Urban Mobility Readiness Index - HOW CITIES RANK ON MOBILITY ECOSYSTEM DEVELOPMENT - Oliver Wyman Forum
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Executive Summary The planet is getting more urban. By 2030, a top priority of cities around the globe. If a more than five billion people — about 60 city can’t move its people, goods, and data percent of the world population — will live in efficiently, it’s hard to see how it thrives. cities. By then, the United Nations predicts Today, in order to keep up, city leaders that as many as 43 megacities will exist, each must think in terms of creating mobility with 10 million or more residents and most ecosystems rather than building a subway in Asia and Africa. That will be up from 33 here or bike lanes there. Ecosystems are in 2018. holistic approaches to the challenge of We’re also becoming more mobile urban mobility. With the latest technologies and connected. New technologies and blurring the lines between infrastructure, business models are pushing aside the once vehicles, sensors, and mobility applications, indomitable privately owned automobile and these ecosystems — just like in biology — other less efficient modes of transportation. develop around the interaction of various Whether from drones, autonomous networks and modes of transport. At their vehicles, hyperloops, the electrification of best, they operate seamlessly, constantly transportation, shared networks of cars, connected in real time. Ultimately, they scooters, and bicycles, or the advent of 5G become a competitive advantage for wireless, the world of mobility is changing their cities. almost daily. Nowhere will that transformation be felt more acutely in the coming decades than Behind The Index in the world’s major cities where increased That’s why the Oliver Wyman Forum created urban density and congestion make the tasks the Urban Mobility Readiness Index: How Cities of creating and maintaining urban transport Rank on Mobility Ecosystem Development. It is systems ever more complex. That’s why a tool to help cities evaluate their capacity — developing and improving urban mobility is now and in the future — to exploit new forms 3
of mobility to gain an economic edge. To transport operating hours, public transport compete effectively for business and skilled affordability, public transport reliability, and labor, municipal leaders will need to provide traffic management; policies, regulation, and infrastructure that Social impact, which focuses on volatile allow these ecosystems to flourish, while metrics, such as road safety, air quality, also protecting residents against risks from vehicle occupancy rates, car ownership rates, mobility innovation. and traffic fluidity; The index serves as a predictive metric Innovation, which focuses on that gauges and compares various cities’ technology-related metrics, such as the capabilities to compete and distinguish concentration of skilled workers and themselves in mobility. In this first edition, startups, electric vehicle market share, 30 global cities from six regions were ranked. and government investment in connected, The first edition of the index identifies five autonomous vehicle technologies; cities, listed in descending order, as the Market attractiveness, which focuses on best prepared overall for the New Mobility: market-driven metrics, such as international the city of Singapore, Amsterdam, London, airport connectivity, multimodal Shanghai, and New York. app maturity, and mobility sharing The index uses five criteria to rank cities. competitiveness and penetration; and They are: Infrastructure, which focuses on static System efficiency, which focuses metrics that don’t change quickly or easily, on controllable metrics, such as public such as the density of public transit stations, the walkability of a city, and the strength of a city’s multimodal networks. The top five cities share a healthy combination of heritage infrastructure from past investments, sustained investment, rapid technology adoption, an engaged private sector, and forward-looking policies that aim for managed growth. The highest- ranked cities performed well across all categories rather than excelling in one or two, but generally, leading cities performed best in system efficiency and innovation Leading cities metrics. The average score across all 30 cities was 51, 19.8 percentage points below index leader Singapore’s score and 24.2 points tend to perform above the lowest score. The index analyzes existing public and private mobility networks; current best in system regulation, policy, and infrastructure; a city’s livability, and capacity to incorporate future technologies and efforts to support them. efficiency and The rankings and commentary are designed to help officials, businesses, and others interested in urban economic development innovation to identify best practices and strategies for cities in need of mobility upgrades. 4
