Growing the P2P Transportation Sharing Economy in Rural Georgia - - PowerPoint PPT Presentation

Growing the P2P Transportation Sharing Economy in Rural Georgia

Renee M. Shelby

Georgia Institute of Technology Georgia Innovation Program for Science, Technology , & Innovation Policy

• 1. DEFINITIONS
• 2. METHODOLOGY
• 3. W HY P2P TRANSIT
• 4. FOUR MODELS
• 5. BEST PRACTICES

W HAT IS THE TRANSPORTATION SHARING ECONOMY?

SHARING ECONOMY

An economic model based on sharing underutilized assets from spaces to skills to stuff for monetary or non-monetary benefits.

PEER (P2P) ECONOMY

Person-to-person marketplaces that facilitate the sharing and direct trade of products or services built

• n peer trust.

TRANSPORTATION P2P ECONOMY

Uses digital technologies to connect lay drivers to riders.

• 1. Sign up on app or

website

• 2. Summon or schedule a

ride

• 3. Payment is automatically

deducted

• 4. Rate driver/ rider

RESEARCH QUESTION

How can we introduce (or expand) P2P transportation in rural Georgia as economic development?

METHOD

Reviews of . . . + Academic literature + Tech journals + Federal transportation research + Failed apps Created . . . + Database of P2P apps nationally Interviews with . . . + Founders & reps from transit apps

HOW IS THIS ECONOMIC INNOVATION?

Concept from KS12’s Emergence Collective, The Future of Money.

Technology allows owners to create value out of cars, and allows users to access that value.

“The success of Uber [and apps like it] isn’t a fad, it’s a new way of doing business.”

• -PricewaterhouseCoopers

“The Sharing Economy: A New W ay of Doing Business.” Dec. 11 2015. W harton, University of Pennsylvania

Sharing Economy & Traditional Rental Market Projected Revenue

2013 2025

“The Sharing Economy: A New W ay of Doing Business.” Dec. 11 2015. W harton, University of Pennsylvania

W HY EXPAND RURAL P2P TRANSIT IN GEORGIA?

CREATE IMMEDIATE JOB GROW TH

Do not have to wait until formal institutions hire or open.

EXPANDS & EXPEDIATES EXCHANGE

Payments are received in less than 7 days.

OFFERS FLEXIBLE EMPLOYMENT

Drivers set their own hours, clocking in and out as they please.

REDUCES REGRESSIVE TRANSPORTATION COSTS

86% of users report it makes life more affordable.

“The Sharing Economy: Consumer Intelligence Series.” 2015. PricewaterhouseCooper.

EASI Analytic from 2010 Census Data PL 94-171. EASI Analytic created an index (where 100 is the national average) using variables from the Census. No Cars, reflects households with no personal transportation in a geographic area. Profiles are based on relative rankings of each of the components compared to the national average.

GIG W ORKERS GET FEW BENEFITS

Workers are treated as independent—not part of the company

ON DEMAND ECONOMY RAISES LEGAL ISSUES

Issues like how to regulate & treat workers are still being litigated

DIGITAL DIVIDE PERSISTS

Users are likely to be urban, wealthier, and younger

IT IS DISRUPTIVE

The impact to the traditional economy is unclear

KINDS OF P2P TRANSIT APPS?

Database created from analysis of tech journals, app store searchers, and

CHARACTERISTICS OF 22 P2P TRANSIT APPS ANALYZED

Database created from analysis of tech journals, app store searchers, and

13 7 4 1 11 4 4 3

2 4 6 8 10 12 14

Mobility on Demand Taxi Hailing Apps Carpooling Scheduled Rentals Fixed Payments Riders Set Payments Failed Apps Region Specific

FOUR P2P MODELS

THE GODFATHER THE CORPORATE ANCHOR THE RURAL HYBRID THE FAILURE

THE GODFATHER UBER

UBER Basics On demand ride summoning Phone interface Payments are fixed No advance scheduling Lesson Relies on critical mass

GEORGIA UBER Atlanta Athens Augusta Coastal Georgia (beta) Savannah-Hilton Head

THE CORPORATE ANCHOR ZIMRIDE

ZIMRIDE Basics Carpool & Onetime Travel Web interface Riders set payments Only advance scheduling Lesson Anchor around an institution

GEORGIA ZIMRIDE PwC Emory University Gulfstream Verizon

THE RURAL HYBRID CARMAHOP

CARMAHOP Basics Onetime Travel Digital Hitchhiking Riders set payments No advance scheduling User driven Lesson You can make your own model

THE FAILURE SIDECAR

SIDECAR Basics On demand ride summoning Phone interface Payments are fixed No advance scheduling Relies on critical mass Lesson Too small a network

9 out of 10 app-based startups fail.

Griffith, Erin. (2014). W hy Startups Fail, According to their Founders. Fortune.

TOP 5 REASONS APP STARTUPS FAIL

42% 29% 23% 19% 18% No Market Need Ran Out of Cash Not the Right Team Get Outcompeted Pricing/ Cost Issues

Based on analysis of 101 startups post-mortems. CB Insights. (2014)

LESSONS FOR INCREASING RURAL P2P TRANSPORTATION

Pew Research Survey conducted Nov. 24-Dec. 21, 2015. “Shared, Collaborative and On Demand: The New Digital Economy.” “The Sharing Economy: Consumer Intelligence Series.” 2015. PricewaterhouseCooper. Personal communication with representatives from Uber and Lyft (June 2016).

Uber Rural areas will not be serviced by major P2P apps e.g. Uber in near future Zimride Most users will not trust companies until they are recommended by someone they trust Carmahop Rural areas can design own platforms to suit their region’s needs Sidecar Networks must be large to be successful

BEST PRACTICES FOR PROMOTING RURAL P2P TRANSPORTATION

BEST PRACTICES + Involve the community

> Tailor to community needs > Promote & advertise > Encourage independent invention > Think Carmahop > But remember fail rates are high

+ Partner with nearby counties

> Enhances value of local P2P network

+ Find funding when needed

> Mobility On Demand Sandbox > Up to $8 million in funding > Smart Cities Challenge > www.transportation.gov/ smartcity

+ Consider creating a regional challenge

CONTACT RENEE M. SHELBY 404.502.1256 RENEESHELBY@GATECH.EDU