Monday, 31 October 2016

Public transportation is getting digital: good news for ecommerce!


Change is coming very fast regarding transportation today. Public transportation has to grown and change significantly to face the growing number of users and their new expectations. A bunch of carpool startups have been created in the last decade such as Uber, Lyft, Heetch making public transportation old-fashioned for a lot of people.

To take part in the smartest-cities of the world race, Paris announced this month that it plans to have the most digital metro in the world by 2025 with new innovative infrastructures such as optical fiber, data centers, telecom networks, Wi-fi and geolocation system. Parisian subway is getting digitalized in order to help people gain a lot of times when they have to go from a point A to a point B. But this is not the only issue.

Paris metro has always been an important place for advertisers. Indeed, there is almost 5 millions of users everyday. Those users are consumers and you can easily grab their attention : when their are in the metro they do not have much to do, people are waiting their train and then, they wait in the train to arrive at their destination. Well... that was before. Today, everybody is on its smartphone. That’s why bringing wifi, geolocation and big datas where millions of consumers pass everyday  will revolutionize ads in public transportation.

Users experience will be improved and users will be able to buy anything during their journey : 1 online purchase out of 4 is made with a smartphone today and this figure keeps on increasing. Today, it is complicated to buy while you are in the metro because you do not want to take the risk to see your connection shut down. With big data analyse, retargeting and Wifi, you’ll find that your journey in the metro will probably become the right place and time for you to do your shopping.

Be able to track people on public transportation will have a big impact on digital marketing. Indeed, public transportation says a lot about you: where you live, where you work, at what time, where you go for shopping. It means that we can deduce your social background, define your favorite brands, push ads for you that matches your preferences, inform you to go out at a certain station for a special event etc… But who can gather all those data? Well, on the road, companies such as Waze already deals with a huge amount of datas and has an important impact on advertising. An other app, Moovit could become the Waze of the metro.

Actually, startups like Waze and Moovit (an israelian app created in 2014) had the idea that the most efficient way to simplify rides does not lie into high technology object but definetly onto people who are using those transportation system every day. They are creating a network where everyone can be a stakeholder. Waze’s business model is based on advertising using CPM and it has been bought by Google for 1.15 billion $ two years ago. 

Moovit works directly with the parisian public transportation company RATP to help it improve their service in cities and in return the RATP is promoting the company. Nowadays, every companies are looking for this kind of win-win situation.
 To attract people using the app, they provide virtual reward to users who are helping improve the service. They main interest is to create a community.

Will Moovit know the same success story as Waze ? If it expends to other big cities metros, we can bet that Google will look closely at their activities. 


Marine Esposito 
Julia Ibrahim - Ouali 

Sources : 

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