SSB Flex - A New Mobility Offer for Stuttgart Ulrich Weber, Head Staff Unit Funding/EU Affairs, Stuttgarter Straßenbahnen AG

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SSB Flex - A New Mobility Offer for Stuttgart Ulrich Weber, Head Staff Unit Funding/EU Affairs, Stuttgarter Straßenbahnen AG Cities for Mobility, Stuttgart, 19 June 2018 1

Initial situation and context

Why are we dealing with that topic? New forms of mobility and new business models will influence public transport Digital control, integration and autonomous vehicles will enable entirely new forms of mobility Diverse opportunities for public transport, for new / complementary forms of transport, since cooperations are still quested OEMs (original equipment manufacturer) Cooperation / Investment TNCs (Transportation Network Companies) Cooperation / Investment Tech-companies DRT Demand Responsive Transport Start-ups 3

Some activities of on-demand services in Germany (other activities of UberX, IOKI, MVVANT, MatchRider etc.) DVG MyBUS / Size: 5 Vehicles Vehicles: MB V class Cost:Ö PNV ioki ( brand) B2C Service Hamburg: Size: plans for 100 Vehicles in 2018 Vehicles: different kinds (electrical vehicles included) ( -brand) B2C Service Hamburg: Size: plans for 200 vehicles ; Start in 2018 Vehicles: VW, special electrical Shuttles Hannover: Siz: 20 Vehicles Vehicles : VW T6 Multivan Cost: 6 Cent per km during test phase B2B Platform Duisburg Hamburg Hannover Lübeck BerlKö nig / VIA Vans /Daimler B2B Service Size: 50 / 300 Vehicles Fahrzeug: MB V class, elektr. B-Klasse Cost:? Leipzig Berlin Dresden ( brand) B2C Service Size 10 Vehicles Vehicles: e.g. MB V class, VW T6 Multivan Cost: 5 Cent per km Overall: B2C Service Size: elektr. Vehicles (e.g. Nissan Leaf) Cost: between Taxi prizes and Ö PNV prizes (40% below Taxi prices) Berlin: Size: 16, 30 are planned Leipzig: Size:10 Vehicles ( brand) ADAC Test Size: 10 Vehicles Vehicles: e.g. MB V class, VW T6 Multivan Cost:? Hamburg: Size10 Vehicles, 10 more planned Vehicles: (Toyota Mirai) Cost: between Taxi and Ö PNV (40% below Taxi prices) Frankfurt: Announced Service Stuttgart: Have permission Size: 15 Vehicles B2C Service Wittlich SSB-Flex / moovel Frankfurt Stuttgart B2B Platform Size: 13 Vehicles: MB V class / 2 elektr. B-class Cost: between Taxi prizes and PT, VVS -Tarif München Munich: Size: 10 Vehicles Freyung Dresden: Shuttle / B2B Platform Freyung Announced Service Size:8 Vehicles Vehicles: can carry different amount of people, e.g. MB V class Cost: : between Taxi prizes and Ö PNV MVG Shuttle / B2B Platform Size: - Vehicles: Different cars out of the MVG-Pool Cost: between Taxi prizes and PT 4

Less traffic, up to 80% less vehicles Recent studies, focusing on the use of ride sharing, show great potential : MIT (New York), IFT (Lisbon), MEGAFON (Stuttgart) for ridesharing MEGAFON Study (VDV/Ministry of Transport BW): Only ridesharing with autonomous vehicles in combination with high capacity PT will contribute to future sustainable mobility in cities + 5

Project objectives Make concrete experience with new forms of mobility and carry out a first pilot during 18 months SSB intends to continue to be the sustainable and appreciated mobility provider for public transport in Stuttgart. SSB has therefore a high interest in taking an in-depth look at these new opportunities and drawing the right conclusions for innovative mobility offers Dealing with new forms of mobility and business models (Ride-Sharing, Pooling, DRT / on-demand, Maas, integrated multimodal mobility) as basis for future strategic decisions On-demand service complementing public transport in a given transport area Gain new experiences Legal aspects (approval for concession, Passenger Transport Act/PBefG) Planning (demand, operating areas, times, schedules) Marketing & Sales (Customer, Tariff, Profit Contribution, Marketing) Operation (algorithm, operation control) Political dimension (taxi industry, opportunities for cities, discussions on clean air/climate change, sustainable mobility,...) Strategic dimension (customer data, platform strategy) 6

