Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: transportation

  • BOOK by Cadillac

    Cadillac is just about to launch a new subscription-based car service in New York City. It’s called “BOOK by Cadillac” and the inspiration for the idea is as follows (taken from this Cool Hunting interview):

    “We believe there is an as-yet untapped space between traditional ownership (leasing, financing, buying) and the rental, ride or car sharing options available today (Car2Go, rental, Zipcar, Uber) — a space where experience is more important than ownership, but a luxury experience is paramount.”

    The way it works is that you pay a flat fee of $1,500 per month, which includes repairs & maintenance, insurance, taxes, unlimited mileage, and the ability to swap out your Cadillac vehicle 18 times per year. The idea here is that you can have one car in the city, one car when you drive to the mountains, and one car when you land in LA and are just feeling something a little different. It’s also commitment-free. Cancel any time.

    It’s all done through their app and there’s a concierge to take care of every little detail, including moving your stuff (sunglasses, phone charger, and so on) to whatever new car you’re swapping to. My understanding is that you can also make the swapping as carefree as you’d like. Meaning: “Oh look, there’s a new Escalade in my parking spot.”

    Here’s their marketing video (click here if you can’t see it below):

    [youtube https://www.youtube.com/watch?v=m-2c6BsqRYU?rel=0&w=560&h=315]

    Now, $1,500 is not cheap. But the value prop here is effortless luxury. I think it’s interesting to see car companies experimenting with new and different business models. 

    My view has always been that the most cost effective way to have a car is to buy a 2-year old model, pay it off, and then drive it for as long as it remains respectable. I am currently in that camp. But even that approach is starting to feel antiquated to me. 

    So much is changing in this space. Pretty soon, I don’t believe we’ll be thinking about car ownership in the same way.

  • Kanju (and the future of cities)

    There is so much interest in cities right now and I think that is absolutely wonderful. Earlier today my friend Derek shared a video with me on Twitter called, The Future of Cities. It’s by YouTuber Oscar Boyson, who I recognize from some of Casey Neistat’s videos, but whose own videos I have never watched before.

    I highly recommend you watch this video. It’s just over 18 minutes. If you can’t see the video below, click here.

    [youtube https://www.youtube.com/watch?v=xOOWk5yCMMs?rel=0&w=560&h=315]

    It’s well-executed, a joy to watch, and packed full of information and ideas. There are soundbites from lots of well known urbanists (both living and dead). And I also love how Oscar crowdsourced ideas and content from cities all around the world.

    The title of this blog post will make sense once you’ve watched the video.

  • So how’s Uber doing?

    A travel expense management company called Certify recently analyzed over 10 million ground transportation receipts across North America for the 3-month period ending last September (2016). 

    And what they found was that, for the first time ever, Uber and Lyft exceeded traditional taxis and rental cars when it came to business expenses. Uber was at 48% and Lyft was at 4%. So together, these two platforms have more than half of this particular market.

    If you compare this to Certify’s data from the same quarter last year, “ride-hailing services” previously accounted for 34% of receipts, whereas taxis and rental cars were at 22% and 44%, respectively. So Uber is up in a big way.

    This may not be surprising for a lot of you, but I thought it would be valuable to check-in on what the numbers say. 

    I’m hit with two thoughts. Firstly, it’s not a question of mobile apps superseding traditional taxis; it’s a question of one company taking over. And secondly, people seem to be favoring Uber over driving themselves around. I know I’ve been heading in that direction.

    Those are two powerful trends.

  • Toronto mayor proposes road tolls, finally

    When I wrote yesterday’s post about road tolls, it hadn’t been announced that Toronto Mayor John Tory was going to call for road tolls on both of the highways coming into downtown. That didn’t leak until late in the evening. So I was just writing another post on a topic that I care about.

    Today, however, that announcement was made and the proposal is a flat $2 toll on both the Gardiner Expressway and the Don Valley Parkway. It is expected that this could bring in close to $200 million a year in new revenue for the city – all of which would be dedicated towards transit and roads. Good.

    First, I want to applaud the mayor for coming out in support of road pricing. I didn’t agree with him on the Gardiner East, but I agree with him on this – mostly. It is a bold move.

    The reason I say mostly is because I hope that we don’t simply default to a fixed and blunt road toll. There are more sophisticated options out there, such as variable pricing models that change based on demand/congestion levels.

    Here’s a post that explains how that works and why I think it’s a good model.

