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

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

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. Try out our free floating carsharing software and get on the road today!

Get in touch with ATOM Mobility to discover how you can power your new enterprise the smart way.

Interested in launching your own mobility platform?

Click below to learn more or request a demo.

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Digitalising the car rental industry – why it’s happening and what comes next
Digitalising the car rental industry – why it’s happening and what comes next

🚗 The car rental industry is finally catching up with modern mobility. From Norway to Mexico, users are skipping the desk and unlocking their rental cars with just a tap on their phone. Paper contracts, front desks, and "similar model" surprises are being replaced by fast, app-based experiences. Operators like Hyre, Sixt, and Avis are proving that going digital boosts revenue and improves customer satisfaction.

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The car rental industry is finally going digital. Not with just a website and an app, but with a real transformation of how rentals work – from booking to unlocking the vehicle. Customers no longer want paper contracts, counters, or “similar model” surprises. They want convenience, predictability, and self-service.

That’s exactly what happened at Norway’s largest airports, where traditional rental giant Europcar lost its presence to Hyre – a local operator offering a mobile-first, fully digital blend of car rental and sharing. But it’s not just new players like Hyre pushing this shift. Established giants like Sixt and Avis are rapidly digitalising their rental flow as well – rolling out features like app-based bookings, mobile ID verification, and keyless access across key markets.

At ATOM Mobility, we’ve helped operators move toward this digital future for over seven years. The goal is simple: modernise outdated processes, improve the user experience, and create more profitable operations. And right now, the timing for this shift couldn’t be better.

From counters to apps: Why the rental experience is changing

Customer expectations have changed. Today’s users – especially younger ones and business travellers – are used to seamless, mobile-first journeys. They don’t want to queue at a desk, hand over their ID, wait for paperwork, or discover they’re getting a different car than they booked. And in many cases, they simply won’t accept it.

Hyre’s model responds to this new demand:

  • A 100% digital rental experience, available via app, website, or walk-up self-service kiosk
  • Real-time vehicle selection – you see and book the actual car you’ll drive
  • Instant access via smartphone, no human interaction required

And the results are impressive:

  • In 2019, Hyre made €1.1M in revenue with a €1.7M loss. In 2020 – €4.6M revenue, €0.2M profit
  • By 2024, they reached ~€34M revenue and finally turned a solid profit
  • They now operate 2,500+ vehicles, across 100+ models
  • Average revenue per vehicle is ~€37/day (over €1,100/month) – around 50% higher than some other regional competitors

This shift is not just a trend in Norway. It’s a glimpse of where the car rental market is heading across Europe and beyond.

What users gain from a digital rental experience

The benefits for customers are obvious – and powerful:

  1. No waiting at the counter
    Skip the lines, avoid awkward conversations, and get on the road faster. Operators like Sixt now offer full online check-in and mobile app flows that replace the desk altogether.
  2. Car you booked = car you get
    No more vague “or similar” surprises. Apps like Hyre and Sixt let you choose the actual vehicle, right before your trip.
  3. No paperwork, no friction
    Everything is handled in-app: driver’s license verification, payment, pickup, and return.
  4. Unlock with your phone
    Smartphone access makes key handover unnecessary. Some services also offer remote unlock support if something goes wrong.
  5. On-demand rentals
    Rent a car for an hour, a day, or a week – flexible durations are easier to offer with digital flows.

This is what the modern traveller wants: clarity, control, and speed.

Why operators are embracing digitalisation

While the user benefits are clear, the real business case lies in how much better digitalisation makes operations:

  1. Reduced staffing costs
    With no need for front desk staff at every location, operators save significantly – especially at airports and peak-time zones.
  2. Higher fleet utilisation
    Real-time data enables better fleet distribution, faster turnover between rentals, and reduced downtime.
  3. Better user data and insights
    A mobile-first journey provides valuable usage data: when people rent, where, how long, and what kind of car. This helps with pricing, loyalty, and upselling.
  4. Fewer manual errors and disputes
    Digital contracts, ID checks, and timestamps reduce risk and improve accountability.
  5. New revenue models
    Digitalisation opens the door for hybrid models – like Sixt Share – where rental and car sharing meet. One fleet, multiple use cases.

