Assess Business Models for Private Mobility Services with Detailed Analysis of Modes and Revenue Channels to Assess the Feasibility of Implementing Mobility-On-Demand (MOD) Solutions.
Federal report assesses MOD business models and innovative procurement practices.
Made Public Date
12/16/2020
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Identifier
2020-00997

Mobility on Demand (MOD) Business Models Elements

Background

Mobility on Demand (MOD) is the US Department of Transportation’s (USDOT) vision for a "seamless mobility and goods delivery ecosystem that is safe, reliable, and equitable for all users." USDOT aims to achieve this vision by “leveraging innovative technologies and facilitating public-private partnerships.” 

Lessons Learned

This MOD sponsored project focused on understanding MOD Business Models. Business Models in the MOD marketplace are constantly evolving and “understanding business models underlying mobility services can help public agencies assess which transportation challenges [MOD offerings] are best equipped to address.”   

The team carefully researched MOD business models using a mixed methods approach. The key conclusions from this project were:

  • Customer base. For a business to succeed, it needs to identify the various segments of its customer base, attract, and retain [these customers]…Transit agencies and local governments will need to consider how to engage private services in partnerships and regulations that best support their planning goals.
  • Value proposition. For a service to gain customers and scale up, it needs a value proposition stating what it is offering that is new, different, or better. Public agencies take on a number of jobs that have historically posed challenges—for example, providing fast and convenient service over a wide variety of land-use contexts and providing mobility for people with disabilities… In recent years, public-private partnerships (P3s) have emerged between public agencies and private mobility services that leverage an overlap in customer bases to advance a public goal.
  • Capitalization and revenue. MOD is often funded with venture capital, although other revenue streams can be involved. In addition to the usual financial details, all parties should be aware of the timing of funding rounds for a start-up when negotiating the risk-sharing components of a partnership.
  • Operational characteristics. Transportation modes can operate in the mobility space in several ways. Private mobility providers need to anticipate how jurisdictions might respond to a disruptive mode in the right-of-way.
  • Partnership and regulation. Whether from launch or when they become a noticeable presence in the public right-of-way, public agencies may begin to regulate MOD. Regulations are a way to reconcile what is determined as a public good—equal access, etc.—with the private market.

Mobility on Demand (MOD) Business Models Elements

Mobility on Demand (MOD) Business Models Elements
Publication Sort Date
01/01/2020
Author
Partridge, Ellen, et.al.
Publisher
US Department of Transportation
Other Reference Number
FHWA-JPO-20-796

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Goal Areas

Focus Areas Taxonomy: