title
Mobile Application Replacement
end
|
DESCRIPTION: Authorization to procure a mobile application replacement solution. |
AGENDA NO: 22-070 |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Given the expiration of GoMobile as RTA’s mobile application in August 2022, authorizing the Chief Executive Officer to award the following sole-source contracts to develop and implement a new mobile application solution as a replacement to prevent revenue loss and rider experience impacts:
- Award a contract to Moovit Inc as a Software-As-A-Service Provider to build and host a new “white label” mobile application
- Award a contract to Transit App as a supplemental Third-Party Software-As-A-Service Provider
- Award a contract to Token Transit as a Ticketing-As-A-Service Provider to provide mobile ticketing and payment authorization service
end
ISSUE/BACKGROUND:
body
RTA implemented the mobile application GoMobile in 2015 to (1) increase fare sales by introducing mobile payment and e-ticketing, and (2) improve the rider experience by offering real-time information and wayfinding on smartphones. RTA’s riders have come to depend on GoMobile for both ticketing and real-time information. Approximately 20% of RTA’s annual fare revenue is derived through the GoMobile application ($1.6M in 2021). During the Fare Study, which was conducted in Q4 2021, rider surveys confirmed a significant proportion of riders only use the app for real-time information and wayfinding, revealing the significance of both features in a single app.
GoMobile was developed by Transdev and as such it owns the name and the application in mobile app stores. Transdev retains a license for the application and provides the underlying services and necessary authorizations for the mobile app for a fixed monthly fee as part of the Operations & Maintenance Agreement with RTA. On August 28, 2022, RTA’s agreement with Transdev for the provision of such services expires.
In August 2021, RTA staff introduced the Coordinated Fare Modernization Initiative (CFMI) to develop a comprehensive and holistic approach to transforming RTA fare collection systems to improve the speed and quality of service and grow ridership. Included in this initiative is identifying, procuring, and implementing new technologies that allow for integrated tap cards and mobile payments. This key component requires at least 6 months once grant funds are available in September 2022 and is estimated for rollout in mid-2023.
In order to minimize the disruption to riders that results from introducing a new app, RTA staff initially recommended continuing using GoMobile until the future fare payment technology was deployed. In February 2022 Transdev notified staff they will not amend the agreement to extend GoMobile services and license agreement. As a result, on August 29, 2022, the GoMobile application will no longer be active, and RTA will no longer have a mobile application. Given the importance of the mobile app for both ticketing and real-time information, RTA staff endeavored to identify an immediate replacement solution that meets the needs of riders and ensures RTA is still well positioned within the larger Coordinated Fare Modernization Initiative.
RTA staff conducted a thorough analysis of potential options and identified a solution which meets the Agency’s goals. This solution provides real-time information, wayfinding, and mobile ticketing in a single application for all transit modes and allows an easier transition for future technology upgrades.
end
DISCUSSION:
Establishing Goals for the Replacement Solution
RTA staff analyzed mobile application replacement solutions with a focus on the following:
1. Single-App Solution: GoMobile provides both real-time information and mobile ticketing to RTA’s riders in a single application - fairly unique among transit agencies. In designing a solution, RTA staff prioritized a similarly integrated experience for ease of rider transition.
2. Future Flexibility: RTA received a RAISE Grant last year to fund modernization of its fare technology. RTA staff also completed a Fare Study last year to identify a roadmap for improving its fare technology, with a goal of potentially implementing account-based-ticketing. RTA staff prioritized a mobile application replacement solution that allowed for future flexibility in implementing account-based-ticketing.
3. Eliminating “Second Migration” Risk: RTA seeks to transition all of its riders to a new application on a one-time basis. RTA staff recognizes the challenge faced by riders in moving from GoMobile to a new application. To reduce the burden on riders, RTA staff prioritized a solution that requires a single transition and does not expose the Agency to future risk of a second migration to another new application.
4. Meeting Current Levels of Service: Both RTA and its Riders are accustomed to certain services and functions associated with GoMobile. RTA staff sought to ensure that the replacement solution delivered at least the levels of service associated with the current app, if not higher levels of service.
5. Meeting Expedited Timeline: RTA staff sought a solution that could reasonably be delivered in three months by the end of July 2022 to ensure that the Agency meets the transition date of August 28, 2022.
These goals served as the guiding principles for identifying a replacement.
Determining Solution Requirements
RTA staff then developed a list of features needed in a solution to meet the above goals. Features were divided into two categories: Necessary and Preferred:
|
“Necessary” Features |
“Preferred” Features |
|
Real-Time Departure and Arrival Information |
RTA Branded App |
|
Mobile Wallet |
QR Codes for Handheld Validation |
|
Back-End Sales Reporting |
Ability to Implemented Integrated Account-Based Ticketing |
|
Service Notifications |
Ability to Accept Digital Payment (Apple Pay, Google Pay) |
|
Ability to Authorize Credit/Debit Cards |
Integration with Other Regional and Mobility Partners |
|
Service Alerts / Rider Outreach Capabilities |
Utilized in Other Cities (visitor familiarity) |
Selecting a Replacement Solution
RTA staff analyzed the entire spectrum of options for mobile application replacement. The universe of potential vendors and options is substantial, with RTA’s peers opting for a number of different options, including the following:
§ Custom-Built “White-Label” Application: A “Software-As-A-Service” provider builds the application from scratch based on the transit agency’s specifications and needs. Note that “White-Label” means that the transit agency ultimately owns the license to the application. Because these apps are custom built, they can include a range of services including real-time information and/or mobile payment. Because of higher development costs, agencies are moving away from custom-built apps particularly for mobile payment. This option also has the longest lead time to deploy and highest risk with on-time delivery.
