Latin America’s Mobility Future

Is the Latin American transportation space going to undergo some significant changes in the not-too-distant future?

Is the Latin American transportation space going to undergo some significant changes in the not-too-distant future?

For an answer, listen to Yeswant Abhimanyu, Latin America Mobility Research Manager at the research firm Frost & Sullivan (frost.com): “Wide-scale disruption with the entry of new mobility business models is heavily impacting traditional market structures and the positioning of traditional ecosystem participants among the new competition. This leads to changes in terms of regulations, investments and market structure. It is vital for stakeholders to discuss how these new solutions aimed at the better use of existing structures can be included as a part of the public and private mobility mix. In addition, investment in infrastructure in order to enable more integrated and cost-effective services, through direct and indirect incentives, is pivotal. Infrastructure is the bedrock of a well-functioning mobility.”

Which sounds like a “yes.”

You might also like

The organization has looked into the new mobility models that are occurring in Latin America—focusing on Argentina, Brazil, Chile and Mexico—such as e-hailing, bike sharing and integrated mobility.

And while they find that while traditional modes of transportation and personal vehicle ownership are still solid, there are changes occurring. For example, the researchers note that automotive OEMs started testing car-sharing in 2016 and are expected to go beyond pilots this year.

They calculate that the car-sharing fleet in the areas studied will increase tenfold by 2023. Bike sharing is going to get a lift, as well, with a 100% growth anticipated.

They compilated their findings in a report titled “Latin America New Mobility Business Models, Forecast to 2023.”