Growing the P2P Transportation Sharing Economy in Rural Georgia

Renee M. Shelby Georgia Institute of Technology Georgia Innovation Program for Science, Technology, & Innovation Policy

1 . DEFINITIONS 2 . METHODOLOGY 3 . W HY P2P TRANSIT 4 . FOUR MODELS 5 . BEST PRACTICES

W HAT IS THE TRANSPORTATION SHARING ECONOMY?

SHARING ECONOMY An economic model based on shar ing underutilized assets from spaces to skills to stuff for monetar y or non-monetar y benefits. PEER (P2P) ECONOMY Person-to-person marketplaces that facilitate the shar ing and direct trade of products or ser vices built on peer trust. TRANSPORTATION P2P ECONOMY Uses digital technologies to connect lay dr ivers to r iders.

1 . Sign up on app or website

2 . Summon or schedule a r ide

3 . Payment is automatically deducted

4 . Rate dr iver / r ider

RESEARCH QUESTION How can we introduce (or expand) P2P transpor tation in rural Georgia as economic development?

METHOD

Reviews of . . . + Academic literature + Tech journals + Federal transpor tation research + Failed apps

Created . . . + Database of P2P apps nationally

Inter views with . . . + Founders & reps from transit apps

HOW IS THIS ECONOMIC INNOVATION?

Concept from KS12 ’s Emergence Collect ive, The Future of Money.

Technology allows owners to create value out of

cars, and allows users to access that value.

“The success of Uber [and apps like it ] isn’t a fad,

it ’s a new way of doing business.” --Pr icewaterhouseCoopers

“The Shar ing Economy: A New W ay of Doing Business.” Dec. 11 2015 . W har ton, University of Pennsylvania

Sharing Economy & Traditional Rental Market Projected Revenue

2013 2025

“The Shar ing Economy: A New W ay of Doing Business.” Dec. 11 2015 . W har ton, University of Pennsylvania

W HY EXPAND RURAL P2P TRANSIT IN GEORGIA?

CREATE IMMEDIATE JOB GROW TH Do not have to wait until formal institut ions hire or open.

EXPANDS & EXPEDIATES EXCHANGE Payments are received in less than 7 days.

OFFERS FLEXIBLE EMPLOYMENT Drivers set their own hours, clocking in and out as they please.

REDUCES REGRESSIVE TRANSPORTATION COSTS 86% of users repor t it makes life more affordable.

“The Shar ing Economy: Consumer Intelligence Ser ies.” 2015 . Pr icewaterhouseCooper .

EASI Analytic from 2010 Census Data PL 94 -171 . EASI Analytic created an index (where 100 is the national average) using var iables from the Census. No

Cars, reflects households with no personal transpor tation in a geographic area. Profiles are based on relative rankings of each of the components compared to the national average.

GIG W ORKERS GET FEW BENEFITS Workers are treated as independent—not par t of the company

ON DEMAND ECONOMY RAISES LEGAL ISSUES Issues like how to regulate & treat workers are still being lit igated

DIGITAL DIVIDE PERSISTS Users are likely to be urban, wealthier, and younger

IT IS DISRUPTIVE The impact to the tradit ional economy is unclear

KINDS OF P2P TRANSIT APPS?

Database created from analysis of tech journals, app store searchers, and

P2P Apps

P2P Transportation Platforms Active in GeorgiaNotes

PlatformInterfaceMarket EntryMobility on DemandBest ForPaymentOn DemandSchedule MatchReserve in AdvanceContact

UberPhone Appcritical massYesAnytime ridesFixedYesNoNoWill McCollum

LyftPhone Appcritical massYesAnytime ridesFixedYesNoNoHeather

ZimrideWebsiteCorporate or University SponsoredNoCarpooling & Onetime TravelRider setNoYesYesClosed at TechSoftware is licensed to companies or universities

