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Why we invest in Smart Mobility

October 24, 2024

To help create a future where mobility is technology-driven and climate-friendly is the short answer, but there is more to it.

Mobility is a fundamental human right and an essential aspect of modern society. It enables people to travel and goods to be transported. However, it comes with significant costs to society, including greenhouse gas emissions, air, noise, and water pollution, accidents, congestion, and biodiversity loss. These consequences constantly increase, highlighting the urgent need for transformative changes and continuous innovation to move towards a greener, more efficient, and sustainable – but not less connected – future.

The statistics highlight the risks associated with transportation as we know it. As stated by the World Health Organization:

  • Approximately 25% of energy-related greenhouse gas emissions come from the transport sector, contributing to the health impacts of climate change and air pollution.
  • 569,000 deaths are attributed to ambient air pollution, in which transport is a major contributor, making it the most significant environmental health risk in the European Region.
  • Road traffic accidents are a leading cause of death, with over 68,000 people killed on European roads annually, with the solution being, among others, reduced car dependency.

The urgent need for smart mobility solutions is evident in rapidly growing urban environments. According to the World Bank, more than 56% of the world’s population lives in cities, and this percentage is expected to rise. By 2050, the urban population is projected to more than double its current size, with nearly 7 out of 10 people living in cities. Urban areas are also responsible for 70 percent of global CO2 emissions, with transportation being the largest contributor alongside buildings (IPCC, 2022). This highlights the need for climate-friendly alternatives in mobility and transportation, especially as traditional cars continue to dominate the cities.

However, the problem is about more than how people move around, but also about how our goods are transported. International trade has a significant impact on CO2 emissions, with 20-30% of global emissions being linked to global trade, as stated by the World Trade Organization. Transporting goods over long distances involves various modes of transportation, which significantly contribute to greenhouse gas emissions. The globalization of supply chains results in increased distances between production and consumption, further increasing emissions. Addressing these emissions, among other things, requires optimizing supply chains, improving transportation efficiency, and promoting sustainable practices.

And if all the above are not enough to push us to act towards smart mobility options collectively, consider the latest T&E report, showing that since its peak in 2007, transportation has been decarbonizing more than three times slower than the rest of the economy. This means that under current climate policies, its share could reach 44%of all GHG emissions by 2030. As stated by T&E’s Executive Director, William Todts: “In 2030, nearly half of the continent’s emissions will come from mobility, making it the problem child of Europe’s climate efforts.”


Driving change with innovation

Smart mobility is a cornerstone of the smart city movement, revolutionizing the way we think about transportation. By harnessing cutting-edge technologies, smart mobility solutions aim to create seamless commuting experiences for both passengers and goods. This innovative approach prioritizes safety, efficiency, and connectivity, all while supporting sustainability and digitalization. The ultimate goal? To transform transport systems into smarter, safer, and more environmentally friendly networks that reduce our carbon footprint.

Smart mobility includes various evolving types and forms driven by technological advancements. Although each option has its own characteristics, they all aim to improve efficiency, safety, and sustainability. Some examples of smart mobility are shared mobility services (car-sharing, ride-sharing, and bike-sharing), autonomous vehicles (AVs), electric vehicles (EVs), and micro-mobility options. At the same concept, Mobility as a Service (MaaS) is gaining popularity due to the multiple integrated solutions it offers, while public transit systems are evolving with smart technologies.

The technological advancements behind smart mobility are numerous and interconnected. Naming a few, they encompass Internet of Things (IoT) devices that allow real-time tracking, Artificial Intelligence (AI) and machine learning algorithms that enhance traffic flow and route planning, and 5G networks that offer high-speed, low-latency communication for connected vehicles. Furthermore, smart mobility relies on big data and cloud computing to analyze traffic patterns, forecast demand, and enhance service efficiency, all contributing to a more unified and responsive transportation network.

Smart mobility options and the technologies powering them are diverse and continually evolving, reflecting the dynamic nature of innovation and the growing demand for sustainable and efficient solutions.

If you have an idea related to smart mobility, reach out to our team!


Also, check out our portfolio companies that are leveraging technology to reduce CO2 emissions in urban mobility and freight transport: 

Caroo, is a car-sharing company that provides a sustainable and affordable alternative to car ownership by leveraging the seasonally idle fleets of car rental companies.

SmartLoC provides solutions for international trade, focusing on secure and efficient B2B payment systems, shipment monitoring through IoT devices, and supply chain intelligence, playing an essential role in reducing CO2 emissions.