Transportation & Traffic Opportunities in USAHartti SuomelaMay 2016

Driving Still Dominates:Methods of Commuting in U.S. (2012)

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Driving 86.1%

Public transportation 5%

Walking 2.8%

Other (incl. biking) 1.7%

Work from home 4.3%

General Observations of Transportation Ecosystem(s) in U.S.

• Driving is the main method of transportation / commuting

–At certain cities public transportation is also widely used (e.g. New York)

–Note also that more Americans used buses, trains and subways in 2014 than in any year since 1956

• 10.75 billion trips (source: American Public Transportation Association)

• Transportation/Transit landscape is much more fragmented in U.S. than in Finland

–Regulation on federal, state and municipality levels

–Service provider and other players are a mix of federal, state and municipality level players in addition to many commercial (private) players

• Public transportation owned, constructed and maintained by local & state governments

–Biggest exception: (Federally owned) Amtrak

Americans and Cars

• There are 1.3 people (including everyone) for every car in U.S. (Ward’s study 2011)

– About 240 million cars in U.S.

• Total vehicle sales in 2015 in U.S.: 17.5 million

– New Record!

– 31.4% were leases!

– Plug-in electric vehicle share: 0.66% (117,000)

• Tesla Model S 25k, Nissan Leaf 17k, Chevrolet Volt 15k

• In 2016: 1. Model S – 2. Volt – 3. Leaf

• Average American spends 101 minutes per day driving (Harvard Health Watch, 2013)

• The American commuter spends 38 hours yearly stuck in traffic

– In Washington D.C., Los Angeles and San Francisco the average is over 60 hours!

• Cost of owning and operating a car is about $8,700 annually (typical sedan, 15,000 miles)

– Has decreased slightly due to declines in gas prices and finance charges

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Example: New York City Metropolitan Area

• Roughly 8.5 million people (est. 2014)

• 1,214 sq km (total)

• 5 boroughs (counties)

• 3 airports (JFK, LGA, Newark – although this is on the New Jersey side)

• Extensive freeway system with very little room to grow (bad rush hour congestion)

• Only locality in U.S. where over ½ of households do not own car

– Over 75% in Manhattan!

• In 2005 54.6% of New Yorkers commuted to work using mass transit

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New York City: Public Transportation

• Most extensive network in North America

• Runs 24/7 in parts

• Accounts for 1/3 of mass transit in the United States

• 2/3 of the nation's rail riders live in NYC metropolitan area

• In 2013 ridership in NYC subway was 1.7 billion and buses 803 million

• MTA (Metropolitan Transit Authority) operates most of the system

– Buses, subway & commuter trains

• There are also other operators like Port Authority of New York and New Jersey, Roosevelt Island Tramway and Staten Island Ferry

• MetroCard is the current payment system

– Single rides, pay per ride & unlimited

– Based on magnetic strip

– Operator is Cubic, a San Diego-based company which also operates fare collection systems in other localities

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Example: San Francisco Bay Area

• Roughly 7.5 million people

• 18,000 sq km

• 9 counties, 101 municipalities (cities and towns)

• Biggest cities: San Jose (1M), San Francisco (800k), Oakland (400k)

• 3 airports (SFO, OAK, SJC)

• Extensive freeway system with very little room to grow (bad rush hour congestion)

– Car pool lanes on many freeways

– Additional toll lanes being built

• Park and ride network (car pooling)

• Basic information about the transportation options at: 511.org

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SF Bay Area Public Transportation:A Very Complex Equation

Public services

• 6 major overlapping bus transit agencies (AC Transit, Muni, SamTrans, VTA, Golden Gate Transit, County Connection)

– Additional smaller ones (like free-of-charge shuttle service for Stanford campus area – Marguerite Shuttle)

• 4 rapid transit rail systems (like BART and Caltrain)

• 2 light rail systems (San Francisco Muni Metro, VTA Light-rail)

• A number of rail lines (=train lines)

• Ferries

Private

• Multiple cab companies (Yellow Cab, SF Cab, Luxor Cab, DeSoto Cab, etc) with multiple mobile apps

• Airport & other shuttle services

• Uber & Lyft

• Other transportation & car sharing startups, like RelayRides, LeapTransit, SideCar, etc.

• Private ferry services

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San Francisco Bay Area: Biking options

• Commuting by biking is more common in San Francisco than in the Silicon Valley area

• Biking routes have been improved in the area in the past 10 years, but still bad spots exist

– Annual Bike To Work Day (in May) spreads awareness

• Some public transportation vehicles offer no-cost bike transport (like Caltrain & some bus lines)

– Bike to the station, ride to close of your destination, bike to your destination

• Caltrain (and many Silicon Valley employees) offer also bike lockers at parking lots

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San Francisco Bay Area:Traffic Payment Systems

• FasTrak https://www.bayareafastrak.org

–Toll payment system based on long-range RFID used on the Bay Area Bridges and Toll Roads

–Also work in Southern California

• Clipper Card https://www.clippercard.com

–All in one transit card in SF Bay Area and could be used in parking as well in selected locations

–Not all transport authorities do not yet accept Clipper

–RFID based

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San Francisco Bay Area: Other topics

• Parking– Public parking pricing and availability varies from one city to another – many cities are

struggling with parking and in-city traffic getting out of hand• Parking enforcement varies

• No parking discs (like in Finland)• Could be based on chalk mark on tires, or handheld devices where license plates are entered

manually• Cities lose a lot of money for not being monitor parking violations accurately

– Plenty of private parking service providers (mostly garages) available• Hourly or flat rates

– Many rail stations (except the ones in SF) include big (for fee) parking lots for commuters)

• EV charging– For free charging spots available (either by manufacturers like Tesla, by cities or by

employees)– Also for fee charging systems are being built– Home installed fast chargers (require 200+ Volts) are available as electricity to homes is

delivered at 250V although outlets at home are 110V

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MaaS Discussions in Silicon Valley

• The previous minister of Transport and Communications for Finland started discussions with the City of Palo Alto around MaaS in early 2015

• Palo Alto started recruiting surrounding cities, counties, municipalities and transport providers for collaboration

• Preparations still on-going

– “Reduce Bay Area Commuting by 25%” white paper is being drafted

– Looking for comprehensive, silo-breaking solution

–Enterprise Commute Trip Reduction employer pilots (31 proposals)

–Congestion pricing studies

–Etc.