Overall Rankings Of Cities Cities are ranked on a scale of 1 to 100, based on how well they meet five core criteria System Efficiency Social Impact Innovation Market Attractiveness Infrastructure 1 Singapore 70.8 2 Amsterdam 65.5 3 London 62.7 4 Shanghai 62.4 5 New York 61.9 6 Tokyo 61.5 7 Helsinki 61.1 8 Beijing 59.6 9 Seoul 59.0 10 Berlin 58.4 11 Hong Kong 58.2 12 San Francisco 58.0 13 Barcelona 56.8 14 Los Angeles 56.5 15 Paris 53.8 16 Dubai 53.2 17 Chicago 53.1 18 Boston 50.8 19 Toronto 50.4 20 Istanbul 49.9 21 Sydney 48.5 22 Dublin 48.2 23 Warsaw 45.5 24 São Paulo 41.3 25 Mexico City 36.6 26 Riyadh 34.6 27 Bangkok 34.4 28 Mumbai 31.4 29 Johannesburg 30.1 30 Cairo 26.8 GLOBAL AVERAGE | 51.0 Source: Oliver Wyman Forum analysis 5
The Impact Of New Mobility Around the globe today, cities operate at encourage experimentation by nearby vastly different stages of development when universities, and partner with both to create it comes to mobility. In Los Angeles, 89 an urban laboratory for new tech. That percent of travel involves a car; in Hong Kong, requires a regulatory environment that only seven percent does. In Amsterdam, 60 nurtures innovation while still policing its percent of people get around by cycling or effects on residents. walking; in Mexico City, 70 percent take mass transit. With urban mobility, one-size-fits-all solutions will never work. Transformational Trends What should be the pivotal factors in But it’s not just cities under pressure. Mobility determining a city’s success? The Urban itself is being transformed by revolutionary Mobility Readiness Index reveals that a technologies and solutions that are changing willingness to innovate and the consistent how people, goods and data are moved. support of mobility systems over time are The Urban Mobility Readiness Index is being key. The index strives to be predictive, developed at a pivotal time as city officials and comparing urban areas not only on their mobility businesses grapple with developing current operational efficiencies, networks, strategies to incorporate emerging and services, but also on their capacity technologies and solutions. to encourage and absorb emerging Three broad technological trends will technologies. The index evaluates the be primarily responsible for reshaping trajectory of a city, not a snapshot of how that urban mobility in every city — digitization, city is doing. Cities score high not just because automation, and electrification. The sharing their subways run on time, but because they economy, a fourth trend, has led to new have established a pattern of policymaking business models in which the mobility and investing in mass transit that ensures service provided is more important than incorporation of innovations over time. its ownership. Another differentiating element is this All four are already changing the mobility index’s focus on cities’ exposure to cutting- choices people have in the biggest urban edge technologies and how actively cities areas. They also are compounding problems. support the establishment of startups, For instance, as ride-hailing increases, so do 6
congestion and the concurrent pollution. The cities. Eventually, it will turn everything into rising adoption of electric vehicles is forcing self-driving vehicles — from cars and trucks, urban areas to find the funds to invest in to passenger rail, to air taxis, to cargo ships, charging stations and may eventually prompt to maybe even airliners. In the interim, this new investment in power generation capacity technology trend is providing autonomous to support the new demand. functionality that improves safety, efficiency, and reliability. Digitization is also bringing the same Going Electric technology-enabled convenience, efficiency, The electrification of transportation holds and accessibility to mobility that it brought the promise of moving the planet away from to banking and shopping. Many of the fossil fuels. Every form of transport — from new technologies will aid efforts to create cars, trucks and rail to ships and airplanes seamless, multimodal mobility networks — is moving in that direction and will need through apps, digital platforms, centralized new infrastructure to support them. That databases, and artificial intelligence. Cities will include private and public charging have seen a proliferation of platforms and stations and more renewable energy apps, including mass transit apps, taxi- sources to provide sustainably the additional hailing apps, car-pooling platforms, and apps power required. that give directions and help drivers avoid For cities, electrification offers the prospect traffic. These apps and platforms coordinate of reduced greenhouse gas emissions and less urban commuting, last-mile deliveries, air pollution, less noise with the elimination booking and ticketing, and real-time updates of internal combustion engines, and on transit, traffic, weather, and shipments. enhanced livability. A few of the cities on the Ride-hailing and car-sharing services list are making the switch to electric quickly, are early examples of the seamlessness especially in China, where the government that these technologies can bring to has actively supported the transition. Of the transportation