Tag Archive: policy

  1. What do cargo bikes need for survival in the urban transport landscape?

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    Source: Momentum

    The cargo bike has increasingly established itself in much of Europe and beyond, proving itself adept at transporting both people and goods in urban and city environments. Its uptake is comparable to the popularity of rickshaws in some global regions, and measures should be taken to encourage and protect the use of cargo bikes in ever-more congested cities.

    It is estimated that 70% of the world’s population will be city-dwellers by 2050, and it is inevitable that the pressure on transportation systems will intensify. The cargo bike can be seen as a key solution to a number of urban transport requirements, with their increasing use by logistics companies for last-mile delivery solutions, and as a growing family transport option. However, for continued cargo bike uptake and usage, the right conditions need to be in place.

    Misplaced priorities

    Cycling magazine Momentum has drawn a parallel between the cargo bike, and the traditional rickshaw which has been widely adopted across Asia since its 19th century invention. Both modes of transport are pedal-powered, with electrically assisted models available as well as purely human-powered options. They are capable of carrying considerable loads – whether goods or passengers – and are designed for easy navigation of urban streets, with zero tailpipe emissions.

    Dhaka in Bangladesh was once seen as the world’s rickshaw capital, providing the mode of transport for a large proportion of daily trips. However since 2019 they have been subject to a number of attempted bans and restrictions, on the basis that they slow down motorized traffic. The attempted bans have been met with strong opposition by rickshaw drivers and those who use the services, while Momentum points out that the restrictions expose “deep flaws in urban planning logic that prioritizes cars over people.”

    Ingredients for cargo bikes’ survival

    The stigmatizing of rickshaws can be viewed as a cautionary tale. Pedal-powered transportation with heavy-duty pulling power, such as cargo bikes, can thrive in urban environments and keep people and goods moving in an efficient and sustainable way. However the right policy attitudes need to be in place: decent, supportive infrastructure, uptake incentives, and reasonable and logical regulations regarding products and their use.

  2. McKinsey to launch mobility forecasting tool

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    Source: Zag Daily

    Global consultancy firm McKinsey is set to launch a mobility forecasting tool, the Mobility Market Model, which utilises a wide range of information to analyse the current mobility landscape and predict how the future landscape may look. Sustainable transport publication Zag Daily has explored the tool ahead of its full release.

    How the model works

    The Mobility Market Model (M3) uses information from mobility data points in 50 countries, a database of over 6,000 consumer survey responses, and economic, regulatory and technology data.

    M3 divides the current modal split over five main transport modes, including private cars, public transport, micromobility, and shared mobility. The effects of population and GDP development on these modes over the last 20 years has been captured, and the resulting forecast is further refined by factoring in the influence of over 100 regulatory announcements at city and national levels from 14 countries, alongside the 6,000 survey responses.

    Darius Scurtu, Expert at the McKinsey Center for Future Mobility, expanded on the survey and the model to Zag Daily.

    “Our long-running global mobility survey directly flows into this new mobility model. Its goal is to look at how consumers might change their mobility behaviour in the future and how this impacts kilometres travelled for each mode of transport.”

    Europe expected to move away from car ownership

    Generally speaking, higher per-capita GDP is linked to private car ridership. The M3 current global baseline has private cars accounting for 45% of passenger-kilometers; public transport accounts for 32%, and micromobility for 11%. Scurtu says, “higher GDP is typically the strongest impact lever which is also pushing private car sales.”

    M3 forecasts that Europe shows the most promise of moving away from the dominance of private cars. The forecast is that by 2035, cars’ modal split will drop 7%, and that micromobility will almost double.

    The role of policy

    M3 suggests that regulatory policies and measures exert a strong influence on mobility patterns. The model categorises policy tools into one of four types:

    • Local rules such as speed and parking limits
    • Congestion charges
    • Caps on license plate or vehicle registrations
    • City-wide car bans

    Although no city has, so far, implemented complete car bans, the model demonstrates the impact of measures that have been implemented. Tighter restrictions see the diversity of transport choices increasing.

    Western Europe primarily sees cities enforcing local restrictions, plus the use of congestion charge schemes in cities including London and Paris, which have encouraged uptake of public transport.

