Business models for
mobility management
How do we make MM
measures financially viable in
development areas?
2011-05-12
Session overview
 Background business models for MM
 Introduction business models
 MM measures for development areas
 Group assignment
 Closing
Why do we need business models?
 In a context of deregulation we can´t rely on public authorities to supply
means of travel, to secure a satisfying supply stakeholders will need an
answer to the question; What´s in for us?
 Why mobility management in development areas? Moving flats means
breaking old habits, a window of opportunity to promote sustainable
transport modes
 But.. Mobility services needs to be operational from day one, otherwise the
result may be the opposite
 Creates a problem, services are most important when they are the least
profitable, business models are needed
What is a business model?
 Description of means and methods a firm employs to earn the revenue
projected in its plans. It views the business as a system and answers the
question, "How are we going to make money to survive and grow?"
Exempels of business models
 Bricks and clicks
Business model that integrate offline (bricks) and online (clicks) presence. For
example when a business sells a product online and the customer picks it up
in physical store.
 Collective
Companies or organizations who operates in the same or related areas share
resources, information or offer other advantages for their customers
 Component
A model developed by IBM to analyze the relationship between a company´s
strategy and their organizational ability and investments in order to define
abundant or overlapping units
Exempels of business models
 Cutting out the middleman
A model where a company sells there product directly to their customers
instead of supplying through stores
 Distribution
Several different types of models, franchise, 7Eleven and McDonalds.
Freemium, common in digital sales, demo version is free but to use the full
version with more functions you have to purchase the product
 Spotify a freemium that changed a market
Free with commercial or monthly fee. Gathers a huge range of different music
suppliers (labels) underneath the same cloud. The user only needs one portal
to reach everything. Spotify collects revenue and distributes to suppliers.
Private Public Partnership
“As much value as possible to taxpayers”
 Does not necessarily have to be financial revenue. A useful service that
makes a transportation easier for the public is good value.
 Having public stakeholders owning processes can ensure longevity for
services, however business models can be developed to include private
stakeholders in order to cut costs to maintain the system.
Model for development areas
Restrictions
Emission caps
Constrained
Infrastructure
Users
External
actors
Needs
Needs
Target group
Business plan
WTP
Business
model
Profitable for
everyone
MM measures for development areas
 Car Clubs
 Bike hire schemes
 Commuter parking for cyclists
 ICT solution
 Travel plans
 Informations packs
Car Clubs
 Restrictions
Must be in place as part of the environmental ambtions and constrained
infrastructure
 External Actors
The City: Needs to ensure presence of Car Clubs
PT operator: May want offer customers Car Clubs as part of their service.
Car Club operators: Wants as many users as possible per car, wants the
service to be profitable from day one.
 Users
Wants as small amount of users as possible per car to ensure availability.
Wants as cheap service as possible. Wants service to be in place from day
one
Rental bikes
 Restrictions
Need to be in place to cater for short
trips within the area.
 External actors
The City: Wants to make sure short
trips are made by bike.
PT operator: Have an agreement with a
supplier as service for their customers
Supplier: Wants as much commercial
exposer for their stations as possible
 Users
Companies: Wants their visitors to be able to use the bikes, need stations
outside their buildings
Inhabitants: Wants stations as close as possible to their flats to make
commuting smooth
Commuter parking for cyclists
 Restrictions
A certain amount of parkering needs to be
in place outside the subway station based
on the amount of travellers
 External actors
The City: land owner
PT Companies: service needed for thier
customers
 Users
Long distance, expensive bikes, WTP
moderate if secure
Short distance, WTP most likely nothing
ICT
 Restrictions
Needs to be in place to make
travelling with sustainable modes as
easy as possible.
 External actors
All suppliers of travel services wants
to expose their products
The Municipality wants to make sure
the system runs smooth for the
inhabitants
Users
Wants it all in one place
Travel Plans
 Restrictions
The Municipality can use the possibility to
lower the amount parking if the building
companies develop travel plans
 External actors
Buildning companies, wants to build as
cheap as possible
Landlords, wants to maximize income from
tentants, do not want to exclude any
possible tenants
Travel Plans
 Users
Tenants, wants offices that fits their needs, both in terms of environmental
policy and accessibility.
Information packs
 Restrictions
The Municipality wants to make sure the
inhabitants gets offers and information good
enough for them to avoid getting a car
 External actors
All transport providers wants to get their
services exposed
 Users
Inhabitants that recently has moved to the
area
Companies that recently moved into their
offices
The Case
 New development area
 Central location, 3 km to central
station
 10 000 apartments 30 000 work
opportunities
 Infrastructure already strained
 High environmental ambitions, 1,5
ton CO2 per inhabitant by 2020
 Served initially by subway and buses
and later by streetcars
 High income, usually means high car
use
The Assignment
 Develop business models for MM measures:
 Use different business models
 May be public, private or PPP
 Becuse of the high environmental ambitions the City is willing to invest, but
they wants external actors and users to carry as much as possible of the
cost.
External stakeholders
 Identify and list the external stakeholder
 Why would they be interested?
 What are their needs?
 What is their business plan?
Users
 What different kind of users groups will there be for the service?
 What are their needs?
 What is the willingness to pay (WTP)
Business model
 Motive why the business model is profitable for all
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Business models for mobility management