and also foreshadow the 425,000 electric buses operating worldwide, rise of a sharing economy business model 421,000 are in Chinese cities and urban areas, that stresses shared assets over individual partially explaining why Chinese cities score ownership. Here, mobility is defined by the so high on the index. service provided rather than the vehicle Cities are also feeling the need to digitize providing it. Mobility-as-a-Service (MaaS) their mobility networks. The push to digitize is enabling mobility on demand, and cities stems from the development of multiple have already seen increases in ride-hailing revolutionary technologies like artificial services as well as scooter- and bicycle- intelligence, machine learning, big data, sharing programs. predictive analytics, and the Internet of Things. They are changing the face of mobility by enabling such capabilities as real-time More Than Transport traffic control, predictive maintenance of Understanding a city’s mobility involves vehicles, and seamless trip planning. Future analyzing mass transit, traffic flows, road applications are nearly limitless. conditions, and operations at airports, rail stations, and harbors. But any study of mobility must expand far beyond those All Things Digital obvious systems to include the efficiency of a Automation is already responsible for robo- city’s telecommunications, the sophistication taxis and driverless buses and trains in some and breadth of its networks for moving 7
money, and the safety and reliability of all frequent disruption in urban mobility and the above. incorporate the latest ways of integrating The cities destined to become tomorrow’s mobility options. mobility leaders will score high on the When it comes to New Mobility, each Urban Mobility Readiness Index based city is unique — distinctive on the basis of on how forward-thinking, user-centric, such factors as climate, geospatial layouts, and data driven their approach is to population densities, age of the municipality mobility. In partnership with the private and its infrastructure, and governance. Urban sector, they will focus on optimal transit leaders and planners must recognize what solutions — not just legacy systems and makes their city different and reflect those not just new technologies. They will seek unique challenges in their mobility strategies. The Future Mobility Ecosystem Playbook Cities should address four strategic questions before building an ecosystem Expected impact Key stakeholders Social Impact 1. What are a city’s (economic contribution, strategic goals in Vision Policymakers safety, employment, and Mobility? quality of life ) 2. Which Mobility Mobility master plan Infrastructure Mobility solutions work best (quality of user experience, & infrastructure Users for a particular city? reliability cost of mobility) Private sector Financing Market Attractiveness Mobility (market growth activation strategy Providers and profitability) System Efficiency 3. What type of operating Mobility (public transport quality, model works best for Governance Regulation traffic and infrastructure Authorities a particular city? management) Innovation 4. What resources are Businesses, Labor, (technology adoption, needed for a city to Education Research economic growth, quality City Economy, fulfill its Mobility goals and vision? of human capital, growth Investors of investment) Source: Oliver Wyman Forum analysis 8
Index Methodology For the inaugural 2019 edition of the Urban of real-time connected, multimodal networks Mobility Readiness Index, the Oliver Wyman that ultimately provide city residents and Forum selected a set of 30 global cities for in- businesses door-to-door planning, reliability, depth analysis. These cities are geographically and transparency when moving people diverse, representing six regions — North or goods. America, Latin America, Europe, the Middle Based on internal discussions and East, Asia-Pacific, and Africa. These cities conversations with leading professionals and — comprising sprawling metropolises like experts in the mobility and transportation Beijing and more compact cities such as fields, the research team arrived at five key Helsinki and Amsterdam — were identified attributes of these New Mobility ecosystems: because of their distinct mobility challenges Integrated. Mobility in the future will and the varied solutions they are pursuing. stress intermodal, one-stop service providers They tend to be leaders in understanding that provide seamless travel, commutes, and the importance of mobility, and they also delivery experiences. represent economic epicenters for their Accessible. Future mobility will focus regions, making their efforts to improve on user-oriented approaches that are mobility vital to growth for the entire region. transparent, easy to use, affordable, The initial batch also was chosen, to some convenient, efficient, and available extent, on the availability of data that would to everyone. enable the Forum team to assess, compare, Sustainable. Systems and solutions will and track the evolution of their mobility not