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Recently, many calls for proposals for on-demand transportation services have been published. Since we have been working closely on this topic, we would like to take this opportunity to highlight a few important details; failure to address these could result in your project falling far short of the success you had hoped for.
Separation of On-Demand and Demand-Response Services
Perhaps the most important point—and one that is truly close to our hearts—is this: Please don’t think that on-demand transportation is just a shared taxi service dressed up in fancy new clothes! These two modes of transportation have evolved in completely different ways.
Historical Development
We’ve all been familiar with on-demand transportation in the traditional sense for more than 40 years. Whether it’s a shared-ride taxi, a call-and-ride bus, or whatever else they’re called, they all have one thing in common: a schedule and designated stops. Even if they aren’t always served. The model of regional public transit, with which on-demand service is often confused or equated, also exists here; however, it is fundamentally based on stops and a schedule.
The new on-demand transportation services and their software providers all emerged following the well-known OECD Lisbon Study: https://www.itf-oecd.org/sites/default/files/docs/15cpb_self-drivingcars.pdf
This dates back to 2015 and, at first glance, has nothing to do with public transportation connections. As a result, on-demand services initially operate completely independently. It was only in recent years that it became clear that, in today’s transportation landscape, these services cannot be nearly as successful as hoped without integration into the public transit system.
Technical Details
This development also means that these software systems are not really comparable to or compatible with our traditional operations control systems. Without a timetable, it is difficult to ensure connections. The development of virtual stops was a compromise solution to comply with the German Passenger Transport Act. We are all familiar with the integration of personnel planning from bus operations, but it makes little sense when the service is operated by a subcontractor.
It makes little sense to purchase software that can schedule both traditional scheduled services and on-demand services. It may be that manufacturers are willing to offer this. But let’s be honest: Do you use the same scheduling system and the same control center for your rail and bus operations?
For this reason, it is important to consider the operational model before making a purchase. Customers, too, do not want to have to figure out exactly how to proceed every time they take a new trip. Simplicity is key here.
Software as a Service and on-premises software
A financially significant consideration is the procurement method: purchase or Software as a Service (SaaS). Please research this topic thoroughly in advance. Only a few funding programs support a SaaS approach. However, on-demand software systems are generally only offered in this way. Therefore, it is important to coordinate this with the funding provider in advance and seek legal provisions that justify SaaS.
Once you’ve mastered these basics, you’ll find great satisfaction in your innovative transactions. If you have any questions, please feel free to contact us at: info@geminiptc.com