Moovel/RidescoutPhone AppCurrently Aggregator onlyNAChoosing fastest mode of transitNANANANoNAOwned by Daimler AG

Hitch-a-RidePhone AppUser DrivenYesAnytime ridesSet ownNoNoNoNAThe people driving you are FB friends or friends of friends within social networks

TuroPhone AppUser DrivenNoDaily rentalsSet ownYesNoYesNALike a P2P Zipcar; Formerly RelayRides

ErideshareWebsiteUser DrivenNoCarpoolingN/ANoYesYesNA

RidePhone AppUser DrivenNoCarpoolingNoYesYesAnn FandozziFirst deployed in Atlanta

Rural P2P Platforms and Region Specific P2P PlatformsNotes

PlatformInterfaceMarket EntryMobility on DemandBest ForPaymentOn DemandSchedule MatchReserve in AdvanceContact

HopistaHybridUser DrivenYesAnytime ridesSet ownYesNoNoJennifer O'BrienRural, Small-Med Towns; Started in Lawrence, KS

CarmaPhone AppUser DrivenNoCarpoolingFixedYesYesYesAdan FalconSF area only

GetaroundPhone/WebsiteUser DrivenYesAnytime ridesSet ownNoNoNoSam ZaidLike P2P Zipcar; use 'car kit'

Get MePhone AppTexas OnlyYesAnytime ridesFixedYesNoNoMichael Gaubert(Dallas, Houston, Austin, San Antonio)

Failed AppsNotes/Why failed

PlatformInterfaceMarket EntryMobility on DemandBest ForPaymentOn DemandSchedule MatchReserve in AdvanceContact

HailoPhone appTaxi cabs download appYesAnytime RidesFixedYesNoNoNAValue proposition thin for drivers

RidejoyPhone appUser drivenNoScheduling aheadDriver setNoYesYesNACraigslist sent them cease and desist; didn't grow fast enough

SidecarPhone App~YesAnytime RidesDriver SetYesNoNoNAComplicated interface

Other AppsNotes

PlatformInterfaceMarket EntryMobility on DemandBest ForPaymentOn DemandSchedule MatchReserve in AdvanceContact

Gett (Get Taxi)Phone AppNYC OnlyYesAnytime RidesFixedYesNoNoShahar WaiserNo surges ever; #1 in Europe

ViaPhone AppTwo cities onlyYesAnytime RidesFixedYesNoNoDaniel RamotNYC/Chicago; Fixed rates for rides

FlywheelPhone AppTaxi cabs download appYesAnytime RidesFixedYesNoNoRuth ZukermanNYC; e-hailing vs. P2P

ArroPhone AppTaxi cabs download appYesAnytime RidesFixedYesNoNoMichael EpleyNYC; e-hailing vs. P2P

Way2RidePhone AppTaxi cabs download appYesAnytime RidesFixedYesNoNoVaseem Khane-hailing vs. P2P

CurbPhone AppTaxi cabs download appYesAnytime RidesFixedYesNoNoSanders Parteee-hailing vs. P2P (in Atlanta too)

JunoPhone AppNYC OnlyYesAnytime RidesFixedYesNoNoTalmon Marco

Best Practices

Shared Use Mobility CenterBest practices

Promote car kits if necessary

Federal grant opportunities - Mobility on Demand

Insurance practices

Best Practices

Best Practices

Insurance

Market Niches

CarKit

CHARACTERISTICS OF 22 P2P TRANSIT APPS ANALYZED

Database created from analysis of tech journals, app store searchers, and

13

7

4

1

11

4

4

3

0 2 4 6 8 10 12 14

Mobility on Demand

Taxi Hailing Apps

Carpooling

Scheduled Rentals

Fixed Payments

Riders Set Payments

Failed Apps

Region Specific

FOUR P2P MODELS THE GODFATHER THE CORPORATE ANCHOR THE RURAL HYBRID THE FAILURE

THE GODFATHER UBER

UBER Basics On demand r ide summoning Phone inter face Payments are fixed No advance scheduling Lesson Relies on critical mass

