This section does not include the affordability of automobiles (passenger vehicles) as it should be treated differently than car rentals and leasing, planes, trains, and other road transportations like buses and taxis.
We are looking to assess the affordability of mobility to its end-users. Therefore, we will not publish an analysis discussing B2B.
INTRODUCTION:
In general, for this category, the introduction should include:
- Why is the specific type of transportation service (i.e., taxis, rental cars, trains, planes) necessary?
- How is it beneficial to people and society at large?
- Add any absolute figures that might be useful to understand better the importance of the topic (i.e., people reached by this service either locally, globally, or nationally).
The core analysis should include:
Caution: When there is insufficient data to assess the company's absolute impact (in global terms), you can mention the area/region where the company has the most impact.
Road Transportation
For the road transportation industry, the affordability of taxis or similar services provided to people should be assessed.
The body of the analysis shall prove if the specific service(s) offered by the company in question is indeed affordable or not. Additionally, it should include whether the prices, charges, fees, and other associated costs are in line, below, or above the national/global standards and/or competitors offering the same service(s).
The core analysis should include the following:
The federal charges for the service provided. For instance, if the analysis deals with taxis, you should disclose all the different types of charges/costs associated (i.e., flag-down rates, peak hours rates, night rates, etc.)
Assess the same total costs mentioned in the point above for the company you are analysing.
If space allows it and/or if national/local charges/prices are not disclosable, we can look into competitors and benchmark the company's data to them.
Example:
"ComfortDelGro is a Singaporean land transport conglomerate, with total revenues of USD3.2Bn in 20204, ComfortDelGro owned ~60% of the taxicab service market share in Singapore with a fleet of 7,361 taxis5;p4,6;p1. Further, the company provided mobility services to ~200Mn taxi passengers in 2020 (daily avg of 1Mn*365*60%)7.
In Singapore, normal taxi fares are metered at $0.22 for every 350m-400m or less (approximately more than 10 km)8. Further, the avg flag-down fares vary from $3.20 to $3.908. The booking stands at $2.90 or $3.308. In addition, during the day, the fee is 25% of the metered fare, whereas late at night, it is 50% of the metered fare8.
Globally, ComfortDelGro's taxi charges $0.22 per every 350m/450m (approximately more than 10 km)9. Further, ComfortDelGro's flag-down rates range from $3.20 to $3.90 (for all rides)9. ComfortDelGro's bookings for peak hours cost $3.30, and for other hours cost $2.309. Lastly, ComfortDelGro charges 25% of the metered fare for peak hours and 50% of the metered fare for late night transportation9.
Comparatively, ComfortDelGro's taxi charge per meter is comparable to Singapore's metered fare8,9. Further, ComfortDelGro flag down, booking, and surcharge rate are comparable to the national avg8,9."
Analysis Example: https://app.impaakt.com/analyses/with-mostly-comparable-prices-to-the-avg-charges-comfortdelgro-taxi-charges-are-affordable-50719
Car Rental & Leasing
This industry includes rental services providing mobility and transportation for people. The analysis should discuss why rental services are a crucial element for mobility.
The core analysis should include the following:
The average national prices for the service/product offered by the company.
The company's total price for the same service/product.
If space allows it and/or if the national/local charges/prices are not disclosed, you can look into competitors and benchmark the company's affordability to them.
Example:
"According to Move.org, the cost of using a rental truck for local and long-distance move ranges between US$132 to $1,700, $955 on avg3. Further, the truck rental deposit stands at $0–$150, $75 on avg (for all distances)4.
Amerco is mainly involved in car rental and leasing services5. It operates U-Haul, which is the biggest DIY rental operation in the world6. The company operates in all 50 US states & 10 Canadian provinces6. Amerco recorded net sales of USD4.54 billion (Bn) in 2021 & U-Haul's rental services accounted for 93.2% ($4.23 Bn) of it7. U-Haul's truck's average mileage per day is 7.4 Mn Km and 2.7 Bn Km per year, reaching millions of people6.
As of 2021, Penske is ranked second globally and is U-Haul's top competing alternative8.
U-Haul charges an average price of $137 for Local Move (Under 80Km), $296 for Medium Distance (80Km-402Km), and a median asking price of $1,088 for Long Distance (402+ Km)9. Further, the rental fee stands at $19.99, for all distances9. On the other hand, Penske charges around $134-$200, $167 on avg., for Under 80Km, $200-$600, 400 on avg for 80Km-402Km, and $600-$1,200, ~900 on avg. for 402+ Km10.
