With increased variety of public transportation modes, more complex routes and distances, the future of transportation is leaning towards multimodality. This shift is being driven by the commuter need for faster and user-friendly options to get home through seamlessly taking multiple public transport types. Introduction a digital multi-modal ecosystem or joining the greater existing one has changed from just a strategic advantage to a necessity for future growth.
Overview of Top Public Transportation Modes
Globally, the most utilised public transportation modes include buses, metro, trams, ferries, and commuter rail. According to the UITP, buses dominate as the most widely used form of public transport, with over 180 billion passengers annually. Metro follows, serving over 53 billion passengers yearly, predominantly in urban centers. Trams and light-rail carry around 13 billion passengers, while ferries and commuter rail systems transport 5 billion and 8 billion passengers respectively. When joined together through shared data between different operators or just one, these modes can comprise a powerful multi-modal ecosystem.
Known data-sharing Initiatives
Lately, the evidence suggests that governments started to recognise the importance of data-sharing to create a more open environment for multimodal transportation. Launched in 2023 the European Mobility Data Space initiative is a notable example, aiming to facilitate data exchange between transportation stakeholders. Similarly, Australia's National Cities Performance Framework, Japan's Smart Mobility Challenge, and Brazil's Urban Mobility Plan highlight global efforts to enhance transparency and collaboration.
Recent examples of multimodality
Several cities have successfully implemented multimodal transportation environments, creating seamless connectivity for commuters, such as Stockholm with its transportation that integrates buses, trains, and ferries with a single payment system, significantly enhancing commuter convenience, or Saudi Arabia with users able to plan and pay for transport modes via a single app, Cape Town and Johannesburg both developing an integrated public transport network that includes buses, trains, and minibus taxis or Seoul with very extensive public transportation system that combines metro, buses, and taxis, offering a seamless commuter experience and real-time transit information.
What are the benefits for ecosystem stakeholders
Multimodal systems allow operators to increase passenger volume on all fleet and spread it between less profitable modes by adding them to the popular routes. Operators can leverage AFC open-loop payment systems to provide convenient payment experience through various methods on all transportation modes
For commuters, multimodality provides flexible and accessible public transport options, improving the overall journey experience and as a result loyalty of commuters to certain routes and public service operators.
Partner payment schemes and banks benefit from multimodality through extension of their own network and client base by newly enrolled commuters.
Multimodal transportation contributes to environmental sustainability, reduces traffic congestion, and enhances urban livability, aligning with most government smart city goals.
What are the challenges?
Despite its benefits, implementing multimodal transportation presents challenges:
- Infrastructure Investment. Developing and maintaining infrastructure to support multiple modes requires significant investment and coordination. That's why choosing the right technological AFC partner with hardware agnostic solution or SaaS-deployment options is important.
- Fragmentation and lack of interoperability. The diversity of transportation systems and variativity of data messages grows with new technologies. The compliance gap between old and new increases as well. That is why it's important to have an advanced technology that answers all modern international standards and would allow acceptance and processing of any kind of payments.
- Reluctant data sharing. While it is true that data is the king, many operators are reluctant to share data within the ecosystem due to security or lack of trust. The government regulatory initiatives into making data transparent and open is an example of steps forward.
How transportation operators can provide multimodal experience
Operators should adopt advanced technologies like AFC with account-based principles and centralise fare management to streamline operations and improve their own service delivery.
Javier Rios, Client Director AFC at O-CITY : "The future of transportation lies in creating a unified, user-centric system that leverages technology to enhance accessibility and efficiency. We believe that partnerships are the key. Right ecosystem partnerships between a transport operator, a bank, a payment scheme and a technology provider enhances network connectivity and offer a holistic commuter journey experience."
Our predictions
Multimodality concept is set to grow driven by digitalisation and the modernisation of public transport. Automated open-loop systems will play a role in this popularisation. It is possible that increased spread of AI will help to transform logistics by enabling predictive maintenance, demand forecasting, and personalised travel recommendations, leading to more efficient and responsive transit systems. Furthermore, there is a strong focus on sustainability, with a growing push towards adopting electric and shared mobility options within multimodal networks to reduce environmental impact and promote greener urban mobility solutions.
Connect with an O-CITY expert today to learn how we can help you establish a future-ready transportation system. Download our informative brochure to explore more about the transformative potential of multimodal transportation.