Scope

Already strong backbone public transport supported by attractive, demand-based offer S-Bahn, Light rail, Bus, Funicular Dynamic on-demand transport Attractive to the inhabitants of Stuttgart forward-looking of SSB Additional mobility for Stuttgart Aim: More people using public transport thanks to more attractive overall offer 8

Advantages of dynamic, demand public transport fff for passengers fff Easier connection to train/light rail stations (last mile) Shorter ways to bus stops and trainstationsthrough virtual stops Simple real-time booking and payment via smartphone Consideration of existing tickets fff for Stuttgart public transport increased utilization through intelligent pooling Seamless integration into the already existing PT offer Optimized transfer information through intermodal trip chain New digital native customers Attractive and efficient public transport even in low-demand areas 9

SSB Flex service areas Step by step entry (limited drivers and vehicles) covering so called white spots and evening traffic Area Days Times Operating concept 13 vehicles (max 10 simultaneously) Bad Cannstatt - East Mo - Sa + Th - Sa Mo-Sa 06.00am - 09:00pm + Th-Sa 09:00pm - 02.00am 2 SSB - Shuttle Degerloch (Stufe 1) Sillenbuch (Stufe 2) Mo - Sa + Th - Sa Mo-Sa 06.00am - 09:00pm+ Th-Sa 09:00pm - 02.00am 2 SSB - Shuttle Center Zone 10 Th- Sa Th-Sa 09.00pm - 02.00am 10 SSB - Shuttle Gesamtgebiet 10

SSB Flex vehicles 11 Mercedes-Benz V-Class: 5 passenger seats in the rear Attractive interior design Vis-a-vis seating for a better entry and exit Electronic sliding doors Supplementary use of two Mercedes Benz B-Class electric drive. 3 passenger seats Testing of electric drives for DRT concepts, in particular the consideration of the range in the routing algorithm 11

Legal Framework

On-Demand-Transport: Position in legal framework The German Passenger Transport Act/PBefG only knows two types of transport services (occasional services and regular services) An on-demand mobility service is neither occasional (rental car) nor regular service (like bus/rail transport) An on-demand mobility service is subject to approval for concession In the view of SSB, such an on-demand mobility service is also capable of being approved, according to the rules of regular services, 42, 2 Abs. 6 PBefG SSB Flex has been approved as regular service by regulatory authority 13

Differences between the On-Demand-Transport and the already existing Ruftaxi /Taxi on call regular transport connection On-Demand-Transport a Ruftaxi/Taxi on call a between predefined starting and ending points a Intermediate stops Predetermined virtual stops Fixed stops and exits in between Booking via Smartphone Via telephone Bookable single seats a a a Special tariff a a 14

Collaboration SSB / moovel

Collaboration SSB AG // moovel Group GmbH In the implementation of digitization strategies with new business models, classic and new companies work together successfully. Reliable, safe public transport for 150 years with significant future options for sustainable mobility moovel Digital, new and networked services with an agile approach Regulatory approval Control center Drivers Branding / Marketing Demand data Fleet management Customer Service Ticketing Platform, Routing Fleet control (software) White Label - B2C App & Driver App Demand data Ticketing (technical) Payment Customer Service (2. Level) Different skills, a successful collaboration 16

SSB Flex App

Operating mode of the SSB Flex App After entering the start and end address, the algorithm provides corresponding search results for the on-demand shuttle and for bus and train. The passenger can change the number of passengers and the time of travel variably. The algorithm returns results: - mode of transport - Travel time - Changes - Departure Times - Fares Each trip (start-destination relation) must be booked individually. The booking is made exclusively via the SSB Flex app. SSB - On-Demand-Verkehr 18

Conclusion SSB-Flex is about complementing the existing public transport offer and not competition DRT/on-demand service as part of the existing entrustment to SSB: Public service offer, generating benefit is initially not the primary goal. Collaboration with moovel offers a good symbiosis: technology know-how and agility meets comprehensive public transport knowledge with an established brand. Service and customer benefit are the focus. The offer must appear in the SSB brand. From the strategic point of view of SSB, ownership of the platform is not essential, but customer master data and the role as a customer contract partner are of importance. Know-how and customer access for the upcoming challenges of mobility 4.0 are essential. Such concepts ensure that the municipality's future mobility management remains in the public control 20