Visa, Stanford identify key factors to improve daily travel
Egypt data shows that 61% of the total surveyed think ease and speed of payment is important when it comes to using public transport
Visa in collaboration with Stanford University, launched one of the largest global studies examining the growing demand for public and private transportation, and the important role digital commerce plays in driving sustainable growth.
According to the UN, by 2050, 68% of the world’s population will live in urban centres – and the number of “megacities” with populations greater than 10 million people will rise from 43 today to 51 within that same period.
Building on Visa’s experience working with transit operators, automotive companies and technology start-ups, Visa commissioned a global study, “The Future of Transportation: Mobility in the Age of the Megacity” to better understand the challenges commuters face today and in the future. The key findings were combined with a view of existing and near horizon innovations provided by experts at Stanford University, to better understand the technology gaps in addressing their pain points
Payments lie at the heart of every form of travel, and will continue to become more integral as more cities move to contactless public transportation, digital payments for parking and rental services such as bikes or scooters.
Herman Donner, PhD and Postdoctoral Researcher from Stanford University co-authored the report and summarised: “When looking across the technology landscape, there already exist many products that could easily address people’s daily frustrations with travel.
However, none of these solutions should be developed in isolation. A major challenge therefore lies in first identifying relevant technologies that provide suitable products for the market then managing implementation in conjunction with a broad set of stakeholder including mobility providers, technology companies, infrastructure owners and public transport agencies. From our research, we think that many of these small, incremental changes have the potential to make a significant difference in people’s daily travel, whether it’s to help find parking, get the best price to refuel their car or plan their journey on public transportation.”
The study reflects the feedback of 19,000 consumers in 19 countries and identified significant challenges faced by growing urban centres, including:
Commenting on the Egypt statistics, Ahmed Gaber, Visa’s General Manager for North Africa said: “The study shows only little more than a quarter of Egyptians use personal mode of transport for commuting and only 20% of the youth (Gen Z ).
Respondents communicated that they had problems with public transport, with the biggest issue amongst all ages being overcrowding. Progression within the locoal start up scene indicates that we can expect initiatives in Egypt that will increase the effiency of transport.
The Egyptian government alongside the private sector is working on improving infrastructure by creating new roads and renovating metro lines. Infrastructure combined with new technological mechanisms that ensure quick and safe transactions means that people will spend less time, money and energy on commuting in their everyday lives.
The youth are able and keen to develop Egypt into a functional tech savvy nation and they are the biggest demographic in the country. Progress is essential to the growth and success of the Egyptian economy. At Visa, we believe that the future success of our cities is intertwined with – and reliant on – the future of transportation and mobility.”
KEY TRENDS – GLOBAL (19,000 respondents) AND Egypt (1007 respondents)
48% of respondents in Egypt have seen their commuting time increase (compared to 46% globally)
51% in Egypt expect to more time commuting over the next five years
Personal car use is low with only 26% of respondents using a personal car to get to and from work, school or university which is far from the global average of 60%
20% of Generation Z (aged 18-25) respondents based in Egypt use a car to get to work, school or university, compared to 42% globally, while 17% of Gen Z in Egypt use a car for personal travel
Finding a parking spot was cited to be a problem by 55% of Egyptian respondents while it was cited as the biggest issue globally with 64% of respondents citing this as the most disliked aspect of driving
Public transport use:
Just under a quarter of people (22%) surveyed in Egypt use a personal car as a way to get to work, school or university, compared to 44 % globally
Commuters choose transportation type based on three factors: convenience, time it takes to purchase fare and overcrowding. Importance of each factor differs depending on age:
GenX in Egypt (46-55) – Overcrowding (72%), Convenience (67%) and Customer Service (44%)
Millennial Age group 2 in Egypt : 36-45 – Overcrowding (52%), Cleanliness (52%) and Convenience (48%)
Millennial Age group 1 in Egypt : 26-35 – Overcrowding (59%), Convenience (55%) and Customer Service (50%)
GenZ (18-25) in Egypt- Overcrowding (45%), Convenience (45%) and Cleanliness (30%)
69% of the total surveyed think quality of customer service is important
Complexity in payment is often at the root of many common complaints
61% of the total surveyed in Egypt think ease and speed of payment is important