Resources 17 January 2019

Modernizing the Passenger Experience in US Ground Transportation

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“Modernizing the Passenger Experience in US Ground Transportation” is the first report in our multi-part series based on the data from a survey we conducted in October 2018 of 2,052 consumers and 103 transit operators in the US. The report examines some of the key challenges facing the North American ground transportation and mass transit market and specifically what operators can do to improve service, reduce costs, lift customer satisfaction and grow their bottom line.

Our survey found Americans are taking more multi-modal trips and relying on mobile devices to seamlessly manage their end-to-end journeys. This poses a challenge for transit operators, as many lack a mobile app or cannot support mobile ticketing and payments. The survey also found that many transit operators are ‘out of step’ with the broader travel and transportation markets, where mobile is the growth channel and APIs make it easy to connect different travel services around a single app. But at the same time, multi-modal travel represents an opportunity for the diverse ground transportation sector to provide riders with mobility-as-a-service across different stages of their journey.

Key survey findings that directly impact mass transit usage, customer satisfaction and revenue, include:

Convenient booking/ticketing process, in-app payments: These were the top two ranked features that US riders look for in transit mobile apps, highlighting areas where operators must prioritize their investment in new mobile technology solutions.

Fare discounts and making payments easier: 40% of US riders can be incentivized to download a transit app with fare discounts, followed by 34% of riders who want to make payments more easily.

Cash is no longer king: One-third of US riders (31%) say reducing the need to carry cash would incentivize them to download a transit app, illustrating how ‘top of mind’ payments are in the US.

New and alternative payments matter: 34% of riders say using alternative payment methods (APMs) such as Apple Pay or Google Pay for fares is “Very” or “Extremely” important.

Multiple modes of transport: More than half (52%) of Millennials use 2-5 modes of transport per trip, highlighting the importance of new technology investments to support mobility-as-a-service.

What will US ground transportation operators learn from this report and others in our our multi-part series?

Why ticketing and payments are major pain points for ground transportation riders.

Which features in a transit app are most important for riders today.

The critical importance of alternative payment methods (APMs) for mass transit.

How mobility-as-a-service affects rider habits and preferences and operator revenue.

Download the report now to learn how ground transportation providers in the US can leverage the mobile channel to increase usage, meet riders’ expectations, improve the passenger experience, and ultimately boost revenue and profitability.