the employee             #4
                  still. You opt to burn off some additional                       trip reduction            POINTS NEEDED FOR
                  calories and walk home rather                                    leaderboard at               NEXT AWARD

                  than wait for traffic to clear.                                   work—just 300                  300
                                                                                      points away from
                                                                                         that mountain
                                                                                         bike you’ve had
                                                                                         your eye on.

Scenario 3: Social transport                                   The key concept in that vision, “collabora-
                                                            tion,” suggests that transportation can become

T     HERE is a fundamental disconnect at the
      heart of the current transportation system:
It’s a system, yet its parts don’t talk to one
                                                            something more than simply the aggregation
                                                            of millions of people’s individual decisions
                                                            about how to get where they want to go. The
another directly. With the advent of networked
                                                            day is not far off when their decisions can be
cars and infrastructure, location awareness,
                                                            informed by other people’s advice, broader
and social networks, however, that may be
                                                            system-level objectives, real-time travel condi-
coming to an end.
                                                            tions, crowdsourced information, and even
     In fact, at the Deloitte session, when partici-
                                                            community values.
pants were asked to coalesce around the most
compelling vision created in the room that day,
                                                            Socially-informed decision making
here is what they chose:
                                                               Some of this is already happening. You
The transportation system of the future will
                                                            might notice on a website that there’s a ball
be built on collaboration among neighbors,
                                                            game at the stadium you pass on your way
communities, governments, and traffic managers
                                                            home from work, or see a tweet from a friend
on everything from traffic planning to signal
                                                            that there’s a 15-minute delay on the rail transit
timing to commute planning.
                                                            system. If you’re waiting for a rideshare or

Digital-Age Transportation: The Future of Urban Mobility

             The transportation system of the future will
             be built on collaboration among neighbors,
             communities, governments, and traffic
             managers on everything from traffic planning
             to signal timing to commute planning.

             using a peer-to-peer car-sharing service, you’re   reasons: because they want to help others or
             also relying on the service—through the expe-      they consider it more environmentally friendly,
             riences of people who’ve already used it—to        or they find that it saves them money. The
             make sure that the person who’ll be giving you     point, says ITNAmerica founder and president
             a ride or renting your car is trustworthy.         Katherine Freund, is that “People have a lot of
                                                                different reasons for making the choices they
             Mapping transport to                               make. So you have to think about them, under-
             social objectives                                  stand them, and build a system that pays atten-
                 You can also see the outline of a different    tion.”73 In other words, you have to build in the
             way of thinking about transportation emerg-        ability to capture motivations and behaviors
             ing in a nonprofit endeavor like ITNAmerica,       that go beyond simply trying to get from point
             a ridesharing service aimed at seniors. It is      A to point B in the fastest, most convenient
             built on the willingness of hundreds of people     way possible.
             in a given community to collaborate on the             The problem is that all this information,
             common goal of making transport available to       from real-time commute problems to your
             people who either can’t drive anymore, or have     neighbors’ values when it comes to transporta-
             chosen to give up their cars. Its members pay      tion, remains scattered. It is hard to get a more
             into “personal transportation accounts” with       holistic view.
             cash, by sharing space in their own cars, or by        Here is the ideal: When it’s time to get
             volunteering their labor. And they offer rides—    somewhere, you plug in your commute or
             and, later, ask for them—for any number of         your itinerary, and the network gives you
                                                                every option, whether you’re going to work or
                                                                just to do some shopping across town. It lets
                                                                you know about traffic conditions, whether a
                                                                rideshare possibility is passing your way, what
                                                                time the next bus or train gets to a nearby sta-
The CCTMO created by RideAmigos doesn’t just                    tion, and how long it would take you to walk.
compare the cost and time of different travel modes, it
also does a carbon dioxide and health-benefit analysis,
                                                                In a sense, as KPCB’s Ryan Popple puts it, “The
and awards points to members on a tiered basis—                 idea would be that you can travel to any city
biking to work gets more points than carpooling.                in the world and have technology provide the
Users with the highest point totals are awarded free            same experience as if you were there with a
bikes, transit passes, and other goods funded by local          trusted friend who could tell you exactly what
government, businesses, and nonprofits that have joined         road you should be on at that time of day, or
in the effort. All of these insert a social component
into what had been purely individual decisions.
                                                                how to complete a trip using multiple modes
                                                                of transportation.”74 The system might also take

