5 things to keep in mind when choosing your vehicle-sharing fleet for the 2023 season
March 20, 2023
min. read
Whether you're an experienced mobility veteran or a first-time entrepreneur, there are several things you need to keep in mind when choosing or upgrading your fleet for the 2023 season – be it cars, ebikes, or scooters.
In 2023, we'll see cities and countries implement stricter mobility management regulations and new safety requirements. Customer expectations will continue to grow in tandem with rising competition. And technological advancements will push the electric mobility industry to new heights.
To stay competitive and meet customer demand in terms of both quality and quantity, it's crucial to not only choose the right fleet for your business, but also carefully manage the related decisions that come with such an order. This will help you avoid running into unwelcome surprises both in the short- and long-term.
Here are the aspects to keep in mind when choosing your fleet this year:
1. Shipping prices are lower than last year
Following a hectic 2022 for logistics, 2023 brings good news for businesses – shipping prices have come down significantly and supply chains are finally starting to show some stability.
Recent research indicates that there has been a significant decline in freight rates, reducing shipping costs by up to 50% compared to last year's peaks. The falling cost of shipping provides mobility businesses with the opportunity to make better use of their resources and can even make a significant difference in business viability.
That said, it's difficult to accurately predict the trajectory of shipping prices going forward. Previous years have been characterized by perpetual instability and there is a possibility that costs may rise again due to global events. Hence, shipping expenses should be top-of-mind when considering ordering new vehicles, particularly from overseas.
2. Choosing vehicles: you get what you pay for
It may be a smart idea to reinvest the savings from falling shipping costs into the vehicles themselves. While cheaper brands might look appealing, bear in mind that they typically require more maintenance than their more expensive counterparts.
Accordingly, a larger upfront investment into more durable and reputable vehicles may pay off in the long run, as you benefit from reduced need for maintenance and the labor that comes with it. Better durability also means a longer vehicle lifespan.
For example, some of the largest shared e-mobility operators purchase their fleet from OKAI, which vehicles are known for their durability and can be ordered from the company's warehousing facilities in Europe. Segway and Feishen are two other Chinese manufacturers that also provide stock from their European warehouses. If you prefer EU-manufactured vehicles, you may want to consider the Estonian scooter manufacturer Äike.
Cheaper models may still be a fantastic option for first-time mobility entrepreneurs aiming to validate their business idea. However, anyone in it for the long haul should carefully weigh the risks and benefits of large investments in lower-end models.
That said, if buying a brand-new fleet is too costly for your business, consider used vehicles that were previously owned by other operators in the EU. It can be a more cost-efficient alternative for operators just starting out. Check out our vehicle marketplace, reach out to us, and we'll help you put your fleet together.
3. Regulations will change and your fleet must adapt
The micromobility industry has long been loosely regulated, but now this is quickly changing. This year, we can expect new and stricter requirements, especially when it comes to kick scooters. And you must be ready to adapt your fleet to meet these emerging requirements.
In other words, along with swappable batteries and a durable design, things like scooter modularity and adaptability will become more important than ever before. These features are crucial not only for integrating new technologies as they emerge, but also in their ability to comply with newly introduced regulations.
For instance, the growing movement to make helmets a requirement with kick scooters should lead you to consider models that either have these locks, or can be retrofitted to add them. Otherwise, you may find yourself with an unusable fleet.
4. Invest in spare parts ahead of time
Researching and purchasing extra batteries and recommended spare parts beforehand can help reduce downtime and ensure that your fleet is always ready to perform at maximum efficiency. “Getting at least a 50% share of spare batteries along with the initial order is a good idea,” suggests Dominik Graaf, advisor at FEISHEN New Mobility.
Dominik also highlights that, when it comes to spare parts, it's better to stock up on extra ones, than to find yourself with an incapacitated fleet for months as you wait for critical parts to be shipped. The best way to determine which and how many parts you need is to ask your manufacturer of choice.
