O u t l i n e Changing Landscape Opportunities Business Models - - PDF document

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O u t l i n e Changing Landscape Opportunities Business Models - - PDF document

DIGITAL INNOVATIONS AND DISRUPTIVE MOBILITY HYPE OR REALITY? Image Credit : Adobe S t ock Professor Hussein Dia Chair, Department of Civil Engineering Deputy Director and Program Leader (Future Urban Mobility) S mart Cities Research


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1 Image Credit : Adobe S t ock

DIGITAL INNOVATIONS AND DISRUPTIVE MOBILITY

HYPE OR REALITY? Professor Hussein Dia

Chair, Department of Civil Engineering Deputy Director and Program Leader (Future Urban Mobility) – S mart Cities Research Institute

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Changing Landscape Opportunities Business Models Impacts

Image Credit: Adobe Stock

O u t l i n e

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The three dimensions of tech-enabled urban mobility

Creating smarter mobility with meaningful tech for better user experience Infrastructure

S upply and capacity Network management and control Asset management S mart infrastructure Asset optimisation Transport modelling Traffic forecasting Understanding of travel demand and traveller behaviour

Technology Users

S ensor networks S mart devices Communication platforms Control systems Data analytics Human factors S afety Predictive modelling Traveller information Behavioural modelling Enhanced user experience

Benefit-cost ratios for different transport investments

Source: Low Carbon Mobilit y for Fut ure Cit ies: Principles and Applicat ions (Dia, H. ed., 2017)

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Conventional approaches Emerging approaches

S upply and capacity Demand management and resilience Focus on mobility Accessibility S treet as road for vehicles S hared between all modes Physical dimensions S

  • cial dimensions

Vehicle-oriented People-oriented and customer-focused Motorised transport Hierarchy of modes Travel as a derived demand Travel also a valued activity Minimisation of travel times Reliability of travel times Petrol taxes/ vehicle registration fees User-pay models Private car ownership Car-sharing and ride-sharing

The changing landscape of urban mobility

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Source: Low Carbon Mobilit y for Fut ure Cit ies: Principles and Applicat ions (Dia, H. ed., 2017)

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Car passenger-kilometres per capita

9000 9500 10000 10500 11000 11500 12000 12500 13000 13500 Canberra Pert h Melbourne Brisbane Adelaide S ydney

Sources: BITRE 2015 Yearbook; Peak Car Use in Australian Cities (Newman and Kenworthy, 2015); chartingtransport.com

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0% 10% 20% 30% 40% 50% 60%

Private transport Public transport Population

Melbourne: Growth in private and public transport passenger kilometres since 2003

59% 22% 7%

Sources: BITRE 2015 Yearbook; chart ingt ransport .com

POSSIBLE CAUSES?

  • Growth of public transport
  • Growth of a culture of urbanism
  • Rise in fuel prices
  • Reversal of urban sprawl
  • Ageing populations of cities
  • Hitting the Marchetti wall

Is it a structural change? Infrastructure challenges

75%

  • f the infrastructure that will be in place by 2050 doesn't

exist today. Most of that infrastructure will be transformative

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e of Beijing's agenda. e of Beijing's agenda. One of the most ambitious geopolitical projects Aims to spend $1.3 trillion in loans by 2027 Around ten times what the US spent on the Marshall Plan in the aftermath of World War II

China’s trillion dollar Belt and Road infrastructure agenda

The fourth dimension: No ordinary disruption

Disruptive Mobility Self-Driving Technologies Sharing Economy Internet of Things Blockchain Mobile and Cloud Computing Vehicle Electrification (including tiny vehicles)

Images Credit : Adobe S t ock

Future of mobility:

  • Shared
  • On-demand
  • Electric
  • Autonomous (eventually!)

Underpinned by AI-based computational platforms where the mode of transport will be a smart, self-moving device embedded in a digitalised eco-system.

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April 2019 IPO: Estimated $120 billion

Image Credit : Digit alTrends

The merging worlds of technology, vehicles and shared mobility

Uber – Huge Growth, Big Losses

“ Explore strange new worlds— business models to come” Jef f Bezos, CEO Amazon 2014 2015 2016 2017 Market Capitalisation $40 billion $63 billion $69 billion $ 72 billion Gross Bookings $2.93 billion $10.8 billion $20.0 billion $37.0 billion Net Revenue $495 million $1.5 billion $6.5 billion $7.5 billion Loss $671 million $987 million $2.8 billion $4.5 billion Auto Manufactures Tech Providers Shared Mobility Providers

$ $ $

Kilometre as a utility

In 2016, Australian households spent $65.8 billion a year on private vehicle travel and $2.7 billion a year

  • n public transport

Uber claims more than 700,000 driving miles have been saved by UberPool in London (November 2015 – May 2016) UberPool is currently available in inner Melbourne suburbs. Trip must begin and end in this area.

