Insights and news from the ATOM Mobility team
We started our blog to share free valuable information about the mobility industry: inspirational stories, financial analysis, marketing ideas, practical tips, new feature announcements and more.
We started our blog to share free valuable information about the mobility industry: inspirational stories, financial analysis, marketing ideas, practical tips, new feature announcements and more.
🚗 🛴 🛵 Ride-hailing, ride-sharing, carpooling, car-sharing, on-demand rentals, micro-mobility rentals, shared transportation, Mobility-as-a-Service… It's a bit much, isn't it? No wonder people prefer using and verbing brand names, e.g. “Uber to the airport” or “grab a Bolt”. 🔦 But, don't worry – we'll help you find your way in the mess that is the mobility industry's terminology. Understand the difference between ride-hailing and ride-sharing, discover what is MaaS, and learn a fun fact about Uber in our latest article 👇
It's easy to get lost in today's mobility landscape. It feels like every year a new type of vehicle hits the streets, and with it comes some weird new term or category adding to an already deeply confounding list – ride-hailing, ride-sharing, carpooling, car-sharing, on-demand rentals, micro-mobility rentals, shared transportation, Mobility-as-a-service,...
No wonder people prefer using and verbing brand names, e.g. “Uber to the airport” or “grab a Bolt”.
In reality, it's not that complicated. Virtually all of the terms listed above are self-explanatory and by the end of this article you'll have a firm grasp on the industry's terminology.
Understanding the distinction between these various concepts is important for entrepreneurs and anyone else looking to set foot in the industry, as using the correct terms:
Since the two terms that people get most hung up on are “ride-hailing” and “ride-sharing”, we'll take a closer look at those, and then follow it up with a disambiguation of the other terms on our list.
Ride-hailing is – surprise, surprise – the hailing of a ride. Much like with a taxi, it involves hiring a person with a car to pick you up and take you to your destination.
So why don't we just call it a taxi service?
When mobility startups like Uber came to prominence in the early 2010s, they did so by disrupting the cab industry through digitalizing the hailing experience and introducing transparent pricing.
Read more: Uber's company history.
In other words, you could now hail a ride through an app on your smartphone and see exactly how much it would cost. Whereas previously, you had to call a taxi service or try to hail one on the street.
So the term “ride-hailing” was coined to distinguish this new type of on-demand app-based taxi service from the more traditional one. However, over the years, the ride-hailing service portfolio has evolved beyond just taxi-like operations and includes things like hiring drivers for moving, or even taking your kids to school. Traditional taxi companies also increasingly make use of a ride-hailing app.
Accordingly, the meaning of ride-hailing is the hailing of on-demand transportation services via an app. Most often it's used in the context of taxi-like services, but it's an umbrella term that can include other services, too.
Fun fact: did you know that Uber was originally named UberCab? Its founders dropped the “Cab” part since they didn't see themselves as a traditional cab service.
Again – the hint is in the name. At the most basic level, ride-sharing is sharing a ride. But, as with ride-hailing, there's some nuance that's important to understand.
Today, ride-sharing typically refers to multiple passengers sharing a single private ride on a route that passes their various destinations. You can think about it as on-demand carpooling.
Let's unpack this.
Though there are many similarities between ride-sharing and carpooling, they generally differ in terms of ride organization and journeys. Carpooling often happens informally, in the sense that a group of neighbors or coworkers traveling or commuting on the same route will agree to share a ride to, for example, save on gas. Carpooling can also be very sporadic and is primarily organized through private channels or local bulletin boards.
On the flipside, ride-sharing allows a person to carpool with others by simply finding an available seat through an app – drivers digitally share their route and seat availability and passengers can hop into a suitable ride for a small fee.
Notably, ride-sharing is often most popular with busy routes and times of day, as that's when there's highest demand.
