How Indonesia’s Gojek is redefining “on-demand”

By Will Duncan

Following our look into transport innovation in the Global South, we take Indonesia’s Gojek as a case study to examine Southeast Asia’s bustling on-demand transport market.

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Photo: findracadabra/Shutterstock

Born on congested streets

Jakarta might just have the worst traffic in the world. In serious need of solutions, perhaps it’s no surprise, then, that the Indonesian capital became home to Southeast Asia’s most successful innovative transport start-up: Gojek.

More than 30 million people live in Greater Jakarta — the third-largest megacity in the world, behind Tokyo and Shanghai. Cars can barely move on its congested streets so locals tend to get around on scooters or motorcycles. After all, they’re smaller, simpler, and importantly, cheaper. As in countless other Southeast Asian cities and towns, the scooter is king.

Ojeks — informal motorcycle taxis — are widespread; often more appropriate than conventional four-doored taxis. In 2010, Gojek was born as a ride-hailing call centre with twenty drivers. Just a few years later, the Jakarta-based company launched an app and with astonishing pace transformed on-demand transport and service delivery in the region. Today, its principle service GoRide, has more than two million drivers in 203 cities and districts in Indonesia. It has expanded internationally into Vietnam, Singapore, and Thailand, garnering an estimated worth of US$10 billion, making it Indonesia’s first “decacorn” start-up.

Armed with a fluency of the local market, Gojek has succeeded where Western competitors have not. Ride-sharing services in the busy cities of Southeast Asia tend to move on two wheels. While Uber has been in the region since early 2013, it was late to embrace motorbike taxis, waiting until 2016 to introduce two-wheelers. Gojek’s strongest rival, Singapore’s Grab, also happens to be a regional neighbour. Understanding how Southeast Asia works, how its people typically get around and access services, has proven to not only be an advantage — but essential. After years of competition, in 2018 Uber yielded to its rivals, ceding its ride-hailing and UberEats businesses to Grab in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, in return for a 27.5% stake and a seat on Grab’s board.

Lifestyle on demand

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Photo: findracadabra/Shutterstock

Offering rides on the back of motorcycles was just the beginning. After sufficiently disrupting Indonesia’s typically informal ojek market with a good quality app and a reliable payments system, Gojek, like its rival Grab, has quickly become a one-stop-shop “super app” with over twenty different services, broadening its offering to meet varied and evolving demands. What is striking throughout this expansion is Gojek’s business model, which places a strong emphasis on the role transport plays in all other service markets.

Food delivery quickly became a core element of Gojek’s business. Its GoRide motorcycle drivers could easily double as GoFood delivery people — there’s little difference in carrying passengers to carrying nasi goreng. But why stop there? GoMed offers home delivery for medicines and pharmacy products. Urban logistics are covered by GoSend and GoBox.

GoLife, a smartphone application, allows users to order from GoClean, GoAuto, and GoLaundry — each service is ordered and arrives at customers’ homes on-demand. GoGlam will send a mobile stylist your way; GoMassage lets you order a masseuse!

Despite expanding in several different directions, Gojek’s services are unified both in terms of the user experience, and the logistical networks. A single “super app” with consistent branding supports a sense of familiarity to customers. And each service is powered by Gojek’s locally-driven on-demand transport infrastructure.

This type of service integration within a single umbrella application is radically changing how companies and regulators alike understand app-based mobility services globally. Rather than non-transport sector players using transport providers as a service, Gojek has used its local expertise of how transport works as a springboard for expanding beyond its original business model. In the process, it has flipped traditional roles on their head by sub-contracting non-transport businesses rather than being contracted itself.

A new regulatory challenge

The service industry around the world is experiencing a major shift towards mobile-based on-demand business models. These changes can mean excellent news for consumers; they’ve typically offered greater choice, convenience, comfort, and often lower prices than what was offered before the on-demand disruption began. However, they also pose new regulatory challenges for countries in the Global South and North alike.

First of all, there are safety concerns. Policy makers must ensure that as the market shifts to on-demand gig-economy services, vehicle safety standards are adhered to. Drivers must be properly vetted and trained for the job. It’s worth noting that the rating systems built into most gig-economy applications tend to incentivise personal and professional responsibility on the part of drivers and, indeed, passengers who are also made more accountable for their behaviour. Nevertheless, governments must recognise their role in setting appropriate safety standards.

