Mobile data streams: Keep Mr. User in mind

When we think of mobile data and sensors, the first image that comes to mind is that of a mobile phone. But today’s most striking example of the “Internet of Things” lies in an emerging mega trend called mobility on-demand. Where does this new routing in data streams leave us? This essay looks at car-on-demand services to find an answer.

Car-on-demand services as first movers

Contrary to conventional car sharing services, mobility services such as Car2Go, DriveNow or Quicar do not rely on fixed facilities from where to fetch or bring a car to. Here, cars are parked on public streets. They are localised and reserved via smartphone. Access and use entirely depend on an RFID-chip for driver identification and a mobile internet connection in the car.

At all times, the car’s sensors communicate user data to the service provider. Not only does the service provider come to know who the current driver is, the mobility data also includes travel time and location, the filling level of the fuel tank or the vehicle's cleanliness (based on user review). After each trip, the cost per minute and/or kilometre is automatically subtracted from the driver’s credit card.

Me, myself and 100 sensors

Today, these mobility infrastructures are what drives the collection of Floating Car Data, i.e., the massive collection of data about localisation, speed and direction of cars in a given fleet. All sensor data of a car - and modern cars have around one hundred sensors - can be collected in a data centre, merged with other data streams and used to create new applications and services.

With car-on-demand models, the car - for decades a symbol of private space in the public sphere - progressively morphs into a semi-public mobility infrastructure monitored, controlled and regulated by the service provider.

A run on mobile data streams  

With an eye on the strict EU regulations for the fleet consumption, bundled with consumers’ growing safety expectations, the automotive industry are using the new data streams to improve advanced driver assistance systems.

But already, new players are looking beyond safety improvements and trying to figure out  how to make use of this kind of data for customised products of their own.

Insurance companies have been leading the way by providing differentiated insurance rates on the basis of one’s driving behaviour. While some might change their driving behaviour in order to avoid high insurance rates and retain some form of control over the price they pay, third party firms are using behavioural information to generate new income streams.

TomTom, a pioneer in crowdsourcing of navigation data, set itself apart with a controversial case dating back to 2011. The company sold information collected from its customers’ driving behaviour to the Dutch police, which turned around and used it to realign its system of speed traps. Customers reacted by denouncing TomTom’s newly-found business opportunity.  

eCall directive: Every new vehicle connected by 2015

While the re-use of mobility data by third parties might apply to enclosed car-on-demand infrastructures here and there, the big rollout is expected with the implementation of the EU eCall directive. Although called into being for the sole purpose of emergency situations, from 2015 on, the directive will turn every newly registered vehicle in the European Union into a mobile and networked sensor platform. While the EU recommends that the automotive industry recoup any additional costs stemming from the implementation of the eCall functionality, the industry is not alone in trying to turn a directive into a business opportunity. Emergency management agencies, automobile repair companies and insurers are already customising and testing their data collection services.

User privacy in limbo

One thing the industry has not reckoned with yet is the customer. When applying the right for informational self-determination, the data sent via eCall remains the property of the car owner. That is, the car owner has the principle right to decide which company gets which information for what purpose.

According to German privacy expert Thilo Weichert, most car owners sign off on further use of the emerging mobility data when they are buying additional safety and assistance packages, not realising the implications. While Weichert advocates for an “off button” for the eCall or a European standard on the re-use of data, to date, we are far from any regulation to this effect. Another option might be a self-regulation by the industry, similar to the German “Geodata-Codex” that aroused from the 2010 resistance to Google’s camera drives for its StreetView service.

The expected social impact of future mobile data streams appears to be of such a magnitude that it would be advisable to introduce a (self-)regulation process soon. This could allow for a strict implementation before the eCall directive enters into force. This approach would not only help to strengthen the rights of users, but  also safeguard future developments and acceptance of useful services.