There's a reason why a lot of confusion arose regarding the difference between ride-hailing and ride-sharing, namely, the terms were used interchangeably early on. To this day, “Ride-sharing” is sometimes used as an umbrella term for all app-based mobility solutions, though this is going out of fashion, given the clearer differentiation between solutions.
So, while both ride-hailing and ride-sharing are app-based on-demand mobility solutions for getting to a destination in a private vehicle, they differ in passenger count, cost, route, availability, and popularity.
Though ride-hailing and ride-sharing are categories you'll hear most often, it's almost inevitable that you'll encounter other terms, which may sow further confusion.
Let's avoid that – here are some quick explanations of other popular terms.
Car-sharing or vehicle-sharing is most often confused with ride-sharing, but despite sounding similar, they mean completely different things. Car-sharing refers to the app-based short-term rental of cars. The easiest way to remember it is that with ride-sharing people share a single ride, whereas with car sharing people share a single car – again, it's all in the name.
On-demand rentals is a category describing vehicles that are instantly available for rent, usually through an app. This includes both micro mobility solutions, like scooters and bikes, as well as larger vehicles like mopeds and cars. For those following along – yes, car-sharing is a type of on-demand rental!
As mentioned in the previous sections, “ride-sharing” is often incorrectly used as an umbrella term for all on-demand app-based mobility solutions. The correct term is shared transport or shared mobility. Shared transport is a broad category that includes both multiple people sharing a vehicle simultaneously (i.e. ride-sharing), as well as individual people sharing a vehicle over time (i.e. car-sharing/on-demand rentals).
Ride-hailing and other on-demand services related to mobility are also often categorized under the shared mobility umbrella.
Mobility-as-a-Service or MaaS is an approach to urban transportation that seeks to integrate a variety of mobility options (both public and private) into a single super-solution that answers a traveler's every mobility need. Often, MaaS solutions are sought out by local municipalities to provide effective alternatives to car use and minimize a city's carbon footprint.
As you can see, a lot of the confusing mobility terms are simply categories and categories of categories – don't worry if you can't remember them all. If you know the difference between ride-sharing and ride-hailing that's already plenty.
Anyone in the mobility industry will tell you that it's perfectly acceptable to ask for clarification when talking specifics, as it's common for people to interpret these terms differently, and language barriers can be particularly troublesome for getting on the same page.
That said, you SHOULD pay close attention to the terminology if you're doing research for your own mobility business. A ride-hailing business is completely different from a ride-sharing one, and it's important not to compare apples to oranges during market research, as it can undermine your business from day one.
Other than that, all you have to remember is that ride-hailing is hailing a ride and ride-sharing is sharing a ride. Simple as that.
New feature alert! Say hello to vehicle damage managemet 👋 With this solution, you can boost your fleet uptime and improve client satisfaction by: 🔎 Learning about necessary repairs more quickly 🔧 Easily managing the repair process ⭐ Turning a negative customer experience into a positive one
Is there anything more frustrating for a mobility user than needing quick access to a vehicle and having none available nearby?
Yes – finding a vehicle on the app, making your way to it, and discovering that it's broken.
Vehicle damage comes in all shapes and sizes from broken scooter kickstands and headlights to damaged moped QR codes and car engine issues. Even minor damage to a vehicle can severely affect its usability, putting it out of order until a ground operations team catches and resolves the issue.
Worst of all, it's often the customer who first encounters the problem and does so during one of the most sensitive parts of the user journey, namely, when they have an acute need for transportation.
As a result, unresolved maintenance issues are not only directly hurting your bottom line by taking one of your vehicles off the road, but they may severely negatively impact client satisfaction, too.
That's why the ATOM Mobility team has added a new solution to the vehicle-sharing and rental modules – vehicle damage management.
Let's take a closer look at this new feature, explore why it's important, as well as understand how it works from both the user and operator perspectives.
In the simplest terms, the new feature allows users to easily report any vehicle issues through the app – and for your operations team to effectively respond to and manage the reports. This helps your mobility business in several ways.