Comparatively, U-Haul's local move charge is ~1.2x less than that of Penske's9,10. Also, its Medium Distance charge is ~1.4x less than Penske's9,10. However, its long-distance charge is ~1.2x the median charge of Penske's9,10. Further, U-Haul's charges at $612 ($137- $1,088) on avg is ~1.6x less than the global avg charge9,3, and the rental fee per day is ~3.8x less than the global average daily charge9,4."
Analysis Example: https://app.impaakt.com/analyses/amercos-u-haul-truck-rental-charges-are-generally-lesser-than-its-top-competitorsthe-global-rates-51813
Rail Transportation
The core analysis should include the following:
The average national charges/prices for the service provided (i.e., monthly passes, cost per km expressed in USD or EUR/km, cost of trips, etc.)
The company's charges/prices for the same service.
If space allows it and/or if national/local charges/prices are not disclosed, you can look into competitors and benchmark the company's data to them, using the cost per km or price of a monthly pass.
The median income in an area where the company has the most significant presence.
The amount a person spends on the service (monthly pass or similar provided by the company) vis-à-vis the median income for an individual (%).
There is a definition of affordable transportation that can be used here by the Transport Policy Institute: "Transportation affordability is when households spend less than 20% of their budgets on transport3." This can be used in the body when making the comparisons.
Example:
"An average person spends $89 on a monthly pass (regular price) for public transport5. Thus, on average, a Japanese person spends monthly 2.8% of their earnings on public transport4,5.
Nagoya railroad is primarily engaged in railway/tramway business in the Aichi and Gifu prefectures in Japan6;p2. In FY2020, the company transported over 296.23Mn passengers covering 275 stations along over 444.2 Kms (railways/tramways)6;p2.
In FY2020, Nagoya transported 1.2% of the 25.19Bn passengers that traveled by railways in Japan in 20196;p2,2. To facilitate passengers with unlimited and convenient rides, Nagoya sells unlimited line tickets costing $90 per month on avg., $257 for 3 months ($85/month), and $487 for 6 months ($81/month)8. Thus, the company's monthly passes are at par with the country's average 5. The 6 and 3-month passes are 9% and 4.5% cheaper than the avg. monthly pass in Japan, respectively.
Japan's median income stood at $22,200 in 201810. Based on the latest data, the country's poverty rate stands at 15.7%, which is defined as the percentage of people who earned under $11,100 a year. Thus, Nagoya's monthly pass represents 4.8% of a median household income and nearly 9% for people in poverty."
Example analysis: https://app.impaakt.com/analyses/nagoyas-monthly-pass-is-at-par-with-the-countrys-average-and-affordable-for-the-median-household-39206
Airlines
The core analysis should include the following:
The average national charges/prices for the service (i.e., cost of air travel possibly expressed in USD or EUR per km)
The company's charges/prices for the same service
If space allows it and/or if national/local charges/prices are not disclosed, you can look into competitors and benchmark the company's data to them.
The median income per individual where the company has its most prominent presence. Then, benchmark the cost of the travel for the company in question.
Caution: Generally, you should select the most important route the company operates and then add nuance (i.e., how many people are carried along this route yearly, is this route a busy one?)
Example:
“The per km cost for French airlines varies from USD0.22/km (Easyjet) to $0.53 (Air Corsica)4. Thus, the average per km cost of the cheapest five airlines operating in France is $0.33/km4. For example, an average flight from Paris Orly–Toulouse route, i.e., 574km5 would cost around $379 (574km*$0.33/km*2 trips)4 for a return trip, which is nearly 0.7% of the median salary in France ($53,830 (EUR46,600))6.
Air France-KLM is one of the biggest airline companies in the world, with annual revenue of USD30.4bn7. In 2019, the company flew a total of 104 Million (M) passengers8;p2. This is 32.1M more than the total 71.3M air passengers in France in 20199.
Air France-KLM operates flights for the Paris Orly – Toulouse route10, the seventh busiest domestic route in Europe in 2019, with 2,908,372 seats11;p21. Air France-KLM’s average price per kilometer was $0.33/km4. Suggestively, on average, traveling the Paris Orly – Toulouse route6 on Air France-KLM flights would cost $379 (574km5*$0.33/km4*2 trips) for a return trip, which is the same as the average cost of the five cheapest airlines operating in France (including Air France-KLM) & it also costs nearly 0.7% of the median salary in France for a return trip6.”
Analysis Example: https://app.impaakt.com/analyses/air-france-klms-prices-are-equal-to-the-cost-of-the-five-cheapest-airlines-operating-in-france-41649