advantage of real friends, who post to your         employers or governments or, as in Century
social network advising on how to get a ride-       City, a community of institutions interested in
share or taxi discount, for instance, or alerting   changing behavior. Discounts, travel vouchers,
everyone to a particularly convenient route         certificates to restaurants or stores—all might
they’ve discovered.                                 have an impact. So might out-and-out cash.
    But in the vision laid out by participants      In Palo Alto, Stanford University computer
at the Deloitte session, the network would do       scientist Balaji Prabhakar has used a $3 million
more than promote cost and travel efficiency.       research grant from the USDOT to set up a
It would also take into account your lifestyle      lottery—commuters who travel to campus dur-
preferences and what you don’t like—maybe           ing off-peak times could win up to $50 in their
it would give you information about how to          paychecks. As a result of Prabhakar’s work,
walk to where you’re going, given your desire       Singapore is considering a similar system for
to burn off calories. And embedded in it would      transit riders where a trial run lowered rush-
be not only information about road and transit      hour ridership by 10 percent.77
conditions and dynamic pricing levels, but also         But as RideAmigos Corp’s Jeff Chernick
information about what friends and neighbors        argues, information in and of itself can be
are doing and some reward system, like that         a powerful motivator. Price, time, and cash
of RideAmigos Corp, to encourage particular         incentives matter, of course, but so might the
choices. The challenge, as Freund puts it, is       carbon emitted by each choice, the calories
to “connect transport to human motivation           burned, the times when neighbors headed in
beyond just saving time and money.”                 the same direction are leaving their homes,
                                                    even the bottom-line costs of a car ride versus
How do we get there?                                a bus ride versus a bike ride. You need look no
    In some ways, the building blocks for           further to see the power of this approach than
this scenario are already in place. As Cisco’s      the changes in driving habits of Toyota Prius
Mai and Schlesinger say of automobiles,             owners as they seek to boost their gas mileage
“Ubiquitous vehicle connectivity not only           or Nissan Leaf owners as they try to increase
allows automakers to ride the wave of smart         their efficiency. This is also the thinking that
mobile technology, but also enables a funda-        underlies Opower’s customer engagement plat-
mental strategy shift from merely building          form, which includes “home energy reports”
cars to selling personal travel time well-          that help power providers give customers
spent.”75 The same can be true for any mode of      detailed information about their energy usage
travel—and for a definition of “well-spent” that    and compare it to their neighbors’.78 Dynamic,
goes beyond being entertained while you are         up-to-the-minute information from both pri-
in transit.                                         vate and public sources that is readily available
                                                    to users will help them make decisions that, on
1. Design the user dashboard                        a grand scale, should lead to a more efficient
    The challenge, as transportation shifts         and effective system.
to a freer, more user-centered paradigm, is
how to create incentives that broaden users’        2. Gamify the experience
worldviews and take into account the com-               Opower’s insight—that allowing people
munity and the system as a whole. Or, as Susan      to compare their usage with their neighbors’
Grant-Muller puts it, “The notion is to incen-      might change behaviors and yield less energy
tivize people to make choices that are not just     consumption—helps explain the rising interest
optimizing for themselves but optimizing for        in the gamification of behavior.. The appeal to
the system as a whole at the same time.”76          users’ competitive instincts (whether in actual
    There is, of course, the straightforward        competition, in trying to amass points, or
approach. Incentives can be provided by             simply by comparison), holds the promise of