ATOM Mobility's vehicle damage reporting feature:
In unison, these help you ensure maximum uptime for your fleet, as well as offer various other benefits. These include:
Simply put, this new feature is a positive for everyone involved. All you need to do is set it up – let's find out how.
On the surface, it's simple – the customer reports some damage and you fix it. But underneath the hood, it's … still simple. Here's how the new functionality works from the perspective of your customers and your operators.
In the user app, anyone can report an issue by clicking the “Report” button found on the vehicle card. For the Sharing module, it's located in the “More” menu, whereas for the rental module, the “Report” button is visible directly on the vehicle card.
After pressing the button, your customers will be able to indicate the faulty part, include a more detailed description in the comment field, as well as add up to three images of the issue in question.
The tags that the user sees can be customized in the Dashboard
Your customer can complete the damage report process quickly and painlessly and it wraps up with a friendly thank you message that lets them know that your team is ready to resolve the issue. The system will highlight previously approved damages for user convenience.
Once a user submits a report, it will appear in your Dashboard. You can find “Damage reports” under “More” in your left menu.
Here the operator can verify, approve, and/or modify the reports. Once a report is checked, the operator can approve the report and then it gets passed onto the maintenance crew and their Service app. The admin can also add damages manually via the dashboard, for example if they notice any additional issues in the user pictures.
In the Service app, the approved reports appear as a task. When your team is done with repairs or maintenance, they can mark damages as fixed by clicking "Mark as done".
A highly useful feature is the ability to track damage reports and fixes, as well as who fixed them and how quickly – all of this data can be easily exported. This allows you to gain a broader understanding of the health of your fleet and its individual vehicles and make data-based decisions, e.g. about which vehicles to choose/avoid when growing your fleet.
ATOM Mobility is a mobility superapp that equips mobility businesses with a robust solution for all their tech needs – from a modern user app to a functional platform for fleet management and more. This allows you to launch and scale your mobility business incredibly quickly, no matter the vehicle type.
More than that, a chief reason why many mobility entrepreneurs choose ATOM Mobility for the long term is that they benefit from the on-going improvements to the app – like the feature discussed in this article. Alongside our own continuous developments of the app, our team frequently receives requests for various custom additional features, and when we see broader applicability, we also make it available to our other clients.
But don't take our word for it – hear it from our clients in our latest case study.
What is car-sharing & how does it work? What's the car-sharing business model? How to launch a car-sharing business? Find out here.
Is it a good time to start a car-sharing business? Absolutely.
The car-sharing market is booming – it's estimated to grow 20% every year and reach a $20 billion market value by 2032. That's nearly a sevenfold increase from 2022's $2.9 billion valuation.
Despite app-based vehicle sharing being a relatively new entrant in the mobility ecosystem, it has exploded in popularity. People have been quick to pick up on its convenience and ease of use, especially in urban centers where maintaining a private vehicle grows increasingly costly and bothersome.
This spells an opportunity for entrepreneurs keen to answer real mobility demand.
But what is car-sharing and how does it work? What does the business model look like? And what are the first steps for getting started?
Find the answers below.
Car-sharing is an app-based mobility service that allows individuals to rent vehicles on a short-term basis. With this service, users gain access to a fleet of vehicles which are typically stationed throughout a city, ensuring that there's always a car conveniently nearby.
Through an app on their smartphone, users can locate, book, and unlock the closest available vehicle, as well as pay for their journey automatically by adding payment details, thus providing a seamless experience and quick access to a car. Other common benefits for users include not having to worry about fuel or insurance, as those are included in the price.
Cities often encourage the use of shared mobility since it helps decongest streets, free up parking, and minimize the environmental impact of private vehicles on the city. Accordingly, public-private partnerships are common, conferring further benefits for users of this type of shared mobility: free parking, free use of bus lanes, and more.
