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The Problem

In major cities every day, workers, students and children hurry from their homes to work and school. Some have to struggle with taxis, private transportation, bicycles and scooters. A typical journey may involve two or three modes of transportation, such as a car, a train and a bus. For each of those choices, commuters are making decisions in a silo – riders cannot tell from one central information source if the road ahead is clear, parking is available, and the train and bus are on time. Equally, the service providers for rail and bus may be different, requiring commuters to carry two different tickets.

For the transportation service providers, the problem is even worse. In response to an issue or a disruption on any part of the journey, they cannot optimize the transportation network and inform the traveler of alternatives or, better still, offer incentives to alter the typical route of commuters, to help alleviate the pressure and reduce congestion in the affected part of the network. It is clear the fragmented systems and services that the transportation industry relies on today are no longer suitable to deal with the implications of the five megatrends. Transportation has reached a transition point, from which there is only one way forward – toward greater integration.

Key Challenges:

  • INTEGRATION: Card-based systems have a number of specific limitations, which make further integration difficult. Supporting complex fare rules for multiple service providers and different transportation modes can become difficult and time consuming.
  • SECURITY: As the security standards for accepting credit and debit cards become increasingly stringent, implementing new systems can create additional work for service providers, which may need to deal with testing and certification.
  • ARCHITECTURE: Card-based architectures have made it difficult and expensive to keep pace with rapidly evolving technologies and the opportunities these create for further multimodal integration.
  • EVOLUTION: Rapid developments in mobile technologies, contactless payments and cloud services made in the last few years, have shifted the way consumers think about and interact with transportation services.
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