Then, regulators must confront the global headache that is the gig economy. In Indonesia, millions of people drive passengers, goods, medicines and the like for Gojek, for example, but they aren’t considered employees. This lack of formal employment represents a significant regulatory challenge, both in the Global North and South. It may also offer opportunities, however: in the Global South, to improve the welfare of workers in the informal sector; in the Global North, to create more flexible job opportunities. Gojek again leads the way in this respect, by providing health and accident coverage for its drivers while offering them highly flexible work arrangements.

There are externality issues to consider, too. New home delivery services and on-demand transport options ultimately contribute to more traffic on the roads — motorcycles or otherwise. This means that regulators must consider the traffic and pollution implications of new mobility services — from on-demand ojek services to mobile masseuses.

These challenges are common to countries across the world. And policy makers everywhere should approach regulation carefully. While the changes in the service industry require stricter parameters and oversight, governments risk forcing innovation out of their cities and industries, should their rules go too far.

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To learn more about global transport innovation, check out the ITF Corporate Partnership Board’s new report Expanding Innovation Horizons: Learning from transport solutions in the Global South.

Will Duncan is currently studying a Master in Public Policy at Sciences Po in Paris, and is an intern at the International Transport Forum at the OECD.

 

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Born out of need: How the Global South is driving transport innovation

By Will Duncan

The world’s emerging nations are fertile ground for radical and creative mobility solutions. Government-supported innovation is helping the Global South become a leading force in the future of transport.

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RT-Mart electric bus in China | Photo: Mars Hartdegen/Flickr

The transport sector is moving quickly these days. New technologies, shared services, and GPS are changing how we get from A to B. But perhaps one of the most interesting trends in transport is where, exactly, these innovations are coming from.

“The future of transport is in the Global South’s hands,” says Bambang Susantono, former transport minister of Malaysia and now vice-president of the Asian Development Bank.

It’s easy to see why: Twenty-seven of the world’s 33 megacities are in the Global South — a term that describes low- and middle-income countries in Africa, the Asia-Pacific, Latin America, and the Caribbean.

Extraordinary economic growth and rapid urbanisation have brought sudden change to the Global South. With progress comes a host of challenges — and, first among these is transport.

But need begets innovation. And thus, the assumption that innovation flows from rich to less prosperous regions, from industrialised to developing countries, from the northern to the southern hemisphere is being challenged. Inspiration for tomorrow’s transport solutions can be found in the Global South’s emerging nations by those who care to look.

Decades ahead

Take shared mobility. No other topic preoccupies city officials, transport planners and entrepreneurs in the industrialised North today as much as the question of how to get more than one person into a car built for four or more.

In the South, it’s been a reality for decades. “Shared mobility is everywhere when I travel cities as a global researcher,” says Fábio Duarte, Professor of Urban Planning in Curitiba, Brazil. “I take taxis in Brasília, hold on tight to ojek motorcycles in Jakarta, or figure out how to reach my destinations with matatus in Nairobi.”

Durante says that “thinking of shared mobility as a novelty is a narrow view held in the Global North”. It ignores the creative ways that societies with few cars and inadequate public transport are coping with the lack of options.

WhereIsMyTransport, a UK start-up, secured USD 1.5 million in funding in 2016 to create an accessible and accurate data service for Cape Town’s formal and informal transport routes. Informal shared minibus routes make up a significant proportion of the city’s commutes, which is typical of many cities outside of Europe and North America. WhereIsMyTransport’s digital map has made these services visible. They’re presented as complimentary or, for all intents and purposes, equivalent to any other way to get around the city.

After securing further investment, the company has expanded its data and mapping service throughout Latin America and Asia. A recent project saw informal transport in Mexico City mapped to include over 30 000 informal minibus routes.

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Formal and informal transport networks in Gauteng, South Africa. Source: WhereIsMyTransport

The South is electric

Electric mobility is another example. Despite ambitious pledges, the share of electric vehicles in the Global North remains marginal: just 2.5% of 2018 car sales in the UK were electric, 2.1% in France, and 1% in Japan. Only Norway stands out, with just under 49.1%.

The world leader in electric mobility today is China. Almost 99% of all electric buses and two-wheelers, and 40% of the world’s total of private electric cars can be found there.

