I have previously mentioned how Xemo is trying to address the growing need of commuter. This one further elaborates why we think we need to bring a service to our community and that the potential impact of Xemo offering is not a pipe dream.
What do the studies tell us?
As per the Department of Economic and Social Affairs (DESA) of the United nations 55% of world’s population lives in urban area. This proportion is expected to increase to 68% by 2050. The study further projects that 2.5 billion people will be in urban areas by 2050.
This study was published in November 2018. This means we are already playing catch up in the Mobility as a Service space.
If telcos went through a transformation tsunami on the back of technology innovations then the next tsunami in our lifestyle, we believe, will be in the transportation industry. By marrying technology and transportation there will be a new way people will move from point A to point B cheaper, faster and safer. The technology innovation is not only about autonomous vehicles. It extends to other opportunities such as a marketplace for consumer and operators. Customers can choose the right mode of transport at the right time. Operators can create demand based pricing models , seamless digital payments, and integration with other traditional businesses with retail , tourism and airlines, hospitality etc.
Millennial do not care about car ownership anymore.
There are a lot of publications and reports that suggest that the millennial do not really aspire to “buy a car”, at least not as much as the baby boomers. And when I read the sources independently it was very straightforward to connect the dots between Urbanization and lack of car ownership motivations. Pay per use model, subscription model, no ownership – no maintenance mindset, has a big role to play among the millennial.
Just build more roads and fix it for once please.
The “Induced Demand” phenomenon means once the supply increases, more of a good is consumed. This is consistent with the economic theory of supply and demand; However the same idea i.e. more roads = reduced congestion has become controversial. In fact it is debatable whether increasing roadway traffic capacity can ever cure congestion problems.
The Personal impact
It requires no PhD to acknowledge that a daily commute to office in personal car has significant impact on
- Budget/Cost – fuel, parking and tolls , insurance, depreciation, taxes etc as examples.
- Opportunity cost – lack of productive time (to get things done), available time (to connect), development time – personal and business (to study, new business opportunities etc).
- Health and well-being – the harm we do to our body especially related to back pain, obesity and stress are well-known and well documented due to lengthy “idle” time in our vehicles.
The Xemo App
Given the study, common sense and observations around us what will a little service like Xemo do?
Obviously Xemo shuttle cannot take the problem head on and solve all of world problems. Instead we will provide some services like Xemo Shuttle which will make a very small but hopefully meaningful impact. We like to think about it as “one seat at a time”, meaning if we can move one seat from the car to occupy one seat in Xemo shuttle on a long distance or to the nearest metro station then we are making a difference.
Imagine 10 people who would otherwise take 10 cars , 10 parking spots, pay for parking or even walk for 10 minutes from parking to the station instead just hopped on a Xemo shuttle and hopped off at the train station.
By the way we do not undermine the benefits of existing public transport system at all. In fact we believe that optimal utilization of such expensive infrastructure network can be further improved and utilized by building on demand micro-transit services as an extension. Xemo shuttle is an on demand micro-transit platform which will build a market place based on demand aggregation and smart supply management.
The Xemo Shuttle
Xemo app allows us to crowd source the demand from people who are going in same direction, at same time, from the same place and have a consistent pattern.
Instead of driving your own car which will take each of you individually to your destination (Melbourne CBD / Metro station or and back) a Xemo shuttle will be available at a common (and convenient) pick up point and drop everyone at a common (and convenient) drop point.
Xemo shuttles will be faster than a traditional bus because Xemo shuttles are 12 seater and run from point A to point B without any stoppages.
We will be cheaper than car services because we will have economy of scale in our operations as we carry more seats per trip. We will pass on the benefits of economies of scale to your wallet.
We will be environmentally friendlier because our aim is to move to electric buses as soon as possible and feasible. The E in the XEMO stands for electric , efficient and economical :).
This will hopefully have positive cascading impact across many aspects such as reducing traffic congestion, avoiding parking hassles, relaxing and stress-free commute and of course reduced carbon foot print per person.
If you are keen to help Xemo change the world one seat at a time please register for interest here