A Smart City Service Business Model: Focusing on Transportation Services

Junghoon Kim,Byungsun Yang

doi:10.3390/su131910832

Junghoon Kim, Byungsun Yang

Open Access

https://doi.org/10.3390/su131910832

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Abstract

Most cities have adopted smart city services to solve urban problems. However, an examination of their operations reveals that many of these services have either been discontinued or have failed to advance further since they were not profitable. Therefore, this study reviews and proposes the business models of smart city services at a fundamental level. It defines and classifies the smart city service focusing on transportation and the components. The business model has been constructed for electric vehicles and autonomous shuttle businesses in terms of transportation services. It found that the model was profitable in each business only when various stakeholders were linked for mutual interests. Since various service stakeholders cooperate in smart city service, if one of them is unable to secure profitability, it is difficult to operate the smart city service fully. Therefore, a detailed review of the business model is required before providing a smart city service.

Highlights

Focusing on Transportation Services.Smart city services are major solutions for reducing costs and solving urban problems [1] by using information technology (IT) [2,3] for housing matters [4], traffic problems [5], and crime prevention [6] caused by rapid urbanization [7,8]
The business model of the traffic-associated facility construction consists of smart streetlights, smart traffic lights, and smart stops
The government should implement it as a public service

Summary

Introduction

Smart city services are major solutions for reducing costs and solving urban problems [1] by using information technology (IT) [2,3] for housing matters [4], traffic problems [5], and crime prevention [6] caused by rapid urbanization [7,8]. For this reason, the Smart city is becoming one of the most compelling tools for local governments who are seeking to meet sustainable development goals, achieve a higher quality of life for residents, improve government efficiency, and bring about collaborative governance [9]. The global smart cities market size expects a compound annual growth rate (CAGR) of 17.3% from 2020 to

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