This hasn’t happened by accident. The electric mobility revolution that is sweeping the Peoples’ Republic is the result of deliberate government policy. Beijing’s regulatory push mixes substantial investment into research and development, and strict emissions standards designed to force out internal combustion engines with targeted subsidies that have reduced risk for transport operators looking to adapt to the new cleaner technology. Thus, research, industry, and government are steered towards a prevailing direction, turning the country into a world market leader.

Both national legislation and city halls are in a position to provide the “enabling framework” for healthy competition, innovative ideas, and for market disruptions with the potential to greatly benefit citizens.

Emerging nations find themselves with greater freedom to innovate, as they tend to be less restricted by the historical legacies of some more developed countries. “Developing countries can break the mould of traditional transport,” says Susantono. ”The Asian car market is less wedded to internal combustion engines; hence the region now has the largest share of e-vehicles worldwide,” Susantono explains. “In this dynamic, governments of the Global South can be the leaders of change.”

In a further article looking into transport innovation in the Global South, we take Indonesia’s Gojek as a case study and examine Southeast Asia’s bustling on-demand transport market.

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To learn more about global transport innovation, check out the ITF Corporate Partnership Board’s new report Expanding Innovation Horizons: Learning from transport solutions in the Global South.

Will Duncan is currently studying a Master in Public Policy at Sciences Po in Paris, and is an intern at the International Transport Forum at the OECD.

 

Why fighting transport CO2 emissions is like “Game of Thrones”

by Andrew Jackson

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We all enjoy a good story, where the unsuspecting hero faces challenge after challenge, and eventually wins through to bring triumph for those we care for. “Game of Thrones” challenges that paradigm, as the heroes we love are killed off one by one – with betrayal, swords and poison.

While this comment about “Game of Thrones” may be a spoiler to few people, the International Transport Forum (ITF) at the OECD in May published a report on the future of transport which may include the biggest spoiler of any plot. And unlike in our perfect stories, the report’s plot is one from “Game of Thrones” – where our future ends tragically.

The story starts by looking at how much we will travel in 2050. Cheap cars, cheap flights and cheap freight will provide us with great access. We will be able to explore the world more easily and have the things we want come to our doorsteps from anywhere in the world.

The total distance we travel locally and internationally will continue to rise. New technologies, urbanisation, global patterns of trade and world population growth from 7.7 to 9.7 billion people weave together into a powerful story of our future. Increasing wealth sees many more able to afford to adopt the movement lifestyles of the developed world. The story concludes that by 2050 total travel will increase threefold.

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Changing how we move

Not only will there be a significant increase in movement, we will also change how we move. Fewer people will own their cars. More of us will use public transport and cycle and walk. The use of electric vehicles will increase. We will take all of these steps to make our transport system more sustainable.

But the “Game of Thrones”-like ending to our heroic efforts to reduce CO2 emissions will be that we will fail to reduce the amount of carbon produced by transport. The three-fold increase in the amount of miles travelled will mean that despite all of the international efforts to decarbonise transport, our poison pill will be a 60% increase in CO2 emissions from travel and freight by 2050.

The ITF’s analysis includes the assumption that we will follow through on all current pledges of worldwide action. It thus assumes that the percentage of trips by car in OECD cities will decrease from 75% to 46%, and that 35% of trips in cities will be by public transport. Overall, this will lead to 20% fewer of trips being made by car. Further assumptions are that the current rate of uptake of electric vehicles will continue and that we will have electric planes making all trips of less than 1 000 kilometres. But all this will still not be enough even to keep CO2 emissions from transport at current levels, let alone reduce them.

We are offered an alternative ending to the story.  A story where we double our current efforts for change in the transport system. The number of trips by car in cities would fall to 26% of trips. There would be a 5% to 10% increase in the densification of our cities. There would be widespread uptake of electric vehicles, and we will use electric aircraft for all flights up to 1600 kilometres.

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The change we need

Yet even this apparent heroic intervention in the form of major investments, rapid technological advances and promotion of significant social change would be destined to fall short of our goal. Just like in “Game of Thrones”, this would be another hero we could embrace, only to see that our renewed efforts fail to bring about the change we need.  Yes, in this scenario we would see a 30% reduction in carbon emissions from transport by 2050.  But it would be nowhere near the 80% reduction we need to avoid annual weather events of a scale and nature that historically were the tragedies of a century.

Tragedies like the 1931 floods in China, which saw more than a million people die, the North American drought of 1988 which led to damage of USD 130 billion and 10 August 2003 European heatwave, the hottest day in history killing 30 000 people across Europe.

