Brian Collie 

Thank you, thank you. Morning. My name is Brian Cali and on behalf of the Boston Consulting Group Our global automotive mobility team. It is my pleasure to welcome you to the CES Research Summit, and our panel today on smart cities of the future, and mobility innovation. With the advent of new technologies, business models and services, we are on the cusp of the greatest disruption our industry has seen and will over the hundred years. And if we get this right, with potential drive a far safer, cleaner world, tremendous improvements in mobility, accessibility and reliability, and most importantly, dramatic improvements in quality of life for everyone.

 

Brian Collie 

And frankly, we have no choice but to get this right. Cities today are already overcrowded, facing a plethora of challenges. And with increasing urbanization in the decades to come. These challenges are only going to get more severe. Just a few facts and figures to paint the severity of the challenge that cities face as you're not China. On average, a driver spent is more than 21 hours 2100 hours in traffic jams a year. That's insane. In the US congestion alone costs more than $300 billion. In Mexico City congestion adds an extra 66% travel time to a normal trip. By 2050 70% of our population will live in urban environments with more than 40 mega cities across the globe, none of which really have the infrastructure today to support such rapid growth. Probably one of the most alarming 1.35 million traffic deaths a year a situation that with the advent of new technologies run active safety, we would like to think is declining. But the realities with the phones that many of you are holding up and distraction driving, that problem is going to get far worse before it gets better. And then global warming unless we address this society and make far more drastic changes to what's currently And we're on track to see an increase in global temperatures by much as three to four degrees. And when we have that, it's not just a it's a headache, that's a disaster on our hands. cities that are going to fall into the oceans, pollutants in the air, they're going to have huge impacts on health and decrease age expectancy. These are crises and pain points that we have to address. Nonetheless, as we look ahead, and vehicle manufacturers, and cities and suppliers and new mobility players are urgently racing to realize the full potential of new mobility and to address all these challenges. The reality is that for all the potential that we see in the last few years with new technologies and services, we still have a very, very long way to go. And there are no shortages of challenges and roadblocks that are going to stand in our way to realize this full potential. Now, I certainly wish that through the course of this one hour discussion, we can provide solution to all of these pressing problems. But if that's your expectation, I'm sorry to say you're going to be disappointed. But what I can't promise, though, is we have a phenomenal panel, a distinguished panel that represents very diverse views, diverse experiences. And our hope is that through this discussion, you'll be able to walk away from here, you know, learning one or two more things that will allow you to continue this discussion going forward in your respective communities. And that together, we can solve these pressing challenges. So with that, I would love to get to it. Let me start by introducing our panel. First, the Honorable Ray LaHood. US Department of Transportation Secretary under President Obama. During his time they drove he drove dramatic improvements to infrastructure, and helped put in place more stringent fuel economy requirements. I think it's also worth noting that under sectorial hoods leadership, he really made distracted driving a national concern and Great awareness to that. Before that, Mr. LaHood served as a member of the US House of Representatives for 14 years. And most recently, I had the pleasure of working with Mr. LaHood on Chicago mayor's Task Force on new transportation and mobility. Next, I have clarifying Chief Financial Officer of Via, Via, as I'm sure all of you know, is a leading global developer and provider of advanced data driven public mobility solutions. And if I can add really, frankly, a company that's at the forefront and driving the sort of public private collaboration we need in order to make the strides that we all hope. Carla Rati, I would say a true global citizen, spending lots of time in Asia, the Middle East Europe, in North America, professor at MIT, where he directs the sensible city laboratory. As a lot of you know, that's really been a laboratory that's played a major role in launching a number of new mobility innovations or Cool being one of them. Carlo is also the founding partner of an innovative a design firm that works with cities across the globe to crash solutions for pressing urban challenges. He also is the co chair of the World Economic Forum, future Council of cities and urbanization.
 

Brian Collie 

Laura Schewel founder and CEO of streetlight data, one of the industry's leading source of data driven solutions. And like Clara really at the forefront in in taking data and actually making sense of it something which a lot of cities struggle to do, and using that data to really drive much more efficient and effective solutions. I mean, we'll talk a lil bit about on the panel, but the reality is the cities, at least mature economies don't have the resources or the capabilities often to make sense of the data. And that's something that Clara and Laura with their respective teams are really helping to drive. And then lastly, my partner Giovanni Masatelly. He is a global leader of our transportation and logistics practice. This hails from Italy originally originally has been in the Middle East and Dubai for the past seven years. And there he really has the unique opportunity to work with a number of cities. A number of countries, I should say, in developing urban communities from scratch, in many ways, a playground at the very fingertips to think about how do you design mobility, not by working around constraints based on choices that may have been made hundreds of years ago, in Europe or in the US, but to do feel so from a Greenfield approach based on the problems that we see today that we're trying to solve for. So super excited to have this panel. And with that, let's dive into the discussion. So, Carlo, let me start with you. We've talked a bit about your experience globally, and you've had a chance to work in a number of different communities. Smart Cities is a huge bus topic these days. Everybody's talking about smart cities. We have our own stream here at CES, but Smart Cities means different things to different people, they mean different things to different regions. Are there any defining characteristics just kind of help ground the discussion as to what a smart city is?

