So far, the transition to electromobility has been accompanied by technological change and the development of new business models. What is less obvious is how these new technologies and business models are made available to consumers on an integrated and efficient basis. In the race for market share, vendors have focused on building their own offerings and are now faced with the task of integrating them with other vendors` solutions. This includes integrating travel planning and payment technology with legacy fares and ticketing systems. For example, while technological problems can be solved using common APIs, issues of intellectual property, liability and data sharing remain, which must be conveyed through contract documentation. For the first time, in 2012, the European Commission is carrying out a state-of-the-art study on liability aspects related to the deployment of ITS applications and services, including the identification of liability-related ITS applications and the identification of specific measures (legal, technical, organisational) that would be needed to address liability issues in ITS applications and services. By Andrew Braverman Intelligent Transportation Systems (ITS) will radically redefine the way people move throughout their lives. As an amorphous category, ITS typically refers to both vehicle technology, such as advances in autonomous vehicles (AVs) and electric vehicles (EVs), and the digitalization of infrastructure, which is often referred to as “smart cities.” Thousands of lives and millions of dollars could be saved by renovating America`s crumbling infrastructure and innovating transportation safety. Small communities across the country could be revitalized if they were better connected to their environment. The spread of ITS will reduce congestion and emissions from the largest source of CO2 in the United States. Edward Barratt is a partner and leads the decarbonization of Osborne Clarke`s transportation practice. He specialises in rail, public transport and new mobility solutions and works with investors, authorities and operators to design and implement solutions for transport and mobility companies.
The transition to net-zero emissions is driven by innovative technologies, but the right financing and implementation mechanisms are also needed. To ensure that they operate as intended and have the necessary longevity, flexibility and performance, suppliers must anticipate the legal and regulatory issues they may face, and then put in place appropriate contractual structures to ensure the necessary protection and allocation of liability. From both a vendor and an investor perspective, this operating environment represents both a challenge and an opportunity. In addition to big technology and the right deployment and financing models, the solutions that work best are likely to improve long-term prospects for success by continuously anticipating and addressing emerging legal and regulatory risks. The role of integrated mobility solutions in urban environments is a critical area that has the potential to accelerate the transition to carbon neutrality. The recent International Transport Forum (ITF) report on the innovative mobility landscape highlighted the role of mobility as a service (MaaS) in decarbonisation. However, the use of new mobility solutions raises a number of legal issues that need to be resolved. It is also often necessary to adapt new transport and mobility solutions to regulatory and legal requirements that do not take into account the products, services or technologies used. The problems related to the compliant management of personal data while supporting the development of mobility services are well known.
It is also a feature of many new solutions they operate at the intersection of several different regulatory systems, none of which adequately covers the entire supply. Contractual documents should contain watertight provisions for situations where the reality of the solution differs from the expectations of the parties. This may be particularly the case when the pace of technological change is rapid, customer demand is difficult to predict, and the provision of long-term subsidies is uncertain. From a funding perspective, it may also be relevant to ensure that the offer is presented in a way that is easy for external funders to understand. While some transportation and mobility solutions replicate revenue streams familiar to financial service providers, many are difficult or impossible to fit into existing categories. It can be difficult to develop hybrid financing and contract models in a way that provides the solution while remaining bankable. From a legal point of view, any transport or mobility solution is a network of contractual rights and obligations. The simpler the solution is for the end user, the more complex the underlying contractual arrangements are likely to be. Suppliers and authorities must clearly define their respective roles and responsibilities. It will be important to ensure that the different elements of the contract documents work effectively together and encourage good behaviour by customers and suppliers.
