Mobility As A Service Explained

July 21, 2022

Many people think of Mobility as a Service (MaaS) as a commuter-focused transportation paradigm since it provides a unified, all-in-one platform for planning, booking, and paying for rides in various shared and personal vehicles and taxis. It bridges the gap between the government transportation agency, service providers, transportation operators, and the public.

We may envision MaaS advertising itself as a subscription service that allows commuters to use various transportation options on a monthly or one-time basis for a set price. Commuters in a city with multiple transportation options can benefit from MaaS because it allows them more freedom in choosing routes, times, and costs that best suit their needs.

Some companies, like NCS, collaborate with government agencies and other organizations to enhance the services they offer to the general public. Learn more about Mobility as a service business concept in this area.

What is Mobility as a Service?

MaaS is an advanced option for businesses of all sizes and in various fields. The system provides customers with alternative means of transportation that don't rely on conventional automobiles. Users can pay per mile traveled or sign up for a monthly plan.

Offering maximum benefit to its customers is a primary focus for MaaS. It's a greener and more practical alternative to car ownership for individuals. Additionally, it provides environmentally friendly ways of transportation at a discount. Because of its comprehensive nature, it is expected to improve urban mobility and the economy.

Different Business Model for Mobility-as-a-Service (MaaS)

The MaaS Alliance was developed by the European Union and is based on a Public-Private-Partnership (PPP) model that facilitates data sharing across participants in the transportation value chain and the combination of different modes of transportation into a single interface. The existence of this collaborative environment has given the MaaS market a boost.

The participants in such a cooperative ecosystem must have their respective functions spelt out.


A regulator should outline the vision and limit licenses to minimize market crowding. Leave pricing to the ecosystem. To promote MaaS market growth, regulators should incentivise innovation investment.

Regulators should have access to specific data because it can influence the development of the multi-modal environment, how public assets such as roads, walkways, and parking lots are used, or the service level performance from the service provider through Origin-Destination (OD) information communicated to commuters. Our city's future can be planned using MaaS data.

The regulator should ensure equitable transportation for low-income and marginalized communities and cooperate with stakeholders. Regulators protect commuters who may have fallen behind due to transit growth.

Finally, regulations should be balanced often. Too many rules may slow the MaaS market, while too few may not serve the public interest, limiting the ability to shape commuters' future travel behavior.

MaaS Service Provider

A MaaS supplier should incorporate numerous transport alternatives into their platform to provide commuters with the optimal method of travel based on time, cost, comfort, or tailored preferences. A single software must coordinate all public and active mobility modes, employing a single user account where the commuter can pay for his entire journey.

This can stimulate a transition from private to public travel. As part of innovation, MaaS should allow drivers to earn credits to use public transportation on a given day.

Grab has introduced a beta version of GrabPet, an on-demand pet-friendly transportation service in Singapore. Zipster app in beta version, announced by mobilityX, a start-up sponsored by transport operator SMRT and Toyota Tsusho, allows commuters to plan, book, and pay for their journeys across several transport modes in Singapore, mobilityX and AXA insure commuters' trips.

Long-term, mobilityX may offer subscription packages for flat-rate travel across multiple modalities.

Millennials adore mobile apps, value convenience and spontaneity, are comfortable with the sharing economy, and anticipate connectivity everywhere. Urbanization and aging raise the demand for driving alternatives.

Public Transport Operator

The MaaS platform will charge commuters for public transport. The public transit operator should provide good service. The regulator should award a contract to administer such services with KPIs that the MaaS platform monitors and reports on weekly.

Public transport providers who don't pay attention risk losing relevance in the fast-moving market. Private enterprises with better resources or an aggressive innovation strategy may beat them.

Private Transport Operator

Private transport operators can join the ecosystem by delivering a differentiated service from public transit. These services should be door-to-door, friendly to the old, those with limited mobility, and families with children. Using MaaS, a hospital or healthcare facility can provide regular transport for disabled or elderly patients at a lower cost than a taxi.

This project is not new because Denmark's FlexDanmark site unites more than 550 private and public suppliers to dispatch the relevant cars to commuters' doorsteps, on-demand or on schedule.

In the US, Lyft and GoGoGrandparent let seniors book rides by phone. Seniors in hospitals or senior homes can request subsidized Lyft and Uber journeys.