On the business side of things, the operator is responsible for ensuring that maintenance and logistical tasks for their fleet are taken care of.
This includes regular maintenance tasks, such as vehicle check-ups, repairs, fuel fill-ups, and cleaning. Also, if you have a free-floating model (where users can leave their cars anywhere), the operator should regularly relocate cars to optimal locations for continued user convenience and reliability.
Beyond deploying and maintaining their fleet, operators also oversee the smooth functioning of their mobility app, as well as take care of user verification, namely, ensuring that the people signing up are who they say they are and have valid driver licenses. Of course, like any other business, customer support and other responsibilities tied to running the operation are a given.
So far, we have listed a lot of expenses – maintenance, management, insurance, IT. Add to this salaries, operational overheads, and buying or renting the fleet itself. How do businesses recoup all these expenses and turn a profit?
Note: Since car-sharing businesses operate at scale, they should aim to negotiate lower rates with service providers.
Car-sharing businesses make use of several revenue sources. First and foremost, customers are charged for the time/distance use of the car. Additionally, branding and cross-promotion partnerships (e.g. advertising on the car or the app) are often used to secure additional revenue. It may also be sensible to create membership or loyalty programs to ensure recurring revenue, by offering subscribers added benefits, such as access to premium cars or longer reservation times.
The aim is to have your cars on the road as much as possible, so enterprises typically focus on maximizing vehicle usage and revenue per vehicle. Finding success is about finding balance in a constantly changing landscape – having too few cars may lead to overbooking and dissatisfaction with lack of availability, whereas having too many will lead to inefficient use of resources.
As with any business, launching a car-sharing project requires research, investment, development, and strategy. Let's take a look at each in turn.
When exploring opportunities for starting a car-sharing business, numerous factors must be considered.
Audience and demand
Understanding the demographics, preferences, and behaviors of your potential users is crucial. As is determining the level of demand. Some questions you should answer include:
Competition
Identifying who's already operating in your area and why (or why not) can help you get a better grasp of what works and what doesn't. Some questions you should answer include:
Legal and logistical considerations
Determining whether there are any legal/practical barriers to launching your operations is a smart thing to do before you invest too much time and money into your project. Consider:
While answering these questions isn't necessarily a prerequisite for launching your business, dealing with them early on can save you a lot of headaches down the road.
How much capital do you need to launch a car-sharing business?
It depends most on whether you're planning to rent or buy vehicles for your fleet. While renting is more accessible in the short term, it will take a sizable bite out of your profit. Owning your vehicles is typically the preferred option, as this offers price stability, long-term cost efficiency, freedom of operations, and other benefits.
To get a ballpark estimate for the starting investment, you should add up the total price of cars (EUR 12,000-20,000 per vehicle), insurance, car-sharing software procurement and maintenance, as well as expected operational overhead for getting started. It may also be wise to put aside some funds for unexpected expenses such as repairs.
Securing the vehicles and necessary permits can take a while, and you should account for this. During this time, you should put your plans into practice. Establish maintenance protocols and logistical plans for efficient fleet management. Implement user verification processes and responsive customer support for a secure and positive user experience.
As to the IT infrastructure, you can save a lot of resources by choosing a white-label IT solution to power your app and dramatically accelerate your time-to-market. Platforms like ATOM Mobility can equip your business with the app you need – all you have to do is customize it.
Speaking of customization, don't forget about branding. Create a compelling brand identity and plan for targeted launch and marketing campaigns to generate awareness the moment your business is ready for its first customers.
Now you know how to start a business in this industry – entering this thriving market demands a blend of user-centric strategies and astute business decisions. But the key to success is reliable partners that can guide you in the right direction.
Get in touch with ATOM Mobility to discover how you can power your new enterprise the smart way.
From the rise of ride-hailing services to the increasing popularity of shared vehicles, the industry's landscape is evolving rapidly. This article presents 32 key statistics from 2023 that provide valuable insights into the current state and future prospects of the shared mobility sector, offering a comprehensive overview for industry stakeholders and observers.
