American cities are in crisis. So why is Richard Florida exporting their lessons?

A row of abandonded buildings in Detroit, Michigan, 2011.

American cities are in crisis. Those that muddled through the financial crash are now facing fiscal and infrastructural challenges. According to UN Special Rapporteur on extreme poverty and human rights, Philip Alston, “the criminal justice system [in many American cities] is effectively a system for keeping the poor in poverty.”

So it might come as a surprise that Richard Florida, self-styled guru of the so-called “creative class,” argues that cities in developing countries should follow America’s lead in his new book, The New Urban Crisis: How our Cities are Increasing Inequality, Deepening Segregation, and Failing the Middle Class—and What We Can Do about It.

America has historically exported its model of urban development. Take suburbanisation, for example, an urban model that originated in the United States, and which later became a global phenomenon. Thanks to suburbanisation, cities across the world have become sprawling car-centric metropolises.

The largest and fastest growing conurbations are found in low- and middle-income countries. But many of these cities face a series of environmental, economic and political challenges that cannot be addressed by importing American models of urbanization.

First and foremost, the rapid outward growth of cities threatens local ecosystems, and makes them vulnerable to shocks and stresses wrought by climate change.

Second, American cities were centres of industry whose growth fuelled the expansion of the middle class. While mass production remains a driver of economic growth, automation and deindustrialization threaten to inhibit developing countries from pursuing this development model.

Finally, many residents of cities in developing countries live in dense ‘informal’ popular neighbourhoods, often referred to pejoratively as slums. These can offer a vital foundation for support and social life, particularly for people who have recently migrated from rural areas.

City elites tend to favour large-scale real estate projects at the expense of informal settlements, and this has provoked violent backlashes from Istanbul and Rio de Janeiro to Phnom Penh and Johannesburg.

In his new book, Florida describes a brief sojourn to Medellín, Colombia. He was enthralled with what he found beyond his creative comfort zone of pop-up art galleries, Korean taco trucks and cucumber-infused table water. He recounts “thinking and writing nearly non-stop about the issues that had been discussed there” for an entire month.


The result was a eureka moment: “The crisis of global cities and global urbanization, I was starting to see, was a huge dimension of the New Urban Crisis, substantially bigger than the serious urban and suburban challenges in the United States.”

Florida laments that the focus of American urban policy has remained largely domestic. He asserts that “it is time for it to take on a more global dimension,” advocating for a U.S.-led effort to build new cities in “fragile and broken” nation-states.

There is a long history of building new cities. In most cases they have fallen victim to the same problems they were erected to counter. Florida’s enthusiasm in his book for a network of mini-Miamis dotting Africa’s coastline seems to come from a naïve belief that they would incubate his creative class.

Yet rather than dream of new utopian cities for African elites, the U.S. should focus on making its own cities liveable again. The extreme socio-spatial segregation of Detroit; Houston’s unwillingness to implement basic zoning laws; the endless sprawl of Los Angeles; endemic corruption and the recent race to the bottom to attract an Amazon headquarters are not models for replicating elsewhere.

As difficult as it may be for American urbanists like Richard Florida to admit, the seeds of urban transformation are not found in the U.S.

In fact, cities in developing countries are charting new innovations and practices that stretch far beyond the fantasises of American urbanists. American cities could learn a lot about transportation and public housing from Asian cities, or about low-cost off-grid energy systems that are being pioneered in African cities.

Richard Florida’s public persona is a never-ending celebration of creativity, so it is ironic that he fails to recognize the creative ways that people around the world are trying to adapt to climate change, foster equitable economic growth and advance political claims. Were more American planners and urbanists willing to listen, learn and experiment, they could find useful lessons in other parts of the world.

A longer version of this article appeared in the International Journal of Urban and Regional Research titled ‘Florida in the Global South: How Eurocentrism Obscures Global Urban Challenges – and What We Can Do about It.’

Seth Schindler is Senior Lecturer in Urban Development & Transformation at the Global Development Institute, University of Manchester. He previously coordinated the Global Studies Programme at Humboldt University of Berlin.

Jonathan Silver is Senior Research Fellow at the Urban Institute, University of Sheffield.

 
 
 
 

What Citymapper’s business plan tells us about the future of Smart Cities

Some buses. Image: David Howard/Wikimedia Commons.

In late September, transport planning app Citymapper announced that it had accumulated £22m in losses, nearly doubling its total loss since the start of 2019. 

Like Uber and Lyft, Citymapper survives on investment funding rounds, hoping to stay around long enough to secure a monopoly. Since the start of 2019, the firm’s main tool for establishing that monopoly has been the “Citymapper Pass”, an attempt to undercut Transport for London’s Oyster Card. 