 

Brian Collie 

Yeah. Thanks for asking. You're totally right. You know, a lot of people use the word smart cities, but to mean so many different things. Now, however, I would say, let me give you my definition of smart city. And this definition is related to a lot of the things we are seeing also here at CES, you know, in a simple way to say it is that basically the internet is becoming Internet of Things. Internet is is entering in the physical space of the city. And so it's changing the way we can understand, analyze, control the city, in a two key ingredients that you have there, in a similar way to what we see all across Yes, this week, is that the two things are are always the same first of all data, so we can actually collect a lot of data from the city. And the second thing is artificial intelligence. We can actually use intelligence to make sense of the data. Well, you know, the applications are manifold. You can apply this and use it for energy. You can use it for me These services for citizen participation. And of course for mobility, mobility probably is one of the most exciting spaces today where things to data in AI, we can change the way his city moves as traffic. And so Giovanni community talk a little bit about how you're taking some of those the learnings that we've had from cities across the globe, working to put in place Smart City lovers, you're in, like I mentioned, a very much a prime situation to have a playground at your fingertips where you're not burdened by constraints, and can build a smart city from scratch. As you're doing that, and you're looking ahead, what are some of the things mobility standpoint that you're looking to design? And

 

Giovanni Moscatelli 

yeah, so definitely, from the from the work we have done across New cities, especially in the Middle East, we have seen that there is not a unique definition of smart cities on these fully aligned with Carlo. I mean, because the city has different challenges, different needs, and depending on which city solving for this needs, and how is solving that says Marcy, if you take for example, Public Spaces public spaces is a problem from Singapore for London. But it's definitely not the problem from a new city which is built from scratch on a lot of land which is available. And but to steal it, there are elements that we have seen that could be leveraged to as a learning. On top of what Carla said I would add the definitely the autonomous, autonomous vehicles is definitely something that we see as a recurrent theme across multiple new developments, especially because they can reach places which are not achievable, not reachable, through a normal car, or you can get definitely the connectivity and portability of the data for different devices from the car to your laptop. But before beyond the technologies I would say, which is in my view, there is not a single technology that defines a smart city. It's about the other elements which are more related to the data and the governance. The data. For example, we see a big disconnection in cities today is that the data are not integrated, the data sources are not connected. What we have seen in new cities is that actually the connection to the different sources creates the insight to unlock value for new cities. Governance as well. I mean, one of the main thing is about how we set up a government entity, or M or a coordination entity that can actually create a partnership between the public and the private it seems to Cz, but then when it comes to creating a company, creating a city from scratch, you need to be able to convince a player, a private player to come to take a risk and to actually provide the transportation service that I think is the challenge that is my city will have especially in emerging market.

 

Brian Collie 

So I want to come back to the data and governance points in it in a second. So I think those are obviously quite at the forefront here. But But you mentioned a V's I've had a chance to attend CES for the last year. Few years and a couple years ago, if you attend any of the forum, she would have thought that by now or in a couple years, we'd all be shuttled around and robotaxis. The last year over the last year, it seems as if some of the enthusiasm has been scaled back a bit. Clara from you from your I know, you have obviously have a chance to work with a number of cities and a number of these key stakeholders. Where do we stand on a visa is a V's a critical for making smart city concepts work? Or it's more of a nice to have

 

Clara Fain 

Thanks Brian. And I think, you know, urbanization is accelerating. By 2050, about two thirds of the global population will be living in cities. And that's just going faster and it's an inevitable fact that cities need to address when it comes to autonomous. The new consensus is that autonomous is not happening today. It's pretty clear but it is happening. The most advanced companies in the world are investing a lot of money and capital to make sure it happens. And you I believe that they will be successful. There is a window of time now that cities need to seize to make sure that while those firms are investing and building the right technology, cities are prepared. And there's an enormous gap. Today, less than 2% of cities budgets are invested in technology or IT. When you compare that to the amount of money that are poured into autonomous technology, that's a significant opportunity. So in that window, there's a window for cities to build the right digital and physical infrastructure to be ahead of how autonomous vehicles will be rolled out. And hopefully, if they do it successfully by implementing new taxes, creating new pockets of money, utilizing their biggest asset, which is the road to generate new funding and structured properly, and then obviously implementing the right technology, you know, like via shared technology or other types of technology. To organize the system, there's a chance that CDs will be at the forefront of autonomous rollout and that they will be able to shape how autonomous vehicles get are getting rolled down in a few years.

 

Brian Collie 

I think certainly, we would see a far more efficient mobility ecosystem if we had the cities partnering with the public companies, as you outlined. One of the challenges, though, that we see in North America and Europe and other mature markets is, unfortunately, it's not always the top priority for government, city governments. There's also you know, every city that I've worked with, they all keep asking for, they want the data, they want the data, they want the data, but they don't have the capabilities or operating model in place to do much with it. Mr. LaHood for me your experience, and we encountered this working on Chicago. How do we get to that point where the city is actually or government is actually helping to enable future technologies, new mobility services, versus unfortunately standing in the way which often many of them could be doing today.
 

Ray LaHood 

Well, Brian, thank you for inviting me to be a part of the program. And thank you to all of you. Obviously, there's a lot of interest. This room is jam packed. And I believe if you look back at our time at DoT, where the revolution really started in changing cities into livable sustainable cities, was when we decided to use the dreamers and the planners and the innovators in the cities. So what it really takes is you have to have political leadership. You have to have mayors and governors that are willing to say we have a vision, how are we going to attract business? How are we going to attract young people, you need that kind of political leadership, but then you also need the planners and the dreamers and the architects and the engineers to come together around the political leadership. And then you you have to have leadership in Washington DC, many of these things are not going to happen unless there are the resources. Because cities are cash strapped. states are cash strapped. The federal government is the one place where the leadership can be provided to allow the dreamers and the planners and the architects and the political leadership in the community. I think of our four and a half years, Chicago transformed washington dc transformed, Denver transformed LA, a lot of innovative approaches in transit, in walking and biking paths in the development of so many different opportunities. So that when these young people are coming out of colleges, and want to go to work for the companies, they want to live in places where they don't have to own a car, but there's good transportation. If they want a bike to work. If they want walk to work if they want to take a train or a bus. And the innovation and the creation is in the cities. The resources have to be partnered from Washington DC.

