Shared Mobility: Current Practices and Guiding PrinciplesChapter 5. Lessons Learned And Challenges In The FutureShared mobility is changing the perceptions of transportation in the United States and worldwide, spawning new business models and influencing individual transportation choices and behavior. These changes are dynamic and evolving. We can expect innovations in shared mobility to continue to shape and change options for years to come. As with all new disruptive technologies and business models, there are challenges to shared mobility’s expansion and scaling. This chapter explores these challenges, along with success stories, lessons learned, and proposed solutions. Some of the prominent shared mobility challenges discussed in this chapter include:
Consistent Public and Private Sector Standards and DefinitionsLegal definitions of different shared mobility services are essential for mainstreaming such services. Once resolved, they will enable public agencies to clarify policies related to insurance, taxation, rights-of-way, parking, and zoning. In addition to legal issues, there are also challenges related to poor public knowledge and understanding. Consumers are often unaware of the true costs of their travel behavior and as a result may perceive pay-as-you-go transportation costs that are common with shared mobility and unbundled transportation services (e.g., hourly and daily parking charges, per trip fares, and hourly usage rates) as more expensive over the longer term than more traditional transportation-related purchases (e.g., entailing household automobile purchase costs, hidden parking charges bundled with housing costs, and annual insurance premiums), when the opposite is commonly the case. Infrequent costs, such as vehicle purchases, insurance, license fees, smog checks, and maintenance, are often overlooked as consumers make mobility choices. Personal unfamiliarity with shared mobility services, confusion in terminology use among the media, and international discrepancies also contribute to user uncertainty. For example, the term "carsharing" in the United Kingdom refers to the American ridesharing or carpooling model. Car club (often referring to American Automobile Association (AAA) in the United States) is typically used to describe carsharing in Great Britain. While a number of definitions of shared mobility have been developed to address a variety of public policy issues, there remains no commonly used federal definitions of these services. This results in various definitions across the country, often contributing to confusion over service features and public policies. Further, the blurring of lines between core transportation services and shared mobility can create additional misunderstanding where definitions may need to be developed or revised. For example, the California Public Utilities Commission (CPUC) coined the term transportation network companies and developed the following definition: Transportation Network Companies provide prearranged transportation services for compensation using an online-enabled application or platform (such as smartphone apps) to connect drivers using their personal vehicles with passengers. This definition captured the market in late-2012/early-2013 when it was developed, but changes in the marketplace exemplify how quickly regulations can become outmoded. For example, the Flywheel app (e-Hail taxi) enables customers to prearrange transportation services (via a taxi) using an online-enabled application to connect drivers with passengers. The result is the driver can conceivably offer taxi and ridesourcing services depending on the regulatory definition being applied. This can become problematic for a variety of reasons, such as taxation and insurance. For example, many jurisdictions apply taxes, fees, and surcharges to taxi fares, but unclear regulatory frameworks have created equally unclear guidance regarding the taxation of app-based for-hire vehicle services. Examples of How Public Agencies May Take Action:
Developing Metrics, Modeling, Planning Platforms, and Methodologies to Assess the Economic and Travel Impacts of Shared MobilityDeveloping data metrics, models, planning platforms, and formal methodologies to measure the travel and economic impacts of shared mobility is essential for transportation planners and policymakers. Developing these tools will enable public agencies to forecast the economic and travel behavior impacts of shared modes and guide public policy development related to urban and spatial planning, rights-of-way, parking, and zoning. Two key areas that metrics, models, methodologies, and planning platforms can assist with are measuring economic impacts and travel behavior impacts. Tracking and forecasting the economic impacts of shared mobility is important because of its potential impact on auto sales, fleet savings for governments, monetary savings to individuals and households, and broader industry growth (e.g., annual revenues by industry sector and employment figures). Incorporating shared mobility into Gross Domestic Product (GDP) measures is one way to track and forecast the economic impacts of shared mobility. GDP was adopted as the global standard for measuring national- and industry-level economic activity at the Bretton Woods Conference in 1944. Fundamentally, GDP is an aggregate measure of the total value of all goods and services produced by a nation within a given year. Gross domestic productivity is undoubtedly increasing, but the nation’s GDP may be underestimated by failing to account for shared products and services exchanged through the Internet and the sharing economy. How do we capture the productivity gains from new technologies? When an individual makes a vehicle available for rent using a P2P service or a homeowner makes a room available for rent on Airbnb or Craigslist, the economic activity from these transactions are rarely captured by federal agencies, which results in an underestimation in national GDP and sector productivity measures. How do we capture the productivity gains associated with ultra-low cost and free products and services? The rise of free and freemium service models likely also leads to an underestimation of productivity measures. In the 1980s, people purchased and developed film to take pictures and placed global calls using a landline. Today, people take digital photos, electronically share them, and communicate globally through instant messaging and video chat. These efficiency gains have undoubtedly made Americans more productive, but this is largely unmeasurable because of cashless products and services. Similarly, because shared mobility is not incorporated into the NHTS, policymakers have very little data on the origins, destinations, and travel patterns of shared mobility consumers. The result is a growing segment of the nation using these services without any way to measure the travel and economic impacts