The shared mobility industry has experienced significant growth and transformation in 2023, with various segments such as ride-sharing, vehicle rental, and micro-mobility witnessing substantial changes.
From the rise of ride-hailing services to the increasing popularity of shared vehicles, the industry's landscape is evolving rapidly. This article presents 32 key statistics from 2023 that provide valuable insights into the current state and future prospects of the shared mobility sector, offering a comprehensive overview for industry stakeholders and observers.
The global shared mobility market is expanding rapidly, projecting a substantial increase in revenues and ridership. By 2030, it is poised to double its share of urban transport journeys from 2023. Additionally, the number of individuals earning from shared mobility services is forecasted to rise notably.
In Europe, shared vehicle services demonstrate considerable growth, with an increase in multi-mobility users. At the same time, European cities are the strictest shared micromobility regulators, limiting the number of operators and implementing various rules.
Global
Europe & UK
Shared car ridership has increased significantly, with notable upward trends in Q3 2023. The global ride-hailing market is also projected to witness substantial growth, with increased user numbers and an uptick in popularity over taxis in the United States. In Europe, German cities, led by Berlin, continue to dominate in total shared car ridership.
Electric scooter (e-scooter) ridership has declined, although it remains the predominant shared mobility choice, constituting 42% of total ridership. Moped ridership in Europe has similarly decreased, influenced by exits of key market players.
E-scooters have emerged as an environmentally friendly alternative, with 10% of rides directly replacing car journeys. Citizen referendums in Paris and evolving regulations in Amsterdam reflect the dynamic landscape of the electric scooter and moped market.
The global bike-sharing market shows significant growth. In Europe, station-based bikes have increased in popularity. Dockless bikes experienced an impressive surge as well, following the 2023 scooter ban in Paris. Overall, bike fleets and ridership are expanding across major European cities, contributing to a robust Trips/Vehicle/Day (TVD) ratio.
The shared mobility market continues to expand. With ride-sharing and micro-mobility playing pivotal roles, the future of shared mobility appears promising. The insights gathered from these statistics are crucial for understanding the shared mobility market's trajectory and its implications for the broader transportation ecosystem.
Let's make 2024 a year of shared mobility!
“We spent two years developing a car-sharing app in-house. And even after all our efforts it still wasn't half as good as ATOM Mobility's platform.” – Peter Mraz, GreenGo's manager.
Electric car-sharing operator from Slovenia. Operates in 4 cities.
“We spent two years developing a car-sharing app in-house. And even after all our efforts it still wasn't half as good as ATOM Mobility's platform.” – Peter Mraz, GreenGo's Manager, shares how he found the perfect partner in ATOM Mobility.
Launch date: May 2021
Country: Slovenia, operates in 4 cities
Web page: https://greengo.city
App Store: https://apps.apple.com/us/app/greengo-by-t2/id1618782932
Google Play: https://play.google.com/store/apps/details?id=greengo.app
GreenGo is a green vehicle-sharing company based in Slovenia that currently focuses on electric cars.
The company's story is unique in that it's a project that spun out from its parent company T-2, d.o.o., a local telecom provider with over 400 employees. T-2's owner was enthusiastic about green mobility and set out to bring his vision to life – and succeeded. Today, you can find GreenGo's Renault Zoes and Twingos, Cupra Borns, and VW ID.3s in four cities – Ljubljana, Kranj, Trzin, and Logatec.
However, the man who's running the show is Peter Mraz, GreenGo's Manager. While he does enjoy access to the parent company's resources, Peter is single-handedly overseeing the entire project and responsible for its success.
“I do have backup from designers, legal, accounting and so on. And there are maybe 3-4 people who help manage the cars and maintenance. Everything else – it's on me. Thanks to ATOM Mobility, I have been able to manage everything from project start to launch pretty much on my own,” says Peter.
