Welcome!

Microsoft Cloud Authors: Janakiram MSV, John Katrick, Yeshim Deniz, David H Deans, Andreas Grabner

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
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo 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 ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...