Smart Mobility

July 30, 2024

Microincentives for Sustainable Mobility: Strategies from the Public and Private Sectors

In recent years, initiatives with a clear political will to promote more sustainable mobility and build cities with cleaner air, where people genuinely want to live, have emerged: the 2030 Agenda, the Sustainable Development Goals, TWI2050, Low Emission Zones, NextGen Funds, among others.

However, the shift towards a sustainable model cannot rely solely on politics; it must have the backing of the citizenry, who have the final say. This requires a paradigm shift and efficient mobility solutions that offer sustainable alternatives to private vehicles, as well as microincentives that motivate citizens to adopt this renewed mindset.

In this article, we explore how both the public and private sectors can implement microincentives, with real-life examples, to promote more sustainable and intermodal mobility. And how these incentives can effectively influence people's decisions on how to move around the city, including corporate mobility as a key aspect in this transformation.

What are microincentives and what are their advantages?

Microincentives are small economic, fiscal, or in-kind rewards offered to users to motivate them to adopt more ecological and sustainable transportation practices.

Their implementation in the public and private sectors represents an innovative formula with a growing number of supporters worldwide, promoting more sustainable and environmentally responsible behavior.

Microincentives in the public sector

For a long time, subsidies and incentives have been essential to encourage the use of public transport. Thanks to these government funds, more and more people have been able to access discounts or even free rides on public transport, which has helped reduce the use of private vehicles. However, although the COVID-19 pandemic and the rise in the cost of living have demonstrated that public transport is a vital part of urban mobility, securing funds to finance it has been challenging in recent years due to budget cuts.

This is where microincentives come in, offering an alternative to traditional government subsidies through a more flexible, dynamic, and targeted approach that, through these personalized rewards, helps alleviate financial constraints while encouraging modal shifts. This proposal is part of a study conducted by FACTUAL, titled "Microincentives for Sustainable Mobility in Europe" supported by nine entities, including Meep.

Characteristics of Microincentives in the Public Sector:

  • Flexibility and Dynamism: Microincentives are more flexible and dynamic than traditional subsidies, allowing real-time adjustments and adapting to the user's circumstances.
  • Personalization: They focus on individual user preferences, offering incentives that can be economic, fiscal, or in-kind, according to what best motivates each person.
  • Granularity: They are highly detailed, allowing for almost individualized incentives that can vary according to the type of user (people with reduced mobility or low income, elderly people...), time of day, day of the week, route, or even the type of trip (discounts or additional benefits for those traveling to public transport hubs, encouraging first or last-mile travel) or during off-peak hours.
  • Specific Objectives: They are designed to achieve concrete goals, such as increasing public transport use during off-peak hours, reducing car use in congested areas, or promoting the adoption of zero-emission vehicles.
  • Dual Strategy: They can be more effective when combined with disincentives for car use, such as the integration of low-emission zones or increasing parking fees.

Initiatives in the private sector

Microincentives are not limited to the public sector but also have great potential in the private sector to make it easier for employees or customers to access their workplaces using sustainable means of transport.

In recent years, several companies have begun offering financial or fiscal incentives to employees who commute to work by bicycle, electric scooter, or public transport. These incentives not only contribute to reducing car trips but also generate a positive impact on Corporate Social Responsibility.

Here are some examples of these initiatives:

1. Employee incentives

Companies can offer bonuses or rewards to employees who use sustainable means of transport.

Examples:

  • Iberdrola (Spain): Promotes initiatives such as assistance to purchase an electric vehicle, offers collective transport, carpooling, and encourages the use of electric bicycles, in addition to work flexibility, teleworking, or parking management, among others.
  • Sony (Japan): Provides discounts on public transport fares for its employees and supports the purchase of electric vehicles through subsidy programs and preferential loans.
  • Google (United States): Offers significant incentives for employees who choose sustainable means of transport, such as electric bicycles and electric vehicles. They also promote car sharing and provide facilities for teleworking and parking management.
  • Germany: Many companies offer their employees a "Jobticket" or work transport pass, which consists of a public transport ticket subsidized or fully paid for by the company.

2. Corporate benefits

The culture of the "company car" is gradually being replaced by other corporate benefits aimed at improving commuting. These benefits fall under corporate mobility and can range from corporate car-sharing options to individual mobility budgets. Companies like Enterprise or Alphabet are at the forefront of these solutions.

There is also the option to offer electric bicycles as part of employee benefits.

Examples:

  • Netherlands: Employees have the option to purchase a bicycle at a lower price and with tax benefits through companies.
  • France: Offers assistance to exchange old cars for electric bicycles.
  • Germany: Many companies offer financing programs for the purchase of electric or conventional bicycles through programs known as "Dienstradleasing," where employees can acquire bicycles at reduced prices or through leasing.

3. Comprehensive mobility solutions with loyalty programs

The fact that large companies and SMEs economically incentivize employees to move more efficiently does not mean that everyone has to take the bus; some can carpool with facilitated tools, and others should take the company's digitized shuttle. The infrastructure is ready; now, it's just a matter of connecting the pieces and making regulations.

In this process, Meep has the necessary technology to develop white-label applications for companies, with real cases in Malta and Seville, which transactionally integrate shared mobility services and loyalty programs to improve user recurrence and satisfaction.

Conclusion

Sustainable mobility is not just a political goal but a shared commitment to building more livable and cleaner cities. Through microincentives, both the public and private sectors can transform how we move, promoting the use of more sustainable transportation than private cars.

These initiatives reward sustainable behavior and create more connected communities that are aware of their environmental impact. With every step forward, we are building a greener and more resilient future for future generations.

Diego Ochoa
Marketing Manager