Orginally, the idea was to develop the GreenGo car-sharing app in-house – a decision Peter grew to regret.
“It took us two years to develop the app. Even then, it did the job, but it wasn't perfect and it didn't quite go the way we wanted it to. And even after all our efforts it still wasn't half as good as ATOM Mobility's platform,” he shares.
Indeed, this ongoing struggle pushed GreenGo to explore alternative options on the market and, after some market research, they landed on ATOM Mobility. ATOM Mobility ticked their two most important checkboxes – it offered the core functionalities they required and offered fast time-to-market.
Originally“Once we made the switch, we launched in 3 months, though we did already have the cars at the ready, which certainly helped,” Peter continues.
Admittedly, ATOM Mobility didn't immediately fulfil all their needs.
“We had a very specific vision and requirements. ATOM Mobility was great, but didn't have everything we wanted when we started out. But the platform is evolving quickly. Their team develops something new every 2-3 months and it's very good for us. Since they develop for other companies, too, we also benefit from the updates. Now, ATOM Mobility has everything we need and more,” Peter says.
Still, early on, GreenGo were facing an uphill battle with fierce competition. Slovenia already had one high-profile electric car-sharing company that had established itself in the market, had more experience, and was well-respected among its customers and the general public.
What was GreenGo's strategy for finding a foothold in the ecosystem?
GreenGo carved out its market share by leveraging a strategic partnership with Slovenian Railways.
“You see, a lot of tourists arrive in Ljubljana and other cities by train. Either internationally or from the airport. So we started off by placing our vehicles in railway stations, allowing us to be the easy choice top of mind for anyone arriving in the city,” Peter explains.
To further improve convenience for potential customers, GreenGo integrated ATOM Mobility with a local MaaS platform. This allowed people to purchase credits for GreenGo's car-sharing app through the city's own mobility solution.
Not only did this solidify GreenGo as the most accessible solution for any tourist who used the city's app to buy a train ticket, it also connected it to all the local residents that use the city's mobility app in their day-to-day.
Now, you'll find GreenGo in four cities and their customers love them, as suggested by the high app ratings and continuous positive feedback.
In most of the cities, they're using a station based model – where the cars need to be picked up and returned at certain points. However, in the capital they're currently running a hybrid model featuring both free-floating and station-based vehicle sharing.
GreenGo expects to have to switch to a fully station-based model in Ljubljana, too, as the city is pulling the brakes on free-floating vehicle sharing. But they're not too fussed, as this model is easier to manage and can be a better choice for a still-up-and-coming company.
As any company, GreenGo is eyeing growth and expansion.
“Our vision is to become a leading force in the sharing economy,” Peter highlights.
Expanding their fleet with different types of vehicles, specifically – electric micromobility solutions – is one of the avenues GreenGo is exploring.
In terms of business development, GreenGo has an interesting strategy for the upcoming year, namely, focusing on expanding into the business-to-business (B2B) segment with corporate sharing schemes.
“With B2C, you need a lot of cars, a lot of investment. Electric vehicles are very capital intensive, which poses challenges for a growing company. B2B offers the opportunity to make the maximum from your existing fleet, which will allow B2C expansion later on. Plus, we already have a sort of successful B2B pilot project under our belts,” says Peter, referring to a corporate sharing scheme they launched with their very own parent company.
They made four cars available to T-2 employees, which they can take out under certain conditions and packages for a few hours, a day, or a weekend. This sharing scheme proved to be very popular among employees, and Peter is certain other large companies will also be keen to test out this modern benefit for their workers.
With some ups and downs, GreenGo is steadily carving out its spot in the market.
What would Peter do differently if he had to do it all over again?
“Choose ATOM Mobility from day 1 and save everyone a lot of headaches and resources,” he laughs. “But, seriously, the time-to-market is so fast, I think you could launch a mobility company from zero in one month.”