degrade the environment or health of city capabilities over time in future versions of residents and can be supported economically the index. The 2020 edition will include an by the local community. additional 20 cities. Innovative. Cities should take advantage To build the index, we began by creating of the latest technologies, reinterpreting them a vision of what cities should be striving to fit their needs. for in mobility — the characteristics that Collaborative. Municipalities need businesses, consumers, and policymakers to create coalitions with private-sector consider indispensable now and will still enterprises — both large legacy players and pursue a decade from now. The ultimate startups — so they can work together to shape strategic goal of cities must be to build the future. mobility ecosystems that reflect New It follows then that leading cities in the Mobility technologies and priorities, mobility revolution will likely expand their such as seamlessness, electrification, and public transportation modes, availability, digitization. These ecosystems are made up and linkages; embrace the sharing economy; 10
Ranking Criteria The index uses five basic criteria to rank the cities — system efficiency, social impact, innovation, market attractiveness, and infrastructure. Below find the 35 components that fall under these five metrics — key performance indicators that identify which cities will excel in mobility Expected impact Type of metrics Metrics System Efficiency Controllable Metrics Transit Estimated Time Of Arrival Primarily influenced by market Public Transport Operating Hours dynamics and the private sector Public Transport Affordability ICT Preparedness Electric Charging Stations Availability Government Investment In Charging Stations Direct EV Incentivization Traffic Management Grade Noise Pollution Restraint Municipality Population Concentration Social Impact Volatile Metrics Road Safety Often controversial for Air Quality municipal governments to regulate Transit Commute Speed Traffic Fluidity Public Transport Utilization Commuter Volume Car Ownership Moderation Vehicle Occupancy Rate Population Density International Airport Volumes Innovation Technology-Related Metrics CAV Adoption Linked to emerging technologies Government Investment In CAV Technologies Autonomous Transit Vehicles In Use Concentration Of Human Capital & Innovation Electric Market Share In Sales Market Attractiveness Market-Driven Metrics Mobility Sharing Economy Competitiveness Municipal governments have Mobility Sharing Economy Penetration the greatest impact Municipal Investment In Mobility Sharing Economy Multimodal App Maturity Fleet Management Activity International Airport Connectivity Infrastructure Static Assets Public Transport Station Density Remain nearly consistent over time Walkability City Resilience Strength Of Multimodal Network Source: Oliver Wyman Forum analysis 11
experiment with emerging technologies like autonomous vehicles (AVs); prioritize digitization and sustainability; and align municipal policies, regulations, and budgets accordingly. Index Reliability In the process of constructing the index, the key performance indicators that make up each category have been assigned a weight based on their relative importance to the ultimate task of building urban mobility ecosystems. The Forum index gives extra weight to factors that capture the ability of a city to become a future leader and ensure rankings reflect performance prospects rather than the competitive status quo. Weights of the key performance indicators were determined based on discussions that our index team conducted with a wide range of experts including urban planners, traffic managers, transportation finance specialists, and mobility technology executives as well as data collected by Oliver Wyman and the Institute of Transportation Studies. As part of the construction and testing of the index, we conducted a principal component analysis on the data to determine alternate weights as well as a 10 million-sample statistical analysis of possible weight combinations. The extensive testing yielded results very similar to the weights chosen by our team, reinforcing our confidence in the index composition and metrics’ weighting. 12
Efforts to improve mobility in these economic epicenters is vital for regions to grow
FIVE Metrics to Rank Cities The index breaks out rankings for each performance indicator as a way for cities to see areas where they need to focus moving forward to improve their standing. Quantitative data took priority wherever available. Yet, some indicators required qualitative judgments, for which the Oliver Wyman Forum enlisted the knowledge of leading experts in transportation and mobility-related industries. Qualitative judgments were then assigned a numerical value for the Index calculation. Any indicators with qualitative components are noted.