of this sector. As such, it becomes extremely difficult to quantify the impacts of innovative services including shared mobility. The growth of mega regions coupled with emerging social and technological changes are altering how people travel. Numerous shared modes, such as carsharing, bikesharing, and on-demand ride services, have grown in recent years. Despite this growth, traditional transportation planning methods are unable to accurately capture modal share and the impacts of shared mobility on the broader transportation network. Early four-step planning models have matured into more advanced activity-based modeling. Although planning agencies have embraced activity-based modeling as being more representative of the transportation environment, existing activity-based modeling almost always fails to incorporate shared mobility. Metrics, modeling, planning platforms, and methodologies are needed to help cities, public agencies, and regional governments understand the impacts of shared mobility and better scale and deliver these services in a variety of land-use settings. An Example of How Public Agencies May Take Action:
Recognizing Shared Mobility as a Key Component of Transportation Policy and PlanningTransportation policy and planning is a complex process that is affected by federal, state, and local legislation, along with multiple stakeholders and public agencies. At the federal level, Title 23 of the Code of Federal Regulations provides guidance for metropolitan transportation planning and identifies eight factors that must be considered as part of the planning process: 1) supporting economic vitality; 2) increasing transportation system safety; 3) increasing transportation system security; 4) increasing accessibility and mobility; 5) protecting and enhancing the environment; 6) enhancing the integration and connectivity of the transportation system; 7) promoting efficient system management and operation; and 8) emphasizing the preservation of the existing transportation system. Furthermore, regions designated as air quality non-attainment areas have additional planning guidance focused on reducing criteria pollutants to achieve attainment across a wide array of air quality metrics. Shared mobility modes, such as carsharing, bikesharing, ridesharing, and other services, have not been widely incorporated into local and regional planning processes. Because of the private sector’s involvement in shared mobility, planning frameworks, such as general plans, often fail to incorporate shared mobility even though some jurisdictions have issued RFPs for shared mobility services. Many non-profits have begun to incorporate shared mobility into private sector planning processes. For example, the U.S. Green Building Council (USGBC), a private non-profit that promotes sustainability in the design and construction of buildings, has incorporated shared mobility into their Leadership in Energy and Environmental Design (LEED) certification program. LEED gives project-level certification credits for the incorporation of carsharing, bikesharing, and ridesharing services into a development project. This can include integrating measures, such as inclusionary carsharing parking, into a building’s design. Incorporating shared mobility into both public and private sector planning processes and programs is key to integrating it into the transportation network and recognizing it as one of a number of potential transportation options available. Examples of How Public Agencies May Take Action:
Encouraging Multimodal IntegrationMultimodal integration-the seamless connectivity among different transportation modes-is recognized as a best practice to support sustainability and encourage public transit ridership. This entails integration of mass transportation modes with one another and with first-and-last-mile services, such as taxis; walking; cycling; and the shared modes of carsharing, bikesharing, ridesharing, ridesourcing, and microtransit. Achieving multimodal integration requires three key components—infrastructure integration, information integration, and fare integration. Infrastructure integration involves the physical and operational connection of modes. In the context of shared mobility, this could include co-locating carsharing and bikesharing with public transportation stops. Information integration is the incorporation of information systems to provide one-stop information sources for service features, such as routing, time tables, and fares. At its most basic level, information integration includes multimodal trip planners. More advanced information integration may include real-time information services, such as modal connection information (e.g., NextBus). Finally, fare integration involves the development of a single fare payment method across multiple modes.
Ensuring Accessibility to and Equity of Shared Modes for All Transportation UsersShared mobility options that provide first-and-last-mile solutions can greatly improve quality of life for low-income households, which are generally disproportionately dependent on public transit. Offering convenient, accessible, and affordable shared mobility options may make it easier to meet the mobility and accessibility needs of low-income and other disadvantaged communities. Because many shared mobility services are provided by the private sector, ensuring service access in low-income and minority neighborhoods and ADA compliance for disabled access can be a key concern. (See below for a case study on the challenges of ADA mobility in New York City.) As discussed in Chapter 4, other innovative programs, such as Capital Bikeshare’s Bank on DC program, aim to develop partnerships between shared mobility providers and banks to provide debit card access in addition to credit card access, which is currently required for bikesharing use (Capital Bikeshare, 2015). It is important that the public and private sector work together to ensure that all people have access to shared mobility regardless of race, color, or national origin (Title VI requirements defined by the Civil Rights Act of 1964) and disability, age, or income. Everyone should have access to services, the opportunity to participate in decisions regarding the placement of these services, and the right to participate in a host of related public policy decisions. Public agencies should ensure policies protect against "unjustified disparate impact discrimination" or policies and practices that appear to be neutral but in effect are discriminatory against protected classes. Public agencies should work toward achieving the following key accessibility and social equity goals with respect to shared mobility:
Public agencies should also ensure that other vulnerable populations outside of statutory protected classes have access to shared mobility. Vulnerable populations may include:
All of these groups may face mobility challenges for a variety of reasons.