Digital-Age Transportation: The Future of Urban Mobility

In Europe, Project SUNSET is exploring the impact that incentives and gamification might have. “We can think
about it in terms of a points system a bit like air miles, and the idea that you accrue points by making sustainable
choices or choices that are in line with your higher level objectives within the transport system,” says Grant-Muller.79

The EU-run project arises from a belief among European transport thinkers there that the spread of
technologies putting users at the center of the transportation system will ultimately offer only marginal
improvement to overall mobility unless individual choices can be brought into line with broader system-
level objectives. Project SUNSET sits “at the interface between ICT technology, infrastructure and the
individual traveller,” in the words of Grant-Muller and her University of Leeds colleague, Frances Hodgson.
“Its goal is more efficient, safer and environmentally aware transport network management.”80

What may be most intriguing about the project is that it is being spearheaded by players and firms in
the information realm. They include providers of location-based services and mobile-phone operators, as
well as local and national governments and university research centers. The project will connect urban
mobility managers with users—and users with one another—through a smartphone app, allowing users
to receive information tailored to their particular travel behavior; the more they use the app, the more it
learns about their mobility patterns. SUNSET will also link with existing roadside sensors to provide real-
time traffic information. Users will be able to share information about their own experiences on roads
or transit, and track their progress in meeting particular goals—walking more, say, or reducing carbon
emissions. “We’re going to develop the opportunity to reach out to people to personalize incentives to try
and encourage the kind of behavioral change that is part of people-centered mobility,” says Grant-Muller.81

             encouraging them to think about what they               an aggregate level, ensuring complete data
             do (whether it’s using energy or driving solo           privacy.”82
             to work) in ways that other approaches haven’t              Of course, this places Facebook in a role
             succeeded in doing.                                     that it never envisioned and wasn’t really
                                                                     designed for. “What we don’t want is to have
             3. Create network effects                               a lot of users with a lot of trust, faith, and
                 In order for efforts like these to have any         commitment in a particular social network-
             real impact, though, they will have to scale            ing brand and for something to happen that
             up. They will, in other words, have to develop          undermines that trust,” says Grant-Muller.
             into a network, with all the benefits that accrue       “These sites need to evolve a growing sense of
             from creating linkages and critical mass.               social responsibility and awareness of their role
                 Opower pointed the way to one pos-                  in influencing behavior within a wider arena
             sible answer last fall, when it partnered with          than they were originally set up for.”83
             Facebook and the Natural Resources Defense                  Moreover, she points out, there is a risk of
             Council to create a Facebook app allowing               the “digital divide” spilling over into transpor-
             users to track—and boast about—how much                 tation. “Will people who, for whatever reason,
             electricity they’re using. People on opposite           can’t access the network become second-class
             sides of the world can compare themselves to            citizens because they won’t have up-to-date
             one another, and users can compare them-                transport information?” she asks. “Will they
             selves to Facebook friends or even people on            lack the ability to influence or engage, or to
             Facebook in similar-sized homes. Moreover,              benefit from the rewards that will be part of
             Opower said in its press release, “People will          such networks?”84
             be able to benchmark their home energy use
             against a national database of millions of
             homes. All benchmarking will be done on

