May 2018

Building a MaaS Financial Engine

Andy Taylor – Director of Strategy

AGENDA

• What is a MaaS Financial Engine

• Why do we need a MaaS Financial

Engine

• What are the issues and concerns with

building a MaaS Financial Engine

• Where are we in the development

1What is a MaaS Financial Engine?

WHAT IS A MAAS FINANCIAL

ENGINE?

4 CUBIC PROPRIETARY | Overview

• One of the two core platforms of a MaaS

Ecosystem:

– MaaS Financial Engine

– Trip Planning and Tracking Platform

• Integrates the accounts from multiple

transport network companies

• Allows the seamless payment of a trip as a

single fee, or can process the transaction

against a stored produt

Real time interface for planning, booking and reserving

Single Account Solution: Real Time Trip Planningand Tracking:

Maas Operator

MOBILITY-AS-A-

SERVICE KEY

PLATFORMS

5 CUBIC PROPRIETARY | Mobility-as-a-Service

One Account

Solution for

single ticketing

across all

modes

Real-Time Trip

Planning and

Tracking

MaaS Operator or Provider

NEXT LEVEL ARCHITECTURE

6 CUBIC PROPRIETARY | Mobility-as-a-Service

User

B2G

ROAD TO

MAAS

7 CUBIC PROPRIETARY | Mobility-as-a-Service

Stage 0: Today• Public Transit Providers (Bus,

Metro, Tram, Light Rail, Ferry,

etc.)

• Private transport Providers (taxi,

bike share, car share, Uber,

Lyft, etc.)

• No Payment Integration

• Various Journey Planning

solutions

Stage 1A: Payment

Integration• Payment Integration across all

modes of Public Transit

• Ability to pay for Private

Transport solutions using Public

Transit fare media

• Account based solutions

Stage 1B: Real-Time

Journey Planning• Schedule data for planning

purposes

• RTPI

• Enhanced combined planning

across all modes

Stage 2: MaaS (P)

Combined Journey

Planning and Payment

(Public Transit) • Combined payment and

planning into a single interface

• User selects a route using a

combination of public

transport

• The user will then be able to

select a given route option

and will be charged one price

for that route.

Stage 3: Mobility-as-a-

Service• Full MaaS Concept with monthly

subscription services and full

integration of public and private

transportation services.

• Overseen and managed by a

MaaS Operator

Stage 2: Combined

Journey Planning and

Payment• Combined payment and

planning into a single interface

• User selects a route using a

combination of public and

private transport solutions to

get them from their location to

their desired destination.

• The user will then be able to

select a given route option

and will be charged one price

for that route.

Public Transit MAAS(P)

2Why do we need a MaaS Financial

Engine?

MaaS Operator

• Individual interfaces with each operator (integrate, test, certify, etc.)

• Individual commercial negotiations with each operator

• One-on-one relationships with financial institutions

• May require new hardware/software for individual operator integrations

MAAS OPERATOR – ONE-TO-MANY

MaaS Operator

• Simplified or preexisting commercial negotiations with each operator

• Shared processing costs by creating a single payment gateway

• Lower overall number of transactions because the customers are

sourcing from one funding source

• Usability and shared infrastructure for customers

MAAS OPERATOR – ONE-TO-ONE

ONE ACCOUNT PROVIDES

• The ability to apportion and reconcile payments to multiple transport service providers,

which ensures each service provider receives the correct share of the fare payments

• The ability to integrate customer relationship management (CRM) systems, which

allows service providers to pool their data resources and effectively manage their call

centers and customer service functions at a lower cost

• The ability to synthesize account travel data from multiple transport modes, which can

facilitate future planning and decision making

• The ability to price journeys across multiple modes, coupled with visible and modifiable

business rules for allocating revenue across providers, which allows service provision

to understand and support the shift to integrated management

• The ability to provide a single travel experience for the customer through open API’s

that can be configured to work with any app/website/account for easy access to all

travel needs

• The ability for potential new revenue streams

11 CUBIC PROPRIETARY | Overview

FIRST AN EXPLANATION…..

Multimodal

Financial

Engine

DEVILS IN THE DETAILS…

13 CUBIC PROPRIETARY | Overview

• A Multimodal Financial Engine is not

necessarily a MaaS Financial Engine

• A Multimodal Financial Engine can

deliver integrated payment solutions to

all users in a region, not just those

subscribed to a MaaS solution or

package

– Those without smartphones,

– Unbanked

– Infrequent users

– Tourists

– Etc.

• The MaaS Financial Engine is a subset

of a Multimodal Financial Engine

3Issues and Concerns

ISSUES AND CONCERNS

• Revenue Contracting

– Focus on how best an agency split costs of revenue in a multi-modal,

integrated payments system

– Different modes of transportation, operated by different entities, use

different business models

– Incentives for private operators to join the network:

• Agreements for data protection

• Cutting down on resource cost

• Data collaborative where private operator will get access to data by

joining the system

• Increase ridership via inclusion of unbanked population

– The time and effort of public contracting can be a huge barrier to private

operators

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ISSUES AND CONCERNS

• Electronic Contracting

– “Who owns the shared components, and how do they want to share the

components?”

– The electronic contracting components focus on the agreements around

technology in integrated payments

– Political issues around how / what to share, & communicating new

upgrades, can be time-consuming & difficult to navigate.

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ISSUES AND CONCERNS

• Customer Service

– Service Arrangement or Service Provision platform

– Intuitive traveler experience regardless of platform

– “Whoever gives you a refund, that’s who you should call” → this is the

Merchant of Record

• Pricing

– Lowering prices at specific transit times (peak vs off-peak)

– Awards for using pilot

– Increasing prices to change consumer behavior (ex. parking)

– Carrot vs Stick

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4Where are we in development?

BUILDING PROGRESS TODAY

• In promotion of the MaaS Financial Engine we have been approached and had outreach

to several Transport Network Companies (TNC) to discuss integration for specific cities.

• Our focus is on agnostic acceptance of any TNC hence we are working with the Cubic

team now to arrange integration discussions with all major TNC’s for integration into the

One Account Multimodal Financial Engine

• Current outreach includes all the familiar ride share, bike share, car share organizations

globally

• For those not directly approached we are planning to define an Open API for other

TNC’s to use and test against.

• First sets of discussions have occurred and several key ‘vignettes’ have been developed

and deployed

• Hope to have more examples running within months and looking for new partners and

cities to work with

19 CUBIC PROPRIETARY | Intelligent Travel Made Real®

WHAT CAN MAAS DELIVER FOR A CITY/REGION

• If implemented correctly, MaaS can:

– Limit congestion, particularly during peak travel periods and reduce car ownership,

car usage and the number of vehicles on roads

– Allow the effective usage of existing infrastructure and ease pressure on the

transportation network as a whole allowing better traffic and capacity management

– Improve the customer experience by presenting the transportation network as an

integrated system that caters to all travelers, young and old, able and less-able, the

wealthy and the economically disadvantaged

– Creates a model that supports the funding of infrastructure, but also lessens the

overall environmental impact of transportation

20 CUBIC PROPRIETARY | Mobility-as-a-Service

www.cubic.com/maas

• An integrated system that is

scalable to include other agencies

and modes

• Offers a new range of

convenience for MTA customers

• Contactless bankcards and mobile

ticketing

• Available for all modes of

transportation

Thank You

21CUBIC PROPRIETARY | Intelligent Travel Made Real®