I wish I could finish my story with a third ending, where we will live on happily ever after. I do not have one. This is a story that will only end well if we have heroic political leadership. Leadership that is willing to take decisions that will risk their personal political futures today in order to secure a positive future for society. But at the moment we are on a track to see world temperatures rise to the levels which are the worst nightmare of the climate change activists – summer is coming!

Andrew Jackson is Managing Director at Consulting Jackson. He is a former Deputy Chief Executive of New Zealand’s Ministry of Transport

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The ITF Transport Outlook 2019 is available via the OECD iLibrary here

 

 

Bridging the Urban-Rural Divide

by Will Duncan

Countries around the world struggle with a divide between urban centres and rural regions. Bridging it requires imaginative transport policy to connect citizens everywhere with the services they need and give remote communities a better future.

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Olivier Ortelpa; “Paris, Gilets Jaunes – Acte IX”

After decades of weak growth and limited investment, many regional communities across the developed world feel forgotten; left behind by national governments in thriving capital cities. A sharp rise in regional inequality since the beginning of the millennium has exposed new and profound political divisions.

Take the Gilets Jaunes protests, for example, which have gripped France each Saturday since November 2018. It began as a demonstration against a fuel tax, but evolved into an array of anti-government political objectives. The movement highlights the growing dissatisfaction of a society divided into vibrant, globalised urban centres on the one hand and a periphery that is left behind, still struggling to adjust to decades of economic reform on the other.

It’s important for policy-makers to recognise the political fault line the urban-rural divide represents. Regional inequality, intensified by the global financial crisis in most developed countries, has contributed to “growing public discontent with the political, economic, and social status quo” in neglected regional areas, according to the OECD’s 2019 Regional Outlook,

Productivity growth is concentrated in just a single region in one-third of OECD countries — think the Paris region in France or the wealth gap that separates northern from southern Italy.

Cities are economic powerhouses. They are dynamic, yet efficient; with large, dense populations that concentrate innovation, creativity, and extraordinary productivity in close proximity. With more than half the world’s population now living in urban areas (and nearly three quarters in Europe), it’s no surprise that cities are often the primary focus of transport and infrastructure policy experts. Cities’ exceptionally active economies as well as their specific and complex problems from congestion via crime to inequality demand attention and substantial public investment.

Targeting attention on urban regions risks further alienating rural areas, yet “orthodox economics has few answers to the problem of regional inequality”, as The Economist noted.

Transport as an equity issue

Transport connectivity plays a major role in regional integration — that much is clear. Good physical links ensure accessibility and build stronger communities by fostering economic development and social inclusion.

“In the end, it’s an equity issue”, noted Ofelia Betancor of the University of Las Palmas de Gran Canaria at a session dedicated to remote and rural communities during the recent Summit of the International Transport Forum. “We need to combine .. social evaluation criteria with equity criteria”, argued Betancor.

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From left to right: Ofelia Bentacor, University of Las Palmas, moderator Juliette Foster, Gloria Hutt Hesse, Chile’s Minister of Transport and Telecommunications, and Helen Hughes discuss access for remote and rural communities during the ITF  Summit in Leipzig, Germany, on 23 May 2019.

Basic services such as doctors, libraries and post offices are critically important for rural communities. But the available public and private services are often in decline, due to a lack of profitability (and of resources to compensate for that lack), which has left far-out communities further isolated and disadvantaged.

Stronger links between people and products, employment and markets are essential to empowering citizens in regional areas.

Most developed countries are supporting disadvantaged peripheral communities, providing some kind of buffer to regional decline. But simple redistribution — taking from rich areas in order to give to the less well-off regions — has often proved inadequate in the long-run, and expensive projects do not necessarily generate a significant return on investment.

Connectivity beyond planes, trains, and automobiles

So bridging the urban-rural divide not only requires considerable, disproportionate, public investment — it requires thinking outside the box. Governments must be creative and embrace innovation when considering better regional connectivity.

Investment in rural roads, rail, and aviation is obviously essential to bringing a population closer together. But so is considering structural reforms that might strengthen urban-rural economic interdependencies, and harnessing the possibilities of digitalisation, 5G networks or drone technology to connect remote and rural places.

Digital access via the internet provides new ways of linking in citizens outside the main population centres and should be part of policies for enhancing the well-being of rural communities. ”If you want to overcome social isolation, if you want people to have better access to job opportunities, digital connection is a must now,” summed up Helen Hughes, Director of Professional Services at Transport Infrastructure Ireland.

