The 7 benefits of launching a shared mobility business in a small town
July 31, 2023
min. read
Whether we're talking car sharing, mopeds, or scooters, shared mobility is usually associated with large, buzzing cities. More potential customers, longer distances to travel, and higher demand for transportation services – these often seem like key business factors for aspiring mobility entrepreneurs.
But large cities present hurdles, too. From intense competition to higher operating expenses, establishing yourself in a major urban center is a costly uphill battle that's becoming more difficult by the day.
In response, mobility entrepreneurs are increasingly eyeing small towns for their operations.
Launching a shared mobility business in a small town comes with a distinct set of advantages that may be particularly suited for those taking their first steps in the industry. While industry veterans are also exploring opportunities to expand their operations beyond the big cities, smaller towns might not meet their desired level of profitability and hence are typically overlooked.
In what follows, we'll detail seven important benefits of launching a shared mobility business in a small town and take a quick look at what such an operation could look like.
7 reasons to launch a shared mobility business in a small town
Unless you're working with massive capital and are willing to go to war with several other operators, a small town can be the perfect place to begin your shared mobility business journey. Especially if you yourself come from that or a nearby town.
1. Meet real needs
One of the most significant advantages of operating in a small town is the ability to meet genuine transportation needs. Local entrepreneurs, themselves part of the community, possess an intimate understanding of the unique requirements and behaviors of their fellow residents.
Accordingly, it can be very rewarding both financially and socially to provide a mobility solution that tackles specific issues, and no large competition can do it as quickly or efficiently as a local entrepreneur.
2. Better collaboration with authorities and residents
Working with local authorities in small towns is often a more streamlined and collaborative process. This makes obtaining permits and navigating regulations considerably easier compared to larger cities.
The smaller scale and close-knit nature of these communities allow entrepreneurs and city officials to establish closer working relationships, fostering open communication, and a joint vision in developing mobility solutions that are best suited for the town.
3. More effective marketing
Marketing and advertising efforts in small towns can be significantly simplified and more effective. Sometimes marketing might even be unnecessary. Local entrepreneurs have the advantage of leveraging community events, traditions, and personal connections to create impactful marketing campaigns that resonate deeply with the residents.
This localized approach not only enhances brand visibility but also establishes a sense of familiarity and trust among potential customers – elements that outside brands may find very difficult to replicate.
4. Little-to-no competition
One of the most enticing aspects of launching a shared mobility business in a small town is the lack of competition from major players. Major companies may overlook these areas due to perceived limited profitability potential, leaving the market wide open for local entrepreneurs to establish themselves as the primary mobility service provider.
With little or no competition to contend with, entrepreneurs can seize the opportunity to capture a significant market share and build a loyal customer base from the outset.
5. Faster service adoption
A major challenge when launching in a big city is slow adoption. Travelers have lots of options to choose from and they typically already have mobile apps for the most popular service providers. As a result, this can make them hesitant to download another app or to change their habits.
In smaller cities, this is a non-issue. Word of mouth travels fast and it's much easier to get noticed when you have little-to-no competition. Ultimately, this helps your mobility business start generating more revenue faster.
6. Easier B2B or B2G partnerships
The local nature of small towns enhances the potential for fruitful partnerships and collaborations. As a local business, shared mobility entrepreneurs are more likely to garner the interest and support of other organizations in the vicinity. Building partnerships becomes more accessible, as there is a shared understanding of the community's needs and a mutual interest in driving positive change.
For instance, establishing collaborations with local businesses to offer corporate fleet services or working in conjunction with the local government to provide special discounts for specific groups of citizens can create mutually beneficial arrangements. These partnerships not only expand the business' customer base but also strengthen its reputation.
7. Simpler and more effective ground operations
Small towns, by their very nature, offer a significant advantage in terms of simplified and efficient ground operations for shared mobility businesses. With smaller geographical areas and populations, the logistical challenges associated with tasks such as vehicle collection, relocation, and maintenance are greatly minimized.
The compact size of small towns often results in lower operational costs, enabling entrepreneurs to maintain a lean and cost-effective operation, while keeping customer satisfaction high.
A typical small town operation
The needs of a city with a population of 20-30k people can be effectively met with a reasonable fleet size of 80-150 scooters, which is an optimal starting size for scooter-sharing businesses. As mentioned, such a fleet is also easy to maintain and keeps ongoing operational costs low.
Small cities are often surrounded by other nearby smaller 5-10k people towns, which offer expansion opportunities without dramatically increasing servicing and maintenance costs and efforts. This allows the fleet to be managed by a single employee on the ground, while keeping the central ~20k population city as an operational hub.
From our own 100+ operators, we see that small town operators with no other competition are earning more money per vehicle than their counterparts in bigger cities – a very important metric, particularly in the early stages of building a shared mobility business.
Best =/= biggest
When you hear “burgers” you think “McDonalds”. But when you hear “best burgers in town” you probably think of some local burger joint that you would choose over McDonalds every day of the week.
