Authors
Dr. Sunghoon Kim, Associate Research Fellow | Center for Smart City and Transport, Korea Transport Institutee
Younghun Lee, Principal | Smart City Business Unit, LG CNS
Hyocheol Park, Specialist | Public Service & Smart City Strategy Business Team, LG CNS
Abstract
The transition to Mobility as a Service (MaaS) requires strong public-private cooperation to integrate diverse transportation services into a seamless system. However, challenges such as conflicting stakeholder interests, fragmented governance models, and data-sharing barriers hinder effective implementation. This chapter explores these obstacles and emphasizes the need for standardized governance, integrated fare systems, and regulatory frameworks to support MaaS development.
A successful MaaS ecosystem must balance economic sustainability with public accessibility, ensuring affordability while fostering private-sector innovation. Key policy recommendations include financial incentives for mobility providers, open data-sharing regulations, and investments in AI-driven mobility solutions. By aligning public infrastructure with private-sector capabilities, MaaS can enhance urban mobility, improve sustainability, and create an inclusive transportation network.
Executive Summary
1. Introduction
- Mobility as a Service (MaaS) aims to unify public transit, shared mobility, and private transport under a single, accessible platform.
- Current mobility services are fragmented, requiring users to navigate multiple apps, payment systems, and operators.
- Effective MaaS implementation demands collaboration between governments and private service providers to create a seamless mobility experience.
- South Korea’s government policy, transportation infrastructure, and cultural orientation for promoting MaaS are still inadequate.
2. Key Challenges in MaaS Implementation
- Conflicting Interests Between Public and Private Stakeholders
- Private-sector mobility services focus on profitability and market competition, while public transit prioritizes affordability and accessibility.
- Public authorities must mediate these interests, ensuring MaaS is both commercially viable and inclusive. Effective MaaS implementation needs legal and institutional frameworks.
- Potential Risks: If the system is too commercially driven, affordability may suffer; if it is too publicly controlled, private investment may decline.
- Lack of Standardized Governance Models: Aligning multiple transportation operators under a single governance framework while maintaining service efficiency.
- Fragmented Payment and Fare Settlement Systems: Users must navigate multiple pricing models and payment methods across different services (e.g., public transport, shared mobility, ride-hailing).
- Data Sharing and Digital Integration Challenges: To enhance MaaS user convenience, acquiring and analysing a wide range of mobility data is imperative.
- Barriers to Data Sharing: Private companies hesitate to share proprietary data due to competition concerns, and governments lack standardized frameworks for managing multi-source mobility data.
3. MaaS from the Private Sector Perspective (LG CNS)
- Sees MaaS as an opportunity for innovation, business expansion, and market-driven solutions.
- Demands the government to focus on public transportation and offer financial support.
- LG CNS is constructing a MaaS platform based on four core values:
- Platform should be focused on public transportation
- Platform should have “Super-App” functionality
- Platform should integrate subscription products and transfer discounts
- Platform should have an integrated settlement system that includes payment for public and private transportation
4. K-MaaS from the Public Sector Perspective
- Policy & Goals: Launched under MOLIT’s 2022 roadmap, K-MaaS aims to integrate public and private transportation and foster mobility innovation.
- Structure & Implementation: A publicly led data platform and privately led MaaS app connect mobility service, relay, and platform operators, with a pilot running from 2024-2026.
- Challenges: Private sector concerns over overlap with existing services and stakeholder alignment in a competitive market.
- Success Factors:
- Engaging business operators and reconciling differences among stakeholders
- Ensuring profitability of private mobility service providers and establish win-win-cooperation measures
- Adopting smart technology
- Continuous improvement and supplementation of policies and regulations
- Data sharing with all operators can provide new business opportunities for mobility companies, including start-ups
- Government Agency Initiatives
- Develop a K-MaaS governance structure with input from industry, academia, and research.
- Standardize mobility data sharing through open APIs.
- Provide financial support through transfer discounts and public-private funding mechanisms.
- Establish a K-MaaS relay platform to ensure centralized mobility data integration.
5. Conclusion
The future of MaaS depends on effective coordination between public institutions and private mobility providers. A well-integrated system can enhance urban mobility, reduce congestion, and improve sustainability. However, successful implementation requires regulatory clarity, financial incentives, and technological investment. A balanced public-private partnership model will ensure that MaaS remains affordable, accessible, and future-ready for evolving transportation needs.
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