Looking ahead

I F anything, the dizzying pace of change
  in transportation is likely only to acceler-
ate. The players pouring into the field—con-
                                                   can the public sector best get out of the way of
                                                   innovation, yet also meet the need for a public
                                                   conversation and possible legislation on such
sumer electronics, mobile communications,          issues as privacy and dynamic pricing? If gov-
app makers, smart infrastructure and smart         ernment is going to seize fresh opportunities to
transport entrepreneurs, forward thinkers in       lay the groundwork for emerging technologies
the automotive industry—are transforming           and entrepreneurial models, how can it make
it and creating opportunities for even newer       the wisest use of its limited resources?
players. Others are arriving with experience           There remains a lot of work to do.
in solving problems in other fields — energy       Standards for the technology that will be
conservation, for instance, or telecommunica-      crucial to the new mobility have yet to be
tions—and bringing fresh insights with them        finalized. Frameworks for public-private
that, in turn, strike new sparks among existing    partnerships must be put in place, monitored,
transport thinkers.                                and adapted as needs change. The simple
    As the scenarios above suggest, we are         notion that people’s mobility, rather than
already seeing aspects of what this new world      vehicle throughput, ought to be at the center
might look like. Smartphones are expand-           of the system will demand a change in culture
ing their reach in both numbers of users and       throughout public transportation depart-
phone capabilities, and thus creating new mod-     ments. There will undoubtedly be a public role,
els for getting people from point A to point       perhaps a central one, in making it easier for
B. Social networking is abetting new ways of       travelers to experience an integrated transpor-
thinking about organizing communities and          tation system. Providing safe and reliable infra-
motivating change. Insights into human behav-      structure with the capacity to handle demand
ior—think gamification—are rewriting how we        will undoubtedly remain a core government
approach transportation problem solving. And,      function, even if the models for how to finance
of course, emerging technologies are chang-        and create it change.
ing pretty much every aspect of how we get             Still, what is most exciting about this
around. As a field, transportation has become      particular moment is that the opportunities
rich with possibility.                             seem unlimited for both the private and public
    The challenge, especially for government,      sectors to make human mobility cleaner, safer,
is to find its footing in this dizzying environ-   more efficient, and more enjoyable. Finding
ment (see figure 1 for a roadmap of where to       our way into this new era may take work,
get started). This means asking hard questions:    but there’s no question that we have crossed
Are there existing laws that need to be changed    its brink.
or updated to meet tomorrow’s realities? How

Digital-Age Transportation: The Future of Urban Mobility

Appendix: Forum participants

            D     ELOITTE convened a one-day session
                  that brought together a distinguished
             array of leading innovators, policymakers,
                                                                points of agreement about the likely features
                                                                and qualities a digital-age transportation
                                                                system would contain if we take full advantage
             technologists, and subject matter experts at the   of the technological and organizational
             forefront of the transformation of mobility to     breakthroughs that are already apparent. The
             consider how emerging trends in technology,        session was held on January 26, 2012, at the
             business and society could transform the           Waterview Conference Center in Arlington,
             transportation landscape in the coming             Virginia, following the conclusion of the
             years (a list of forum participants is included    Transportation Research Board’s 91st Annual
             below). The wide-ranging and thought-              Meeting in Washington, D.C.
             provoking discussion produced intriguing

             Alexander Bayen                                    Patrick DeCorla-Souza
             Assistant Professor, Civil and                     P3 Program Manager
             Environmental Engineering                          Federal Highway Administration
             University of California, Berkeley
                                                                Tiffany Dovey Fishman
             Chris Borroni-Bird                                 Manager, Public Sector Research
             Director, Advanced Technology                      Deloitte Services LP
             Vehicle Concepts
             General Motors                                     William Eggers
                                                                Global Director, Public Sector Research
             Marcus Bowman                                      Deloitte Services LP
             3G Mobility, LLC                                   Stephen Ezell
                                                                Senior Analyst
             Joe Butler                                         Information Technology and
             Data & Systems Group Manager                       Innovation Foundation
             California Center for Innovative
             Transportation                                     Katherine Freund
                                                                Founder and President
             Jeffrey Chernick                                   ITNAmerica
             CEO and Cofounder
             RideAmigos Corp                                    Eric Gilliland
                                                                General Manager
             Ken Clay                                           Capital Bikeshare
             Global Account Manager
             TomTom                                             Adam Greenfield
                                                                Founder and Managing Director
             Nick Cohn                                          Urbanscale
             Senior Business Development Manager