§ “Off-the-Shelf” “White-Label” Applications: A “Software-As-A-Service” provider utilizes already-built application infrastructure (with limited customizations) and delivers it as a white label app. The transit agency retains a license for the application through the white label, owns the app name, and gets customized branding. There are a range of services provided through “White-Label” apps with some only providing mobile ticketing, others only real-time information and a limited few integrating both.
§ Third Party Applications: Agencies rely on applications that already exist in the public space, simply integrating their ticketing information and service alerts into those already-existing apps for a relatively small monthly fee. The transit agency does not own the application or a license. It activates the app as a service for its riders without customization or branding from the transit agency. Mobile ticketing is integrated into the app through a vendor serving as a mobile ticketing provider.
After analyzing each of the potential options against the above goals, RTA staff identified a preferred solution: purchase an off-the-shelf white label application through a software-as-a-service provider. In analyzing the options, RTA staff also recommend enabling a third-party application as a supplement to provide redundancy and wider access for visitors.
This option delivers the following benefits to RTA:
§ White-Label Flexibility: In delivering a “white-label” solution, RTA retains a license for the application that is delivered. Riders recognize the RTA branding when they download the application. RTA also eliminates the risk of a “second migration.” RTA’s ownership of the label for the application allows it to change the underlying software and infrastructure without forcing riders to download a new application.
§ Speed of Implementation: The solution can be delivered by the August 2022 deadline, because the solution is “off-the-shelf.” Given the limited amount of customization that needs to occur, RTA reduces risk of failure to implement in time for the GoMobile sunset.
§ Solution Redundancy: RTA staff recommends activating a third-party application. This provides solution redundancy to ensure that RTA will meet the August 2022 deadline. It also offers RTA another platform to reach riders. Third party applications are used in numerous other markets across the country, thus amplifying ease of use for visitors.
§ Tested Solution: The “off-the-shelf” nature of the application significantly reduces risk in its deliverability. The exact specifications of the app have been delivered to other agencies successfully.
§ Future Flexibility: The “off-the-shelf’ application and the third-party app utilize a flexible platform that can integrate with multiple fare payment providers. This allows for a future transition to account-based-ticketing without having to download another app.
Given these benefits, RTA staff recommend the delivery of an off-the-shelf white label app with a third-party app as a supplement. An illustration of the solution can be found below:
Selecting Preferred Vendors
Having identified a solution, RTA staff determined the required vendors for delivery. The vendors required for this solution include:
§ “White Label” Software-As-A-Service Provider: Responsible for standing-up the white-label mobile app (including real-time information) and integrating the Mobile Ticketing Provider into the white-label app.
§ “Third Party” Software-As-A-Service Provider: Responsible for activating the application for local use and integrating the Mobile Ticketing Provider into the third-party application.
§ Mobile Ticketing Provider: Serves as a processer of fare payments through the mobile app and integrates with the white-label app and the third-party app.
RTA staff conducted an exhaustive search for vendors across these three scopes of work. Given the urgency of replacement, the high cost of not replacing, and the limitation of firms who are able to provide these specific scopes, RTA seeks to procure these vendors through a sole-source transaction. All three of these vendors have proven off-the-shelf products, integrations, and timely deployments. The selected vendors are:
§ Moovit will serve as the “white-label” Software-As-A-Service provider. Moovit builds scalable trip planning and real time information infrastructure for transit agencies and riders. Moovit currently serves nearly 1 billion users in 3,400 cities across 112 countries, in 45 languages and is owned by Intel.
§ Transit App will serve as the “Third Party” Software-As-A-Service Provider. Transit App is an independently-owned mobile app that provides real-time public transit data to riders around the world, and currently functions in over 175 metropolitan areas. Transit App specializes in real-time information and trip planning. Transit App has existing integrations with several Mobile Ticketing providers.
§ Token Transit will serve as the Mobile Ticketing Provider. Token Transit provides Fare Payment As-A-Service and is currently used in over 100 cities in the United States. It is independently owned and has existing integrations with both Moovit and Transit App.
FINANCIAL IMPACT:
RTA currently pays two costs associated with GoMobile which result in a total annual cost of approximately $400,000:
§ Service Fee: Annual cost of $236,982 paid in monthly installments to Transdev.
§ Per Transaction Fee: Costs per transaction are paid monthly to Authorize.net based on per transaction formula. For example, assuming RTA collects $1.6 million in fare revenue in one month through GoMobile, RTA would pay approximately $160,000 to Authorize.net.
RTA staff analyzed the cost of the replacement solution which would result in total annual costs of approximately $430,000 with a one-time upfront cost of $8,500:
§ The “White Label” Software-As-A-Service Provider is paid an annual fixed fee of $250,000. This fee also includes all setup, installation, training, and integration with Mobile Ticketing Provider.
§ The “Third Party” Software-As-A-Service Provider is paid monthly fixed fee totaling $21,000 annually and has additional optional rider outreach features with an upfront fixed cost of $8,500.
§ The Mobile Ticketing Provider is paid on a per transaction basis. For example, assuming RTA collects $1.6 million in fare revenue through the app, RTA would pay approximately $160,000 annually to Token Transit.
NEXT STEPS:
Upon RTA Board Approval, staff will assign three purchase orders.
ATTACHMENTS:
1. RTA Resolution for Mobile Application Replacement Solution
2. Sole Source Justification - Moovit
3. Sole Source Justification - Transit App
4. Sole Source Justification - Token Transit
Prepared By: Chase Haislip
Title: Director of Internal Audit and Compliance
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Reviewed By: Mark Major
Title: Deputy Chief Financial Officer
4/6/2022
Alex Wiggins Date
Chief Executive Officer