System Efficiency Definition Example System efficiency metrics focus on New York ranked first because of its subway controllable factors that are influenced by network, which boasts the most stations of market dynamics and the public sector, such any system worldwide and offers 24-hour as public transport operating hours, public service 365 days a year; its growing bicycle transport affordability, public transport network and protected bicycle lanes; its reliability, and traffic management. dedicated Select Bus Service corridors; and its traffic management with connected vehicle technologies. Ranking Results Cities are ranked on a scale of 1 to 100 1 New York 82.6 2 Berlin 81.3 3 Tokyo 81.3 4 Singapore 76.4 5 Shanghai 75.5 6 Hong Kong 72.6 7 Sydney 70.7 8 Amsterdam 69.8 9 Helsinki 68.1 10 Warsaw 67.7 11 Chicago 67.0 12 Los Angeles 65.5 13 Dubai 65.2 14 Dublin 64.6 15 London 63.8 16 Beijing 62.4 17 San Francisco 62.0 18 Seoul 61.1 19 Barcelona 61.0 20 Paris 60.1 21 Boston 56.5 22 Mexico City 54.6 23 Bangkok 54.3 24 Istanbul 54.1 25 Toronto 53.6 26 Riyadh 53.5 27 São Paulo 47.1 28 Mumbai 46.3 29 Johannesburg 33.1 30 Cairo 27.1 GLOBAL AVERAGE | 62.0 Source: Oliver Wyman Forum analysis 15
Social Impact Definition Example Social impact metrics are based on Hong Kong excelled because of its high mass volatile variable measures that often prove transit utilization, representing 88 percent controversial for municipal governments to of Hong Kong’s transport; the city initiative regulate, such as commuting time, traffic that led to a 32 percent drop in traffic fatalities fluidity, public transit utilization, commuter between 2007 and 2017; and city efforts that density, car ownership, vehicle occupancy, led to a 50 percent drop in roadside levels of population density, road safety, air quality, and nitrogen dioxide. international airport volumes. Ranking Results Cities are ranked on a scale of 1 to 100 1 Hong Kong 74.9 2 Amsterdam 67.1 3 Singapore 67.0 4 Tokyo 63.3 5 Seoul 61.4 6 London 60.5 7 New York 57.6 8 Barcelona 57.2 9 Chicago 56.5 10 Johannesburg 56.3 11 Toronto 55.1 12 San Francisco 54.8 13 Berlin 54.3 14 Shanghai 53.9 15 Helsinki 53.8 16 Paris 53.6 17 Istanbul 50.8 18 Boston 50.4 19 Sydney 50.1 20 Cairo 49.9 21 Dubai 49.8 22 São Paulo 47.8 23 Dublin 46.7 24 Los Angeles 46.6 25 Warsaw 43.7 26 Mumbai 40.5 27 Beijing 39.4 28 Mexico City 37.8 29 Riyadh 31.2 30 Bangkok 30.1 GLOBAL AVERAGE | 52.1 Source: Oliver Wyman Forum analysis 16
Innovation Definition Example Innovation is a technology-related metric Singapore tops the list because of its linked to emerging technologies, such development of world-class facilities for as connected autonomous vehicles, autonomous vehicle testing; facilitating electrification, and advanced connectivity. It collaboration among government, industry, considers the city government’s investment and academia to research New Mobility and commitment to these technologies, and technologies and business models; the city’s abilities to attract and keep high- outstanding smart traffic management; tech labor and startups. and its nurturing environment for mobility startups. Ranking Results Cities are ranked on a scale of 1 to 100 1 Singapore 77.5 2 Amsterdam 70.0 3 Shanghai 69.3 4 Beijing 67.4 5 San Francisco 66.4 6 London 63.4 7 Helsinki 59.5 8 Tokyo 58.5 9 Seoul 57.0 10 Barcelona 55.1 11 Boston 52.0 12 Los Angeles 50.0 13 New York 49.9 14 Berlin 49.2 15 Chicago 46.0 16 Toronto 42.5 17 Hong Kong 42.1 18 Dubai 39.9 19 Paris 34.2 20 São Paulo 33.8 21 Dublin 31.7 22 Istanbul 30.9 23 Sydney 26.8 24 Riyadh 21.5 25 Warsaw 16.9 26 Bangkok 7.0 27 Mumbai 28 Mexico City 6.4 29 Johannesburg 4.5 30 Cairo 2.1 0.8 GLOBAL AVERAGE | 41.1 Source: Oliver Wyman Forum analysis 17
Market Attractiveness Definition Example Market attractiveness is based on Beijing ranks first because of sizable market‑driven metrics over which municipal government investments in public governments can exert influence, such as transportation infrastructures; investment the competitiveness and penetration of in innovation in new energy and connected sharing-economy business models in mobility, vehicles; the city’s significant measures to multimodal app maturity and availability, fleet advance its logistics industry; efforts to expand management, internet connectivity, and the ride-hailing and vehicle-sharing through well- scope of international airport connections. funded startups; and the largest scheduled airline capacity and highest number of seats on flights worldwide at its airport. Ranking Results Cities are ranked on a scale of 1 to 100 1 Beijing 74.3 2 London 71.0 3 Los Angeles 68.1 4 Singapore 66.7 5 Dubai 61.0 6 Paris 60.0 7 San Francisco 54.7 8 New York 53.9 9 Amsterdam 53.0 10 Seoul 52.2 11 Shanghai 51.9 12 Toronto 51.8 13 Istanbul 51.5 14 Helsinki 49.7 15 Mexico City 48.2 16 Barcelona 45.7 17 Boston 44.9 18 Warsaw 38.9 19 Dublin 38.5 20 Chicago 38.0 21 Berlin 37.7 22 Sydney 37.3 23 Tokyo 36.8 24 Bangkok 36.2 25 Hong Kong 34.5 26 Riyadh 30.6 27 São Paulo 27.1 28 Cairo 25.1 29 Mumbai 23.8 30 Johannesburg 23.5 GLOBAL AVERAGE | 46.2 Source: Oliver Wyman Forum analysis 18