Manufacturers typically have comprehensive metrics about the performance of their own products – they know the weak points, they know the lifespan, and they know the most common issues. Accordingly, they're uniquely positioned to make good recommendations about spare parts and often offer pre-made packages along with the initial order. You can expect the cost for spares to be around 2-5% of the value of the scooter.
5. Understand the associated costs of importing vehicles
If you've been researching manufacturers and their prices, you'll probably have reached the conclusion that it's cheaper to order from overseas than buy locally. There are significant price differences between, for example, buying scooters in the EU vs Asia, even when purchasing from the same manufacturer.
But the price of the vehicle is only half the story.
According to Dominik Graaf, the reason for the price difference is import-associated costs – when ordering from Asia, you will have to bear all the costs for shipping, customs, and delivery. Not to mention the hassle of managing the entire process. Whereas when you buy from a European warehouse, the bulk of these costs have already been paid by the manufacturer and are accordingly priced into the scooter or other vehicle.
Once this is accounted for, the price difference falls sharply.
Moreover, buying in Europe confers various other advantages, the most important being dramatically shorter lead times, reducing the time until you see the first scooters from months to weeks. Additionally, it gives you a local contact point, as well as simplifies accounting and other managerial processes.
Do note that, at the end of the day, it may still prove cheaper to buy from overseas. However, unless you've got the experience and tenacity to deal with international shipping and its related headaches, we recommend starting as locally as possible.
Bring it on, 2023
To summarize – we're at a unique time when falling costs offer more businesses the option to consider longer-term investments. Be it more durable scooters or well-stocked backup parts, now is a good time to be forward-thinking.
With the right fleet and the right mobility platform and software, your business will be well-positioned to navigate the challenges and opportunities of the 2023 season.
If you're looking to purchase vehicles for your mobility-sharing business, start with exploring ATOM Mobility's vehicle marketplace.
Need help or advise on business, software, or vehicles? Let's talk!
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Who does carsharing better – OEMs or start-ups?
🚗📉 Why do big car brands struggle in carsharing while independent startups thrive? OEMs like Volvo and SEAT have shut down, but new players like Kia are stepping in with smarter strategies. Meanwhile, independent operators like GreenMobility are scaling fast. 🔍 What’s the secret to success in carsharing? It’s all about adaptability, cost control, and tech partnerships.
February 7, 2025
min. read
Who does carsharing better – OEMs or start-ups?
The carsharing industry is at a crossroads. Once hailed as the future of urban mobility, it has seen a mix of success and failure, with some players thriving and others closing shop. So we ask: why do some carsharing ventures fail while others continue to grow? And more importantly, what does it take to run a sustainable and profitable carsharing business in today’s competitive landscape?
Recent developments have been telling. Two OEM-backed carsharing ventures have recently shut down, while independent operators continue to expand, and a new entrant – Kia – has just launched its own service. This article takes you into the challenges, key success factors, and the evolving role of technology in the industry.
OEMs vs. startups: What's the difference?
Before diving into specific cases, it’s important to clarify what OEMs (Original Equipment Manufacturers) are and how they differ from startups. OEMs are traditional car manufacturers – companies like Kia, Volvo, or Ford – that primarily produce and sell vehicles under their brand names. Some OEMs have expanded into mobility services, including carsharing, but often struggle because their main focus remains on car sales.
In contrast, startups and independent operators like GreenMobility are built from the ground up as mobility service providers. They don’t manufacture cars but instead focus entirely on the carsharing experience, optimizing operations, technology, and customer service. This difference in core focus often determines success or failure in the carsharing industry.
OEM carsharing ventures
Automakers have long recognized the potential of carsharing as a way to diversify revenue streams, enhance brand loyalty, and explore new mobility business models. However, history has shown that simply putting cars on the streets and creating an app isn’t enough to make carsharing work.
Several OEM-backed carsharing services have struggled to maintain profitability. Volvo’s Volvo On Demand recently announced its closure as part of a broader strategy to optimize costs. Similarly, SEAT ceased operations at the end of 2024 due to declining demand and rising operational costs (€31 million total losses, with €11 million lost in 2023 alone, against a turnover of €16 million).