Real examples: Hyre, Sixt, Avis, and Beyond

  • Hyre (Norway): A leader in mobile-first car rental and sharing. Took over Europcar’s prime airport locations in 2024. Profitable, scalable, and 100% digital.
  • Sixt: Offers online check-in, vehicle pre-selection, and app-based car access in key cities. Its Sixt Share product blends traditional rental and flexible car sharing in a single app. Sixt also lets customers select their exact car model up to 30 minutes before pickup.
  • Avis Budget Group: Investing heavily in digital transformation – using AWS to build connected vehicle platforms and real-time user tracking. In Mexico, Avis even launched biometric identity verification, allowing renters to skip counters using facial recognition.

These companies understand that digitalisation isn’t about offering an app – it’s about rebuilding the rental experience around the user. And it's paying off.

What this means for operators (and how ATOM Mobility can help)

If you’re running a rental operation and still relying on paperwork, front desks, or disconnected tools, now’s the time to evolve.

Here’s how you can modernise your operations with help from ATOM Mobility:

  • Replace paper with digital onboarding
    Use in-app license scanning, facial verification, and automated approval flows.
  • Enable keyless vehicle access
    Let users unlock the vehicle via app, securely and reliably.
  • Offer flexible rental durations
    Go beyond daily rates – allow hourly, weekend, or hybrid rental periods.
  • Use data to guide pricing and availability
    Monitor usage patterns and demand in real time. Adjust pricing zones dynamically.
  • Launch new revenue streams
    With digital infrastructure in place, testing car sharing or subscriptions becomes much easier.
  • Cut costs and increase vehicle ROI
    More bookings per vehicle, lower overhead, and happier customers – all enabled by a modern backend.

ATOM Mobility provides all the building blocks to power this shift. Whether you’re a traditional rental company l

ooking to go mobile-first, or a new operator exploring flexible mobility, we’ve built the tech to get you there.

The rental counter is going away

Car rental is becoming more like e-commerce: fast, digital, and customer-led. The counter, the queue, the paperwork – these are all parts of an older model that no longer meets expectations. The future lies in seamless, app-based access that lets users pick the car they want, when they want it.

The Hyre example shows what’s possible with the right model. Sixt and Avis show how even large incumbents are adapting. If you’re an operator – big or small – the time to start this shift is now.

And if you’re looking for a trusted partner to support you on that journey, ATOM Mobility digital rental software is ready. We help rental and car sharing businesses launch, scale, and thrive – with the tech that powers modern mobility.

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How to retain drivers on your ride-hailing platform long term
How to retain drivers on your ride-hailing platform long term

🚗💬 Why do ride-hail drivers quit – and what makes them stay? We break down insights from the 2025 Gig Driver Report and show how ATOM Mobility helps platforms keep drivers happy with instant payouts, dynamic pricing, and smarter tools.

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How to retain drivers on your ride-hailing platform long term

In the ride-hailing business, getting enough drivers online is critical. But keeping them there is what really drives long-term success. Unlike traditional taxi services, ride-hailing drivers are independent contractors. They don’t have fixed shifts, guaranteed income, or long-term contracts. They log on when it suits them, and just as quickly, they can log off – or switch to another app.

That flexibility means you're not only competing for riders. You're also competing for drivers, every single day.

What makes ride-hailing different for drivers

Compared to traditional taxis, the ride-hailing model offers drivers more independence but less security. Taxi drivers usually worked under a dispatcher, used company-owned vehicles, and followed a set schedule. Ride-hailing drivers use their own car, their own time, and often multiple apps.

The benefits are clear: flexibility, lower entry barriers, and instant access to earnings. But the downsides are just as real: unpredictable income, lack of support, and platform instability. For platforms, that means driver loyalty is fragile. Small changes – like delayed payments or fewer rides – can cause drivers to leave.

Why driver retention matters

Most ride-hailing operators focus heavily on passenger growth. But without enough reliable drivers, demand turns into frustration. When wait times grow or no vehicles are available, users abandon the app. This makes driver retention a key metric – not just for operations but also for brand trust and profitability.