It's a similar story with shared mobility businesses – most entrepreneurs aspire to be Uber or Bolt, to take over the big cities, and to become a dominant name in the industry. But the reality is that you can find great business success by shining locally.
If you're interested in starting your own shared mobility venture, join our ATOM Academy to learn more and see if it's the right car sharing or scooter sharing software for you.
Interested in launching your own mobility platform?
Click below to learn more or request a demo.
Blog
How to find your niche in the competitive ride-hail market: real-world examples of businesses that resonate
💡Want to break into the ride-hail market but don know what’s your angle and how to make yourself visible in an already packed field? Check out how InDrive, BLACWOLF, and COMIN found their unique angles to thrive in a competitive space! 🚗
December 18, 2024
min. read
The ride-hail market is crowded, fiercely competitive, and often dominated by household names like Uber and Bolt. But don’t let the giants fool you into thinking there’s no place for you. With some creative thinking and a unique angle, you can get on the road quite quickly. The secret? Finding the one thing that sets you apart from others. Let’s explore how some notable players (both veterans and newcomers) have done just that.
InDrive: A pioneer in price negotiation
🔹 Over 200M downloads, active in 700+ cities across 45+ countries
🔹 Unique feature: Set your price - Riders offer a fare, and drivers can accept or negotiate!
🔹 Drivers pay no commission, just a small monthly subscription, giving them better earnings.
🔹 Unique market entry: Initially free usage for drivers (no commission, no subscription).
Before we discuss the latest players, let’s revisit InDrive, a company that entered the market years ago with an approach that sounds almost too simple to work – offer your price.
The idea is straightforward. Instead of accepting a fixed fare, riders suggest how much they’re willing to pay. Drivers, in turn, can accept, counter, or reject the offer. It’s a dynamic that mirrors haggling at a bazaar but digitized for the modern commuter.
This model resonated. Riders felt empowered, and drivers appreciated the flexibility, especially in sensitive markets where fair pricing is a concern. InDrive rapidly scaled across emerging markets like Latin America, Russia, and Southeast Asia, regions where affordability and negotiation are cultural norms.
The takeaway here? InDrive’s “offer your price” model wasn’t just a fun gimmick, but a solution tailored to specific markets and demographics, offering fair rides to anyone who needs it. If you’re entering the ride-hail space, ask yourself: what unique cultural or social nuance can you leverage to disrupt the market in the region?
BLACWOLF: The armed and ready approach
🔹 Unique feature: Focus on rider security with armed & trained drivers 🛡️
🔹 Launched in Atlanta (2023), now expanding across Arizona, Florida, Georgia, Tennessee, and soon Houston, Austin, and Dallas!
🔹 Over 300K downloads in just 1.5 years.
Now, let’s fast-forward to the present and head to the U.S., where BLACWOLF has entered the scene (launched in Atlanta, 2023), now expanding across Arizona, Florida, Georgia, Tennessee, and soon Houston, Austin, and Dallaswith an eyebrow-raising twist: drivers who carry firearms.
BLACWOLF was launched in response to concerns over driver and passenger safety. Their USP (unique selling proposition) is ensuring peace of mind through armed drivers. As their slogan says, “We didn't reinvent ride-hailing; we just made it safer.”
As controversial as it sounds, it’s resonating in specific markets like Houston, where personal security is a priority for many.
This approach has gained traction, especially among passengers who prioritize safety or feel underserved by existing ride-hail platforms. Of course, it’s not without its challenges. Regulatory hurdles and liability concerns spring to mind; however, BLACWOLF is scaling rapidly, proving that a polarizing angle can still be a winning one.
Don’t shy away from bold ideas that cater to real pain points. Whether it’s safety, convenience, or cost, identifying an underserved need can help you stand out in a crowded market.
COMIN: France’s bid-for-ride disruptor
🔹 Unique features: Offering a fair 10% commission and Set your price feature (similar to inDrive).
🔹 Quickly onboarded 6,000 drivers, capturing 15% of the market in record time.
Over in Europe, a fresh player called COMIN is shaking things up in France. This newcomer has onboarded 6,000 drivers, taking 15% of the French market almost overnight, a feat that’s turning heads across the industry.
COMIN’s secret sauce? A bidding system that allows passengers to submit offers for rides, giving drivers the choice to accept or negotiate. Yes, it’s like InDrive, but with a hyper-local twist tailored to France’s market dynamics.
To fuel their growth, they’ve also raised €300,000 in seed funding from Station F, Europe’s largest startup incubator. By focusing on one market and perfecting their model, COMIN has avoided doing too much at once—proof that a focused approach often trumps trying to be everything to everyone.
For aspiring ride-hail entrepreneurs, COMIN serves as a case study in starting small but thinking big. Specializing in one region or demographic before expanding can help you gain traction and refine your offering.
The ride-hail market may look like a fortress, but even the strongest walls have cracks. With creativity, boldness, and the right platform to support your vision, there’s no reason you can’t break through and thrive. Are you ready?
How ATOM Mobility can help
So, you’ve got your groundbreaking idea. What’s next? To turn your vision into a reality, you’ll need a robust platform to build on—and that’s where ATOM Mobility comes in.
