Click here to close now.



Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

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
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
19th Cloud Expo, taking place November 1-3, 2016, 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 enterpri...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...