    With this approach, it becomes more of a congestion charge rather than a toll. It also gives commuters the option of driving during off-peak times to save money. And if we implemented something like this, I am sure that we would see employers and office hours adapt. More on this in the above post.

    Still, I absolutely believe that it’s a step in the right direction for this great city. So thank you Mayor Tory.

  • Revisiting road pricing

    Following the Toronto Transit Commission’s approval of a 10-cent fare hike, Cherise Burda of the Ryerson City Building Institute penned an article titled: It’s time for Toronto to consider road tolls.

    I am a big supporter of road pricing and I have written a lot on this topic over the years. There’s even a guest post by Darren Davis on this blog – he is a transport planner with Auckland Transport. 

    I don’t have much to add right now, but I did want to help promote Cherise’s post and I did want to link back to all of my previous posts (including Darren’s). Click here for a list of posts tagged with “road pricing.”

    There’s a mental model in Toronto, and many other cities, that remains centered around subsidized roads and artificially low residential property taxes. Because, well, that’s the dream.

    Nobody wants to pay more for anything – I get it. But I think we can all agree that this region has not solved the traffic/mobility problem. In fact, it’s one of our biggest weaknesses. 

    So what are we going to do about it? I reckon the answer is something other than the status quo.

  • Uberpooling your way to cheap rides

    This morning on my way into the office I ran into a friend who lives in my building (downtown). She works in midtown and so I asked her how she gets into the office. She told me that she either takes the subway or an Uber, but that increasingly she has been taking Uber, particularly on the way home.

    We then started talking costs and she told me that what she does is carpool with a friend from work using UberPOOL. They live nearby and so what they do is leave from the same place at night (the office) and then select a midpoint location between their homes for the drop-off. After splitting their portion of the fare, the ride costs her about $3.25.

    As she was telling me this, I couldn’t help but think to myself: Wow, this is massively disruptive to transit. That is the same cost as taking the subway. So why take transit? With the subway, there may be a speed argument in certain instances, but that certainly wouldn’t be the case with some of Toronto’s streetcar lines (such as the King line). It’s faster to walk.

    However, there are obviously geographic limits to how far you can go in an UberPOOL before your costs greatly exceed taking transit. But as Uber and other similar services continue to bring down the price of a ride (eventually the labor cost component will disappear), how big does that area get?

    All of this – including my own mobility patterns – has got me thinking yet again about the role of transit in the city of tomorrow. 

    One segment that continues to be underserved is the regional scale. Here in the Greater Toronto Area, we are working on that by transforming our commuter rail service into a two-way all-day Regional Express Rail service. Today that strikes me as being hugely valuable. And unless driverless vehicles somehow solve our traffic problem, it will likely remain that way.

    I would love to get your thoughts in the comments below.

  • The master plan

    I’m going through and dissecting Elon Musk’s second “Master Plan” this morning. 

    I love how he drops earth-shattering news in such a casual and honest way. Two days ago he tweeted that he was planning to pull an all-nighter to complete the “master product plan.” And then yesterday, he outlined his vision in a simple – and at times personal – blog post for how Tesla is going to change the world. It all feels very genuine.

    //platform.twitter.com/widgets.js

    There are so many interesting snippets from the master plan, that I’m simply going to quote them all here. There’s lots to think about and discuss.

    A reminder of the broader vision:

    The point of all this was, and remains, accelerating the advent of sustainable energy, so that we can imagine far into the future and life is still good. That’s what “sustainable” means. It’s not some silly, hippy thing – it matters for everyone.

    By definition, we must at some point achieve a sustainable energy economy or we will run out of fossil fuels to burn and civilization will collapse. Given that we must get off fossil fuels anyway and that virtually all scientists agree that dramatically increasing atmospheric and oceanic carbon levels is insane, the faster we achieve sustainability, the better.

    The solar roof and other electric vehicles that Tesla has in the pipeline:

    Create a smoothly integrated and beautiful solar-roof-with-battery product that just works, empowering the individual as their own utility, and then scale that throughout the world. One ordering experience, one installation, one service contact, one phone app.

    In addition to consumer vehicles, there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport. Both are in the early stages of development at Tesla and should be ready for unveiling next year.

    Thoughts on self-driving vehicles:

    Even once the software is highly refined and far better than the average human driver, there will still be a significant time gap, varying widely by jurisdiction, before true self-driving is approved by regulators. We expect that worldwide regulatory approval will require something on the order of 6 billion miles (10 billion km). Current fleet learning is happening at just over 3 million miles (5 million km) per day.