 

Brian Collie 

Unfortunately, that some it varies quite a bit depending upon the administration that we have in place. So and their list of priorities, but I couldn't agree more with you on that. But But Laura, you've your team is doing some interesting work where you can perhaps help the city's help themselves through data in and maybe addressing some of the budget shortfalls or addressing the fact that Washington is not there for them the way that we think we'd all like to have. Can you talk a little bit about that?

 

Laura Schewel 

Sure. And and I think Secretary LaHood really talked about the different levels that have to be collaborating to make something innovative happen, the private sector and the private partners, the vendors are part of that ecosystem as well. So what we've evolved to as a startup now a midsize company is we always have to sell at two levels simultaneously. We call it a yes, and which is an improv model, which is you have to sell a use case, which has an absolute return on cash return on investment at a boring old problem within year one. And that's how you can work within these cities and NGOs who have these very constrained budgets. And then simultaneously, sort of as a icing on the cake of investing in that boring old ROI based solution, you get access to the very new boundary pushing innovative things. So for example, most MPs and states have to count the number of cars that go on all their roads every day, and organize them by road classification report that to the feds. It's not very exciting, but it takes a ton of money. If we can sell into that budget and simply display something plain old that happens every day. And by using that budget, they not only get all their traffic counts, they get a huge variety of other analytics that can help them plan for autonomous vehicles do data driven equity driven transit planning, put their bike lanes and safer places. You have to sell it together because we found that just selling innovation alone or just selling something futuristic alone runs up too hard against some of those budgetary constraints that our clients face.

 

Ray LaHood 

Brian, can I say something about autonomous? Sure, I think the autonomous vehicles will be the trucks first, because it's easier. Every car company is in the autonomous network development resources. But the trucking companies because of the interstate system and the partnership with the states to put the infrastructure that allows for trucks, I think you're going to see many more autonomous trucks before you see autonomous automobiles.

 

Brian Collie 

Yeah, I think that's right. I think if you look at some of the movement over the past year, it seems as if that is actually gaining, in fact, of really viewpoint. I think it makes sense for a number of reasons. One is the movement afraid and goods. there's a there's a clear economic rationale. There's also clear drivers shortage that at least in the US, we seem to encounter. But that really can help drive the economy. Now, the challenge there we have to do is at the, at the national level, wherever we're operating, making sure that we have the right set of laws and regulations in place, so that Congress can travel freely across various borders, which is a challenge that we have today. So, Avi, so I agree with you on from from over the road freight, going back to city standpoint, what is the role of the city? So we talked about data, potentially for regulation, but but there's no shortage of demands for finite resources to make the potential of future mobility become a reality. Where should cities be focusing their resources? I mean, they're there. They're resource constrained their capability constraint in many cases. They're not always having the Greenfield, you know, build it from scratch as you're doing the Middle East. Where should cities be focusing? Java?

 

Giovanni Moscatelli 

Yep. So I mean, I have a I have a bit of a perspective. On this one, because I think we are putting a lot of pressure on their municipalities and their ability to drive into these uncertainty of the future innovation, data technology. So now the city's not only the new cities, but we have learned these from new development cities, but also the old cities, they need to identify, which is the technology that they want to pursue. They need to identify what is the regulation, they need to find the partners, they need to find the money because they didn't even have the money. So I think there is a lot of pressure on them. What we have seen is that these things doesn't work unless you bring you start treating your private players, not as a supplier, but as a partner and you bring them on board, which means you have you allowed them to shape the policy with you. Right, that's what makes the changes we have seen in in emerging situation creation of a special purpose vehicles, where private entities, the municipality, the special economic zone, the government, whatever, create venture we the private players, and they that venture is the entity which not only provide the technology, but actually tells the government or the entity or the special economic zone, what is the policy and the regulation that should be in place? That is where you create something that is tangible. Otherwise, any anyone she probably doesn't know, maybe Singapore, maybe London, maybe New York or a bit more advanced, and they can navigate the complexity, but all the other cities will never be able to succeed.

 

Carlo Ratti 

Yeah, maybe. I think you know, Giovanni is totally right, when you look at some very established mobility. Now the reality however, is there are some new types of mobility you know, you don't really know what will succeed what will not let me give an example i three years ago here is CES, everybody was super excited about you know, doctors bikes, we had all the unicorns in China, you know, demo bikes, the bikes, and so on changing mobility, you know, now most of them are bus and you know, in the meanwhile if you move through cities, you see All these kind of new phenomenon in China, especially bike cemeteries, all these bikes, you know, been masses of these bikes been left over in parts of the city. So I think, you know, how can you tell how new technology will perform, it's very, very difficult. So I think what we need to do in cities is we need to be very open at the beginning to allow experimentation to happen, but also be much more responsive to create a very healthy feedback loop that actually we allow people in startup to experiment. But then cities need to be faster in regulating you know, we some of the cities are just now regulating about doctors bikes, you know, three years later when the phenomenas has passed, but now there's scooters, and there's many added new things, and certainly micro mobility is here to stay. But the reality is, we don't know exactly which form it will take. And the only way we can find out is actually by allowing and other innovation to happen by being able to respond fast, so that we avoid in the future, many more bikes or car cemeteries.

 

Brian Collie 

So how do we build that trust, though, between the private and public sector because if you look, you know The last decade with a number of these new mobility players, whether it be sidewalks littered with scooters or bikes, or whether it be ride hailing companies and potential impact that they've had on congestion. The reality is that a lot of cities don't trust the public sector, you know, the private players cuse me. They they view them almost as the enemy. And that's unfortunately, it's it's making it difficult to realize some of the some of the potential that you've outlined. How do we overcome that?

 

Ray LaHood 

Well, let me say, go back to the point I made, if you have cities where the political leadership has the vision, then they will partner with the engineers and the architects so that when they're replacing infrastructure, the the kind of technology that will allow for autonomous vehicles is automatically a part of the planning and a part of the new infrastructure, if you can get that kind of a commitment from the political leadership. The communities then partner with the states for the money that it will take. I think you could have a couple of pilot projects around the around the country, in cities, where they're willing to put in the infrastructure and match it with the kind of autonomous vehicles that the car companies and and others are developing. And I think you could, you could really see it take off very quickly. A part of it has to be dc in terms of the rules and regulations that are going to be put in place that that does have to be a part of it. But the leadership has to come from the grassroots. It really does political leadership, then the planners then the architects and the engineers, and the people that are putting the infrastructure the the contractors and the states.

 

Laura Schewel 

And I think we're at the start of a really interesting success story in North America, Asia and parts of Europe, France, in particular with aerial transportation. There is a huge new raft of in city, aerial transportation startups and mega players who want to start, you can call them flying car, I would call them helicopter rides between major but sort of far flung congested parts of the city, for example, from JFK to Central New York, from LA, to Santa Monica, to different parts of LA. And the interesting thing is, you have some of the same players who've caused the contention, like Uber is a major player in this field. But you cannot have a flying thing take off in a city without federal and city regulatory buying. So because from the get go, they knew they would need regulatory permission, the collaboration with the cities, and the FAA has actually been really powerful. And they've done tons of interesting community outreach with citizens with all sorts of different stakeholder groups. So we might actually have a counterfactual to the bad narrative that started with the rideshares. But it all started with the assumption that the government's would have to be consulted and had a sort of veto power and once we started with that assumption, we have a really interesting equity focused collaboration. So I think it could be a good case.

 

Carlo Ratti 

But can I say something actually, I wouldn't waste much time on getting those approvals and the reasons that I really don't believe in it, in reasonable believe in it is actually technology. The technology you see here can change plane your things. But technology cannot change one thing, which is physics. And physics says that if you want to keep you know, the weight of your body, my body has some weight up in the air, let alone move it, you need a lot of energy, you generate a lot of noise in your move a lot of air, this pure physics, and that's the reason why Manhattan you got a few heli pads where you got if you 10s of flights every hour taking off, you know, and everybody complains because of the noise because the disturbance so now imagine you wanted to do a little bit of impact on mobility, Manhattan, you don't need 10s of flights, and now you need 10s of thousands or hundreds of thousands. So that will never be a solution. I believe in cities. And by the way, you said about you know, going from JFK to Manhattan that used to happen. It was a hell of transit. Where Didn't they stop? The wind was an accident independent building, which is now the MetLife building. So I think you know, any magic if you multiply that by, by by 1000 or 10,000 I don't think that will ever happen.

 

Brian Collie 

That's a good thing is we we've clearly that sector has taken the lessons learned that yes, vehicle base mobility has gone through the last 10 years and it's been insane. You know, we're going to work and try to collaborate at the forefront to set the right environment for them to succeed. I think you raise a very valid point. The reality is does the value proposition even exist? Is their pain point for which is the best solution to solve for, I think, a more in line with you that there are some challenges to work through so

 

Carlo Ratti 

I don't think he's just gonna value proposition three about physics any there's to salute me. Yeah, there's possible applications, certainly in the countryside. I mean, Africa is very good upper cases where you don't have much infrastructure, and they're not even out you know, you go to the sewer, and sure, somebody will try to connect San Jose with the valley in in some very expensive rides here and there, but that's not a solution for mobility in our cities.

 
Laura Schewel 

I agree. I don't think Ariel is going to actually succeed. But I think the reason they've shot Ford is because they're actually collaborating better with some of the host cities. And then we'll hit the physics wall. Yeah. But the collaboration is what we should emulate.

 
Brian Collie 

Yeah. So let me switch over to Claire, because I know you've been doing a lot of work and have had some success stories with cities such as Berlin, where you are actually driving the collaboration you want me I've, like I've had a chance to work with a number of cities in it always frightens me when you're working with the public transit group, and they're presenting their strategies. And it's all about how do they kind of protect and insulate the public transit organizations from all the realities of the changes around them, it's very much put your head in the sand, hope all this goes away. You've actually worked with some cities that are actually doing the exact opposite, saying how do we actually partner collaborate to work together? Can you talk a bit about that?

 

Clara Fain 

Yeah, thanks, Brianna, you know, we've actually been able to do in a way what you were talking about quite successfully in the past couple of years where we went from partnering with a couple of cities you know, some of the most innovative cities in the world like Berlin or Austin, or some smaller cities like Arlington or West Sacromento. We're first partners. And from bed we grew to more than hundreds of cities in 22 countries where we've been able to work alongside cities in helping them deploy the right technology for their needs. And that means a holistic that we've we've applied a holistic approach from consulting with the cities and investing the right resources to help them understand their flows, you know, build the right data and around that and and understand what are the different solutions they can, they can utilize to actually implementing and launching. So for example, with Berlin, as you mentioned, we have, you know, launch with them the largest on demand, a shared transportation deployment in the world. And that is operating mostly on electric vehicles, you know, partially funded by the city, and that is completely part of the transit system. So if you think of an autonomous vehicle rollout in a few years, that is potentially a very good candidate that is already operating within citiess boundaries with the city of LA with Arlington, West Sacramento, we've launched similar services. And we've now been able to deploy the technology for shared transportation into school buses paratransit to create one system, you know, one layer of technology that the city can utilize to optimize its transportation network. And, you know, back to the rules of physics, us back to basic, you know, ground transportation. We believe that cities today have the right you know, tools to make public transportation and public transit successful. And the way they're going to handle their infrastructure is going to be key in order to unlock the value there. So
 

Brian Collie 

that's it's encouraging when you see cities that are actually that have the vision that you talked to that that are actually making the right investments in it and are embracing the opportunity to leverage external partners to go further faster. The reality there there's there's no shortage of areas where they can be investing there's no shortage of choices they can be made. In terms of how they dedicate their resources, is it about data and had created the data lakes and managing the data is about putting a team in place to do that is about putting in place the operating models kind of govern all of this? Is it about sensors mean, they're smart cities across the globe. Every city wants to claim that they're a smart city, every city is claiming that they're doing something but the reality is, very few are actually doing anything that matters. Where should the cities be focusing their resources to get the greatest return on investment and truly become smart?

 

Clara Fain 

just you know, first of all, if you look at you know, greenhouse gas emissions, transportation and Secretary Pearlie remember that actually is the largest single source of greenhouse gas emissions. So for a city, tackling the transportation problem, maybe with the education problem is should be number one of their on their agenda to build sustainable livable cities for future generations. How do you do that? You know, that's That's a real question and I think helping them figure out the funding part. And the implementation is key, you know, what Id which is a bit futuristic, that cities could implement physical infrastructure and start charging for rose, you know, rows are actually the you know, there are there may be the largest assets that cities have access to, and making roads utilizing, utilizing roads to generate new economics and new funding. You should be quite interesting with obviously, congestion tax, we're seeing the city of New York and several other cities are implementing that, but all other taxes or technology that makes new roads usage dynamic, and then maybe one day seeing private vehicles, you know, single occupancy vehicles being taxed very heavily in cities and creating new funding and deploying that funding to to create you know, efficient cost effective environmental friendly, shared mobility, public transportation that is available tool.

 

Carlo Ratti 

Yeah. And actually using the road infrastructures and is a new front Actually you can ask people to pay for is going to be more and more important, especially with self driving, you know, we said before, driving may take a bit longer, but it's certainly coming, we go self driving parking revenues are most likely going to disappear, you know, the car doesn't need to be parked in match can be used by one person and then another one. So then somebody estimates show that parking could be reduced by 70 or 80%. And also not even with cars getting electric, especially in Europe and other the taxes on fossil fuels are going to evaporate. So if you combine it to then you know, the rational thing is you can take the infrastructure and then I don't think you should be cities to decide what is the right mix for a city in also that may change in a city with a slightly Vegas in a city like Paris or Singapore, you know, we different urban structures, but I think if you got that infrastructure that you know, you you allow people to use it and to pay for it, then you can use the city and the infrastructure is in living lab to allow new types of mobility to develop micro mobility, one cedars to cedars. The bigger minibar minibuses So I think that is going to be the innovation ecosystem that hopefully is going to define the mix of tomorrow.
 

Giovanni Moscatelli 

I agree and I think if what we have seen also is that if you if you think that the in a world that resources are constrained, I will not push to have the sittest focus a lot on selecting the technology cities are not made for that right, they will never be able to catch up with that kind of complexity and dynamic evolution right, they will never be able to select the right cities, the right story, the right technology, I would rather focus on the data, right, that is where the city can make a choice and say I can and I wanting to grade these data sources being healthcare, being energy being mobility, being education, and I created a repository of those data, which is made available as an open source to private public sector to come and create the mobility as a service, platform use cases and so on. That is where What we have seen also working quite well, is where the resources are well spent and the return investment desire.

 

Brian Collie 

And how do you work work through the reality of, you know, misaligned incentives. I mean, if you're and frankly, there are some players in the end, you know, that are well established that already have tremendous access to consumers. They really don't see the need to partner with the cities, they don't want to make their data available, because they look at that as a competitive advantage. There are other players that may be in a third or fourth position, who'd be more than happy to have an open system to share their data in return get data in order to establish a foothold that they otherwise might not have. So how do you actually work through that and get the folks who are the leaders today, and certain new mobility offerings such as ridesharing, to actually play nice and open their data up to cities that we can actually optimize for the entire network and not just a portion of it?
 

Laura Schewel 

Well, I would push back on the assumption that we need their data in the way that it's usually expressed, which is we need all of their data, right? So I think the smartest thing a city can do, especially when dealing with private transportation companies that won't share data is find a different way to measure them. That's within the city's purview, right? You can't just wait for Uber and Lyft. And all these folks to decide it's within their interest to share. And we have found very productive ways to measure gig driving rideshare, driving urban deliveries and pickups so that the city can start using the data and start making decisions around it. And first, that that releases the city from this reliance on hoping these private players will partner which I hope they will. But also seeing the city actually putting the data to use and making good decisions will help build that trust. Where if the car car companies or the scooter companies as an example, say oh, we have decent data about our mode, and we see how you're making infrastructure decisions about pickup and drop off stones or special lanes that benefit us. Now we have a model under which to share not just the city saying give us all your data and then we'll figure out what to do with it. So I think the idea that we have to wait till everybody agrees to start start sharing data and making decisions is, is perhaps a false flag Get started today.

 

Brian Collie 

Interesting. So,
 

Carlo Ratti 

If you give me picking out of Hungary, if you, if everybody were to share fullier data, they know something very different could happen, which is the same thing adapting in the airline industry few decades ago. You know, until a few decades ago, you everybody, if you wanted to book a flight, you had to call every airline individually, in an AMA deals in Sabre, and many other services came in order to integrate, and we cannot do that. And that's the reason why the incumbents said you players have a big advantage today. But it's certainly not good for the overall sustainability. I mean, you can you can look at that you can measure it in the increasing amount of co2 when we have because actually, we have a less of a suboptimal system. So I think as you had we do it. Well, I think that is where actually government could play a good role, especially at the national level. If you do the city level. You know, the big players who say, Well, I'm not interested in your city anymore. graduated with the national level, you know, ultimately, transportation system is up have always been regulated. So that means that we something good a government could do, and then create a nice market for everybody to play a level playground in order to develop new services into play better with what we

 

Ray LaHood 

I think his point is well taken. And that is that in the end, cities are going to be looking for the resources, and they're going to be looking to the federal government or the state government. And at that point, what you say is everybody has to share their data. Everybody has to be on the same page. Everybody has to be operating from the same plan. And you can't have outliers. You can't have Lone Ranger's or however you want to characterize it, and the federal government says, share the data. And then we'll share the resources to help you implement the kind of plan that that is necessary. I want to just make one other point where we we've done some studies and in Boston in there for the tea. We did We did a study for one Mada in Washington DC, we did a study in New York. And you mentioned this study we worked on in Chicago, the one, the one primary thing that stands out is, in order to begin to develop the kind of collaboration and cooperation, it takes a cultural change. Many of these systems of transportation were built on completely different ideas and premises. And you have to change the culture within the people that are operating the systems. And that's, that's a very big key. So. So for the dreamers and the architects and the engineers who are way ahead of people that are operating more traditional systems. It does take a big cultural change, to really bring about the kind of condition where people all are working together.

 
Brian Collie 

And I think that's, I think that's spot on and it's called When we have a chance to work with subsidies, you can see it clearly see those who are the leader at the forefront, who look at getting this right as an investment in the future to attract the needed talent. So it is a top priority for them. I want to go back to this, this idea that we're I think we're we're going down this path was talking about mobility platforms and we talked about ultimately is we need to optimize an entire system, which means in a modality where we can actually plan and book and pay for entire trips spanning multiple modes of mobility, whether it be scooters, bicycles, public transit, ride sharing, that requires people, companies to open up to share, to be able to create that sort of Nirvana that we would think we'd all like to ultimately see. So am I hearing from the panel that that in your view, that the only way that happens is for the government to dictate that it happens and that if a player wants to utilize the roads or the public infrastructure, they have to operate On this platform, or is it going to be driven by the private sector? And maybe it's obviously going to vary by region? But what are your thoughts to that?

 
Laura Schewel 

I mean, I think you see it an Uber and lifts acquisition history, they think they're going to need one of each mode. And there's going to be these different operating systems that are privately based, at least in many of the countries in which they operate. But I do think it will be regionally variant. I mean, you do see other countries where you have an integrated system. I also think it's not just the mobility players that could do this. It's also the payment processors who could make a move in this space. And you see that with some of the collaborations with Visa, MasterCard, American Express and the transit payment systems that are starting to emerge.
 

Ray LaHood 

Well, I'm, I'm I think it's not going to happen, unless there's somebody that helps bring people together, integrated, share data, and then provide the resources to help the communities do it. Yeah.

 

Brian Collie 

Interesting. Okay, so let's shift gears, then we've, unfortunately time always flies by here and we've got about 15 minutes left. I want to go back to the pricing topic. is one that's been gaining a tremendous amount of attention in the last year as a number of cities have launched new congestion pricing initiatives and, and to basically combat what is in effect the unintended consequences when these new mobility offerings where you start to drive increased congestion, or potentially cannibalize public transit. How do we actually make the pricing approach work in such a way that it's it's significant enough to matter and actually change behavior, but also not to disproportionately penalize those in lower income classes? How do we manage through that?

 

Laura Schewel 

Well, one thing you said congestion pricing in response to rising in congestion, I don't actually think that's what congestion pricing is in response to especially in the US, okay. I think it's what Secretary LaHood is saying, which is as the gas tax has not been raised proportionately, and as cars get more efficient, we are gutting our financing for the system. And we have to find some new mechanism of making money and when you see congestion tasks, I think it went into effect this week Washington State's VMT tax, instead of pricing for gasoline they price per mile driven. I think that's the fundamental push or we're not we're not yet. I know we think we're at peak congestion, we're not actually a congestion that bad yet, I think we have ways to go before it gets crisis. With that said, I think you need to pair you need a financing mechanism that pairs and increase in the price of socially sub optimal movement, which either causes congestion or causes greenhouse gases, you need that but you must pair it, and you must finance in advance, an alternative solution for the person who has to move. So for example, if you're going to raise a bridge told this happened recently in California, they raised a bridge toll on the Bay Bridge, you have to partner that with immediately availably increased and affordable trans bridge bus service. And I think that requires you to use the money before you start taxing people right. So you have to have a financing mechanism to pull that money up. So the day you start charging people more your alternate If solution that's affordable and shared and beneficial is there and I think that pairing of new infrastructure with payment is the only way to do it equitably. So you don't create a system where you can't afford to get to work. Yeah, so San Francisco's already

 
Brian Collie 

Challenges that you can have a solution that whereas you need the infrastructure in order to create the the equitable access, but you also need the money generated by these tax you really need for the is a bank

 