Ian Grossman                                  Gabriel Roth
Vice President                                Research Fellow
American Association of Motor                 The Independent Institute
Vehicle Administrators
                                              Adam Schlicht
Jenn Gustetic                                 Management Analyst
Associate Director, Strategic                 US Department of Transportation
Engagement & Communications
Phase One Consulting Group                    Amy Schlappi
                                              Fleet Manager
Stephen Keathley
State Transportation Market Offering Leader
Deloitte Consulting LLP                       Avi Schwartz
                                              Senior Manager
Ken Laberteaux
                                              Deloitte Financial Advisory Services LLP
Senior Principal Research Scientist,
Future Mobility Research Department
                                              Sonali Soneji
Toyota Research Institute of North America
                                              Research Manager
Joung Lee                                     Arlington County Commuter Services
Deputy Director, Center for
                                              Alene Tchourumoff
Excellence in Project Finance
American Association of State Highway         Manager
and Transportation Officials                  Deloitte Consulting LLP

Felix Martinez                                Jim Templeton
Strategic Relationship Manager                Specialist Leader
Deloitte Services LP                          Deloitte Consulting LLP

Martine Micozzi                               Tom West
Management and Policy Specialist              Director
Transportation Research Board                 California Center for Innovative
Paul Minett
Cofounder, President and CEO                  Yu Yuan
Trip Convergence Ltd                          Research Staff Member, Connected
                                              Vehicles and Mobility Internet
Dan Morgan
Lead Associate, Open Government
and Innovation Practice
                                              Mohammed Yousuf
Phase One Consulting Group
                                              Office of Operations R&D, Turner-
Sean O’Sullivan                               Fairbank Highway Research Center
Cofounder and Managing Director               Federal Highway Administration
                                              Jim Ziglar
Ellice Perez                                  Senior Vice President
Regional Vice President                       Deloitte Corporate Finance LLC

Digital-Age Transportation: The Future of Urban Mobility


              1. David Schrank, Tim Lomax, and Bill                 13. Borroni-Bird, “Reinventing the Automobile.”
                 Eisele, “2011 Urban Mobility Report,”              14. Susan Zielinski, “Connecting (and Trans-
                 Texas Transportation Institute, Septem-                forming) the Future of Transportation: A
                 ber 2011, <                   brief and practical primer for implementing
                 ments/mobility-report-2011.pdf>.                       sustainable door- to-door transportation
              2. Ibid.                                                  systems in communities and regions,”
              3. US Department of Transportation, Research              Sustainable Mobility & Accessibility Re-
                 and Innovative Technology Administration,              search and Transformation, University of
                 National Household Travel Survey, 2001-2002,           Michigan, <
                 <                 bitstream/2027.42/69252/4/100624.pdf>.
                 household_travel_survey/daily_travel.html>.        15. The Internet of Things refers to the point in
              4. Dr. Chris Borroni-Bird, “Reinventing the               time when more ‘things,’ or everyday objects,
                 Automobile: Personal urban mobility for the            were connected to the Internet than people.
                 21st century,” presentation at Deloitte’s Future       For additional background on the Internet
                 of Transportation workshop, January 26, 2012.          of Things, see Dave Evans, “The Internet of
                                                                        Things How the Next Evolution of the Internet
              5. US Department of Transportation, Federal               Is Changing Everything,” Cisco, April 2011,
                 Highway Administration, 2009 National House-           <
                 hold Travel Survey, December 2011, <http://            docs/innov/IoT_IBSG_0411FINAL.pdf>.
                 transportation/2012/html/table_03_03.html>.        16. Paul Didier, “Continue Driving the Inter-
                                                                        net of Things,” Cisco, October 20, 2011,
              6. United Nations Department of Economic and              <
                 Social Affairs/Population Division, “World             continue-driving-the-internet-of-things/>.
                 Urbanization Prospects: The 2011 Revision,”
                 August 2012, <          17. Kevin Fitchard, “If Cars Could Talk to One
                 FINAL-FINAL_REPORT%20WUP2011_                          Another, What Could (and Should) They
                 Annextables_01Aug2012_Final.pdf>.                      Say?” GigaOM, February 28, 2012, <http://
              7. Borroni-Bird, “Reinventing the Automobile.”            another-what-could-and-should-they-say/>.
              8. Interview with Ryan Popple, partner, Kleiner       18. Tom Vanderbilt, “The Congestion Killer,” New
                 Perkins Caufield & Byers, October 17, 2011.            York Times Magazine, June 3, 2012, <http://
              9. Schrank, Lomax, and Eisele, “2011            
                 Urban Mobility Report.”                                04E6DD1E31F930A35755C0A9649D8B63>.
             10. Ibid.                                              19. Mike Schagrin, “Safety Pilot–The world’s most
                                                                        extensive real world deployment of connected
             11. Thilo Koslowski, “Your Connected
                                                                        vehicle safety,” Intelligent Transportation
                 Vehicle Is Arriving,” Technology Review,
                                                                        Systems Joint Program Office, Research and
                 January 3, 2012, <http://www.technolo-
                                                                        Innovative Technology Administration, U.S.
                                                                        Department of Transportation, October
             12. Shira Ovide, “Tapping ‘Big Data’ to Fill               20, 2011, <
                 Potholes,” Wall Street Journal, June 12, 2012,         tions/pdf/SafetyPilot_Overview.pdf>.