• www.jointventure.org/maas

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Uber and Competition

• Using cash to drive scale and growth – Lyft is also spending a lot of money to gain traction: $50 vouchers for discounts

– Lyft has promised to cap losses at no more than $50 million per month (referral fees and subsidies)

– In February, Uber earned an average of 19¢ per ride in the U.S.

– Uber takes about a 25 percent cut of a typical fare, most of which goes to antifraud efforts, credit-card processing, customer support, marketing, and software development

– Not included in Uber’s profitability calculations are interest, taxes, or equity-based compensation for employees

• Uber in March: 169 million rides world-wide, 50 million in U.S.

• Lyft in March: 11 million rides in U.S.

• https://news.greylock.com/why-uber-won-5598a2a66561

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Moovel – Daimler’s Ride Sharing Business

• Daimler is merging two services to create Moovel North America

– RideScout, which Daimler bought in 2014 and allows app users to find the fastest route using public transit and sharing services

– GlobeSherpa, a mobile ticketing service based in Portland, Ore., that Texas-based RideScout acquired last year

• Moovel North America is a subsidiary of Daimler’s Moovel Group GmbH mobility services unit that owns the car-sharing service Car2Go, taxi-hailing app MyTaxi and other services

• Products:

– Moovel Transit (formerly TransitSherpa)

– RideTap

• An SDK to allow users of third-party apps to find the fastest route to a destination by using public transportation, hailing a Lyft vehicle or reserving a Car2Go vehicle

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Sidewalk Labs Building a Smart City?

• Sidewalk Labs: Alphabet’s urban technology-focused subsidiary

• Recently a lot of buzz about "Project Sidewalk”

– A plan to create a district in which it can trial self-driving cars, Wi-Fi solutions, new public transport, and other city planning advances that modern technology make possible

– Does Sidewalk Labs want to own land outright on which it can build a planned community that could house "hundreds of thousands of people," or does it want to accept bids from counties for its city of the future?

– Who would cover the cost – estimated to be tens of billions of dollars

• http://www.wsj.com/articles/alphabets-next-big-thing-building-a-smart-city-1461688156#:OywRauhlVIo23A

• http://www.theverge.com/2016/4/15/11437236/sidewalk-labs-plan-build-city-google

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First Autonomous Track DayMay 28th & 29th

• http://selfracingcars.com/

• At Thunderhill Race Track, Willows, CA

–2.5 hours north of San Francisco (240 km)

• Autonomous Racing

• 20+ teams confirmed

• Organized by Silicon Valley entrepreneur Joshua Schachter

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Electronic Logging Devices for Trucks

• https://www.finpro.fi/web/eng/news/-/asset_publisher/dHI7/content/electronic-logging-devices-to-the-us-2

• All the trucking companies are required to start using ELDs within 2 year grace period (ending Dec, 2017)

• ELD’s minimum requirements– no need to track vehicle or driver real-time– no need to include driver – carrier (trucking company) communication capabilities– automatically record date, time, location, engine hours, vehicle miles, ID information of driver– Syncing– to be able to transfer data during roadside inspections “on-demand,” via either a wireless Web-

based services, email, USB 2.0 or Bluetooth• No paper logs, however supporting documents

– a maximum of eight supporting documents, either electronic or paper, for every 24-hour period that includes on-duty time including: (1) bills of lading, itineraries, schedules or other documents that show trip origin and destination, (2) dispatch records, trip records or similar documents (3) expense receipts, (4) electronic mobile communication records sent through fleet management systems or (5) payroll records, settlement sheets or similar documents that show what and how a driver was paid

• https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/FMCSA-ELD-Final-Rule_12-10-2015.pdf• Others: KeepTruckin, Omintracs, PeopleNet, Rand McNally, Telogis, Teletrac, TruckTracks, Zonar, etc…

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Other Topics of Interest

• Developer offerings

– Hackathons, for example Toyota http://toyota-itc-hackathon.devpost.com/

– Developer programs, for example Ford https://developer.ford.com/ and GM https://developer.gm.com/

– OEM tech incubator programs, for example Jaguar Landroverhttps://www.jlrtechincubator.com/

– Techstars Mobility http://www.techstars.com/programs/mobility-program/• Partners include Ford Motor Company, Magna International, Verizon Telematics, Dana

Holding Corporation, Honda R&D Americas, and McDonald’s

• Sources of information

– Future of Transportation Weekly http://tinyletter.com/transportation

– Meetups, like Connected Car SF

– Websites like Logistics Management http://www.logisticsmgmt.com/ , Connected Car Tech http://www.connectedcar-news.com/ , Automotive News http://www.autonews.com/ and others

– About VC funding & Start-ups: CB Insights, PitchBook, Mattermark, etc.

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F=ma of potholes

• Based on New York experiences

• P=s+g

• Estimate the number of potholes by adding s (total snowfall, in inches, times nine hundred and thirty) and g (the resurfacing gap, in lane miles, times eighty)

• http://www.newyorker.com/magazine/2016/04/25/the-nate-silver-of-infrastructure

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