Infrastructure Definition Example Infrastructure metrics focus on static Helsinki claimed the top spot because of measures that are likely to remain near its walkability, accounting for 21 percent of constant over time or are at least difficult to total modal share; the performance of its grid change, such as the density of public transit road system and public transport network, stations, the walkability of a city, and the especially during rush hours; and Whim, strength of a city’s multimodal networks. a journey planner app that integrates all transportation modes in the city. Ranking Results Cities are ranked on a scale of 1 to 100 1 Helsinki 80.6 2 Istanbul 69.9 3 Barcelona 68.8 4 Amsterdam 65.4 5 Seoul 65.3 6 Paris 61.5 7 Hong Kong 60.7 8 Berlin 57.4 9 Singapore 56.5 10 Dublin 54.4 11 São Paulo 54.4 12 Tokyo 53.6 13 Warsaw 52.6 14 Chicago 49.0 15 New York 48.2 16 Shanghai 47.3 17 Beijing 46.8 18 London 46.1 19 Toronto 44.6 20 Sydney 44.6 21 Boston 43.9 22 San Francisco 42.2 23 Los Angeles 38.6 24 Johannesburg 38.1 25 Dubai 35.2 26 Cairo 35.1 27 Bangkok 34.5 28 Mumbai 33.6 29 Mexico City 20.9 30 Riyadh 19.2 GLOBAL AVERAGE | 49.0 Source: Oliver Wyman Forum analysis 19
Leaders And Laggards The index identifies the maturity levels of services. Governing bodies in these cities mobility efforts in various cities. Leading cities also often lack the political will to realize a have invested consistently over the years in brighter future for mobility, which can lead their infrastructure and adopted an aggressive to substantial delays in mobility projects and approach in integrating cutting-edge limit direct investments in mobility solutions. technology with progressive transportation The mobility ecosystems in these cities will policies. These cities are the leaders in New not develop at a comparable pace with those Mobility advancements, such as integrated in cities with money and resources and that mobility platforms, innovative digital mobility score higher in rankings. services, and autonomous driving. They often embrace new technology quickly and reap the advantages of early technology adoption The Leader Of The Pack in mobility. In addition, these cities have Singapore, the index’s number one city, scores developed the necessary local capacity to well above average and even well above address future mobility challenges, increasing Amsterdam, the number two city — with a score their readiness to succeed in the future. 39 percent above the index average. Disparities Developing cities tend to take a less that big between cities do not tend to develop aggressive approach in disrupting the status the bottom half of the index. Singapore is first quo and advancing urban mobility services. in innovation and in the top five for three out of They often approach new technologies the remaining four categories. with caution and are less proactive when What makes Singapore so special? For one experimenting with new policies. As a result, thing, Singapore has been a pioneer on the they find themselves playing catch-up with policy front, reducing congestion through the leaders. Compared with leading cities, road-use charges and even limited bans on the distribution of developing cities on the automobiles. It has demonstrated a strong mobility curve is flatter. political will to push mobility beyond the Lagging cities tend to fall toward the status quo, a heavy reliance on technology, bottom of all five metrics rankings, suffering and close working alliances with academia from chronic infrastructure inefficiencies and business. In fact, Singapore has become coupled with limited investment by the private a tech hub rivaling Silicon Valley, with leading and public sector in mobility. Their tendency universities, proliferating startups, and an to lack major universities and research centers active National Research Foundation. results in limited innovation and advancement The city-state of Singapore is known to support the development of local mobility for its Smart Nation initiatives, aimed at 20
improving life and its comparative advantage This explains the strong showing of the more in business through technology. One of the developed economies, but also suggests that six initiatives is focused on the transport cities like Riyadh and Dubai, where investment sector. And the work has substantially helped resources exist, may have the ability to Singapore advance its mobility aspirations, improve their performance in the coming allowing it to essentially transform itself years if they spend their funds wisely. into a living laboratory for urban mobility What this also suggests is that mobility solutions. Numerous urban mobility startups could exacerbate global economic inequality have set up shop there, and the city has around the world. Cities with slow-growing supported extensive experimentation in economies tend not to have the money autonomous vehicle technology and smart to invest in infrastructure or to attract the traffic management. startups and businesses leading the mobility revolution, which could put those cities even further behind when competing for new Levers To Moving Up business. We already see this inequity playing First and foremost, investment is key to out in the current index rankings. progress, and overall capital availability may But there are aspects that have nothing differentiate tomorrow’s mobility leaders. to do with money. The political landscape of Cities Ranked By Level Of Maturity Lagging Developing Leading Singapore Beijing Amsterdam Hong Kong Tokyo Barcelona Seoul London Los Angeles Helsinki Shanghai Boston Dubai Berlin New York Istanbul San Francisco Dublin Paris Chicago Toronto Sydney Mexico City Warsaw Bangkok São Paulo Mumbai Riyadh Johannesburg Cairo Source: Oliver Wyman Forum analysis 21
