Changing course in public transport: the car as a component of competitive services

Local public transport has long enjoyed special government protection and mas-sive subsidies. It also plays a special role in transport and environmental policy. With increasing individualization in society, however, the needs of many road and rail user have changed. In a world where the automobile has become the measure of all things public transport companies in many places lack entrepreneurial skills and customer orientation. These shortcomings leave them ill equipped for the imminent European-wide liberalization of licensing procedures for public transport. The present discussion paper by the WZB’s Project Group on Mobility explores what must happen in business practice and transport policy in order to prevent the impending spiral of diminishing demand, worsening supply, and a further slump in demand. More than just organizational innovation is necessary. The key recommendation for improving public transport services is to expand them by adding car sharing and other alternatives centered on the automobile. The objective of adopting the car as a component of competitive services is to link traditional with modern, flexible transport and thereby create an integrated system.