Dubai Smart Gates Dubai Airport introduces Smart Gates Src: Flickr
Changing the Face of Transport via APIs Manfred Bortenschlager I work for 3scale.net API Management @3scale APIdays Paris, December 3, 2014
Outline Opportunities and Challenges in Transport Five API Use Cases API Economics Wrap-up and take-aways
International travel contributed $6.9tr to global GDP Transport industry accounts for 4.5% of total employment International trade growth forecast 8% Growing hyperconnectivity: people, places, machines Smart navigation systems reduce travel time by 18% Src: WEF, EC, Flickr
Traffic congestion effects reduce GDP by $200bn in EU and US Transport accounts for ? of EU’s emissions 71% of EU car drivers criticize convenience of PT Saturation of EU skies, freight traffic to grow 125% Growth rates ? energy ? Src: WEF, EC, Flickr
The solution to all this ? Application Programming Interfaces …because APIs are interfaces that allow systems to work – frictionless.
Five API use cases Enabling mobile channels Growing ecosystem Increasing reach Powering business models Driving innovation www.3scale.net
Open data for multi-modal travel throughout UK Open data for Smart Cities Including transport data Adopted by many mobile apps 1. Enabling mobile channels
2. Growing ecosystems Carma Easily find matches for carpooling Exposes same functionality via API
3. Increasing reach From service to platform Opening up an API […] embeds them in a wider range of apps […] and increases their sales potential because they have more channels. (Gartner) Src: http://bostinno.streetwise.co/2014/08/20/uber-api-open-uber-api-launch-partners-include-starbucks-united-airlines/
4. Powering business models Aggregation of various transport-related data feeds Freemium price plan for API access
5. Driving innovation Free access to datafrom multitude of sources: Lines, times, fares, points of interests, bikes, traffic jams, speed cameras, electric car charge points… Encourage mashups and innovation
But what really is the power of APIs ?
APIs enable the creation of platforms.
Src: http://www.valuewalk.com/ …A "platform" is a system that can be […] customized by outside developers -- users -- and in that way, adapted to countless needs and niches that the platform's original developers could not have possibly contemplated.
APIs enable the creation of platforms. Platforms enable 2-sided business models. (aka Asymmetric Business Models)
Asymmetric Business Models Side 1 Type “Home” market Primary Side 2 Type “Victimized” market SecondaryDrives the primary
Platform economics Home Market Victimized Market Platform Src: wikipedia
Platform economics Price Price Quantity Home Market Victimized Market Platform P1 ? P2? (free)
Platform economics: examples Price Price Quantity Home Market Victimized Market Platform
APIs enable the creation of platforms. A Platform… …adapted to countless needs and niches…
Platform and the five API use cases Enabling mobile channels Growing ecosystem Increasing reach Powering business models Driving innovation
Nearly 4/5 of the CEOs identified technological advances such as the digital economy, …
Take-aways There are tremendous opportunities in transport. Several socio-economic, structural and technical challenges need to be overcome. APIs (will) play an essential role. Five API use cases can be identified. All relate to platform economics.
The next miracle to come from transportation
Q&A Manfred Bortenschlager [email protected] I work at 3scale.net API Management @3scale Changing the Face of Transport via APIs