Mobility is the backbone of the modern city in the most connected and mobile era humanity has ever seen. With smarter cities fast becoming a mainstay of governments worldwide and especially in the Middle East, the unification of mobility with technology is now paramount.
Recent developments in global socio-political situations have impacted the cost of mobility for both trade and consumers who commute for their daily 9-5s. Soaring energy costs, high interest rates and inflation have forced commuters into sticking between a rock and a hard place.
Limited urban mass transport options are stuck in rush hour traffic due to single-occupant vehicles. Intensive labour and the high cost of projects means government solutions to this issue can take years, maybe even decades to resolve.
The Internet of Things (IoT) is one of the key drivers transforming the mobility industry in such spaces to provide a solution to a global problem, where data and insights are being used to optimise transportation systems, safety and user experiences. More than 41 billion active IoT-connected devices are forecasted to be connected globally this year, according to Frost & Sullivan. Shared mobility and micro-mobility services (such as e-scooters and e-bikes) offer an affordable and accessible alternative.
The concept of urban mobility is constantly evolving as millennials and Gen Z are already the dominant players in the consumer market, with sharing models firmly integrated into their daily lives. Udrive’s fleet operates next-generation hardware devices that interface with the vehicle CAN-Control and On-Board Diagnostics systems allowing for 2-way communication and control.
This live-stream communication to middleware allows our team to digitise the vehicle and customer experience. This is the ‘tap-an-app’ generation, where any problem or requirement is expected to be resolved or served with an instantly accessible app connected to an ecosystem of service data solutions.
Micro-mobility, the service of small, light vehicles for individual use, combines with carsharing as a first or last-mile option that is faster than walking, cheaper than taxis, especially for areas with underdeveloped public transport routes and ultimately very sustainable for the environment. A McKinsey report forecasts that micro-mobility has the potential to reach consumer spending of $300 billion to $500 billion globally by 2030, comprising both shared and private micro-mobility.
Where can IoT’s impact on mobility be seen the most?
IoT brings a lot to the table with the infrastructure it impacts. This includes:
Smart Traffic Management: IoT-enabled sensors and cameras can be used to monitor traffic flow and identify potential bottlenecks or congestion points. This data can be used to optimise traffic management systems, improve traffic flow, and reduce travel time for commuters.
Predictive Maintenance: IoT sensors monitor the performance of vehicles and equipment live and in real-time, identifying potential maintenance needs before they become critical. This can help to reduce downtime and additional costs.
Enhanced Safety: IoT sensors can detect potential road safety hazards including accidents, road debris, or weather conditions. Drivers access this information in real-time, allowing them to adjust their routes accordingly.
Personalised Transportation: IoT sensors can gather data on travel patterns and preferences, allowing more personalised transportation solutions. Vehicle-sharing services like Udrive use such valuable data to provide more customised vehicle options, benefits, and pick-up and drop-off locations, reducing travel time and increasing commute satisfaction.
Sustainability: Vehicle emissions and other environmental factors can be monitored continuously, providing critical insights into the impact of a series of vehicles or a fleet on the environment. This data can be used to optimize delivery systems and reduce the carbon footprint of the mobility industry, and thereby the city.
KPMG reports almost 50% of car owners today will no longer want to own a vehicle by 2025, while ResearchAndMarkets claim four out of every 10 car journeys will be via car share. Udrive car-sharing solution is also in line with Dubai’s 2040 Urban Plan where it bids to build a 20-minute city by reducing the strain of moving across the city and improving connectivity for passengers across the country while promoting a circular economy, a cornerstone of sustainability.
Telematics enables the transfer of data over long distances. It involves the use of telecommunication channels and signals, using various devices including sensors, GPS receivers and other communication technologies to gather and transmit information about the performance of equipment or vehicles.
Telematics has become an integral part of the IoT ecosystem, allowing for the seamless integration of devices and data to enable smart applications and services.
In mobility, particularly in the area of fleet management, telematics gathers data on vehicle performance, including fuel consumption, engine efficiency, and maintenance needs, used to optimize the fleet, improve driver safety, and enhance the efficiency of operations. It is also used to track the movement of goods and vehicles, monitor temperature and humidity levels, and provide alerts on potential problems or delays. This helps to optimise supply chain operations, improve inventory management, and ensure products are delivered on time and in the best possible condition with minimal disruption.
Areas of mobility the Telematics will influence
The industry’s use of telematics-enabled IoT devices focuses primarily on the following key areas: Vehicle maintenance, route optimisation, asset tracking, safety and compliance and driver behaviour. With vehicle maintenance, devices monitor key aspects of a vehicle’s performance, including fuel consumption, engine health, and tire pressure, vital to schedule preventive maintenance, reducing the risk of breakdowns and increasing vehicle uptime, something which directly benefits the bottom line of any car-sharing or supply transport company.
In terms of route optimisation, real-time traffic updates with alternative route suggestions and time management solutions help drivers avoid traffic and reduce the endless consumption of fuel while stationary. Asset tracking allows sensors to track location, usage and maintenance needs, allowing for a greater reduction in costs. Telematic devices can also monitor compliance with safety regulations, including driver hours of service and speeding. They also monitor speed, acceleration, and braking patterns as well as disruptive or erratic driving. The data is used to identify areas where drivers need additional training or coaching, reducing the risk of accidents.
Having real-time data on a fleet’s assets helps not only understand utilisation but create predictive decisions around wear and tear and planning resources for maintenance. There are clear challenges, however, as strong technical knowledge and ground support are key to maintaining a healthy fleet with telematics as it requires consistent data relay from those assets. In a country like the UAE, technicians are readily available as these skill sets automatically find a way to enter smart cities. In newer markets, it is harder to find talent that can work with multiple IoT manufacturers and vehicle models. This is where you need strong procedures and processes as well as high levels of continuous training.
Take Udrive, for example. We serve on average over 100 customers per car per month. If we assume 50 unique customers, this translates to potentially 50 fewer cars on the road, further resulting in multiple benefits for commuters and drivers, as this becomes more economical and sustainable. There are fewer vehicles manufactured, and traffic reduces as there are fewer cars plying streets, freer parking, and less wastage both financially and in terms of carbon footprint.
This is a lucrative industry to be operating in as an investor, particularly from a semi-government or B2G perspective, as there are relatively few players who provide telematics and IoT for mobility in urban settings. The GCC in particular is embracing smart cities, with KSA launching NEOM and Oxygen, and Dubai’s 2040 vision leading the charge. If a city is open to smart technologies, you create an opportunity for the existing transport infrastructure to embrace IoT and integrate with existing government services.
The more interconnected, the better for all industries. As the cycle continues, it breeds investment, new business and of course startups and industry expansion. In general, data creates opportunities to make business efficient. Most VCs look for data-rich, low-cost operating models which can be scaled quickly and can offer high-quality real-time data.
According to a McKinsey report, over the last decade, investors have poured $220 billion into more than 1,100 mobility technology companies across ten sub-technology clusters.
Telematics and IoT can provide fleet managers with a wealth of data and insights used to optimise operations, reduce costs, and improve safety and efficiency. By leveraging these technologies, fleet managers can gain a competitive edge in the market and provide better service to their customers.