The challenges OEMs face in carsharing stem from several factors:
- High operational costs: Fleet management, maintenance, insurance, and parking fees add up quickly.
- Consumer behavior: Unlike leasing, carsharing requires a behavioral shift from users, who must plan trips around vehicle availability.
- Integration challenges: Traditional automakers are structured around car sales, not service-based mobility solutions. This makes it difficult to operate carsharing efficiently.
However, these closures don’t necessarily mean that carsharing itself is an unsustainable model. Instead, they highlight the need for a different approach – one that independent players are executing more effectively.
New entrants and independent operators
While OEM carsharing ventures struggle, independent operators like GreenMobility are experiencing growth. Unlike traditional automakers, these companies are built from the ground up as mobility service providers, allowing them to operate more efficiently.
GreenMobility’s growth can be attributed to:
- A laser focus on carsharing: Unlike OEMs, which juggle multiple business lines, independent companies dedicate their entire strategy to optimizing the carsharing experience.
- Smart cost control: Leveraging technology for fleet management and maintenance allows them to run lean operations.
- Strategic market selection: Choosing the right cities with high demand and favorable regulatory environments plays a huge role in their success.
By leveraging a digital-first approach, these companies are able to optimize vehicle utilization, reduce operational costs, and offer a seamless user experience—something OEMs often struggle to achieve.
Does KIA’s entry in carsharing bring new hopes?
Amidst the shifting landscape, Kia has entered the carsharing market with its new service, Hyr & Dela. Unlike previous OEM carsharing attempts, Kia's model focuses on businesses rather than individual consumers. This service allows companies to rent vehicles on a monthly basis and share them among employees, partners, or customers via a digital platform.
Why does this approach make sense?
- Higher vehicle utilization: By targeting businesses, Kia ensures that its vehicles are in use more frequently than traditional consumer-focused carsharing models.
- Fleet management efficiency: A B2B-focused model allows for easier scheduling, tracking, and maintenance planning.
- Electric vehicle (EV) adoption: Kia’s service aligns with the growing trend of businesses adopting EVs for sustainability goals.
If executed well, Kia’s corporate-focused carsharing model could prove to be a sustainable business approach, avoiding many of the pitfalls that plagued previous OEM carsharing attempts.
5 lessons we have learned from this
So, what can current and future carsharing ventures learn from these experiences?
1. Adaptability is key
Rigid business models and a lack of flexibility are major roadblocks to success. Carsharing services need to be highly adaptable, leveraging data to adjust pricing, fleet locations, and service offerings dynamically.
2. Cost management determines longevity
Carsharing is a capital-intensive business. Operators need to optimize fleet efficiency, reduce downtime, and control maintenance and insurance costs. This is where independent operators often outperform OEMs, as they are more agile in managing expenses.
3. Technology is a game-changer
A carsharing platform is only as good as its technology. Companies partnering with mobility tech providers like ATOM Mobility can benefit from advanced booking systems, automated fleet management, and data-driven decision-making—key elements for a seamless and cost-effective service.
4. Market selection matters
Choosing the right city or region for carsharing is crucial. Factors like public transportation integration, parking regulations, and urban population density can make or break a carsharing business.
5. OEMs need a service-oriented mindset
Carsharing is not just about providing access to vehicles—it’s about service excellence, convenience, and user experience. For OEMs to succeed, they need to rethink their approach and adopt a more customer-centric mindset.
The future of carsharing
The carsharing industry is at an inflection point. While some OEM-backed services have faced hurdles, independent operators like GreenMobility and strategic initiatives like Kia’s Hyr & Dela show that success is still possible with the right approach. The key lies in adaptability, cost control, technology integration, and market focus.
As the industry continues to evolve, Kia’s entry into corporate carsharing is an exciting development. With a smart strategy and strong execution, they have the potential to carve out a successful niche in the market.
We’ll be keeping an eye on Kia’s progress and, in the meantime, wishing them the best of luck in their new venture. Let’s hope they are here to stay!
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!
Driver App demo credentials - Email: test@atom.com, Password: driver