20. US Department of Transportation, “DOT            33. City-Go-Round, “All US Transit Agen-
    Launches Largest-Ever Road Test of Con-              cies,” <http://www.citygoround.
    nected Vehicle Crash Avoidance Technology:           org/agencies/us/?public=all>.
    Nearly 3,000 Vehicles Will Send Wi-Fi-like       34. For more information, see RideAmigos Corp’s
    Signals that Warn of Safety Hazards, Could           virtual TMO and transportation dashboard
    Help Reduce Crashes During Year-Long                 tools at
    Research Project,” August 21, 2012, <http://         VirtualTMO and Century City’s TMO at>.  
21. Interview with Dr. Susan Grant-Muller,           35. Zielinski, “Connecting (and Transform-
    director of research, Institute for Trans-           ing) the Future of Transportation.”
    port Studies, October 18, 2011.
                                                     36. Samuel J. Palmisano, “A Smart Transporta-
22. Adam Greenfield, “Elements of a Networked            tion System: Improving mobility for the 21st
    Urbanism,” dConstruct 09, Brighton, UK,              century,” Intelligent Transportation Society of
    September 4, 2009, <http://2009.dconstruct.          America, 2010 Annual Meeting & Conference,
    org/podcast/networkedurbanism/>.                     Houston, TX, May 5, 2010, <
23. Deloitte, Summary of Key Findings                    com/smarterplanet/us/en/transportation_sys-
    from Car-Pooling and Car-Sharing                     tems/article/palmisano_itsa_speech.html>.
    Analysis, September 2012.                        37. Ibid.
24. Andreas Mai and Dirk Schlesinger, “A             38. Interview with Kari Watkins, assistant
    Business Case for Connecting Vehicles:               professor, School of Civil and Environ-
    Executive Summary,” Cisco Internet Busi-             mental Engineering, Georgia Institute
    ness Solutions Group, April 2011, <http://           of Technology, October 18, 2011.
    Connected-Vehicles_Exec_Summary.pdf>.            39. Stephen Ezell, “Explaining International IT Ap-
                                                         plication Leadership: Intelligent transportation
25. “Paying Our Way: A new framework                     systems,” Information Technology & Innova-
    for transportation finance”, final report            tion Foundation, January 2010, <http://www.
    of the National Surface Transportation     >.
    Infrastructure Financing Commission,
    February, 2009,       40. Interview with Watkins.
    NSTIF_Commission_Final_Report.pdf                41. Connected Vehicle Technol-
26. Ibid.                                                ogy Challenge, <http://
27. William J. Mitchell, Christopher E. Borroni-
    Bird, and Lawrence D. Burns, Reinventing         42. “ Reaches More Than
    the Automobile: Personal urban mobility for          3.6 Million Global Users,” Carpooling.
    the 21st century (Cambridge, Massachu-               com, March 22, 2012, <http://www.
    setts: The MIT Press, 2010), chapter 8.    
28. Ibid.
                                                     43. Interview with Popple.
29. Donald Shoup, “Free Parking or Free
    Markets,” Access, Number 38, spring              44. Interview with Sean O’Sullivan, manag-
    2011, <                ing director, Avego, October 17, 2011.
    access38_free_parking_markets.pdf>.              45. Mai and Schlesinger, “A Business
30. Ibid.                                                Case for Connecting Vehicles.”
31. Robin Chase, “Low Carbon Cars Alone              46. Ibid.
    Will Not Solve Today’s Problems, Nor             47. Barrie Kirk, “Connected Vehicles: An
    Meet Tomorrow’s Needs,” Nissan Technol-              executive overview of the status and
    ogy Magazine, April, 28, 2011, <http://www.          trends,” Globis Consulting, November 21,                     2011, <
    MAGAZINE/5guestsfuture-3.html>.                      Connected_Vehicles_Globis_rpt.pdf>.
32. Matthias Weber, “Future Mobility: Interview      48. “Roadmap to 2030: GM sustainable urban mo-
    with Robin Chase (Buzzcar, Paris),” Checkdi-         bility blue paper,” General Motors, November
    sout, January 16, 2012, <http://checkdisout.         7, 2010, <
    com/2012/01/16/checkdisout-6-future-mobili-          Media/documents/CN/ZH/2010/20101105%20
    ty-interview-with-robin-chase-buzzcar-paris/>.       GM%20Sustainable%20Urban%20

