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: urban mobility

  • How to save 8 minutes on Toronto’s highways

    City in Colour by Greg Patterson on 500px.com

    https://500px.com/embed.js

    Three months ago when Toronto City Council voted
    not to remove the Gardiner Expressway
    East (which in
    my view was a mistake
    ), it did so with a commitment to look at tolling
    options for both the Gardiner Expressway and the Don Valley Parkway (which in
    my view is a positive thing
    ).

    Last week a preliminary report was released
    discussing some of those tolling options. If reading dry city reports is your thing,
    you can do that here.

    The Coles Notes version (CliffNotes for you
    Americans) is that a $3 flat toll on both the Gardiner and the DVP – the same
    cost as riding transit in this city – would be expected to reduce vehicles on the highways by 9% and 12%, as well reduce end-to-end travel times by 3 minutes and 5
    minutes, respectively. There’s obviously a lot more in the report, but these
    figures stood out for me.

    Given how monumental the
    3 minute delay
    was in the Gardiner East debates, it will be interesting to
    see whether people treat a 3 minute time savings in a similar way. I suspect
    they won’t. The cost will be the larger issue.

    I’ve been a
    vocal supporter of tolls and road pricing on this blog
    . One of the main reasons
    for that is because I view the demand for highways as being largely inelastic
    and therefore a potentially great source of transit funding.

    The discouraging part of the above report is
    that its primary goal is to explore tolls for the purpose of “offsetting
    capital, operating, and maintenance costs.” The primary goal is not to come up
    with sustainable sources of transit funding.

    Having these costs paid for by user-fees as
    opposed to general taxes is still a good thing in my view. But an even better thing
    would be to help fund mobility solutions that we know will be far more
    effective at getting people around this region as millions more people move here
    in the coming decades.

    The other discouraging part of the report is
    that near the end it explains that while the City of Toronto Act of 2006 allows
    for toll highways, they cannot be implemented without the Province passing
    regulation.

    It’s a reminder that our governance structures do
    not reflect the current urban reality of this country.

  • Uber, commuting, car ownership, and the future of urban mobility

    Earlier this week I wrote a “Tech Tuesday” post talking about Uber’s new Smart Routes functionality, which it is currently testing out in San Francisco. At the end of the post I ended by saying that it’s not just the taxi industry that should be thinking about Uber, it’s also public transit authorities. 

    And that’s because many people in cities rely on multi-modal forms of transportation (I know I do) and in my mind it is clear that Uber is trending away from just “Everyone’s Private Driver” to a service that is starting to look and feel a lot like urban mass transit.

    Then today my good friend Evgeny sent me a post called, “Public Transit Should Be Uber’s New Best Friend.” And it’s one of the best pieces I’ve read on Uber and its impact on urban mobility. I highly recommend you give it a read, particularly if you’re in the city building arena.

    The article does a deep dive into how New Yorkers commute. Here’s how they broke it down.

    image

    It then talks about what it will take for a company like Uber to make a meaningful dent in car ownership (which is one of the company’s goals) and how the truly big opportunity for Uber is to go more mass market and tap into the public transit market – either by interfacing with or by building its own version of it.

    Here’s their concluding paragraph:

    But there’s a much wider potential audience if Uber can also reach middle-class customers who want to save money. Perhaps in the distant (or even the not-so-distant) future, Uber can build its own version of “public” transit, making rides so cheap that they cost less than the $4 or $5 that Americans now pay, on average, to make a trip in their personal cars. In the meantime, it might have more success among “car-cutting” customers who can use Uber along with public transit. That might mean Uber’s growth is concentrated more in cities like New York, San Francisco and Chicago — and in Europe and Asia — that already have reasonably strong public transit networks.

    It’s definitely worth a full read. Thanks again for sending this over Evgeny.

  • The taxi cartel

    https://500px.com/embed.js

    Early this morning Peter Cheney of the Globe and Mail published an article called: How Uber is ending the dirty dealings behind Toronto’s cab business.

    And I highly recommend you read it. He’s been investigating this industry for decades.

    Though the article is specific to Toronto, I know that there are middle people and archaic policies governing the taxi industries in many other cities around the world.

    Here it revolves around taxi licenses issued by the city (known as “plates”), which are expensive and almost impossible to get. Last year the average price of a plate was $118,235 (2014).

    The way it works is that people – typically non-drivers – buy/inherit/get these plates and then charge rent on them to drivers who want to use them. The result is a taxi cartel:

    In fact, Toronto’s taxi plate system is anything but free enterprise. Instead, it is based on the artificial restriction of a natural market, and the granting of licences to a fixed number of participants. Even those who paid top dollar for a plate used to enjoy an annual return of more than 12 per cent. And for those who inherited plates, the return was manna from heaven.

