A white label solution or building your own software - what to choose for your vehicle sharing business?

A white label solution or building your own software - what to choose for your vehicle sharing business?

Software is an essential part of your vehicle-sharing business. And it doesn't matter what vehicles your customers are going to share. They will do it through the mobile app. So here is the decision to make – are you going to create the vehicle-sharing software from scratch or choose one of the existing solutions on the market. Hopefully, this article will help you with this decision.

Which one of these two options should you choose? There is no one correct answer and there are advantages as well as weaknesses to both of them.

Imagine that this is your first vehicle-sharing business and you have decided to do everything on your own. You are full of enthusiasm and you approach your CTO or IT partner and promise to come up with the brief. The task doesn't seem too complicated for the software you need. However, the vehicle-sharing business is the one that makes creating the brief so complicated. There are many small details to consider.

First step - long and costly research

If you really have decided to start to develop software from scratch, you should take one step back. Your CTO or IT partner must start with the investigation on what functions you might need and how one thing might lead to another. This might take a lot of time and money. In addition, sometimes you can get an impression of what clients need only by operating in the market. For example, ATOM is operating in 23 countries. Their software that is also a white label solution for vehicle-sharing businesses already includes over 100 different features and settings that users might need. And those features are a collection of suggestions from users made over the course of several years in those markets.

However, the aim of the research is to understand what the vehicle-sharing software might look like. If the investigation is done, you can start to prepare the brief and documentation for developers. Here is a list of some other things that you should consider before starting work on a technical solution:

- backend, as well as frontend of the solution - both should be developed and supported so your team can manage operations;

- there should be two versions of the mobile app - one for users that has a device operating on iOS. Other - for the owners of devices that run on Android;

- whenever Apple or Android updates their operating systems or other 3rd party makes an update, you should be ready to check if everything works on your apps;

- apps should be compatible with smart locks in the case of bikes or IoT solutions in the case of scooters, mopeds, cars that are used on the vehicle;

- the IT solution must be properly tested and debugged - the industry average shows that testing the app takes approximately two-three months;

- if your vehicle fleet has over 100 vehicles, most likely you will have a service team. The most convenient way for the service team to operate is by using the phone app. This means that there should be one more app for the service team. And your team members might also have iOS as well as Android operating systems on their devices. So again – there are two more apps for you to build;

- additionally, you must have an invoicing option and also the option to create reports, see statistics, analyze routes, distribute promotions, launch referral programs, etc. And this list can go on and on.

The software development usually costs from EUR 100,000-400,000 depending on the complexity and features that you might want to include. In addition, you have to keep in mind that nothing ends with development. The software requires testing, private launch, debugging and support. And only then will the software be ready for the public launch. However, more bug fixing should probably be done.

One year and you are ready to go!

This whole process mentioned above takes approximately one year. Of course, fingers crossed that the solution as well as the integration with smart locks or IoT solutions works. There is just one problem - the vehicle-sharing industry is changing very rapidly - new players are coming in, others are expanding, new means of transportation are used for vehicle-sharing. And there are a lot of things that might happen and change in a year. It might be hard to catch up.

Furthermore, competitors are constantly offering and creating new features that were not in the market previously such as subscriptions, which is currently a new trend. For example, ATOM Mobility has created a white label solution for the vehicle-sharing market that constantly collects knowledge from their clients and adds new features. Later those features are integrated into solutions offered to other clients so everyone is up to date. In the case of a custom-made solution, everything is on you - it might take additional time and money.

One more thing that speaks in favor of the white label solution - let's imagine that your business is very successful. You have developed a vehicle-sharing software for the one-vehicle type and you would like to grow by adding other vehicle types. Sorry, not possible. You will have to make significant changes to the existing software or develop the new one. So probably you will have to start over again.

The same problem might apply to extending the fleet. If your business becomes scalable, the software might not be appropriate for a fleet with 20 000 vehicles. White label solution providers are usually ready for such success of their customers as they have already supported thousands of vehicles for some time.

When it is worthwhile developing a custom solution?

However, there are times that it is worth considering developing a custom solution - your own software for your vehicle-sharing business. It is worth doing this, if:

1) You already know that you might need some very specific features, but the company offering white-label solutions can't provide them to you. For example, you want your car sharing software to run on the blockchain. Or you want to create a decentralized sharing service. However, it is only worth investing in such a specific solution if it is a real game-changer for you and you have the data to proof it;

2) You have EUR 500,000 or more available in funding and you have a very strong team of developers that you would like to keep working for your company. You consider them to be your asset. Then, if you are lucky, after some time, someone might be interested in buying your company just because of the team and, of course, the solution you have developed;

3) The co-founder of the company is a very good CTO with high-level technical skills and the ability to lead the team. Then it is probably worth building a team. However, most likely you will build a technological and not a vehicle-sharing company in the end and spent more on development than actually on vehicles.

4) For some reason one of the requirements is to have a source code. Companies offering white label solutions won't be able to help you with that.

There is a power in sharing and this doesn't just apply to vehicle-sharing. You always get access to a strong network when you are working hand in hand with the industry leaders. That's what we at ATOM emphasize in collaboration with our clients. We are ready to share as much as we can because we do really care about our clients’ business. It is important for us that they grow and constantly have access to the latest achievements within the industry.

Interested in launching your own mobility platform?

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New feature that will boost your fleet uptime and client satisfaction – vehicle damage management
New feature that will boost your fleet uptime and client satisfaction – vehicle damage management

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

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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. 

Vehicle damage reporting – a better experience for everyone

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:

  • Increases the speed at which you receive information about necessary repairs for your fleet,
  • Enables you to respond to this information in an organized manner, as it streamlines operator tasks through the Dashboard and Service app,
  • Equips users with a clear communication channel for reporting issues.

In unison, these help you ensure maximum uptime for your fleet, as well as offer various other benefits. These include:

  • Identifying issues that routine maintenance might miss, e.g. a trunk stuck shut, 
  • Resolving customer anxieties by letting them report problems, e.g. people might be hesitant to use a damaged vehicle in case they get blamed for the issues,
  • Giving you better control over the customer experience, e.g. turning a negative encounter with your brand into a positive one through communication,
  • Easily tracking maintenance history for your fleet, e.g. discovering which vehicles fail often and require replacement. 

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. 

How does vehicle damage reporting work? 

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. 

For your customers

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.

For your operators

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 – future-proof your mobility business

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.

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Everything you need to know before starting your car-sharing business
Everything you need to know before starting your car-sharing business

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.

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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. 

What is car-sharing and how does it work?

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.

The user's journey and benefits of car-sharing

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. 

How does car-sharing work: the business perspective

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.

The car-sharing business model

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. 

How to start a car-sharing business

As with any business, launching a car-sharing project requires research, investment, development, and strategy. Let's take a look at each in turn. 

1. Market research

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:

  • Who is my target audience – urban commuters, occasional travelers?
  • What are their demographics? How should you communicate with them?
  • What segment offers the most promise – B2C, B2B?

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:

  • Who are my competitors – other car/ride-sharing businesses, public transportation?
  • How can I differentiate my business from others?
  • Has any previous similar business failed in this area – why? 

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:

  • What are the legal requirements for operating this type of business in your area?
  • How will you handle insurance and liability issues for your fleet?
  • How and where will you run your day-to-day operations? If you're thinking about going electric – does the area have the necessary infrastructure?

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. 

2. Investment

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.

3. Development and launch strategy

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. 

Your car-sharing business journey starts here

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.

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