Digital-Age Transportation: The Future of Urban Mobility

             49. Borroni-Bird, “Reinventing the Automobile.”            low—but the pricing mechanism has also
             50. Ibid.                                                  allowed traffic on expressways and arterial
                                                                        roads to flow freely and at reasonable speeds.
             51. Mai and Schlesinger, “A Business                       Other cities, such as London and Stockholm,
                 Case for Connecting Vehicles.”                         have instituted their own versions of “conges-
             52. Ibid.                                                  tion pricing.” The most ambitious effort in the
                                                                        United States—an elaborate proposal by New
             53. “Connected Vehicle Research,” Intelligent
                                                                        York City mayor Michael Bloomberg—died
                 Transportation Systems Joint Program
                                                                        in the state legislature. Still, Minnesota has a
                 Office, Research and Innovative Technol-
                                                                        small-scale version on a stretch of I-394 from
                 ogy Administration, US Department of
                                                                        downtown Minneapolis through the suburbs.
                 Transportation, <
                 connected_vehicle/connected_vehicle.htm>.          62. “Beijing Telecom Users Pay Bus, Subway
                                                                        Fares with Cell Phones,” People’s Daily Online,
             54. For more information on the Connected
                                                                        May 26, 2011, <
                 Vehicle Core System Project, see http://www.
                                                                    63. “SEPTA Board Awards Contract for
             55. Kirk, “Connected Vehicles.”
                                                                        New Payment Technologies Program,”
             56. Nokia, “New Car Connectivity Consortium                Southeastern Pennsylvania Transportation
                 Aims to Put In-Vehicle Infotainment into               Authority, November 17, 2011, <http://www.
                 High Gear,” press release, March 16, 2011,   >.
                                                                    64. Brittni Rubin, “Transit Agencies Turn to New,
                                                                        Innovative Contactless Payment Systems,”
                                                                        Metro Magazine, December 2011, <http://www.
             57. Andy Updegrove, “Has the Battle for the      
                 Digital Car Been Won?” ConsortiumInfo.                 Transit-agencies-turn-to-new-innovative-
                 org, March 18, 2011, <http://www.con-                  contactless-payment-systems.aspx>.
                                                                    65. Interview with Rob Zimmer, senior systems
                                                                        engineer, Battelle, October 18, 2011.
             58. Richard Bishop, “Did the World Congress
                                                                    66. Erik Holm, “Progressive Executives Tout
                 Offer Glimpses of a Connected Vehicle
                                                                        Snapshot Program,” MarketWatch, June
                 World?” Thinking Highways, 6:4 (Novem-
                                                                        14, 2012, <http://www.marketwatch.
                 ber 2011-January 2012), p. 8, <http://
                 b336-328ec5683bb5&issue=999a79e0-                  67. Meghan Walsh, “Pay-As-You-Drive
                 3826-4303-b6c9-24f40ed1c355>.                          Insurance Gets a Push from Progres-
                                                                        sive,” Bloomberg Businessweek, July 09,
             59. Fitchard, “If Cars Could Talk to One Another.”
                                                                        2012, <
             60. Kirk, “Connected Vehicles.”                            articles/2012-07-09/pay-as-you-drive-
             61. Limited “real-world” pricing schemes have              insurance-gets-a-push-from-progressive>.
                 been in play on the roads for decades, ever        68. Matthew Roth, “California’s Pay as You
                 since Singapore enacted the first such system          Drive Insurance Program Could Reduce
                 in 1975. The basic idea is simple: Using road          Driving,” SF.Streetsblog,org, December 17,
                 space efficiently means charging for its use           2010, <
                 based on its marginal social cost. Because             californias-pay-as-you-drive-insurance-
                 the marginal cost of that space depends on             program-could-reduce-driving/>.
                 the level of congestion at any given moment,
                                                                    69. Mileage-Based User Fee Policy Task Force,
                 economists have come to believe that the
                                                                        “Report of Minnesota’s Mileage-Based User
                 “price” should depend on traffic conditions.
                                                                        Fee Policy,” report prepared by the Humphrey
                 Singapore’s “area-based” tolling system went
                                                                        School of Public Affairs at the University of
                 fully electronic in 1998. It is not fully dy-
                                                                        Minnesota, December 2011, <http://www.
                 namic—prices to enter the controlled areas of
                 the city-state are adjusted quarterly and during
                 school holidays. What doesn’t really change is
                 that the cost of driving is high in Singapore,
                 and the number of car users comparatively