    So it shouldn’t come as a surprise that the taxi industry is grouchy about companies like Uber. But the cost structure of the incumbents is going to need to change if they want to stay in business.

    Jeff Bezos of Amazon is famous for saying, “Your margin is my opportunity.” And that’s exactly what is happening here. A bloated legacy cost structure is being quickly supplanted by better/cheaper.

  • Teaming up to fix Toronto’s traffic troubles

    image

    “This will be a game changer and will establish Toronto as a leader in running a truly smart city.”
    – John Tory, Mayor of the City of Toronto

    Yesterday I registered for a hackathon called TrafficJam that’s taking place this October 2 – 4, 2015 here in Toronto. It’s being organized by Evergreen CityWorks and the City of Toronto, with the goal of fixing Toronto’s traffic troubles.

    Tickets are free, but going fast. If you’re interested in this sort of thing, I would encourage you to sign up today. And if you do register or are already registered, drop me on a line so we can connect. I’m excited to see what kind of solutions we’re all able to come up with over the course of a weekend.

    But as I was registering and reading through the website, I couldn’t help but think about some of the traffic problems that we won’t be solving over the hackathon weekend, namely the politicization of transportation planning in this city.

    As an example of that check out a post by transit blogger Steve Munro called, The Vanishing Relevance of SmartTrack

    SmartTrack is the transit platform that Mayor John Tory ran on last year. And this post explains why it is unlikely to achieve its pitch promises.

  • Driverless cars, urban mobility, and Toronto’s Gardiner Expressway

    image

    About a week ago I wrote a post questioning what driverless cars will mean for cities. I ended by saying that that it feels as if we’re going to see increasing tension between private and public transport.

    What I meant by that was simply that conventional notions around private car use are going to change. And ultimately that is going to mean that we need to rethink public transport and how that fits into a broader urban mobility framework.

    What do I mean by this?

    The International Transport Forum at the OECD recently published a fascinating report called, Urban Mobility System Upgrade: How shared self-driving cars could change city traffic. And it deals with exactly the sorts of things I am thinking about.

    The study looked of what might happen when all cars become self-driving in a mid-sized European city (specifically Lisbon, Portugal). They leveraged existing transportation data from the city, but replaced 100% of the human powered cars with two types of self-driving cars: TaxiBots and AutoVots.

    TaxiBots were driverless cars that would be shared with multiple people at the same time. In other words, they were a kind of pseudo-public transit. And AutoVots we’re your more conventional private taxi. They picked up one person at a time.

    So, what did they find?

    In the first scenario, they combined their TaxiBots and AutoVots with public transit (light rail) and discovered that the same number of people could be moved around with only 10% of the cars currently on the road. That’s a 90% reduction!

    They also found that the city needed 20% less on-street parking and 80% less off-street parking since driverless cars don’t need to sit idle waiting for a driver.

    In the second scenario, they removed mass transit from the equation. And in this instance they found that the city was still able to get around, but with an 80% reduction in the number of cars on the road. Remarkably, it also led to a 10% reduction in rush hour commute times.

    These are pretty profound changes. Reducing the number of cars on the road by 80-90% is a significant change. 

    But it’s also why I’ve been thinking about the tension between private and public transport. As we get better at optimizing “cars” (their definition will change), what becomes the role of true public transit?

    Ultimately, I think what will happen is a blurring of the two. In the example above, the TaxiBots served basically as small scale public transit. But that does not necessarily mean that true mass transit will become irrelevant. We’re just going to need to rethink how the entire mobility network fits together.

    I’d now like to bring this discussion back to Toronto for a minute.

    As many of you probably know from this blog, Toronto is on the cusp of deciding what to do with the eastern portion of the Gardiner Expressway (an elevated highway that runs across the downtown waterfront). It will go to City Council next month. 

    I firmly believe that we should remove it, but there many people who believe we shouldn’t. The main objection seems to be that the traffic projections indicate that removing it could make commuting into downtown – by car – 3 to 5 minutes longer by 2031

    By today’s standards, I believe this concern represents an outdated way of thinking about cities and urban mobility. Adding more lanes is like loosening your belt to deal with obesity. However, it gets even worse when you think about urban mobility in the context of this post.

    Given the profound transportation changes that are currently underway, I think there’s a strong likelihood that the Gardiner projections we have today will be completely wrong by 2031. I don’t know know for sure, but I’m guessing the models don’t account for the efficiencies being created by driverless cars and peer-to-peer networks.

    In other words, I am suggesting that those 3 to 5 minutes could prove to be a red herring. The relevant question should be: Which decision will allow Toronto to build the absolute best waterfront in the world? And in my opinion that leads to removing the Gardiner East.

    If you feel similarly, I would encourage you to write your local City Councillor.