    The role of technology

    M3 emphasises that there is a relationship between technology and the changing of behaviour. In short, when technology enables more viable alternatives, the dependency on private cars lessens. For instance, currently in parts of Africa, private car ownership remains low, while ride-hailing – underpinned by technology platforms – is popular and widely available. McKinsey highlights the potential of technology such as digital platforms and autonomous systems to disrupt transport hierarchies, particularly when combined with strong policy support.

    The ideal combination

    Kersten Heineke, Co-Leader of the McKinsey Center for Future Mobility, describes the three key factors in shaping future mobility: “consumers pull, legislators push and industry provides.” Sustainable mobility needs all three factors to work together.

    Paris is an example of this: a winning combination of strong regulation implementation, infrastructure redesign and investment, alongside a variety of incentives, has led to reduced car use and greater active travel.

    Scurtu highlights that for micromobility uptake to succeed, cities need to provide the segregated lanes, convenient charging points, and incentives which ultimately allow and encourage people to use car-alternatives with confidence. “What often lacks is more on the regulatory side. Yes, the infrastructure is greatly beneficial but we’ve seen countries like Germany and Belgium provide tax benefits for employer bicycle leasing too. This financial support is crucial for changing behaviour.”

    McKinsey takes care to point out that M3 is a forecast – not an indicator of fixed outcomes. However, it believes it provides its clients in the global mobility sector with a clear foundation for planning. Scurtu says, “This data can be tailored to the needs of any client…For shared mobility providers, it can focus on modal splits and value pools. For investors, it can focus on economic incentives.”

  3. The benefits generated by European bike sharing amount to €305 million per year, study shows

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    Sources: Zag Daily, Cycling Industry News, SAZ Bike

    A new study has shown that the substantial positive benefits of Europe’s bike sharing sector include an annual saving of 46,000 tonnes of CO2, a reduction of 760,000 hours of traffic congestion, and the creation of 6,000 jobs. An annual value of €305 million has been attributed to the benefits, alongside a significant contribution to environmental, public and economic health.

    The research, carried out by EY, aims to quantify both the economic and social returns on investment into bike-sharing schemes in 150 cities across the European Union, the UK, Switzerland and Norway. The combined fleet size is 438,000 shared bicycles, enabling millions of trips for users to connect with work, education and public transportation.

    Key annual highlights of bike-sharing benefits

    • 46,000 tonnes of CO2 and 200 tonnes of harmful air pollutants saved
    • Active mobility helps prevent 1,000 chronic diseases, leading to €40 million of healthcare savings
    • 760,000 hours of productivity saved thanks to reduced traffic congestion, valued at €30 million
    • 6,000 full-time equivalent jobs created in roles supporting the bike-sharing sector, both practical (e.g. mechanic, logistics) and in HQ environments (e.g. customer service, marketing)
    • Mobility expenses for users reduced by up to 90% compared with cars
    • Current 10% annual return on investment: €1 spent generates €1.10 in positive external outcomes

    Projected factors for further growth

    The study also looks to the future, forecasting that with continued investment and expansion, by 2030 a further 224,000 tonnes of CO2 can be saved, over 4,200 chronic diseases prevented, and almost 13,000 jobs created. This is calculated to a €1 billion annual benefit – or, put another way, a 75% return on public spending investment.

    This forecasted growth would depend on four conditions being met:

    • Growing demand due to urbanisation
    • Regulatory support and network expansion
    • Electrification of fleets
    • Integration with public transport networks and systems

    Nick Brown, CEO of bike-share operator services provider Velogik UK, acted as Study Project Lead on the research, and spoke of the report’s significance for Europe’s transport systems, and cities in general.

    “The first step is simple but crucial – recognise cycling as a form of transport, not just recreation. It deserves the same strategic investment and policy attention as roads, rail, or public transport. If governments start treating bike share and cycling infrastructure as part of the transport ecosystem, then funding follows and so do results.

    “Cities have always felt that bike share delivers social and environmental benefits – but until now, they haven’t been able to prove it in financial terms. That’s what’s been missing: a way to demonstrate the true success of bike share schemes through hard data and credible economic modelling.

    “Thanks to this study, we now have a methodology that does exactly that – it quantifies the benefits in euros and ROI. Once decision-makers can see those numbers, the case for investment becomes undeniable.”

    The EY study was commissioned by EIT Urban Mobility and CIE, and can be downloaded here.