Where Next for Urban Mobility In 2022?

Despite the enormous challenges that the pandemic of COVID-19 has brought in the societies, including a significant decline in commuter traffic as well as a shift in the types of transportation people use, one thing remains constant: the need for reliable, safe and accessible mobility in urban cities. It is undeniable that ride-hailing and mobility-focused technology play an integral role in people’s lives, facilitating transportation and connectivity needs, especially within such challenging times. Putting the passenger at the heart of business innovation in mobility has proven to be the most successful way of improving customer experience and efficiency. 

Moving into 2022, the mobility industry keeps evolving at an incredible pace around the world, investing in groundbreaking innovations; from new disruptive business models to connected vehicles, more sustainable and smarter city transportation. Mobility as a service is moving from an “if-and-when needed service” to a transportation alternative that proves to be a highly relevant and beneficial solution for people who wish to move from A to B in urban cities. Ride-hailing services are expected to grow significantly over the next years on a global level, particularly in the passenger mobility segment, which will double the number of miles traveled to 87 billion in 2022. Especially in Latin America studies indicate that ride hailing is currently among the fastest growing of new mobility business models, and it is expected to offer billion dollar market potential by 2025.

In the past year, we have seen an increase in the amount of people using apps like the Beat app, as an alternative to public transportation and even personal vehicles, and we expect this trend to accelerate as digital networks and smartphones drive the ride-hailing market. Ride-hailing services’ demand is expected to increase post COVID due to the rising trend of on-demand transportation services, creation of employment opportunities, low rate of car ownership among millennials, even due to increased traffic that fuels the need for ride-hailing services. In addition, advancements in connected vehicles to reduce CO2 emission, and substantial increase in sales of these vehicles for the use of ride-hailing services, propel the global market growth. In regions such as Latin America, poor public transport systems and increasing populations and business operations, result in a significantly growing demand for affordable and effective mobility. According to projections made by statista.com, revenue in the ride-hailing & taxi segment is projected to reach US$314,224m in 2022, globally.

Shifting Towards More Sustainable Transportation Solutions

As part of the need for more sustainable and more efficient urban mobility options, the last year has been witness to massive advancements in electrification. Although at the moment electric vehicles represent a small percentage of the total global automotive sales, the global share of EVs is expected to increase, as governments’ regulations promote incentives to encourage adoption. As of 2020, EVs accounted for just 6 percent of global automotive sales, but that is projected to grow to 13 percent by 2025 and 22 percent by 2030, according to toptal.com. Mobility-as-a-service (MaaS) is also moving towards that direction in an effort to reduce traffic jams, make streets safer, meet demand and zero emission rides targets. Especially in urban areas,  people are shifting towards smarter, more efficient means of transport, as more and more greener transportation initiatives are being introduced within the mobility sector. 

Beat joined the electric revolution back in October 2020,  investing in sustainable transportation innovations in Latin America and launching the first and largest private all-electric vehicle service in the region, featuring Tesla cars. Beat was the first ride-hailing app to introduce an innovative service like Beat Tesla, with the view to reduce friction in the transportation infrastructure of Latin America, marking a new era in the mobility industry by creating an owned, fully electric private fleet, with drivers hired by Beat. 2022 plans include the creation of a well-rounded portfolio of sustainable services that will incorporate more electric vehicles and different models, offering alternative sustainable yet affordable mobility solutions that will cover the different needs of the customers.

Servitization Is The Next Big Thing In Mobility

As highlighted by Bernard Marr, servitization is a big trend that will affect almost all industries, with mobility being no exception. As more and more people turn to MaaS providers for transportation solutions, ride-hailing players are integrating various modes of transportation into a single mobility service, presenting a user-centric approach to mobility. Servitization will encourage access to various mobility solutions, making ownership less favorable. In Latin America, despite the fact that owning a car is quite important for most individuals as it is seen by many as a prestigious asset, more and more young commuters are putting less importance on owning a car and opting instead for on-demand transportation services such as ride-hailing.

Since the early days of Beat, people’s lives have changed in the urbanized cities of Latin America. Being true believers that technology should be built with the exclusive purpose to serve people’s need for safer and reliable transportation solutions, we are committed to transform the future of mobility for a connected Latin America.

Discover more about Beat and stay tuned for what is coming next!