Tuesday, October 7, 2008

Internet is Public Transport's Rescue

Today's public transport system are usually rather static. Routes and schedules needs to be predictable and they are at best derived from traffic statistics. Very little flexibility is provided for groups of commuters and no influence can be made by individuals - unless they involve media in clever ways.

In Norway, and probably other countries, online services are emerging. It's become possible to search for routes and schedules based on peoples' exact traveling needs and delays can be notified on bus stops or even mobile phones. This development is interesting and most likely providing great value for commuters. However, it's still only a one-way system.

The next logical step, in my opinion, is to allow online users to build and adapt the transport offer themselves. This could be done by providing a specialized auctioning system where transporters and customers meet. Travelers enters their commutes into a map and automated, geographically enabled, services match up the information with other travelers. Suggested routes are then built specifically for these users' needs and travel times/costs will be available for customer and company evaluation.

For this to work economically, a small difference is needed from ordinary auctions. Auctions are normally used to find the consumer with the highest demand, without knowing the attendees' actual financial status and motives. For the transports auctions, however, it might be necessary for attendees to guarantee their demand with a (credit card) deposit. They can say "I want to go from A to B between time a to b and it must cost no more than X large sea shells, of which I guarantee to pay". This way the transporter will know that they have a deal when they have found enough participants for the route to become economically sound. The cost could be lower if desirable or a counter bid can be made, to the customer, if the desired cost isn't feasible.

Such a system will in my opinion be competitive both on a price and flexibility with personal cars and taxis. It's also environmentally beneficial if people can leave their energy inefficient cars at home and go with others. Less empty buses will also been seen in the streets during out of peak hours. A number of problems arises of course when travelers can't make their subscription route and when delays arise. However, since the system is online and knows your traveling need, it's possible that replacement routes could be suggested or altered - so that the unfortunate customer gets to work in time.

I have a lot more details available in this document (unfortunately in Norwegian) or by request.

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