Since the outbreak of COVID-19, people, companies, and entire sectors have been forced to change their behaviors, break habits, and adapt to new normals. The living legacy of the pandemic is evident in the way we interact, the way we transact, and, of course, in the way we travel. At the height of the crisis, cities became ghost towns, traffic jams vanished, and public transport ran almost empty – if it ran at all. Now, daily life is slowly returning to normal, but when it comes to getting around, there may be no going back. Today, there is little appetite for standing shoulder-to-shoulder on a metro, ride-sharing with strangers, or cramming onto a crowded bus. Passenger preferences have changed, and onus is on the mobility sector to change too.
COVID-19 has underscored the need for innovation in devising safer and faster mobility solutions, and at the heart of that innovation is autonomous transport by air and sea. If implemented effectively, autonomous vehicles will have crucial role to play, not just in coaxing travelers out of private cars, but in supporting logistics and delivery – a sector that is under pressure and in demand.
The race is on
Autonomous mobility has been on the global agenda for years, but with COVID-19 serving as an impromtu catalyst, the race is now on to turn research and planning into seamless service. Throughout much of 2020, investment in autonomous transport was low, but as the world began to emerge from the pandemic, so too did investor interest.
Amongst the standout deals, self-driving car service, Cruise, raised US$2 billion in equity via Microsoft in January 2021 and plans to utilize Microsoft’s cloud computing platform for its upcoming autonomous vehicle ride-hailing service. Apple, too, is seeking to secure its position in the autonomous transport sector, while Hyundai, Toyota and Tesla have all signed off on acquistions or partnerships that offer access to the necessary technologies and capabilities.
Head in the clouds
The race for autonomous transport is not just playing out on the ground, it is heading for the skies, with autonomous aerial taxi service (AATS) among the latest trends. In fact, cities including Dubai, Linz, Dallas, Los Angeles, Melbourne, and Paris are already working towards launching their own AATS – and the case for doing so is compelling. Not only would aerial taxis enable faster movement of people, they would alleviate congestion on busy city streets.
However, successful AATS implementation is a formidable task. It requires collaboration between local authorities, regulators, and electric vertical takeoff and landing (eVTOL) aircraft vendors, as well as the creation of an ecoystem that facilitates service rollout – and encourages passengers to use it.
Strategic thinking
Alongside the right ecosystem, four strategic elements are critical to success when it comes to launching an AATS: business, infrastructure, technology, and regulation.
In terms of business, three use cases will likely form the demand for AATS, including public transport, touristic, and corporate. As such, it is essential that any AATS plan caters to the needs and interests of all three. As for infrastructure, functionality of the service and scale of operation are the two primary focus areas, with a host of other factors for consideration, from route analysis and landing/takeoff pads, to recharging capabilities.
The third element is technology. Over 100+ eVTOL concepts have been announced by more than 40 vendors across the world, and they have demonstrated significant improvements over conventional helicopters relating to safety, CAPEX/OPEX, noise levels, environmental sustainability, speed, and more.
For its part, regulation is the main hurdle for urban air mobility implementation, though multiple approaches have been used effectively so far by different aviation regulators. For example, the European Union Aviation Safety Agency (EASA) has introduced the first official regulations for eVTOL aircraft certification and has a responsive regulatory environment. The UAE has also released a Notice of Proposed Amendment (NPA) for eVTOL aircraft operations, developed regulations for aircraft testing, and, like EASA, nurtured an effective regulatory environment.
The way ahead
COVID-19 turned the life on its head for millions – if not billons – of people, but the pandemic has also served as a catalyst for positive change, with the mobility sector a case in point. With the UAE, EASA, and other ambitious regions leading the way, the world has been presented with an opportunity to transform the way we commute and usher in a new, exciting era of autonomous travel.
[Joseph Salem is Partner / Travel & Transport Practice Lead at Arthur D Little Middle East]
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