Mobility

Many transit operators 'out of step' with travel, transportation markets

Posted on January 17, 2019

Convenient booking/ticketing process, in-app payments were the top ranked features that riders look for in transit mobile apps, according to a new survey. Photo: Genfare
Convenient booking/ticketing process, in-app payments were the top ranked features that riders look for in transit mobile apps, according to a new survey. Photo: Genfare
A new report examines key challenges facing the ground transportation and mass transit market and suggests how operators can improve service, reduce costs, lift customer satisfaction and grow their bottom line.

The survey, Modernizing the Passenger Experience in US Ground Transportation conducted by CellPoint Mobile, found Americans are taking more multi-modal trips and relying on mobile devices to seamlessly manage their end-to-end journeys. This poses a challenge for transit operators, as many lack a mobile app or support mobile ticketing and payments. The survey also found that many transit operators are 'out of step' with the broader travel and transportation markets, where mobile is the growth channel and APIs make it easy to connect different travel services around a single app.

Many transit operators are 'out of step' with the broader travel and transportation markets, where mobile is the growth channel and APIs make it easy to connect different travel services around a single app.

Improving mobile technology to satisfy riders, drive revenues
The 'digital revolution' has significantly changed how Americans commute and travel – trendsetting Millennials and post-Millennials are most likely to use non-car transport (60% and 69% respectively, vs 50% average). For the typical rider ground transportation can be inconvenient and frustrating compared to consumer sectors that offer mobile solutions. Transit riders increasingly rely on mobile devices, and the failure of mass transit operators to provide mobile solutions is causing them to fall behind in the digital travel economy.

Transit riders mirror the digital habits and expectations of the US population at large, according to a new study. Photo: Community Transit
Transit riders mirror the digital habits and expectations of the US population at large, according to a new study. Photo: Community Transit
Key survey findings that directly impact mass transit usage, customer satisfaction and revenue, include:

  • Convenient booking/ticketing process, in-app payments: these were the top ranked features that riders look for in transit mobile apps, highlighting where operators should invest in new mobile technology solutions.
  • Fare discounts and easier payments: 40% of riders can be incentivized to download a transit app with fare discounts, followed by 34% of riders who want to make payments more easily.
  • Cash no longer king: One-third of riders (31%) say reducing the need to carry cash would incentivize them to download a transit app, illustrating how 'top of mind' payments are in the U.S.
  • New and alternative payments matter: 34% of riders say using alternative payment methods (APMs) such as Apple Pay or Google Pay is "Very" or "Extremely" important.
  • Multiple modes of transport: More than half (52%) of Millennials use 2-5 modes of transport per trip, highlighting the importance of new technology investments to support mobility-as-a-service.

Key takeaways that can help mass transit and ground transportation operators re-think revenue strategies, include:

  • Multi-modal trips are more common than assumed and rideshare plays a big role. Transit operators must consider the needs of multi-modal riders in their strategies.
  • Transit riders mirror the digital habits and expectations of the US population at large – they are increasingly mobile, primed for digital commerce, and receptive to retail-style experiential engagement.
  • Mobile ticketing and payments are core areas where operators can reduce costs, streamline transactions, improve customer satisfaction and grow revenues.



View comments or post a comment on this story. (0 Comments)

More News

Sustainable transport on track to bypass cars by 2030 in largest cities

Cycling is predicted to increase by 18%, while walking and public transport usage will rise by 15% and 6% respectively.

Columbus unveils nation's first public AV shuttle for residential area

Two all-electric vehicles, serviced by autonomous mobility provider EasyMile, will service the 2.9-mile route.

Georgia preparing for imminent adoption of connected-vehicle tech

To date, more than 400 locations across metro Atlanta are already connected with CV technology.

Peoria, Ariz., to launch first/last-mile pilot with Beep, NAVYA

The pilot program, using an autonomous shuttle, will capture ridership adoption behaviors and patterns to determine what solutions are best.

New Zealand, mobility co. to pilot world's first autonomous air taxi

Wisk, based in the San Francisco Bay Area and New Zealand, is backed by The Boeing Co. and Kitty Hawk Corp.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation