Article | REF: TRP1010 V2

GAFA in the Transportation Sector

Author: Gabriel PLASSAT

Publication date: August 10, 2022

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ABSTRACT

The transport sector is in a phase of unprecedented transformation. Problems have accumulated: GHGs, pollution, concentration on oil, spread of the automobile, financing of public transport and poor mobility experience for citizens. All these difficulties serve as a point of support for new actors. Tech companies have several strengths: financial capabilities, qualified research teams and processes to pioneer innovation. It is essential to understand the current dynamics in order to follow these transformations and build new mobility solutions for citizens.

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AUTHOR

  • Gabriel PLASSAT: Founder of the Fabrique des Mobilités - Advisor to ADEME (French Agency for Ecological Transition) - This article is an updated reprint of the article [TRP 1 010] entitled "GAFAs in the transport sector – the carriage, the car and after" published in 2018, written by Gabriel Plassat.

 INTRODUCTION

The transport sector is in a phase of unprecedented change. Starting with an analysis of the challenges (GHGs, pollution, dependence on cars and oil) and opportunities, this article sheds as much light as possible on the GAFAs (Google, Apple, Facebook and Amazon) and other digital players in the transport sector.

To this end, a historical approach will be used to understand the evolution of the interplay of players in this sector. Beyond automakers, a broad ecosystem of players will be considered to study their digital transformation in relation to the evolution of the products and services developed and the constraints that are revealed.

More specifically, we'll be looking at the operating principles of the GAFAs, to understand how they are applied in the fields of transportation, mapping, mobility services and robotization. The mechanisms of digital platforms will be analyzed to understand how they work and their advantages in the transport sector. Finally, the analysis will focus on the special relationship they have developed with users, customers and the Multitude. This overview will take place in the United States, Europe and finally China, with their equivalents, the BATX (Baidu, Alibaba, Teicent and Xiaomi). A second generation of players such as Uber or Didi, its Chinese equivalent, will also be analyzed, as will robotization players Waymo and Baidu.

In the end, the main lessons to be learned concern the digital transformation of all stakeholders, public and private, to take advantage of the potential offered by digital technology while limiting the risks.

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GAFAs in the transport sector