Explore Connected and Cooperative Mobility
Urban Mobility Portal
Explore Connected and Cooperative Mobility
Decreased Truck Traffic Through Inner City
One of the challenges that cities face is the truck traffic that goes through inner city to save time, rather than following the ring or arterial roads that are more suitable for such traffic. The through traffic causes inner cities to become quickly congested. Besides, the road maintenance increases as the infrastructure in inner cities are not always suitable for heavy freight logistics. As a result, cities prefer trucks to take the ring or arterial roads to avoid traffic, thereby decreasing cost of maintenance, noise, and pollution in the inner city. For truck drivers, however, taking the ring or arterial often means increased travel time and distance. Given this challenge of the conflicting perspectives, a solution should be established in which truck drivers are stimulated to take the available ring or arterial roads, satisfying the needs of both the logistic companies and the city.
Business model blueprint
The solution for the presented business model blueprint involves the deployment of a number technology services that offer priority and comfort to truck drivers when taking such alternative routes. In particular, it involves the green priority and green light optimal speed advice (GLOSA) services. The green priority service aims to change the traffic signal status in the path of designated vehicles – in this case trucks– in order to help reduce their travel time. GLOSA service provides drivers a speed advice when they approach to a signalized intersection. This advice may involve maintaining actual speed, slowing down, or adapting a specific speed, and time-to-green information when the vehicle is stopped in the light.
Using these technologies for ring roads or arterial roads allows designated trucks (e.g., of a logistic company/fleet operator) to increase their throughput similar to taking the inner-city roads, hence reducing the number of trucks that venture into the inner city. Moreover, as variations in speed are reduced, the logistic company/fleet owner may also benefit from reduced fuel consumption.
The business model is orchestrated by a service provider (or traffic manager) that takes care of developing and enabling the service, allowing truck companies to achieve the same throughput when taking ring or arterial roads as compared to venturing in the inner city. The customer of the business model is the logistics provider, which benefits from decreased fuel consumption, increased truck utilization and decreased truck maintenance, as truck drivers can maintain a more balanced speed throughout their routes. In return for use of the service, the logistics provider compensates the service provider through a service fee. In addition to benefits for the logistics provider, stimulated use of the service would also lead to a variety of environmental, social and financial benefits for the city, benefitting from decreased emissions, increased traffic efficiency and decreased road maintenance. To facilitate these effects, the municipality should ensure that relevant policies are enforced, which would allow trucks (participating in the scenario) to receive priority when taking the ring or arterial roads. Accordingly, the city facilitates the service provider to operate and provide the service to (the truck drivers of) logistics providers.
The business model can be enhanced by fuel companies (or retailers) positioned on the ring roads. Such partners might also benefit from increased revenues and increased predictability of demand, as truck drivers are stimulated to take the ring roads instead. In return, retailers may offer discounts on fuel or retail spending to stimulate truck drivers to adhere to ring or arterial roads.
Business model viability
Evaluation of the business model design demonstrates that the effects on fuel consumption as a result of service use are significant for the logistics provider, as truck drivers can avoid stops at intersections and can maintain a more balanced speed (particularly if many intersections are outfitted to facilitate the service operation). Even in low penetration business scenarios, the monetary savings generated through decreased fuel consumption enable the logistics provider to pay a service fee (per truck driver) that is significantly large for the service provider to offset the costs of service deployment incurred. Considering this revenue model structure, the city accordingly can act as a supporting party, further enhancing the service operation and deployment for the ring and arterial roads (without being charged for all costs that are incurred).