Laura Schewel 

Who takes the promise of the money and uses it to finance the infrastructure right but

 

Carlo Ratti 

But once you have the marketing once on the market, that you can actually provide incentives and subsidize some categories within your you can fix it the issue of affordability, it seems to me you know, you really need three key things in legislation. The first one is in principle in our cities are getting to that where we say well, you use the road, you're polluting using the road you're you're using a public infrastructure you pay for that pay per mile is the first thing. The second thing is that you're using the city and you're you're changing and in the impact on the city then you need to share your data in the third one if you really want to get an efficient market. Is that well, you know, your services need to have an API so that somebody can aggregate can aggregate into you want to say you go to from A to B. And again, you option to see how much it is with the same button. Like when it happens with kayak or Expedia with airlines in the same way in the city. I can say I can use Uber or Lyft or via or others, and I can pick the best option. So if you've got those three things in place, you know, that's it go to market in the city, and then you can decide what type of subsidies you might want to transfer you might want to implement in order to make it very affordable to everybody.

 

Ray LaHood 

Brian, I think that it's sort of in my mind, two parts solution. The gas tax needs to be raised. It is the pot of money that build America. Over 50 years, the gas tax built the interstate system, that infrastructure is owned by the taxpayers. And so that is in legislation raised the gas tax. Take part of the funds to implement some congestion pricing. pilot projects in two or three places in America and take part of the resources and help the communities pay for that and see how it works. But we need a pot of money to rebuild our infrastructure. And you can implement innovative and creative approaches by using part of those resources to again, change the culture of how we get around our communities.
 

Brian Collie 

So we spent a lot of time talking about the no shortage of challenges that the teams are confronting as they're trying to, to, again, fully leverage the new technologies and services that are out there. It's been somewhat of a while again, pointing out all the problems. That's where the discussion has been focused for the last 30 minutes. I feel like probably my fault. But what is there though, that gives you optimism and confidence that as you as you look at on this audience today that is here to learn about smart cities and to learn about some of the new technologies and services. What's the reason you see For hope and optimism, are there specific cities or specific use cases that you can talk to that give you confidence that you know what, we are going to be far better off in from an urban mobility standpoint in 10 years than we are today? What is that? The bit of optimism that you're holding onto?
 

Ray LaHood 

Number one, this room full of people. And there there are people like this all over America who care about this issue. Number two, the young people, it's not about it's not about raela hoods generation, even and I don't know some of you are younger than I am, but it's not even about most but okay. It's, it's about our kids and grandkids who get it. Yeah, they get global warming. They get the idea that they'd like to live in a city where they don't have to own a car, but they could ride their bike, they could walk, they could take a bus, they could take a train, and they know the next generation of transportation is not automobiles, and they want it they want to live in a city where they can have all of the amenities. And it truly is a livable sustainable community. So I think the optimism shown by the attendance in this room and the optimism of young people who are doing innovative, creative things all over America and all over the world.
 

Giovanni Moscatelli 

For me, the optimist also comes from the scale, right? If it's true that the majority of the population will live in cities, right, and the majority of the population doesn't want to own a car to make it simple, and they will still in that transport and to move around the amount of mobility and movements that are in the will being a CT will reach a such a scale that probably the majority of the cases the business case that today are not viable, will actually become viable. Right. That is what I've see. Potentially biggest source of optimism.

 

Clara Fain 

You know, I think brand the signs are here. It is new, everything that you both said this room full of people The you know, the fact that transportation is the largest emission drivers driver of emissions of greenhouse gas, the fact that, you know, some scary metrics are, you know, happening, like, you know, 52% of people buying cars are over 55 years old. And that's a pretty scary metric for the auto industry. And if you look at metrics around, you know, young people getting driver's license, they're even scarier. So, the signs are here. It's almost like, you know, when the iPhone came out, and you know, people started saying, Okay, how much data will people consume over time? Well, you guess what, no one got it right, because he was so massive that it just happened. And I think to your point, you know, everything is coming together, the technology is now there, and CDs can utilize it, the dreamers and the planners have a very good understanding of what they can do. Funding is getting on live there, you know, bills going through Congress about innovation in transportation, their pockets of money to test and play. It doesn't need to happen everything at once, you know, in order to make sure that it's balanced and thoughtful of the performance of Uber and Lyft. And the stock market is also quite telling, it's a sign you at the SF CTA in San Francisco released a study around congestion and increasing congestion in the city. And guess what, you know, 50% of the increases due to a great economic environment with very good, you know, unemployment, you know, population grows, you know, very healthy fats and 50% of the increases Juju, right hailing? No, that is not a great sign. So I think it is happening. The question is, you know, is it going to take another one or two years or is it going to take three to five years? You know, to me, that's the question mark.

 

Brian Collie 

So one thing I'm surprised I want to switch gears here for for a couple minutes. I'm surprised I haven't heard more about curbside management. We talked a lot about the movement of people. Let's talk briefly about the movement of goods. Now we have, again, new people mobility concepts, competing curbside, we now have you know, with the you know the rapid growth in e commerce we now delivering packages and goods competing for the curb side how do we manage that demand and drive the sort of efficiency that we need.