Cities must recognize risks when adopting the latest innovations
a city can serve as either an accelerator or a barrier. Proactive governments tend to help cities make progress, which is certainly behind Singapore’s success. In terms of index scoring, Shanghai (number four), Beijing (number eight), and Hong Kong (number 11) have also been beneficiaries of China’s aggressive incentives to encourage electric car ownership and mobility research. As cities become increasingly congested, they also must overcome social norms that stigmatize public transportation while elevating car ownership. Although technology is their friend, they also must better anticipate negative impacts from incorporating the latest innovations, such as business closures and loss of employment. Ride-hailing service, for instance, has experienced considerable backlash because of its relatively unregulated introduction in most cities. The Future Of The Index The Oliver Wyman Forum anticipates significant movement in rankings over the coming years as cities increasingly recognize the importance of mobility and as new technologies become more available. The index itself is also likely to evolve, including an effort in the coming year to enhance its predictive capabilities. It will also reflect the availability of new data sources, and the list of cities will expand substantially. Finally, the rapid pace of change in mobility and the potential for more new technologies will probably compel the addition of new indicators to reflect the latest developments in the field. Themes already on the radar for possible inclusion are three-dimensional travel, regulatory developments, and hydrogen-powered vehicles.
About the Authors ALEXANDRE M. BAYEN holds the Liao-Cho Innovation Endowed Chair at the University of California, Berkeley in the Electrical Engineering and Computer Sciences department and is the director of the university’s Institute of Transportation Studies. He conducts research in machine learning and control and optimization, with applications to transportation systems, water networks, and healthcare systems. MATTHIEU DE CLERCQ, a Dubai-based partner with Oliver Wyman, is a senior strategy and economic development expert who provides insights and recommendations to governments, state- owned enterprises, and private sector companies. He has extensive experience in the Middle East, Africa, and Asia where he supports large-scale urban development and infrastructure projects and advises on sectorial development, investment strategies, future technologies, localization, and foreign direct investment. GUILLAUME THIBAULT, a Paris-based partner with Oliver Wyman, is a transportation expert with a special focus on the analysis and deployment of disruptive digital business models in mobility and defense-related industries, as well as professional services. In recent years, he has spent considerable time advising on the development of the global drone market and urban air transport. EMILIO ELASMAR, a Dubai-based Oliver Wyman engagement manager, contributed substantial research and analysis to the formulation of the Urban Mobility Readiness Index and this report. About the Oliver Wyman Forum The Oliver Wyman Forum is committed to bringing together business, public policy, and social enterprise leaders to help solve the world’s toughest problems. The Oliver Wyman Forum strives to discover and develop innovative solutions by conducting research, convening leading thinkers, analyzing options, and inspiring action on three fronts: Reframing Industry, Business in Society, and Global Economic and Political Change. Together with our growing and diverse community of experts in business, public policy, social enterprises, For an analysis of the and academia, we think we can make a difference. For more rankings for each city, information, visit www.oliverwymanforum.com please visit: https://owy.mn/2QkI59d About Berkeley ITS The Institute of Transportation Studies at the University of California, Berkeley was created in 1947 by the State of California to support research efforts related to future mobility. It is an organized research unit on campus, comprising seven research centers, a startup accelerator program, a technology transfer program, a library, and testing facilities for automated vehicles. It employs over 200 faculty, researchers and technical staff, focused around verticals of mobility, which include digitalization, automation, electrification, the shared economy, policy, planning, and finance.
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