It’s more expensive to onboard a new driver than to keep an experienced one. A stable driver base delivers smoother rides, higher ratings, and better service coverage. If your drivers are churning every few weeks, your entire operation becomes reactive.

Source: pixabay.com

Inside the 2025 Gig Driver Report

A recent survey by Everee sheds light on what drivers want - and what makes them quit. In May 2025, 419 gig drivers in the U.S. were surveyed. Most of them worked across multiple apps, including Uber, Lyft and Shipt. The full findings are available in the 2025 Gig Driver Report by Everee.

Key findings:

  • 68% of drivers work with two or more gig apps every month. Only 32% stick to one.
  • 84% say fast access to earnings is important or very important when deciding where to work.
  • 70% of drivers want their money within 24 hours.
  • 44% would consider quitting if instant payouts became slower or more expensive.
  • 21% would leave if onboarding took too long.

These numbers show how sensitive drivers are to delays, unclear policies, and inefficiencies. A small friction point in your system could be enough to push them to a competitor.

Why drivers leave

The survey also highlighted the most common reasons drivers stop working with a platform:

  • 59% left after a sudden drop in pay rates or bonuses
  • 48% due to fewer available jobs
  • 44% when fees or restrictions were added to instant payouts
  • 41% because of safety concerns during pickups or drop-offs
  • 39% due to rigid scheduling or lack of flexibility

In short, if drivers feel their earnings or control are at risk, they move on. The ride-hailing industry is too competitive for platforms to assume drivers will stay loyal without constant support and improvement.

What platforms can do to retain drivers

To retain drivers long term, platforms need to act on what drivers value most. According to the same report, the top three areas that would increase loyalty are:

  • Guaranteed minimum earnings or predictable income
  • Better access to instant payouts
  • A smoother, faster onboarding process

Additionally, drivers want to feel that their time is respected, their safety is prioritized, and that they are not left guessing about payments or platform changes.

How ATOM Mobility helps you build driver loyalty

With ATOM Mobility’s platform, ride-hailing operators have access to several features designed specifically with drivers in mind.

The “Offer Your Price” feature allows riders to bid slightly more during high demand or bad traffic conditions, giving drivers the chance to earn extra when it matters most.

Dynamic pricing lets operators automatically raise fares during weekends, holidays, or peak hours so that drivers earn more when demand spikes.

One of the most impactful tools is the instant revenue split system, where a driver’s commission is transferred directly to their Stripe Connect account after every successful ride. This eliminates waiting times and builds trust through real-time, transparent payouts.

To make things even smoother, ATOM Mobility offers a dedicated driver app where drivers can track performance, see earnings, and review ride history.

All of this adds up to a professional, transparent experience for drivers - and a stronger incentive to stay on your platform long term.

A dedicated driver app helps drivers track performance, earnings, and ride history. This kind of visibility increases engagement and reduces confusion. Instead of contacting support for payment questions, drivers can see everything directly in the app. The experience feels more professional and structured – which increases the chance they’ll stay longer.

You can explore the dedicated driver app in more detail on driver app overview.

Faster onboarding leads to faster activation

Another key piece of retention is how quickly drivers can get started. Platforms that make onboarding long or confusing lose drivers before the first ride. ATOM Mobility supports streamlined onboarding flows with pre-filled fields, automatic document validation, and built-in guides. In some cases, drivers can be onboarded, verified, and ready to drive within hours – not days.

A better experience creates loyalty

Drivers are not just users of your app – they are ambassadors of your brand. Every interaction they have, from the first sign-up to the latest payout, shapes how they feel about your platform. If it’s smooth, fair, and rewarding, they’re likely to stay. If not, they’ll be gone before the next weekend rush.

By investing in the right tools and understanding what really matters to drivers, platforms can reduce churn, increase satisfaction, and build a loyal driver base. And in a market where supply is everything, that loyalty pays off.

If you're building a ride-hailing operation and want to give your drivers a reason to stay, ATOM Mobility gives you the technology to make it happen. From instant payments to dynamic pricing and a dedicated driver app, everything is designed to keep your fleet active and engaged – for the long haul.

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