But it is the countryside where digital connectivity is in greatest need for improvement. Currently, urban areas outperform rural areas in quality of internet access in every American state, for example. And many rural EU regions have poor broadband speeds or no broadband connectivity at all.

A better-connected population would represent a vital step in bridging the divide and avoiding the resentment against better-off better-connected urban “elites”. A long-term commitment to maintaining and expanding and infrastructure important to rural communities and innovative approaches to linking in rural areas is essential to help them remain viable and thrive, and ensure that no-one feels left behind.

Will Duncan is currently studying a Master’s in Public Policy at Sciences Po in Paris, France, and is an intern at the International Transport Forum at the OECD.

Links

ITF 2019 Summit session on Ensuring access for remote and rural communities

 

Can Electric Cars Drive Global Decarbonisation?

nancy-vandyckeBy Nancy L. Vandycke, Program Manager, Sustainable Mobility for All Initiative, World Bank

Can one plus one be more than two? I believe that it can. In fact, I would wager that we must find opportunities to do so if we are serious about delivering our goals for the Paris Climate Agreement. The transport-energy nexus is precisely a place where we can find such opportunities; more specifically, I am talking about the possibility of global decarbonisation through the adoption of electric vehicles (EVs). That said, we must always be aware of potential pitfalls. Allow me to share my experience.

The promise of global emission reduction

In 2017, transport accounted for 24 per cent of total CO2 emissions from fuel combustion. To reduce emissions, many countries have been promoting the electrification of transport. For many, adopting the trend for EVs is a way to transition passenger fleet away from conventional gasoline and diesel-fuelled cars. In fact, last year, global sales of EV surpassed a million units. Under the current trend, EV production could almost quadruple by 2020, with China leading the way.

34851733984_ef336560fa_kAs more and more EVs replace internal combustion vehicles, the energy burden for transport will eventually shift from oil to electricity. This is good news for the power sector. By riding on the trend of increased EVs, it can become part of a solution for global decarbonisation.

There is an added bonus for the power sector. For years, its profitability has been in decline. Charging EVs will add some load to the power grid, which is a welcome development for utilities against the continued decline in electricity prices.

Such a scenario seems promising, but there are potential pitfalls along the way.

The pitfalls

For a long time now, the transport and energy sectors have been talking about decarbonisation in their own circles.

As I sat in conversations with industry leaders from each sector—both in my role as the lead for Sustainable Mobility for All (SuM4All) and as a member of the World Economic Forum (WEF) global council on advanced energy technologies—I came to realise how disconnected the conversations about decarbonisation are. If we were to connect the two sectors, we must bring them to sit at the same table.

Accordingly, SuM4All invited experts in the energy sector to the table at our last consortium meeting in January 2019. However, it soon became clear that each side is speaking about decarbonisation in their own language and neither side could understand the other. Until both sides find a common language and tie their conversations together, it is unlikely that developments in these respective industries will succeed at decarbonising the global economy.

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Even if both sides manage to come to an agreement on a common language and approach, one must be thoughtful about the way both sectors collaborate.

As of today, renewable energy accounts for merely a quarter of total global power generation. Without greening the power grid, a wholesale adoption of EVs will not result in true decarbonisation in either sector. Half of the G20 countries have made progress in expanding renewable electricity generation in the years leading up to 2015, but, alarmingly, nine saw declines in 2015 and the preceding years. Reducing the carbon intensity of power generation is what matters in the end.

But this transformation will not happen overnight. As the share of renewables increases in the energy mix, the carbon intensity of energy production will also increase. In fact, in the short term, one expects an overall increase in carbon emissions with the EV deployment, simply because of the EV battery manufacturing.

The way forward

The good news is that if we manage to co-ordinate policy interventions within the transport and energy sectors, we can make great strides towards decarbonisation. For example, policy support measures that target electrification in the transport sector should be linked to renewable requirements on the energy side.  For this reason, I plan to bring a clear and simple message to the Electric and Digital Mobility event ahead of the upcoming ITF Summit: to fully leverage the power of mobility, we need to concurrently clean up the grid.

If we manage to do so, one plus one can indeed be more than two, and the Paris Climate Agreement goals will be very much within our reach.

Nancy L. Vandycke is a speaker at the TUMIVolt Conference on 21 May 2019 in Leipzig, Germany. The ITF Summit follows from 22-24 May.