Examples of How Public Agencies May Take Action:
Insurance Regulations, Availability, and AffordabilityInsurance remains a key challenge for many shared mobility operators. In the early years of carsharing, cost and insurance availability were notable challenges. As carsharing grew, insurance became more widely available and affordable. Concerns over the cost and availability of insurance partially focused on special populations, such as younger adults (college students). Allowing younger adults (ages 18 to 25) to use carsharing was critical to the development of the now very large college/university campus carsharing market. Insurance has been a consistent challenge with the launch of innovative shared modes and service models. The advent of P2P carsharing, or short-term access to privately owned vehicles, in around 2010 brought new challenges. Early P2P vehicle sharing owners confronted the risk of canceled personal automobile insurance policies or the reclassification (and repricing) of their policies for commercial vehicle use. Three states (California, Oregon, and Washington) enacted legislation to address these challenges. As a result, all three states require commercial insurance coverage when a personal vehicle is being rented out and prohibit cancellation of (or other lesser consequences related to) personal lines of insurance for vehicle owners who sometimes make their vehicles available through a P2P carsharing service. For the vast majority of the country, however, these challenges have not been addressed by legislation, leaving P2P vehicle sharing owners susceptible to coverage cancellation or reclassification.
A number of insurance challenges associated with ridesourcing and P2P carsharing remain. Personal auto insurers are often concerned that for-hire and P2P vehicle services translate to increased risk from: 1) additional VMT/VKT and/or additional drivers; 2) geographic hazards associated with urban locations because ridesourcing and P2P carsharing services are often marketed in high-traffic urban centers; 3) unfamiliar roadways (either for ridesourcing drivers or P2P renters); 4) driver distraction associated with ridesourcing apps; 5) higher vehicle occupancy translating into more people that can be injured, if a collision occurs; and 6) pressure-based risk factors associated with rushing to accept matches and pick up passengers (in the ridesourcing context) or to return a carsharing vehicle to avoid additional time-based fees, although traditional car rental and carsharing include this same risk (National Association of Insurance Commissioners, 2015). Balancing Data Sharing with PrivacyThe lack of data on emerging travel options as part of the NHTS makes it difficult to understand the size and impact of shared mobility on the broader transportation network. This lack of understanding also makes it challenging to incorporate the services into planning processes and to identify service and accessibility gaps in the transportation network. Sharing of shared mobility data (either publicly or with public agencies), where such data do exist, is an important strategy that can be used to overcome these challenges. Shared mobility operators typically track several important key data points—the origin and destination of shared services (e.g., the pickup and return location for a carsharing vehicle, bikesharing bicycle, or ridesourcing passenger); travel time; and trip duration. A number of shared mobility service providers have shared data with public agencies either voluntarily or as part of a regulatory mandate. Chapter 4 of this primer highlighted a few of these data-sharing efforts. Industry-wide research cooperation, either through trade associations or through governmental regulation, can aid in the development of clear and consistent data standards, data sharing protocols, and privacy protections to ensure open data, protection of consumer and proprietary operator data, interoperability, and comparability across a wide array of platforms.
ConclusionShared mobility is a transportation strategy that planners might consider to support municipal and regional transportation and land use goals related to congestion and parking mitigation; air quality improvement and reduction of GHGs, particulate, and criteria pollutant emissions; and "smart city" and sustainable design initiatives. Although numerous challenges exist and understanding of the impacts is still limited, this chapter covered some of the best practices, lessons learned, and proposed solutions from across the United States. Key takeaways include:
ReferencesCapital Bikeshare. (2015). Bank on DC. Retrieved from Capital Bikeshare: https://www.capitalbikeshare.com/bankondc Gatto, M. (2015, July 15). Assembly Bill No. 83. Retrieved from California Legislative Information: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB83 Gorenflo, N. (2010, September 29). California’s P2P Car-sharing Bill Signed Into Law. Retrieved from Shareable: http://www.shareable.net/blog/californias-p2p-car-sharing-bill-signed-into-law National Association of Insurance Commissioners. (2015). Transportation Network Company Insurance Principles for Legislators and Regulators. Kansas City: National Association of Insurance Commissioners. San Francisco Municipal Transportation Agency. (2015, October 19). SFMTA Proposes New Shuttle Rules. Retrieved December 15, 2016, from https://www.sfmta.com/about-sfmta/blog/sfmta-proposes-new-shuttle-rules Tierney, G., Shaheen, S., and Christensen, C. (2015, February 18) Crossing the Digital and Income Divide: Making Mobility Innovations Accessible to All. Agrion Smart Cities Series Workshop Summary. Wagstaff, K. (2014, February 17). Uber for kids: Shuddle wants to shuttle your children. Retrieved from NBC News: http://www.today.com/money/uber-kids-shuddle-wants-shuttle-your-children-1D80240006 |
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