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.

 
 
 
 

Cycling on London’s Euston Road is still a terrifying experience

Cyclists on the Euston Road. Image: Jonn Elledge.

The New Road, which skirted the northern boundaries of London’s built up area, first opened in the 1750s. Originally, it was intended to link up outlying villages and provide a route to drive sheep and cows to the meat market at Smithfield without having to pass through the congested city centre. 

As with bypasses and ring roads the world over, however, it increasingly became congested in its own right. Today, you won’t often find livestock on the route, which is now Marylebone, Euston and City roads. But you will find up to six lanes of often stationary buses, cabs, and private vehicles. In a city whose centre is largely free of multi-lane highways, London’s northern ring road has long been the sort of abomination that you avoid at all costs.

But now, somewhat surprisingly, the road is seeing yet another new use. Earlier this week, the first phase of a temporary cycle lane opened on the Euston Road, the middle section of the route which runs for roughly a mile. As London rethinks roads throughout the city, this addition to the cycling map falls solidly into the category of streets that didn't seem like candidates for cycling before the pandemic.

It is, to be clear, temporary. That’s true of many of the Covid-led interventions that Transport for London is currently making, though those in the know will often quietly admit to hoping they end up being permanent. In this case, however, the agency genuinely seems to mean it: TfL emphasized in its press release that the road space is already being allocated for construction starting late next year and that "TfL will work with local boroughs to develop alternate routes along side streets" when the cycle lane is removed.

At lunchtime on Friday, I decided to try the lane for myself to understand what an unlikely, temporary cycle lane can accomplish. In this case it's clear that the presence of a lane only accomplishes so much. A few key things will still leave riders wanting:

It’s one way only. To be specific, eastbound. I found this out the hard way, after attempting to cycle the Euston Road westbound, under the naive impression that there was now a lane for me in which to do this. Neither I nor the traffic I unexpectedly found myself sharing space with enjoyed the experience. To be fair, London’s cycling commissioner Will Norman had shared this information on Twitter, but cyclists might find themselves inadvertently mixing with multiple lanes of much, much bigger vehicles.

It radically changes in width. At times the westbound route, which is separated from the motor traffic by upright posts, is perhaps a metre and a half wide. At others, such as immediately outside Euston station, it’s shared with buses and is suddenly four or five times that. This is slightly vexing.

It’s extremely short. The publicity for the new lane said it would connect up with other cycle routes on Hampstead Road and Judd Street (where Cycleway 6, the main north-south crosstown route, meets Euston Road). That’s a distance of roughly 925m. It actually runs from Gower Street to Ossulton Street, a distance of barely 670m. Not only does the reduced length mean it doesn’t quite connect to the rest of the network, it also means that the segregated space suddenly stops:

The junction between Euston Road and Ousslston Street, where the segregated lane suddenly, unexpectedly stops. Image: Jonn Elledge.

 

It’s for these reasons, perhaps, that the new lane is not yet seeing many users. Each time I cycled the length of it I saw only a handful of other cyclists (although that did include a man cycling with a child on a seat behind him – not something one would have expected on the Euston Road of the past).


Though I hesitate to mention this because it feeds into the car lobby’s agenda, it was also striking that the westbound traffic – the side of the road which had lost a lane to bikes – was significantly more congested than the eastbound. If the lane is extended, it could, counterintuitively, help, by removing the unexpected pinch points at which three lanes of cars suddenly have to squeeze into two.

There’s a distinctly unfinished air to the project – though, to be fair, it’s early days. The eastbound lane needs to be created from scratch; the westbound extended. At that point, it would hopefully be something TfL would be keen enough to talk about that cyclists start using it in greater numbers – and drivers get the message they should avoid the Euston Road.

The obvious explanation for why TfL is going to all this trouble is that TfL is in charge of the Euston Road, and so can do what it likes there. Building cycle lanes on side nearby roads means working with the boroughs, and that’s inevitably more difficult and time consuming.

But if the long-term plan is to push cyclists via side roads anyway, it’s questionable whether all this disruption is worth it. A segregated cycle lane that stops without warning and leaves you fighting for space with three lanes of buses, lorries, and cabs is a cycle lane that’s of no use at all.

Jonn Elledge was founding editor of CityMetric. He is on Twitter as @jonnelledge and on Facebook as JonnElledgeWrites.