Glocal Mobility: how to bring globalized solutions to local markets
By: Evgeny Klochikhin
Tags: Mobility, Smart Cities, Globalization, Transportation, Automotive

We live in a globalized world. This means that people of different nations are connected to each other via trade, travel, and communications.

The signs of globalization are everywhere. Regardless of whether you’re in New York City, Shanghai, or Brussels, you can find many of the same fast food restaurants. American movies are enjoyed throughout the world, as are Bollywood films from India and anime from Japan. And, people from all around communicate with each other daily on social media. COVID-19 pandemic is yet another example of our interconnectedness.

Even though our world is globalized, local systems remain critical. This is particularly true in transportation — an industry which is highly globalized while remaining tied to local markets and policies. Experts call this glocal — systems that reflect both local and global considerations.

Transportation: A global industry with local markets

The transportation market today is highly globalized. Car manufacturers are global companies, making and selling their cars throughout the entire world. There are certainly different norms for driving in different countries and regions. For example, in Great Britain it is customary to drive on the left side of the road. This requires a car with the steering wheel positioned on the right seat of the car.

But even with such local differences, the market for cars remains global. There aren’t really many local or even national carmakers. The supply chain for car parts also remains highly global.

That does not mean that local differences are irrelevant to the transportation industry. On the contrary, every city and locality has its own set of regulations governing transportation, particularly the taxi industry, parking and public transportation. New York and Philadelphia may only be a few hours apart by car, but they have completely different public transportation systems, with only minimal coordination.

In short, transportation is a glocal industry.

These local differences have profound implications for the transportation industry as a whole, especially when we look beyond automakers. Sure, Ford can sell cars to New Yorkers and Californians alike. But when we look at services such as ridesharing, the global model starts to encounter some problems.

Uber and other ridesharing companies have tried to go global. But while each company has succeeded in entering many markets quickly, regulatory issues have dogged Uber’s profitability. The fact of the matter is that New York can put in place regulations that hinder Uber, which is exactly what has happened. Global expansion just doesn’t work when companies fail to pay attention to local conditions. City governments and other stakeholders (like cab drivers) will not tolerate being shoved aside. They will push back.

Uber’s profitability is largely dogged by local push back.

To really succeed in a global market, transportation companies need to be mindful of local conditions. They need to work with, rather than against, local governments. They must form partnerships. A transportation company capable of doing that while offering an innovative product or service can become profitable.

The Parkofon approach: Building a glocal system

In building our company, Parkofon has focused on forming strong partnerships with local governments and stakeholders. These partnerships allow us to test our solution in different locations, city by city. Through these tests, we can show that our product works. Our goal is to offer a win-win for everyone, not to simply disrupt existing local systems.

By using this approach, we can offer our solution globally. But we will do so in a way that earns buy-in from local governments.

Our transportation system needs innovation. Given the unique features of the transportation industry, this is the best way to innovate — brick by brick, city by city. We need to think glocal!