Click here to close now.

Welcome!

.NET Authors: Elizabeth White, Liz McMillan, Pat Romanski, Jaynesh Shah, Carmen Gonzalez

News Feed Item

Gridlock on UK Roads Costs the Country's Economy £4.3 Billion

- Report from INRIX and The Centre for Economics and Business Research Reveals Traffic Congestion Costs U.K. Households Nearly £500 a Year

LONDON, Dec. 10, 2012 /PRNewswire/ -- INRIX®, a leading international provider of traffic information and driver services, and the Centre for Economics and Business Research (Cebr) revealed results of a new report finding traffic congestion costs Britain's economy more than £4.3 billion or approximately £491 per car commuting household.

These costs are a result of the direct impact of traffic on drivers in terms of wasted time and fuelas well as indirect costs to U.K. households resulting from businesses passing these same costs on to consumers in the form of higher prices.

Direct Costs (fuel and time):

  • Fuel: Over £426 million is wasted on fuel alone - that's £52 worth of fuel cost per-car commuter for 8.2 million British commuting drivers
  • Time: Time is money, the average cost of time wasted in gridlock per commuter equates to £331 – that's a total national time cost of £2.7 billion

Indirect Costs (rising cost of goods and services):

  • Household Goods:  19% of traffic during the daily commute is business or freight vehicles and as a result over £1.1 billion indirect costs are passed on to British households each year
  • Per Household: Gridlock costs each Britishhousehold living in urban areas £107 annually due to the increased cost of goods and services passed on by British businesses

"Traffic congestion impacts everything from how long it takes us to get to work and the amount of fuel we consume in our vehicles to the costs of food at the grocery store," said Bryan Mistele, CEO of INRIX. "As the U.K. continues facing times of austerity and high unemployment, the study indicates the efficient movement of people and commerce across our road networks is essential to fostering a healthy, vibrant economy."

Gridlock Costs Soar in the Capital:

Just 33% of London's residents commute to work by car, however 40% of all UK gridlock costs occur in London, with commuting drivers spending 66.1 hours stuck in traffic jams annually. In fact the average Londoner travelling to work by car spends nearly two working weeks in traffic:

  • Per hour the cost of idling in traffic in London is £15.19 compared to the UK national average of £12.51.
  • Individual annual costs per commuting household are highest in London with gridlock costing households around £1003.58 annually in fuel, time and the indirect cost of household goods.
  • In direct costs alone gridlock costs London car-commuters £1.65 billion in gridlock, put into context this means that for every £10 of direct and indirect costs caused by congestion in the UK, approximately £4 occurs in the capital.

The full report, including results for Germany and France can be found at http://www.inrix.com/pdf/Cebr_Economic_Cost_of_Gridlock_Report.pdf

The Economic Costs of Gridlock Report Methodology:

Cebr is an independent economics and business research consultancy established in 1993. It provides forecasts and advice to City institutions, governments and departments, local authorities and numerous blue chip companies throughout Europe. Below is an executive summary of the methodology used by the Cebr when conducting their analysis for the report:

  • The Cebr used INRIX's proprietary data around traffic congestion during peak commuting hours in the EU's designation Large Urban Zones (LUZs) across the UK, France and Germany respectively, to calculate the average annual "wasted hours" per vehicle.
  • The Cebr used its own transport, city and macroeconomic models to calculate and quantify the direct costs from higher fuel consumption and the lost value of workers' time spent in traffic. Direct fuel costs were calculated using fuel price averages for Euro-super 95 (regular unleaded petrol) and were based on an average of monthly fuel price reports from the AA in the UK and European Commission Oil Bulletin for France and Germany. Average fuel consumed per vehicle was assumed to be 0.5 litres per hour for the average medium-sized car.
  • The Cebr calculated the value of 'wasted time' related to the full-time hourly wage that a worker is paid. The value of wasted time to the commuter is estimated to be worth 50% of the hourly national and city wage because a proportion of lost productivity in traffic is assumed to be recovered during the working week.
  • The Cebr used business and commuter time profile data from the 2011 National Travel Survey (NTS) published by the Department for Transport (DfT) and freight statistics from the 2009 Travel in London report published by Transport for London (TfL) which state that approximately 12% of road traffic during AM and PM peaks is business and approximately 6% of traffic is freight.   This data was used to calculate the indirect costs passed on to U.K. households by businesses.  The value of "wasted employee time" is then calculated at 50% of the hourly national and city GDP per worker, because a proportion of lost productivity in traffic is assumed to be recovered during the working week. Of this wasted time the Cebr estimates that 80-90% of direct costs incurred in terms of fuel and employee time are passed on to households. 

About INRIX

INRIX® is a leading traffic intelligence platform delivering smart data and analytics to solve transportation issues worldwide. INRIX crowd sources real-time data from approximately 100 million vehicles and devices to deliver traffic and driving-related insight, as well as sophisticated analytical tools and services, across five industries in 35 countries.

With more than 200 customers and partners including Audi, ADAC, ANWB, BMW, the BBC, Ford Motor Company, the I-95 Coalition, MapQuest, Microsoft, NAVIGON, Nissan, O2, Tele Atlas, Telmap, Toyota and Vodafone, INRIX's real-time traffic information and traffic forecasts help drivers save time every day.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity for developers, start-ups, and companies of all sizes to engage with SAP today.