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January 2019

Revolutionizing mobility through blockchain

Photo: Plamenj/Flickr

As digital technology continues to transform and reshape the transportation industry over the last few years, blockchain as a decentralized distributed technology has been embraced by other fields through various applications. It has found varied applications across banking, financial services, healthcare, e-governance, and voting.

Blockchain has immense potential to solve the most pressing problems of mobility where it can be used by private & public sector to securely share and integrate data across modes of transport. It paves  the path for transforming Mobility as a Service (or MaaS), where a user may access different modes of transport (three-wheelers, bus, metro, train etc.) on a single platform with seamless connectivity. It makes a paradigm shift in redefining the customer needs in terms of service, rather than the mode of transport.

The applications of blockchain in reducing the cost of financial transactions have been implemented across sectors. In India, 80% of our travel is for distances less than 5 km and most of this is through non-motorized modes of transport which may largely be served by walking, bicycle, and cycle rickshaws. In these modes the, transaction size for every ride is small (or nil). Also, people in urban and semi-urban areas tend to use multiple modes of transport to reach their destinations. In this case, it makes sense for using digital payments that are integrated across all modes of transport. But the payment systems of today charge a transaction fee of between 0.5% to 5%. This hampers the faster uptake of digital payments, especially for smaller transactions. Blockchain greatly reduces the cost per transaction as there are no intermediaries involved in the payment system, thus making small transactions of even 1 or 2 Indian rupees ($0.014 to $0.028) digitally feasible.

Sustainable Mobility for All: Changing the mindset, changing policies

Nancy Vandycke's picture
Photo: Photoviriya/Shutterstock
The global conversation on transport and mobility has evolved significantly over the past five years. Take transport and climate, for instance: although data on the carbon footprint of major transport modes had been available for a long time, it was not until COP21 in 2015 that mobility became a central part of the climate agenda. The good news is that, during that same period, the space of solutions expanded as well.  For example, data sharing is now viewed as an obvious way to promote better integration between urban transport modes in cities.

In that context, the task at hand for the Sustainable Mobility for All initiative (SuM4All) was clear: How can we work with decision-makers and the international community to transform the conversation, harness the full potential of these emerging solutions, and take on the world’s most pressing mobility issues?

To tackle these challenges, the initiative decided to focus on three essential steps.

How do we help cities breathe better? Introducing the Clean Bus Project

Kavita Sethi's picture
Buses, cyclist, and car traffic in Santiago de Chile. Photo: Claudio Olivares Medina/Flickr
Earlier this month, Santiago de Chile took delivery of 100 brand-new electric buses. The event was a first in the region, and impressive images of the state-of-the-art buses driving in convoy toward their new home in Chile’s capital city were shared by global media. These buses are part of a broader effort to tackle smog and revolutionize the city’s public transport system. By 2022, Chile aims to increase the number of electric vehicles in the country tenfold, which would put it in the vanguard of clean mobility in Latin America and the Caribbean (LAC), and amongst developing countries worldwide. These changes are expected to help the country meet its Nationally Determined Contributions (NDCs) target, set in the wake of the Paris Agreement on climate change. The target calls for a 30% reduction in GHG emissions per unit of GDP by 2030, with transportation being one of the main sectors for mitigation.

The story of Santiago, however, remains an exception in the region. Though Latin American countries, as signatories to the Paris Agreement, have signaled their concrete intention to embrace a low-carbon future, the transition to low and zero-emissions vehicles has been slow. To better understand the challenges in accelerating the adoption of clean technologies in LAC, the World Bank has recently implemented the Clean Bus project, funded by the NDC Support Facility, a contribution to the NDC Partnership.