WIXLIB

PROJECT BRIEFGOVERNANCE AND REGULATIONMODELS TO MANAGE DISRUPTIVEMOBILITY SERVICESOCTOBER 2021INTRODUCTIONThe proliferation of new technologies and disruptiveinnovations in the transport sector are takingthe world by storm, threatening well establishedplayers across many sectors. Regulators anddecision makers at different levels of governmentare facing challenges, acknowledging that existingframeworks may not be fully adequate in terms ofprotecting society, fostering business development,and achieving integrated, sustainable mobility.UITP coordinated an EU-funded research projectcalled GECKO (Governance for new mobility services) between 2018 and 2021. The project’s maingoal was to support transport authorities with toolsand recommendations to develop and implementnew regulatory frameworks for the new mobilityera of cooperative, inclusive, competitive, sustainable and interconnected mobility across all modes.DISRUPTIVE INNOVATIONGECKO’s focus was on ‘disruptive innovations’, whichare charaterised by three key elements: An enabling technology: An invention that makes services/products more affordable and accessible to awider population e.g the smart phoneThis Project Brief presents the main achievementsand key results from the projects. It presents themain and most practical recommendations that areaddressed to different authorities. An innovative business model: Targeting non consumers, new customers, who previously did not buy aproduct, did not use a service in a given market or werethe least profitable customers. A coherent value network: A network in which suppliers, partners, distributors, and customers are all betteroff when the disruptive technology prospers.1

EXAMPLES STUDIED IN GECKOGECKO focused on four specific categories of innovativeand disruptive services and products, analysing theirmarket readiness, according to a market analysis1.CONNECTED, COOPERATIVE, ANDAUTOMATED MOBILITYAutomated vehicles: Defined as having “technologyavailable to assist the driver so that elements of thedriving task can be transferred to a computer system”3.In contrast, an autonomous vehicle where there is nohuman interaction.Connected vehicles: Defined as motor vehicles that“connects to other vehicles and/or devices, networksand services outside the car including the internet,other cars, home, office or infrastructure”2. In thefuture, connected vehicles may directly interact witheach other and with the road infrastructure, otherwiseknown as cooperative mobility.Table 1: Market Readiness ScaleNew mobility service/technologyConnected and automatedvehiclePassenger urban air mobilityMarket readiness (1-10)Market positioningMarket maturityNew market/Introduction /4-5(Between small-scale stakeholder Re-segmentation of existing market Development stagecampaign and large-scale early by employing a niche strategyadopter campaign)5-6(Between large scale earlyadopter campaign and proof oftraction1)Drone last mile deliveryNew marketIntroduction /Development stageNew market/Growth stageRe-segmentation of existing marketby employing a niche strategy6INFRASTRUCTURE, NETWORK, ANDTRAFFIC MANAGEMENTAn innovation in infrastructure can be defined asmanagement through pricing, taxation, digitalisation andintegration. Network and traffic management providesguidance to travellers on the condition of the roadnetwork, to ensure safe and efficient use of the network.Table 2: Summary of Market AnalysisNew mobility service/technologyBig data for fleet managementand logisticsTraffic management 2.0HyperloopMarket readiness (1-10)Market positioning6Proof of traction (Payingcustomers)New market (Introduction of bigdata in logistics not available before)Market maturityGrowth (Multiplication ofservice offers)Re-segmentation of existing market Introduction /4by employing a niche strategyDevelopment stageSmall scale stakeholder campaignNew market (Introduction of a newmode of transport)3Needs validationIntroduction/Development stage1 Market Readiness estimates the maturity of development of a product. A scale of market readiness helps identify whether a service or a product is in ideation.2 Gowling WLG, 2016. Are you data Driven?. UK Autodrive.3 European Parliament, January 2016, Automated Vehicles in the EU. Briefing.4 Proof of traction means that a product or service is mature enough that its position on the market has proved its power of traction of customers.2

MOBILITY AS A SERVICE AND PLATFORMSMobility as a Service (MaaS) is the integration of, andaccess to, different transport services in one single digitalmobility offer, with active mobility and an efficient publictransport system as its basis1. The MaaS platform is the ITstructure that is used by MaaS operators to provide thefinal service of mobility to the end-users.Table 3: Summary of Market AnalysisNew mobility service/technologyMarket readiness (1-10)Market positioningMarket maturityMaas5-6(Between large scale earlyadopter campaign and proof oftraction)New market/Re-segmentation ofDevelopment stageexisting market by employing a nichestrategyPassenger urban air mobility5-6(Between large-scale earlyadopter campaign and proof oftraction)New marketDevelopment stageSHARED ON-DEMAND MOBILITYprovided “on-demand”’, when requested by the customer, and not based on a fixed schedule.Shared mobility uses shared vehicles which are madeavailable to registered users at various locations in thecity. On-demand mobility, on the other hand, is serviceTable 4: Summary of Market AnalysisNew mobility service/technologyOn-demand ride sharingMarket readiness (1-10)Market positioning8(Proof of scalability)Market maturityNew marketGrowthBike sharing6-7(Between proof of traction andproof of satisfaction)Existing markettGrowth/MaturityE-scooter sharing / micromobility7–8(Between proof of satisfactionand proof of scalability)New marketGrowthRide-hailing8(Proof of scalability)New marketGrowthGrowth Hampus Lundgren - RuterCrowd shippingRe-segmentation of an existing8–9(Between Proof of scalability and market as a low-cost playerProof of stability)5 UITP, 2019. Ready for MaaS? Easier mobility for citizens and better data for cities. Report3