The economic benefits of improved transport accessibility

 By Lorenzo Casullo, International Transport Forum

Cover photo accessibility RT croppedA transport journey is very often the first step to participating in economic and social activities – from jobs to schools to hospitals. So if we are no promote full participation and inclusion of all citizens, including those with mobility impairments and disabilities, it is imperative to provide accessible transport options for the largest possible share of the population.

Accessible transportation should be at the forefront not only of mobility policies, but also of urban development at large. An urban approach to greater accessibility should integrate transport planning for all at the early stages of design.

Therefore, a key question is: how can we ensure that decision makers (at the local and national level) invest adequate and targeted sums of money to achieve these goals? Likewise, how can we better promote legislation about the rights of passengers and the duties of transport providers so that accessibility for all is maximised?

Filling the gap

This is the challenge that we, at the International Transport Forum, have laid out for discussion with our member countries and partner organisations. And being a think-tank with a focus on economic policies, we have identified one crucial factor that represents a barrier to investment and more far-reaching regulations – namely, the lack of a common approach to identify and value (including in monetary terms) the economic benefits of accessible transport.

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A year ago, we gathered world experts and campaigners in Paris so as to work together towards a clear objective: filling the gap in the theory and practice of accessibility benefits. We produced this report which today stands as a unique compendium of good practice in this field.

We do not wish for our focus on economic benefits to be seen as alternative to the rights-based approaches that the United Nations have successfully rolled out globally, and that numerous governments including those in this room today implement with determination across the world. Rather, our work aims to complement these efforts.

A win-win situation

Our conclusion is that without a clear and robust framework to value the benefits of greater accessibility, these improvements will fail to become a priority – especially when other types of investment (such as to reduced congestion and improved safety) display a large benefits-tag, but accessible transport does not.

Most importantly, assessing the socio-economic benefits of accessibility shows decision-makers a clear win-win situation: investment in accessible transport is beneficial to a large section of the population, and not just to those who are mobility-impaired at the time of planned investment.

Let’s focus on these two key findings – that designing transport systems for those that are less mobile is actually good for everyone, and; that if we do not demonstrate value, accessibility investment will be not be a priority.

More than marginal

First, how do we show that greater transport accessibility is good for all passengers? We need to identify the main beneficiaries. Moving away from a narrower focus on current passengers with some disability, we find that those who benefit also include passengers that are temporarily encumbered in their movements – such as parents with small children, travellers with heavy luggage, pregnant and injured people.

Identifying the beneficiaries of accessible transport

Recent research in the UK and in France gives us an indicative magnitude of this exercise. Studies for the Access for All programme in Britain show that only 1% of passengers at railway stations define themselves as disabled, but more than 5% fall in the “temporarily encumbered” category. Detailed surveys in the Paris metropolitan area confirm that beneficiaries go beyond the less mobile passengers, and include 7% of the population travelling with temporary limitations. For all these travellers, low-floor buses, lifts to stations and simpler pedestrian crossings are of great importance.

An even wider focus on beneficiaries should take into account those who are currently not using transport systems because they are inaccessible to them. For these citizens, better transport accessibility does not mean a “marginally better” journey. It means an entirely transformational impact, providing freedom to access opportunities and services that would have otherwise been precluded. And the number of future beneficiaries is only going to grow in ageing societies.

Capturing the benefits

Secondly, how do we demonstrate the economic value of such investment? We need to adapt and further develop existing economic approaches. Transport practitioners already use those robust approaches in the assessment of economic impacts, and their application to accessible transport is absolutely possible.

Our report is there to help anyone identify and capture these benefits, which include welfare benefits, reduced health and social care costs, and broader economic impacts such as increased participation to economic activities. We also need to add new benefits to the list, including social benefits like reduced stress levels and lower fear of isolation; and private sector benefits such as increased patronage for transport providers.

Identifying and capturing economic benefits

The rare examples of economic valuations undertaken to date demonstrate that the magnitude of potential benefits from improved transport accessibility is often large enough to offset the higher costs. We see this in Britain where the government found a positive business case for investing in accessible railway stations; and in Norway where the National Transport Institute showed that the benefits of making universally accessible bus stops outweigh the costs. In France, a start-up  called Wheeliz is the first peer-to-peer rental website specialising in disability adapted cars for wheelchair users – its growth across Europe is backed by investors.

