Ford Acquires Crowd-Sourced Shuttle Service, Partners with Bike Sharing Provider
Ford is taking a broader perspective on transportation with an agreement to acquire Chariot, a San Francisco-based crowd-sourced shuttle service, and collaborating with bike-sharing provider Motivate to expand its transportation solutions in city centers.
The company is also establishing a new City Solutions team to work with cities around the world on their transportation needs.
“We’re expanding our business to be both an auto and a mobility company, and partnering with cities on current and future transportation needs is the next major step,” said Mark Fields, Ford president and CEO.
The numbers help tell the story. Today, half the world’s population lives in cities. By 2030, that number is expected to grow to 60 percent. As city populations grow, the challenges tied to moving people and goods around become tougher.
Ford has its eye on being part of the solution.
“Cities globally are dealing with increased congestion, a growing middle class and environmental issues – all of which can be alleviated by developing mobility solutions fine-tuned to the unique challenges of each location,” said Jim Hackett, chairman, Ford Smart Mobility LLC, the company’s subsidiary created to design, build, grow and invest in emerging mobility services. “At the same time, by expanding our business model to include new forms of transportation – from bikes to dynamic shuttles and more – we are introducing new customers to Ford and creating new revenue and profit opportunities for the future.”
Started in 2014, Chariot operates nearly 100 Ford Transit shuttles along 28 routes throughout San Francisco Bay Area. Today, Chariot’s routes are crowd-sourced based on rider demand. In the future, they will operate dynamically – using data algorithms to map efficient routes to best serve the real-time mobility needs of communities.
The Chariot shuttles complement mass transit by filling the gap between taxi and bus services – providing an on-demand, point-to-point transportation option that is convenient, efficient and cost-effective. For every one dynamic shuttle that is placed into service during peak travel times, urban congestion could be reduced by up to 25 fewer vehicles, according to a private study for Ford conducted by KPMG.
Bikes are another important mode of transportation for commuters in the Bay Area. Ford and Motivate, the global leader in bike share, are working with city officials to add new stations and increase the number of bikes to 7,000 in the Bay Area by the end of 2018. When it launches next year, Ford GoBike will be accessed by users through the FordPass® platform.
“A transportation revolution is coming to the Bay Area,” said Jay Walder, CEO of Motivate. “This unique partnership with Ford shows that bike share is no longer alternative transportation; it is central to creating smart, on-demand mobility that represents our values for equity and sustainability. Thanks to the partnership of Metropolitan Transportation Commission, San Francisco, San Jose, Oakland, Berkeley and Emeryville, bike share will soon be available for all in the Bay Area.”
Ford plans to develop technologies to use data collected from the bikes to build an interconnected mobility network. This could include real-time data, such as weather conditions, usage patterns and bike availability, to optimize commutes.
Ford also is establishing its new City Solutions team to work with cities on expanding mobility services worldwide as part of Ford Smart Mobility LLC. John Kwant – who has worked with several global cities during his Ford career as part of the company’s government affairs and global strategy teams – has been tapped to lead the effort as vice president, Ford City Solutions.