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Arcade City: Ridesharing using tokens and blockchain

Image Credit : Arcade Cit y

Electric Vehicles

  • Global impact on j obs
  • Impact on government coffers
  • The disruption of oil

China’s EV Charging Network

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EMERGING BUSINESS MODELS

Global investment in future mobility start-ups

North America

$79 billion

China

$50 billion

465 companies 154 companies

United Kingdom

$34 billion

Others

$36 billion

51 companies 159 companies

Total disclosed investment in mobility start-ups since 2010 Around $200 billion

Israel $18.5 billion Singapore $6.0 billion Japan $2.8 billion India $2.5 billion Canada $2.2 billion Hong Kong $2.2 billion France $1.8 billion

Source: McKinsey & Company

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E-scooters

Globally, investors poured more than $5.7 billion into start-ups since 2015 Growth exceeded first- year adoption rates of similar services such as bike-sharing & ride-hailing VC expectation: S hared e-scooters will do to short distance travel what ride-hailing did to the taxi industry

5 10 15 20 25 30 250 and over 100 to less than 250 50 to less than 100 30 to less than 50 20 to less than 30 10 to less than 20 5 to less than 10 2.5 to less than 5 1 to less than 2.5 Over 0 to less than 1 Nil Distance Proportion of persons (%) Commuting distance (km)

Commuting distance in capital cities

Australian Bureau of Statistics 2016 Census

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10 20 30 40 50 60 70 80 90 Australian Capital Territory Greater Darwin Greater Hobart Greater Perth Greater Adelaide Greater Brisbane Greater Melbourne Greater Sydney Mode share (%) Greater Capital City Statistical Areas (GCCSA)

Transport mode share in capital cities

Australian Bureau of Statistics 2016 Census

Active transport Public transport Private vehicle Private vehicles mode share: Sydney 67% Melbourne 76% Brisbane & Darwin 80% Canberra & Perth 83% Adelaide & Hobart 84% More than 85% of drivers who commute by private car don't share with other commuters.

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SELF-DRIVING VEHICLES

Image Credit : Digit alt rends

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1.2 MILLION $500 BILLION

THE MORAL IMPERATIVE

22 Image Credit : Adobe S t ock

Impacts of autonomous shared mobility-on- demand systems

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  • Will they reduce or increase congestion?
  • Will they induce more demand for travel?
  • How will they impact VKT (per capita)?
  • Will they increase or decrease urban sprawl?
  • How will they impact urban form?
  • What impact will they have on parking?
  • Will they reduce or increase emissions?
  • How will they impact car ownership?

Image Credit : Adobe S t ock

Impact on urban mobility?

Operational

Melbourne Simulation Study

Includes parts of four different LGAs Area: 88.75 km2 53 origins and destinations Simulation period: 07:00-09:00am

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Example simulation scenarios

Scenario Ride-sharing (Percent) Fleet size* (Percent) Mean waiting time (minutes) Maximum waiting time (minutes) S cenario 1 90% 13% 2 10 S cenario 2 80% 19% 3 10 S cenario 3 40% 31% 4 12

* Required fleet size compared to base case scenario

Trade-off between willingness to ride-share, fleet size & waiting times

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Number of shared vehicles required to provide the same trips during peak hours

Research findings: Autonomous Mobility on Demand

20%

80% increase in VKT – car sharing 30% increase in VKT - ridesharing 83% reduction in parking space 20% reduction in emissions when 80%

  • f vehicles are shared

5 minutes waiting time

Melbourne Case S tudy – First and Last Kilometre S

  • lutions
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What is the expected future demand?

Dynamic estimation of travel demand

  • Machine learning to predict travel demand for shared vehicles
  • S

hort forecasting horizons

  • Training deep neural networks using historical data

How to improve vehicle rebalancing algorithms?

Extend linear programming methods to address the fleet balancing problem

  • Include constraints on VKT
  • Bounded waiting times

Questions remain

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REGULATORY CHALLENGES Who (or what) is behind the wheel?

Image Credit : Adobe S t ock

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BAIDU

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Visual “ Turing Test” for verifying AI software

Questions remain

  • How to license a “ deep neural

network” software?

  • S

hould it pass a benchmark test before it can be recognised as a legal driver?

  • Who should develop such a test

and what should it include?

  • What procedures can be used to

verify compliance?

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Visual Turing Test for verifying AI

Images would first be hand- scored by humans on given criteria. AI computer vision system would then be shown the same picture, without the “ answers,” to determine if it was able to pick out what the humans had spotted.

Research should look beyond the immediate benefits and establish long-term impacts of new technologies

Policy Insights and Practical Research Routes

Developing rigorous but flexible evaluation frameworks and tools Adapt governance systems and develop agile and outcome-focused regulations Facilitate and encourage active transport, tiny vehicles and public transport innovations

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The Future

  • Modelling provides insights into

the interplay between the different parameters and constraints of emerging modes of transport

  • AV - substantial benefits can be

realised, but sharing is going to be key to their success

  • Need to develop a better

understanding of the potential future demand and patterns of use

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HDia@ swin.edu.au Contact @ HusseinDia www.linkedin.com/ in/ husseindia