GEORGIA UBER

Atlanta Athens Augusta

Coastal Georgia (beta) Savannah-Hilton Head

THE CORPORATE ANCHOR ZIMRIDE

ZIMRIDE Basics Carpool & Onetime Travel Web inter face Riders set payments Only advance scheduling Lesson Anchor around an institution

GEORGIA ZIMRIDE

PwC Emory University

Gulfstream Ver izon

THE RURAL HYBRID CARMAHOP

CARMAHOP Basics Onetime Travel Digital Hitchhiking Riders set payments No advance scheduling User dr iven Lesson You can make your own model

THE FAILURE SIDECAR

SIDECAR Basics On demand r ide summoning Phone inter face Payments are fixed No advance scheduling Relies on cr it ical mass Lesson Too small a network

9 out of 10 app-based star tups fail.

Griffith, Er in. (2014). W hy Star tups Fail, According to their Founders. For tune.

TOP 5 REASONS APP STARTUPS FAIL

42%

29%

23%

19%

18%

No Market Need

Ran Out of Cash

Not the Right Team

Get Outcompeted

Pr icing/ Cost Issues

Based on analysis of 101 star tups post-mor tems. CB Insights. (2014)

LESSONS FOR INCREASING RURAL P2P TRANSPORTATION

Pew Research Survey conducted Nov. 24 -Dec. 21 , 2015 . “Shared, Collaborative and On Demand: The New Digital Economy.”

“The Shar ing Economy: Consumer Intelligence Ser ies.” 2015 . Pr icewaterhouseCooper . Personal communication with representatives from Uber and Lyft (June 2016).

Uber Rural areas will not be ser viced by major P2P apps e.g. Uber in near future

Zimride Most users will not trust companies

until they are recommended by someone they trust

Carmahop Rural areas can design own platforms to suit their region’s needs Sidecar Networks must be large to be

successful

BEST PRACTICES FOR PROMOTING RURAL P2P TRANSPORTATION

BEST PRACTICES

+ Involve the community > Tailor to community needs > Promote & adver t ise > Encourage independent invention > Think Carmahop > But remember fail rates are high

+ Par tner with nearby counties > Enhances value of local P2P network

+ Find funding when needed > Mobility On Demand Sandbox > Up to $8 million in funding > Smar t Cit ies Challenge > www.transpor tation.gov/ smar tcity + Consider creating a regional challenge

http://www.transportation.gov/smartcity

CONTACT RENEE M. SHELBY 404 .502 .1256 RENEESHELBY@GATECH.EDU

Growing the P2P Transportation Sharing Economy in Rural Georgia1. definitions��2. Methodology��3. Why P2P Transit��4. Four Models��5. Best PracticesWhat is the transportation�sharing economy?Slide Number 4Slide Number 5Slide Number 6HOW IS THIS �ECONOMIC INNOVATION?Slide Number 8Slide Number 9Sharing Economy & Traditional Rental Market �Projected RevenueWhy EXPAND �rural P2P transit in Georgia?Slide Number 12Slide Number 13Slide Number 14�Kinds of p2P transit Apps?Slide Number 16Slide Number 17Four p2p Models��THE GODFATHER �THE Corporate Anchor�THE RURAL HYBRID�The Failure �THE GODFATHER�UberSlide Number 20Slide Number 21Slide Number 22 �THE corporate Anchor�zimrideSlide Number 24Slide Number 25Slide Number 26 �THE rural hybrid�carmahopSlide Number 28Slide Number 29 �THE failure�sidecarSlide Number 31Slide Number 32Slide Number 33LESSONS for increasing�rural p2p transportationSlide Number 35Best Practices for promoting rural P2P transportationSlide Number 37Contact�Renee M. Shelby�404.502.1256�reneeshelby@gatech.edu