Other Service Providers

Despite the name, MaaS can include services such as drive-through dining, gas pumping, hotel booking, etc., all relevant to a commuter's journey. This will establish an utterly inclusive commute.

Commuters waiting for pickup can view ads on the MaaS platform. This can be a MaaS provider's revenue channel.

Infrastructure Providers

The growth of smartphones powers MaaS, and a Smart City's master plan must have a citywide telecommunications network backbone to perform correctly.

Otherwise, integrating the physical and digital worlds in the future can be difficult and expensive, hindering transport digitalisation.


Commuters have few transport options due to ease, cost, and time savings. MaaS must provide commuters with a choice of travel options and facilitate origin-to-destination travel to be successful.

Then, commuter viewpoint. People seek the simplest, most seamless means to reach their destinations and want to balance convenience and affordability.

In cities with sound transportation systems, many nevertheless drive because they consider waiting for a bus a hassle and the expense of driving as a price they are ready to pay.

Older generations, particular family statuses, and corporate demands are reluctant to discontinue driving because they perceive vehicles as status symbols. The results can inform commuters of the benefits of public transportation through education or actual travel patterns.

Fare Structure

Pay-as-you-go is the most frequent payment method, with stand-alone fares and pricing. Uber and Grab offer loyalty-based incentives, capped fares, and demand-led dynamic pricing.

The subscription-based model lets operators sell their services in bulk to commuters, intercity integrated multi-modal pricing and bundled consumer-based products. Innovatively, it can give rebates or vouchers for grocery shopping or dynamic fare setting during peak and non-peak periods to encourage drivers to take public transportation for the day. Future payment methods may include monthly subscriptions or yearly passes.

As MaaS evolves, all service providers, operators, and the regulator must know the revenue split structure (e.g. coordination charge, clearing fee, promotion, subsidy, etc.). All organisations must agree on a service-supporting cost structure. This agreement should be made at the start of their relationship to promote growth, innovation, consistency, and reliability as the system grows and more providers join.

Affordable commuter service must be balanced with revenue. Many cities subsidise transit to make it affordable for low-income and disadvantaged communities.

Commercial mobility operators don't become eligible for subsidies and don't worry about ridership. They make more money when fares rise. Another example is if surge pricing is fair by charging premium rates during limited availability.

Ultimately, the cost of public transportation must outweigh car ownership, and better access to other transit options can increase their mobility. Commuters can purchase tickets on a single platform to make MaaS more appealing.

Data Analytics

Predicting travel demand is more important than understanding it. Big data analytics can help balance supply and demand during peak seasons, events, etc. MaaS evolution can stall without a data-processing engine.

Predicted traffic congestion, train or bus capacity, and neighbouring events might also affect commuters' trips.

First, simulate background traffic to develop a foundation.

Then, commuter travel patterns and infrastructure development can be used to understand supply and demand.

WiFi connectivity, event information, bus/train capacity utilisation, and roadside congestion sensors give real-time trip information. Smart Cities should be able to analyse individual travel patterns using data analytics. It can access individual calendars or Smart Home apps for a suitable travel mode or subscription.

MaaS will likely integrate AV deployment, according to the crystal ball. Commuters' requests (e.g., old, disabled) must reach the AV before arriving at PUDO points. This affects how the AV responds to hailing requests and picks up the right customer.

What does it look like to pursue MaaS?

Several nations and "smart" municipalities are already actively exploring MaaS.

MyTransport.SG Mobile was Singapore's first MaaS app for drivers and commuters. A travel toolkit. As a MaaS operator, the Land Transport Authority created a mobile app with location-sensing capabilities in 2010 to serve tech-savvy users who demand quick information on the go.

In 2012, this MaaS project added real-time bus and rail arrival updates. MaaS worldwide offers English, Mandarin, Malay, Tamil, and Hindi to assist various commuters.

Final Thoughts

It is pretty evident that MaaS offers several benefits, and its popularity will only continue to rise. This is why, while formulating policies to improve transportation, politicians should consider MaaS's rapid ascent.

Services that facilitate mobility have greatly improved the public transportation system. Municipal administrations can develop the regulatory framework in collaboration with suppliers of transportation services. This will help ensure that users of mobility solutions have a secure and effective experience while utilising these solutions.

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Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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