    The most important reason is that, when used correctly, it is already significantly safer than a person driving by themselves and it would therefore be morally reprehensible to delay release simply for fear of bad press or some mercantile calculation of legal liability.

    Once we get to the point where Autopilot is approximately 10 times safer than the US vehicle average, the beta label will be removed.

    Why an even lower cost vehicle (compared to the Model 3) may never be necessary:

    You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you’re at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost. This dramatically lowers the true cost of ownership to the point where almost anyone could own a Tesla. Since most cars are only in use by their owner for 5% to 10% of the day, the fundamental economic utility of a true self-driving car is likely to be several times that of a car which is not.

    And finally, Uber has a new competitor (that, to me, is a good thing):

    In cities where demand exceeds the supply of customer-owned cars, Tesla will operate its own fleet, ensuring you can always hail a ride from us no matter where you are.

    I’ll provide my thoughts on all of the above in a subsequent post. I’m out of writing time for today.

  • Building new, better cities

    Earlier today my friend Saadat sent me the following tweet:

    //platform.twitter.com/widgets.js

    It’s a link to a new research project by Y Combinator – the famed Silicon Valley seed accelerator. They want to explore the possibility of building new and better cities.

    I don’t have the time for something like this, but if any of you are city experts (I know a lot of you are) and you’re based in or willing to be based in San Francisco (I think they are flexible on this), you should absolutely consider applying to be their full time “Cities Researcher.” The deadline is July 30, 2016.

    Here’s a taste of what they are thinking about…

    There are many high-level questions we want to think through, for example:

    – What should a city optimize for?

    – How should we measure the effectiveness of a city (what are its KPIs)?

    – What values should (or should not) be embedded in a city’s culture?

    – How can cities help more of their residents be happy and reach their potential?

    – How can we encourage a diverse range of people to live and work in the city?

    – How should citizens guide and participate in government?

    – How can we make sure a city is constantly evolving and always open to change?


    And there are tactical questions we want to dig into, for example:

    – How can we make and keep housing affordable? This is critical to us; the cost of housing affects everything else in a city.

    – How can we lay out the public and private spaces (and roads) to make a great place to live?

    – Can we figure out better zoning laws?

    – What is the right role for vehicles in a city?

    – Should we have human-driven cars at all?

    – How can we have affordable high-speed transit to and from other cities?

    – How can we make rules and regulations that are comprehensive while also being easily understandable?

    – Can we fit all rules for the city in 100 pages of text?

    – What effects will the new city have on the surrounding community?

    The convergence of city building and tech is something that I’m deeply interested in. I also think it’s inevitable. And I think that Toronto – thanks to our robust real estate industry – is in an ideal position to be a leader in this space. So I would love to see someone from here take on this job.

    But even if you’re not from Toronto, you should still apply because it’s an exciting initiative 🙂

  • How much market share are New York’s yellow cabs losing to Uber?

    Todd W. Schneider recently mined data from the New York City Taxi & Limousine Commission to create a chart summarizing yellow taxi, Uber, and Lyft usage

    The data only runs up until January 2016, but here’s what he found:

    “…yellow taxis provided 60,000 fewer trips per day in January 2016 compared to one year earlier, while Uber provided 70,000 more trips per day over the same time horizon.”

    The Uber data only begins in 2015, but you can still see how quickly it is growing and how yellow taxis are losing market share. Five years ago, yellow taxis were reaching over 500,000 trips per day (a pretty amazing number) and in January of this year they were at about 350,000 trips per day. 

    It also appears that Lyft is struggling to gain traction.

    image

    What’s also great about Todd’s blog post is that he has set it up so that his chart will automatically update as new data becomes available. So if you’re interested in this topic, you should bookmark his post.

  • How megacities are changing the map of the world

    In advance of his new book, titled Connectography, Parag Khanna recently delivered an interesting TED Talk called, How megacities are changing the map of the world. It’s about 20 minutes long.

    A lot of what is covered won’t be new to this audience, but I like how he talks about the importance of urban connectivity, the shift from political to functional geography, and the idea that, in a megacity world, countries can actually be the suburbs of some cities.

    One thing you might notice about the talk is how he glosses over both Canada and Europe. This is a reminder to me that if Canadian cities are going to continue to compete against the emerging megacities of the world, we are going to need to think at the scale of the megalopolis. And a big part of that means a focus on extra-urban connectivity.

    Click here if you can’t see the embedded talk below.

    https://embed-ssl.ted.com/talks/parag_khanna_how_megacities_are_changing_the_map_of_the_world.html