Towns are the winners from Britain’s great urban exodus

Rotherham High Street. Image: Getty.

You may not notice it unless you or your offspring are university-bound, but every autumn brings with it a vast movement of people around the country as the university term begins. More specifically, it triggers an exodus of young people from the UK’s towns and countryside, as they flock to fill university campuses, most of which are based in cities.

Our cities rob the rest of the country of their bright young things. In 2014-15, 420,000 more university students moved to cities compared to the number going in the opposite direction. And this in part helps to explain why the average age of cities is four years younger than the rest of the UK.

But perhaps somewhat surprisingly, cities only see a net inflow of people in the 18-21 age group, and among 25 and 26-year-olds.  As the chart below from the Centre for Cities’ recent report Talk of the Town highlights, in every other age group, cities in England and Wales lost people to towns and rural areas between 2009 and 2017. In fact, over this period over 500,000 more people turned their back on cities than were lured by the bright lights of urban life – with the biggest contributor to this urban exodus being the 31-45 age group.

Migration by age in England and Wales, 2009-17. Source: ONS, Internal migration by local authorities in England and Wales.

And of these people who leave cities, a large proportion of them hold a degree. Data from the Census reveals that in 2011, 40 per cent of people aged over 16 who moved out of cities were graduates.

This varies with age. Cities saw a net inflow of degree holders aged 22 to 30. But this trend was reversed for older age groups, with 31-to-45-year-olds, in particular, moving out of cities.

Migration of degree holders to and from cities, 2011. Source: Census 2011. Data is for England and Wales only.

People’s decisions to move in or out of cities are influenced by their changing need for amenities as they get older. Previous research by Centre for Cities has shown that the main drivers bringing young people into cities (and city centres in particular) are access to jobs, transport and amenities such as restaurants and shops. These benefits are traded off against disadvantages such as smaller living space, higher levels of pollution and more limited access to green space.


But as people get older, the availability of amenities such as schools and green space becomes more important, and so a suburban or non-urban location begins to appeal more.

So yes, towns and rural areas lose young adults to cities as they head off to university. But they also see an inflow of higher-qualified people back into their areas, as those people’s lifestyles and needs change with age. The older average age of non-urban areas isn’t just driven by a loss of young people to cities – it’s also the inflow of older degree holders from cities too.

Paul Swinney is head of policy & research at the Centre for Cities, on whose blog this article first appeared.

Read the Centre’s Talk of the Town report to find out more about the relationship between cities and towns, and what this means for policy.

 
 
 
 

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.