regulated. To ensure the successful implementationof innovations such as Intelligent Transport Systems(ITS) and MaaS, the data security, interoperability anddata ownership need to be addressed.REGULATION AND GOVERNANCEWhether these new services can contribute to atransformation of city’s mobility models in a more resilientand sustainable way, is the central to the research. Theresearch looked at specific regulatory and governingtools to support the definition and implementation of anappropriate framework for public authorities to ensurethese services contribute to the public good.The impacts of COVID-19 on innovative and disruptivemobility solutions and new governance practices hasresulted in a drop of patronage, a weaking of the businessmodels, but equally created opportunities from new userbehaviours. Similarly, governance from authorities as aresponse to the crisis has evolved, whether new policieshave been accelerated (such as more space for bicyclesand pedestrians) or new collaborative approachesimplemented with stakeholders of the new mobilityservice providers.3 The distributional impact: Ensuring equity and nondiscrimination is part of a national government role.When mobility innovations are introduced, inequitiesmight appear.4 inancing the development of disruptive innovations:FThe question of how to balance taxes, subsidies,use of infrastructure and public interest still standswhen more mobility innovations are introduced. Theproblem of taxation of smart mobility and the use ofpublic space needs to be addressed by governments.5 Changing role of citizens: With smart mobility, citizensprovide information to mobility actors and othercitizens; they provide services e.g in peer-to-peersharing. It is therefore important to raise awarenessabout the importance of data protection and ‘digitalempowerment’ of citizens.INNOVATIVE GOVERNANCE MODELSIn the context where existing regulations are insufficientor not adapted to these innovative and disruptive services,GECKO presents five innovative governance modelsand analyses their advantages and drawbacks. Suchmodels can be implemented to regulate fast evolvingtechnologies and business models, such as disruptivemobility innovations.EXISTING REGULATORY FRAMEWORKSThe project analysed the existing regulatory frameworksof mobility at the international, EU and local level. Theanalysis led to the conclusion that even if a developedand strong regulatory framework allows for a variety ofgovernance models to be implemented, some tailoredgovernance model should be considered to deal withdisruptive innovations.These generate critical governance issues that need to betaken into account:1 Timing: Regulators have a short window of opportunityto take over the governance from private actors, asthey adapt quickly.2T he regulation of data: Smart mobility innovationsprocess huge amounts of data on citizens. Besides thesignificant power conferred to these private entitiesissued from these data, this data collection presentsmajor risks for the travellers in terms of privacy if poorly4

Table 5 Governance models and regulatory approaches to disruptive mobility iveregulationExampleof policyinstrumentsDefinitionPolicies that canbe adjusted overtime, relying ondata collection andanalysisSelf/coregulationsDeployment ofthe innovationon restrictedand controlledconditions forimpact analysisSubsidies pacted by theregulations achievepolicy goals withoutconstraints on atoryactivities andresources activitiesallocated onevidence-basedassessment risksCollaborativeregulationAll stakeholdersinvolved in thedefinition of ensingExample formobilityStage ofdevelopmentThe SUMP(Sustainable UrbanMobility t zonesAdvantagesDrawbacksImpactassessmentHigh flexibilityHigher costfor impactassessmentPilot projectsInnovationfosteringCompliant withfast evolvingframeworkImpactassessmentReduced timeto-marketHigheracceptancyGDPR set up alist of objectivesto relevantstakeholders (e.g.Art. 17)ImpactassessmentAll policyinstrumentscan be usedCommissionImplementingRegulation (EU)2019/947 of24 May 2019on the rules andprocedures forthe operation ofunmanned aircraftPilot projectsCo-regulationMemorandum ofUnderstanding inLisbon to regulateshared mobilityDefinition ofstandardsVarious governance models can be suitable dependingon the context and on the stage of deployment ofHigh flexibilityHigheracceptancyImpactassessmentHigh costsRisks forconsumerstesting thesolutionLack ofguidanceHigher costfor impactassessmentBetter decisionmakingHigher costfor impactassessmentInclusiveapproach,sharing ofknowledge andresourcesTimeconsumingNo clearleadershipthe solution in the market. The choice of appropriategovernance model can be different, as illustrated below.Figure 1 Examples of suitable governance models for mobility innovations based on Regulation Readiness Level6Definition of normsand standardsExperimentation of atechnology/serviceRelated to a technology orservice already deployedCollaborative approachto ensure policy objectivesat the EU level andacceptancy by solutionprovidersBinding rulesto allow the deployment of mobility solutionRegulatory sandboxesto test the solution and provide impactassessmentMarket approachto select operators for this experimentationBinding rulesto define conditions of use(traffic codes, insurance, etc.)Collaborative approachfor local private-public cooperation (MOU)Market approachto limit number of operators,set up a cap on a fleet6 Regulation Readiness evaluates, on the one hand, whether existing regulations and laws are developed enough to help implement innovations and, on the other, whether regulationsand laws allow for mainstreaming of an innovative solution.5