The Pass was teased early in the year and then rolled out in the spring, promising unlimited travel in zones 1-2 for £31 a week – cheaper than the TfL rate of £35.10. In effect, that means Citymapper itself is paying the difference for users to ride in zones 1-2. The firm is basically subsidising its customers’ travel on TfL in the hopes of getting people hooked on its app. 

So what's the company’s gameplan? After a painful, two-year long attempt at a joint minibus and taxi service – known variously as Smartbus, SmartRide, and Ride – Citymapper killed off its plans at a bus fleet in July. Instead of brick and mortar, it’s taken a gamble on their mobile mapping service with Pass. It operates as a subscription-based prepaid mobile wallet, which is used in the app (or as a contactless card) and operates as a financial service through MasterCard. Crucially, the service offers fully integrated, unlimited travel, which gives the company vital information about how people are actually moving and travelling in the city.

“What Citymapper is doing is offering a door-to-door view of commuter journeys,” says King’s College London lecturer Jonathan Reades, who researches smart cities and the Oyster card. 

TfL can only glean so much data from your taps in and out, a fact which has been frustrating for smart city researchers studying transit data, as well as companies trying to make use of that data. “Neither Uber nor TfL know what you do once you leave their system. But Citymapper does, because it’s not tied to any one system and – because of geolocation and your search – it knows your real origin and destination.” 

In other words, linking ticketing directly with a mapping service means the company can get data not only about where riders hop on and off the tube, but also how they're planning their route, whether they follow that plan, and what their final destination is. The app is paying to discount users’ fares in order to gain more data.

Door-to-door destinations gives a lot more detailed information about a rider’s profile as well: “Citymapper can see that you’re also looking at high-profile restaurant as destinations, live in an address on a swanky street in Hammersmith, and regularly travel to the City.” Citymapper can gain insights into what kind of people are travelling, where they hang out, and how they cluster in transit systems. 

And on top of finding out data about how users move in a city, Citymapper is also gaining financial data about users through ticketing, which reflects a wider trend of tech companies entering into the financial services market – like Apple’s recent foray into the credit card business with Apple Card. Citymapper is willing to take a massive hit because the data related to how people actually travel, and how they spend their money, can do a lot more for them than help the company run a minibus service: by financialising its mapping service, it’s getting actual ticketing data that Google Maps doesn’t have, while simultaneously helping to build a routing platform that users never really have to leave


The integrated transit app, complete with ticket data, lets Citymapper get a sense of flows and transit corridors. As the Guardian points out, this gives Citymapper a lot of leverage to negotiate with smaller transit providers – scooter services, for example – who want to partner with it down the line. 

“You can start to look at ‘up-sell’ and ‘cross-sell’ opportunities,” explain Reades. “If they see that a particular journey or modal mix is attractive then they are in a position to act on that with their various mobility offerings or to sell that knowledge to others. 

“They might sell locational insights to retailers or network operators,” he goes on. “If you put a scooter bay here then we think that will be well-used since our data indicates X; or if you put a store here then you’ll be capturing more of that desirable scooter demographic.” With the rise of electric rideables, Citymapper can position itself as a platform operator that holds the key to user data – acting a lot like TfL, but for startup scooter companies and car-sharing companies.

The app’s origins tell us a lot about the direction of its monetisation strategy. Originally conceived as “Busmapper”, the app used publicly available transit data as the base for its own datasets, privileging transit data over Google Maps’ focus on walking and driving.  From there it was able to hone in on user data and extract that information to build a more efficient picture of the transit system. By collecting more data, it has better grounds for selling that for urban planning purposes, whether to government or elsewhere.

This kind of data-centred planning is what makes smart cities possible. It’s only become appealing to civic governments, Reades explains, since civic government has become more constrained by funding. “The reason its gaining traction with policy-makers is because the constraints of austerity mean that they’re trying to do more with less. They use data to measure more efficient services.”  

The question now is whether Citymapper’s plan to lure riders away from the Oyster card will be successful in the long term. Consolidated routing and ticketing data is likely only the first step. It may be too early to tell how it will affect public agencies like TfL – but right now Citymapper is establishing itself as a ticketing service - gaining valuable urban data, financialising its app, and running up those losses in the process.

When approached for comment, Citymapper claimed that Pass is not losing money but that it is a “growth startup which is developing its revenue streams”. The company stated that they have never sold data, but “regularly engage with transport authorities around the world to help improve open data and their systems”

Josh Gabert-Doyon tweets as @JoshGD.