Changing customer expectations in a digital world
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Alternative fuel vehicles
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Competition and market dynamics
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Potential impact
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Potential impact
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Potential impact
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- Increasing expectations of customers to be able to buy tickets and manage their travel plans through a variety of digital platforms
- Failure to develop applications and digital channels that meet these increasing expectations could affect profitability, customer satisfaction and the business’ ability to capitalise on valuable customer data to enable commercial initiatives
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- Increasing popular, political and customer demand for alternative fuel (electric, hydrogen etc.) vehicles
- Transition involves potentially material changes in financing, maintaining and operating the assets, creating execution risk
- Requires significant change to infrastructure
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- Competition arises from direct price competition; inter-modal (eg coach vs rail); and, more recently, emerging threats such as new market entrants or disruptive technologies
- Changes in customer demographics impact demand and the nature of services required
- Potential ‘disintermediation’ risk created by aggregators seeking to ‘own’ the customer relationship
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Management/mitigation
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Management/mitigation
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Management/mitigation
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- Comprehensive digital strategies developed in each division
- Divisional ‘digital scorecards’ are reviewed monthly by the Executive Committee to monitor the effectiveness of various digital channels
- Developing strategies for demand responsive services
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- Cross-division executive leadership of AFV strategy
- Close engagement with new and existing original equipment manufacturers (‘OEMs’)
- Pilot testing underway in a number of areas
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- Commitment to service excellence, providing the best solutions to our customers
- Price leadership and value for money
- Revenue trends are closely monitored and RMS deployed
- Investment in technology
- Focus on operational excellence – even with an aggregator model, service delivery is critical
- Targeted acquisitions and growth in the most attractive markets
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Opportunity
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Opportunity
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Opportunity
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- Leadership in adopting new technologies will enhance our service to existing customers and attract new ones
- Millennials are an increasingly important target market and more inclined to use public transportation if the service is right
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- AFVs present potential opportunities to reduce the cost base of the business, while helping cities solve the challenges of the drive for a cleaner air environment
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- Ageing population in major markets creates additional paratransit opportunities
- Continuing urbanisation drives cities to partner with high quality transportation operators
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Change in risk in the year
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Change in risk in the year
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Change in risk in the year
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- Appointment of Chief Digital Officer
- Continued increases in bookings through online and digital mobile platforms
- Continued roll-out of ticketless operations
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- New risk – elevated from emerging risk status
- All major OEMs continue to invest heavily in developing products for the mass market
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- Disruptors such as Uber, Lyft and others continue to grow and expand their role in Mobility as a Service (‘MaaS’)
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