Whenever you have the chance to do so, outline the socio-economic benefits that accessible transport can unlock. Let’s make this argument to attract more and better investment. Let’s work together towards more accessible and more inclusive cities for all.


Lorenzo Casullo is an economist with the International Transport Forum. This text is based on his presentation at the DESA/DSPD Forum on Advancing Accessible and Inclusive Urban Development for All, held on 14 June 2017 in the context of the 10th session of the Conference of States Parties to the UN Convention on the Rights of Persons with Disabilities (CRPD).

Sustainable mobility: Can the world speak with one voice?

by Nancy Vandycke, World Bank

The transport sector is changing at breakneck speed. By 2030, global passenger traffic is set to rise by 50%, and freight volume by 70%. By 2050, we will have twice as many vehicles on the road, with most of the increase coming from emerging markets, where steady economic expansion is creating new lifestyle expectations and mobility aspirations. Mega-projects like China’s One Belt, One Road could connect more than half of the world’s population, and roughly a quarter of the goods that move around the globe by land and sea.

These transformations create a unique opportunity to improve the lives and livelihoods of billions of people by facilitating access to jobs, markets, and essential services such as healthcare or education. But the growth of the transport sector could also come at the cost of higher fossil fuel use and greenhouse gas emissions, increasing air and noise pollution, a growing number of road fatalities, and worsening inequities in access.

Lack of coherence, lack of objectives

Although these are, of course, global challenges, developing countries are disproportionately affected. The vast majority of the one billion people who still don’t have access to an all-weather road live in the developing world. Although low and middle-income countries are home to only 54% of the world’s vehicles, they account for 90% of the 1.25 million road deaths occurring every year. If we don’t take action now, transport emissions from emerging markets could triple by 2050, and would make up 75% of the global total.

While the case for sustainable mobility is evident, the sector still lacks coherence and clear objectives. There is a way forward, but it requires pro-active cooperation between all stakeholders. That’s what motivated the creation of Sustainable Mobility for All (SuM4All), a partnership between a wide range of global actors determined to speak with one voice and steer mobility in the right direction.SuM4All_Logo_Final_TM

SuM4All partners include Multilateral Development Banks, United Nations Agencies, bilateral organizations, non-governmental organizations, civil society organizations, and is open to other important entities such as national governments and private companies. Together, these organizations can pool their capacity and experience to orient policy making, turn ideas into action, and mobilize financing.

Everyone around one table

There are three fundamental premises that guide the work of the Sum4All initiative. First, we need to get everyone around the same table. So far, global mobility has been managed by a multitude of actors—UN agencies, multilateral development banks, the manufacturing industry, civil society— who have all been working independently. In the absence of coherent governance, the sector has failed to bring action and financing to scale in order to transform itself. Better cohesion, however, is possible. The energy sector embarked on this journey in 2010 with great results. There is no reason why transport should not be able to do the same.

To be successful, we also have to set some clear goals. Despite its critical role in economic and social development, transport is the only major sector that didn’t manage to get its own Sustainable Development Goal (SDG). This is not good news, and will make it harder to get the global attention and financing needed to move the needle on sustainable mobility over the next 15 years. For the past six months, SuM4All partners have been working to fill the gap and agree on a set of global objectives for the sector, in line with recent international agreements like Habitat III, the Paris Agreement, and the SDGs. Specifically, the four priority goals identified by SuM4All are equitable access, safety, efficiency, and climate-responsiveness.

Taking it to the summit

Last but not least: Technology is changing our world. Let’s make the most of it! Technological innovation will go a long way in helping countries transition to more sustainable mobility. Advances in electric or autonomous vehicles promise to make transport greener, safer, and more efficient. Likewise, digital innovations such as ride sharing platforms, e-commerce, and telecommuting can significantly reduce demand and avoid unnecessary trips.

As transport ministers from around the world gather in Leipzig this week for their 2017 Summit to discuss “Governance of Transport” , we look forward to identifying influential policy makers who can join this global movement and champion the cause of sustainable mobility, not just in their own countries but around the world.


Nancy Vandycke leads the World Bank’s group of transport economists and spearheads the new global initiative on transport, Sustainable Mobility for All. She oversees strategic and analytical engagement on transport, including the climate action effort (with the United Nations), the Impact Evaluation program (with the World Bank’s Research Department), The Global Tracking Framework and the Knowledge Note series (Connections).