How Japan is leading the way in the new sustainable mobility
Eco-driving is at the heart of Japan’s transportation revolution
Globally, the role of mobility is changing and Japan is at the forefront of innovative transportation solutions for a more sustainable future.
Age, whether young or old, is one of the main drivers of changing mobility patterns. As people age, they need new ways to get around, especially alternatives to the car. Although public transport is an option, it is not always reliable and can be particularly scarce in rural areas. At the other end of the scale, the younger generation has grown up in a mobile-centric environment. They want mobility solutions instantly, when they need them.
Mobility as a service is in the spotlight
Mobility as a Service (MaaS) originated in Finland and is gaining popularity in many parts of the world. Rising demand for efficient transportation and rapid urbanization are driving the growth of the market globally. Why its popularity? This can reduce travel times, costs and emissions. It can even provide individuals with a stream of income, in the case of car lending services.
Transportation in Japan has been recognized as the most accurate, safe and optimized with wide coverage. Taking urgent action for more eco-friendly driving is a priority for car insurers, fleets and mobility services in Japan, and MaaS models meet this demand. MaaS also marks a shift in consumer attitudes, as many Asian consumers are looking for alternatives to owning traditional vehicles.
Opportunities arise for MaaS partners
With such demand for MaaS models, there are new opportunities for automotive companies and insurers to support mobility platforms. For example, Toyota’s new mobility subsidiary, KINTO, has developed the Warikan KINTO app, a car-sharing service using artificial intelligence (AI) technology from Greater Than. Warikan KINTO is a free service for all KINTO One customers and provides users with an easy way to share their car with friends and family.
Other automakers are looking to capitalize on new mobility. This could lead them to establish business relationships with mobility providers or launch their own car subscription services, including insurance and maintenance. This will respond to consumers’ desire to use, not own, vehicles.
Japan shines spotlight on sustainability
The EU and Japan share the ambition of net zero greenhouse gas emissions by 2050. MaaS supports this drive towards a “green society”. Recently, Sompo Japan Insurance Inc, one of Japan’s leading insurers, has announced that it will use Greater Than AI to develop new services integrated with mobility and CO2 analysis to strengthen its position at the front -keep developing customer-centric products that support a more sustainable future.
Mobility providers can use this same artificial intelligence technology to understand driver risk levels and CO2 emissions. AI enables mobility companies to identify each driver’s impact on the environment, price the driver accordingly, and actively reduce emissions.
Accurate pricing is key to pleasing consumers
Fixed prices are incompatible with the new mobility model of the future, and this is where AI comes in. Traditionally, insurance pricing is tied to a particular car and its owner. In today’s new mobility environment, fixed prices are an obsolete payment method. Customers don’t want to pay for something when they’re not using it. Likewise, if mobility providers can change their insurance costs internally, they can save money.
Using AI machine learning, mobility providers can tie pricing to usage rather than ownership. This is important in the pricing of new mobility insurance, as a vehicle may be used by multiple drivers at different times, each potentially managing and using the car differently. A driver, for example, may cover fewer kilometers but be more at risk of an accident than another driver.
Gamification is driving MaaS success
MaaS changes the relationship of consumers with brands. In the new mobility environment, customers are less loyal to car manufacturers and more to mobility providers. The user experience is therefore particularly important in new forms of mobility. A seamless customer experience can attract and retain customers. This is where loyalty programs based on rewards and bonuses come into their own.
The gamification, rating and feedback features in the app are all important features for mobility providers. The latest AI technology which enables customer-centric solutions is proving attractive to MaaS providers, especially those in Japan who want to reward safe and environmentally responsible driving.
Enable a competitive solution for new mobility providers globally
As MaaS competition grows in new markets, it will become more important to provide hassle-free customer solutions.
Those who adopt AI technology will have the advantage of offering fair, competitive and engaging solutions. AI offers MaaS providers a new level of understanding for dynamic pricing and better control of risk and insurance costs. At the same time, it enables customer-centric solutions that reward safer and cleaner driving.
MaaS is already transforming the way people travel, and Japan is demonstrating how innovation meets consumer needs. With AI, MaaS providers around the world can join the movement.
Written by Shinya Nakagawa
GLOBAL DIRECTOR, AUTOMOTIVE and NEW MOBILITY