70. Trey Baker, Ginger Goodin, and Chris           76. Interview with Grant-Muller.
    Pourteau, “Is Texas Ready for Mileage          77. John Markoff, “Incentives for Driv-
    Fees? A briefing paper” Texas Transporta-          ers Who Avoid Traffic Jams,” New
    tion Institute, February 2011, <http://tti.        York Times, June 12, 2012>.
                                                   78. To see what this looks like, go to: http://
71. Julia Angwin and Jennifer Valentino-Devries,
    “Apple, Google Collect User Data,” Wall
    Street Journal, April 21, 2011, <http://       79. Interview with Grant-Muller.        80. ITS International, “A New Beginning
    703983704576277101723453610.html>.                 for Travel Information, Based on Users’
72. Robert Kelly and Mark Johnson, “Mobile             Needs,” <
    Services, Location Data and Privacy in a           categories/travel-information-weather/
    Smartphone World,” Thinking Highways, 6:4          features/a-new-beginning-for-travel-
    (November 2011-January 2012), p. 4, <http://       information-based-on-users-needs/>.         81. Interview with Grant-Muller.
                                                   82. “Facebook, Opower Partner on Social Energy
                                                       App,” CNN, October 17, 2011, <http://articles.
73. Comments made by Katherine Freund                  opower-facebook-energy-app_1_app-home-
    at Deloitte’s Future of Transporta-                energy-offer-energy-savings?_s=PM:TECH>.
    tion workshop, January 26, 2012.
                                                   83. Interview with Grant-Muller.
74. Interview with Popple.
                                                   84. Ibid.
75. Mai and Schlesinger, “A Business Case for
    Connecting Vehicles: Executive Summary.”

For more information, please contact:
William D. Eggers
Director, Public Sector Research
Deloitte Services LP
Phone: +1 202-246-9684

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