  • How Uber is driving down the cost of transportation

    A few days ago, Bill Gurley – who is an investor in Uber – wrote a really fascinating blog post called, Uber’s New BHAG (Big Hairy Audacious Goal): UberPool. Bill doesn’t update his blog very often, but when he does it’s incredible stuff.

    I’ve touched on UberPool briefly before. But basically it’s a true “ride sharing” service where people with overlapping routes can easily share the same car – much like people do today informally. The obvious advantage of this is cost. It’s cheaper to share.

    image

    What’s most fascinating about this service though is how it fits into Uber’s larger mission to drive transportation costs down. And there’s a specific reason for that (via Bill Gurley):

    When Uber launched its low-cost UberX offering in the summer of 2012, the company quickly realized that the demand for its transportation services is HIGHLY elastic. As the company achieved lower and lower per-ride price points, the demand for rides increased dramatically. A lower price point delivered a much better value proposition to the consumer, yet still remained a great business decision due to the remarkable increase in demand.

    So what Uber quickly figured out was that if they could increase the utilization rate for drivers (the time actually spent with passengers), they could charge consumers lower prices while at the same time maintaining driver salaries. Prices went down, but volume went up.

    One way to do that is to obviously decrease driver downtime by improving liquidity on the marketplace. But another way is to simply increase the number of passengers being transported at one time. Hence the creation of UberPool.

    But it doesn’t stop there.

    Because of all the transportation data that Uber now has (the company has a data group called the “math department”), they can fairly accurately predict what a price cut will do to their ridership levels. This allows them to “forward invest” their capital in new services – such as UberPool – before they even have the revenue from the anticipated increase in ridership.

    So what does this all mean?

    It means that Uber is going to get cheaper and cheaper and cheaper. Uber is trying to get to what they call “The Perpetual Ride”, which basically means that drivers will always have customers (100% utilization). That’s quite a goal, but it would mean the absolute lowest prices for consumers (barring any other changes to their cost structure). 

    Dirt cheap transportation is a pretty compelling value proposition, which is why I continue to believe that cities should be hard at work trying to figure out how to harness this transportation shift.

    If you’re interested in this topic, I would encourage you to give Bill Gurley’s blog post a read.

  • The death of driving

    image

    Last night my father and I were walking to dinner and he commented to me that he thinks my generation will be a lot healthier than his–at least on average–given how much more my generation walks. I responded by reaffirming to him how little I drive these days and how much I enjoy that.

    Then today, I was watching this short clip of the The High Road with celebrity chef Mario Batali, where he interviews venture capitalist Fred Wilson. During their tour around New York City, Mario asks Fred what he thinks the future of transportation will be. Fred responds by saying that nobody will drive anymore. He then went on to say that the technology for driverless cars is already ready, but that we as a society just aren’t ready for it, yet.

    Finally, on my way home from wakeboarding today, I stumbled upon this Guardian Cities article talking about Helsinki’s ambitious plan to make owning a car pointless. By 2025, the goal is have a “point-to-point mobility on-demand system” that will integrate all forms of mobility into one booking and payment platform. Think everything from public transit to carpools to taxis. 

    As I read on, I then discovered that Helsinki is already offering on-demand public minibuses that allow people to specify their own routes on their smartphone. The system then aggregates all of the requests and establishes the most efficient route based on the immediate demand. Coincidentally enough, it’s quite similar to a use case I wrote about for driverless cars.

    All of this got me thinking that one day we’ll probably look back at that time when people used to drive their own vehicles around as some antiquated and hilarious moment from the past.

    Image: Observatoire

  • Architect This City is The Guardian Cities blog of the week

    image

    ATC was featured in The Guardian Cities today as the city blog of the week. It’s a Q&A about Toronto and the idea is for it to be an “urbanist’s guide” to the city. They asked me to be playful and humorous in my responses, and so I tried to do just that.

    But my underlying message was that–despite being an awesome city–Toronto needs to get its act together with respect to mobility and transportation. I also recorded a video talking about this problem, which I believe will be released in the next week or so.

    A big thanks to The Guardian Cities for asking me to participate and to Athlyn Cathcart-Keays for continuing to be an avid supporter of Architect This City.

  • Moving people instead of cars

    As of this week, Architect This City is now being syndicated on MobilityLab. Here’s the first post. MobilityLab is a US-based think tank focused on “transportation demand management”, which is just a fancy way of saying that their focus is on optimizing for the movement of people, instead of cars.

    Not every post from ATC will get syndicated on MobilityLab, but hopefully many of the ones focused on mobility will be. But really this post this just to tell you that if you’re interested in transportation, mobility and sustainability, you should check out MobilityLab

    To get you started, here are their top 10 stories from 2013.