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Motoring misery: Auckland’s obvious infrastructure issues are also its biggest handbreaks (Photo: Getty.)
Motoring misery: Auckland’s obvious infrastructure issues are also its biggest handbreaks (Photo: Getty.)

BusinessMarch 14, 2019

City of snails: Auckland’s traffic is worse than Sydney’s

Motoring misery: Auckland’s obvious infrastructure issues are also its biggest handbreaks (Photo: Getty.)
Motoring misery: Auckland’s obvious infrastructure issues are also its biggest handbreaks (Photo: Getty.)

A report commissioned by Uber says Auckland wins Australasia’s traffic congestion Grand Prix and needs to embrace ‘point-to-point’ transport. 

It’s official: Auckland is the most congested city in Australasia, according to Uber.

It hired international management consultancy Boston Consulting Group to look at transport in the region’s major cities and what role ridesharing services such as Uber will play in the future.

Turns out Auckland’s rush hour traffic is even worse than Sydney’s, and is significantly worse than in Perth, Adelaide, Brisbane and Melbourne. Travelling at the Perth peak will take you 32% longer than at other times, but in Auckland it’ll take almost 50% longer.

Rush hour traffic in Auckland is worse than in any other Australasian city. (Photo: Boston Consulting.)

It will surprise no-one to learn that Aucklanders love their cars. Private vehicles account for 90% of the total passenger kilometres travelled on our largest city’s roads, the report says. Despite the public transport system coming on in leaps and bounds in recent years, only 5% of Aucklanders’ travelling is done on buses and trains (this compares with 23% in Sydney).

Auckland is second only to Perth in the car ownership stakes. Just 8% of Auckland households are carless, and over half have more than one vehicle sitting in the garage. Those second vehicles do not pull their weight  the average occupancy of the additional family car is 30% less than the first one.

Despite New Zealand and Australia leading the world in regulating the rideshare or ‘point-to-point’ transport market, private cars still dominate the urban landscape, Boston Consulting says. It’s partly to do with the low population density in Australasian cities, our high average incomes relative to the cost of cars, and our out-and-out preference for riding around in our own personal pieces of steel.

It’s also not helped by limited access to public transport. Governments on both sides of the Tasman have put a lot of money into public transport in recent years, but still only 35% of homes in Australia’s major centres are within 400 metres of a service that arrives at least every 30 minutes. Boston Consulting doesn’t give a comparable New Zealand figure but it’s hard to imagine it would be any better.

Despite investment in public transport 90% of the passenger kilometres travelled in Auckland are still by private car. (Photo: Boston Consulting.)

It highlights the need for a different approach in how we operate and regulate our cities’ transport systems, Boston Consulting says. Given its report was paid for by Uber it was hardly going to reach any other conclusion, but ride-sharing could be part of the answer, the consultants say.

The next wave of innovations in point-to-point transport will help, it says. These include:

  • The introduction of pooling trips on rideshare services to increase occupancy – Taxis have been doing it for a long time but without a technology platform.
  • Destination targeting for rideshare drivers to promote carpooling – The driver selects the area they want to drive to and is matched only with trips heading in that direction, thus reducing kilometres travelled and potentially the number of cars on the road.
  • Multimodality – Integrating ridesharing and public transport networks to extend a city’s public transport spine.
  • Micromobility – We’re talking Lime scooters and their ilk, and as controversial as they’ve been, there is no sign of e-scooters leaving Kiwi streets anytime soon. Lime Scooters gained a rival with the official launch of Wave this week.
  • On-demand public transport – Leverages the technology used in ridesharing to match and pool passengers.

“A robust network of urban mobility options has the potential to lead to more consumers choosing to forgo private car ownership and opting for shared modes of transport instead,” Boston says.

New Zealand and Australia’s level playing field approach to ridesharing transport reform could yet produce more benefits, the report concludes.

“Governments and point-to-point operators are already engaging with each other to accelerate these benefits and ensure that they are widely and equitably shared.”

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PodcastsMarch 14, 2019

Level Two: The Parnell innovation centre fostering NZ’s deep tech projects

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Business is Boring is a weekly podcast series presented by The Spinoff in association with Callaghan Innovation. Host Simon Pound speaks with innovators and commentators focused on the future of New Zealand, with the interview available as both audio and a transcribed excerpt. This week he talks to Imche Fourie, General Manager of LevelTwo, and Dr Will Barker, CEO of Mint Innovation

Tucked away in Parnell is an innovation centre that’s helped propel some of the biggest names in local tech forward, although you might not have heard of the place or even some of the names. It’s a truism of the local scene that some companies are easy for the media to cover, and some – like many facets of science and technology – are a little more complicated and don’t get the airtime.

This hub used to be a Department of Scientific and Industrial Research (DSIR) building which let space to projects with interesting science. Some companies, like Rocket Lab, you may have heard of. Others, like Lanzatech, are one of the great untold stories of the local scene. And there’ll be others you’ll be hearing of a lot more of in the future, like Mint Innovation who are turning e-waste into literal gold.

The importance of fostering this creativity has meant that what started as an accidental meeting of minds has become very purposeful. Today, the space operates as Level Two, an incubator specialising in deep technology. So, what is ‘deep technology’? Well, to find out and talk tech, incubation and the next crop of great ideas, Imche Fouri, general manager of innovation at Level Two and Dr Will Barker, CEO of Mint Innovation join me now.

Either download this episode (right click and save), have a listen below or via Spotify, subscribe through iTunes (RSS feed) or read on for a transcribed excerpt.

In so many tech spaces, people invest ahead of revenue. But with science, you’re also often investing ahead of even knowing if the thing works or if there’s actually a market for it. It must be such an interesting process to get involved with those investment committees and those early stage companies.

Imche: Absolutely, and it starts with the idea first. It always does. The theory follows shortly after.

That’s when early stage investment tends to get involved, when there’s a great idea, great founder or scientist, and they just need a bit of scope to test it out. Yes, we don’t know if it’s going to work, but that’s part of the excitement. But it’s also why investing in deep tech early on is difficult for a lot of investors.

How does Mint work with Level Two? How do you work with this innovation precinct and what kind of benefits are involved?

Will: The benefits are endless for us. LanzaTech used to be housed in this building. When they moved out, we found a small space. LanzaTech used to take up that whole floor, and we just took a small office.

As other companies moved out they left lab infrstructure they couldn’t take with them. So [that’s a] benefit. Equally there’s clean space – space that’s had nothing in it – so it’s flexible for us to able to build a pilot barn, for example. The building’s well consented… so you can do chemical processes, you can do biological processes, so we can literally walk in and it’s a turnkey solution.

Then the community benefits are even greater. There are companies who have raised very, very large amounts of money. Rocket Lab is one, with Peter Beck still involved in some way with Level Two. He’s raised hundreds and millions of dollars. Sean Simpson has raised hundreds and millions of dollars and there are other companies that are growing today that have raised tens of millions of dollars. So having access to their networks, having access to their expertise is amazing and you can’t buy that sort of thing. You literally can’t buy that sort of advice in New Zealand.

Then there’s IP advice: who are the best lawyers? Who are the best advisers for this? How do you leverage this grant? How do you work with Callaghan and all of these things. They’re intangible and you literally can’t buy that sort of information in New Zealand.