 
Carlo Ratti 

But I think if we if we introduce what we were saying before that basically you need to pay per usage of the infrastructure that some of the issues we have today will also be fixed. You know, the issues we have today are very simple to explain it you know, just three years ago probably I was going at two or three times per week to Whole Foods and go shopping and would buy everything I needed. And today I realize it because of instacart and Amazon Prime and so on I got three or four deliveries per day coming to my house. You know clearly some of that is not sustainable. I mean, we can you can make the calculations depends where the warehouses are, but but we cannot scale up this model. Now. How do we fix it again, if you charge people based on you know the amount of mileage you do in the city, then you know, people will we will think twice before we want to have a delivery in the next hour. Maybe you want to have the Delivery tomorrow, in which case many deliveries can be bundled bundled up in the total miles travel reduce a lot. So I think, you know, basically, the key parameter there is how fast we want something, you want something now, then, you know, that's a huge increase in overall traffic. So but I think, again, I don't think we can take the solution. But if you create an efficient market, based on how we use the resources in the city, which is everybody's resources, then you know, things we balanced themselves, and that applies to goods that apply to to people and you know, and to everything that moves into city.

 

Laura Schewel 

You know, you asked where city should be spending their money, I want to change my answer, they should be spending it on paint. Paint is the most important technology and smart city technologies that cities can have. And it is because with paint, you can innovate really interestingly, with infrastructure, for example, you could take a part of downtown and just paint one spot curb on every block purple, and purple means it's only for delivery and rideshare pick up and drop off and you can then measure the impact of that and then if it doesn't work, or if something we haven't even thought of to do. Movement comes up in two years, you just paint them back to the top color they were and you can you can have a more flexible infrastructure that way. So I think curbside management is critical. But I also think a lot of the solutions I see coming up for curbside management and other smart city things are overbuilt. They're over technology, not technology. They want like a million little sensors and beacons and real time alerts. And I think, and I think we've seen you can probably get 80 90% of the benefit with just a bucket of paint, and some signage. And I think that's where we should get started.

 
Brian Collie 

Interesting. That's, I wish more cities embrace that because i think that i think there's a lot of truth to that. So we've got a few minutes left here and I want to do maybe a rapid fire round as Giovanni I'll start a year and I'd like to hear each of the panelists respond to this. But again, no, you know, I think making good strategy and and driving progress is ultimately about choices, making choices in a in a resource constrained environment. If however, you could snap your fingers and In a very magical way, not like the Avengers movie, but in a very magical way drive a mobility innovation that would overnight allow us go further faster. And kind of realizing this potential of all the new technologies and services and business models are out there. What's the one thing that you'd want to see have happened? Yeah.

 

Giovanni Moscatelli 

So I thought this, again, I don't think is going to be our technology is not going to be a product. It's not going to be a transportation mode. I think if I could snap my fingers, I would definitely define a cooperation model, a cooperative model, where CT OEM data providers can come together and we the right incentive, the right scheme, the right risk management, they can actually create the innovation and enable innovation is not about finding the one technology that we defined smart seat.

 
Laura Schewel 

Yeah, I concur. I think innovation in procurement practices is the most important unlocking We have partnership models are one approach but there's other procurement and innovations as well that we desperately need.

 

Carlo Ratti 

Yeah, in building on that I was saying, you know, making the city a living up. So basically what tomorrow city is going to be we can decide all together. Okay.

 

Clara Fain 

You know, when, I guess when I when I dream at night, and getting back to our founders vision, My dream is that one day will live in a world where I'm driving a private vehicle, either autonomous or or not, will be like lighting up a cigarette and entering a kindergarten class. And, you know, I think in order to make that happen, obviously technology is important. You know, I wish that cities would adopt no shared mobility modes and public transit and good or public transit network more broadly and obviously, maybe with be with whatever they can

 

Ray LaHood 

I could snap my fingers. I would pray that distracted driving goes away. When we came into the job and oh nine not one person in America was talking about distracted driving. We held two big conferences about it in Washington DC. And now a lot of people are talking about it. A lot of states almost all 50 states have passed laws. This is a this is worse than drunk driving. And it's it's it's a real Bane on our our communities and we need to, we need to all really work on this. Together, these cell phones and texting devices are so far out of control. And none of you can drive a car while you're on your phone. Drive safely while you're on your phone or texting and driving. My optimism though, is with the young people, that that's where the cultural change is going to come. And we need to, we need to really think about how we can encourage the young people to get involved in these issues.

 

Brian Collie 

That's great. Now, I cannot agree more. And I've got five young children and I certainly want I think we talked to have 16 grandchildren. So we certainly want a better future for all of our children. And it really does require us to lead the way to kind of set the to create the opportunity for for the youth coming up and in freaking out distracted driving just also all the sitting the example. But it's it is it is it is true tragedy that in this day and age, with all the advancement we've haven't had had in technology, that the number of road accidents and deaths, mature markets are, you know, rising. In some cases, we certainly have to solve that. And so, I think, you know, just to kind of wrap things up here. Let me just say, you know, Begin by just thanking all of you. I really appreciate all of your time. Certainly, there are lots of good reasons to come to Vegas. But I'm really glad that you chose to come here for this one and to join us for this discussion today. The diversity of your experiences and backgrounds and insights are something that I know I personally benefited from. And I think, and I hope the audience did as well. And to all of you, again, thank you for your time on Monday, opening up CES, I know there's lots of opportunities where you'd be spending your time. Other discussions you can be attending, and I'm honored that you chose to join us for this one. As we talked about, we have to get this right with where urbanization is headed. With the host of pain points that exists today, across cities. There's a clear call to action for us to come together as the private public sector to solve these problems, to find ways to best leverage these technologies to best leverage these new services, these new business models, but really to work as one community to solve. It's a hard problem. It's a complex problem. By no means are we going to solve it overnight. But really by working together, you know, I personally am quite optimistic that we will get there. And so my ask for all of you is take something from this conversation, take it back with you to your respective communities and help continue the dialogue because that's the way we're going to get there. Thank you very much again. Thank you.

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