ATOM provides a ready-made platform for entrepreneurs looking to launch ride-hailing or mobility services. With customizable tools, seamless integrations, and scalable tech, ATOM lets you focus on your unique value proposition while we handle the backend.
Ready to make your mark in the ride-hail world? Join ATOM Mobility today and start your journey!
Blog
Cracking the code of car sharing: Best technology for car sharing business
🚘💡 What keeps cars in car-sharing businesses connected? From CAN bus and OBD devices to cutting-edge IoT providers like Teltonika, Invers and Geotab, it’s all about the hardware!
November 27, 2024
min. read
Car sharing is more than just a trend—it’s a game-changer for urban mobility, helping people access vehicles without the headache of owning them. But what makes it all work? Let us introduce the tech behind car sharing and explore how companies like ATOM Mobility make it easier to start and scale your shared mobility business profitably.
The three pillars of car sharing technology
At the heart of every car-sharing operation are three key technologies that connect vehicles to platforms: CAN bus, OBD, and OEM telematics. Here’s what they do and why they matter:
1. CAN Bus: The car’s internal network
The Controller Area Network (CAN) bus acts like a car’s central nervous system, allowing different components to talk to each other. It delivers detailed data—fuel levels, battery status, or even tire pressure—directly to your car-sharing platform. This deep integration also allows remote actions like locking or starting the vehicle.
However, CAN systems require professional installation, which can mean higher upfront costs. For larger operators with fleets that need granular control and detailed diagnostics, it’s a must-have.
2. OBD: Affordable and easy to deploy
On-Board Diagnostics (OBD) devices are the plug-and-play heroes of car sharing. Simply connect them to the car’s diagnostic port, and you’ve got instant access to location, speed, and engine health. They’re affordable, quick to set up, and ideal for small-to-medium operators just getting started.
That said, OBD devices offer less functionality compared to CAN. They’re perfect for a more basic setup but might not suit operators who need advanced data or remote vehicle controls.
3. OEM Telematics: Factory-installed genius
OEM telematics systems come pre-installed in many modern cars. These systems provide seamless connectivity and are highly reliable, enabling features like real-time tracking, diagnostics, and remote locking.
The downside? OEM telematics tie you to the car manufacturer’s system, which can limit customization. If your fleet is from a single brand, this is a fantastic option. For mixed-brand fleets, integrating other devices might make more sense.
The IoT providers helping you succeed
Beyond these three core technologies, IoT providers offer additional tools to supercharge your car-sharing operations. Here are four standout names making waves in the industry:
Teltonika
WEB: https://teltonika-gps.com
Headquartered in Lithuania, Teltonika has been at the forefront of IoT since 1998. With over 1,600 employees, the company specializes in GPS trackers and other connected devices that bring real-time tracking, security, and driver behavior analysis to your fleet. Their scalable solutions are ideal for growing car-sharing businesses.
Geotab
WEB: https://www.geotab.com
Based in Canada, Geotab supports over 2 million vehicles worldwide with its advanced fleet management tools. Their telematics devices don’t just track vehicles—they provide insights into fuel efficiency, maintenance needs, and safety. For operators focused on data-driven optimization, Geotab is a top choice.
INVERS
WEB: https://invers.com/en/solutions/cloudboxx
Germany’s INVERS is a leader in shared mobility tech, offering the CloudBoxx device to connect vehicles with car-sharing platforms. Easy to integrate and reliable, CloudBoxx ensures a smooth experience for operators and users alike. With a strong presence in Europe and North America, INVERS is a trusted name in the industry.
Acacus
WEB: https://www.acacusgroup.com
Operating out of the UAE, Acacus combines IoT and AI to deliver smart mobility solutions. Their tech is widely used in government projects and private fleets, especially in regions embracing smart cities. Acacus brings innovation and reliability to shared mobility operators aiming for cutting-edge solutions.
How ATOM Mobility comes into the picture?
Technology is only as good as the platform that connects it all. That’s where ATOM Mobility shines.
ATOM’s software integrates seamlessly with devices from Teltonika, Geotab, INVERS, and others, making it simple to connect your fleet and manage everything from a single dashboard. No matter the size of your operation, ATOM provides tools for real-time tracking, user management, and secure payments—all with intuitive design and full support.
Whether you’re launching your first car-sharing fleet or expanding across multiple cities, ATOM helps you scale profitably and with confidence. We make the technical stuff easy so you can focus on growing your business.
Why is car sharing the future?
Urban living is changing. People are moving away from car ownership, opting instead for flexible, on-demand solutions like car sharing. It’s convenient, cost-effective, and kinder to the planet.
With tech like CAN, OBD, OEM telematics, and IoT devices driving the industry forward, the potential for shared mobility is enormous. But to succeed, operators need the right tools to manage fleets, optimize performance, and deliver a great user experience.
Join us
Ready to start your car-sharing journey? Book a demo with ATOM Mobility and let’s get moving!
Driver App demo credentials - Email: test@atom.com, Password: driver
