Everything you need to know before starting your car-sharing business
February 23, 2024
min. read
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.
Blog
Digitizing your vehicle rental business: Best apps & software for small operators
🚗📲 Whether you're renting out cars, bikes or scooters, the best rental businesses in 2025 are fully digital. No more paper contracts or office keys – just tap, unlock, and go. In our latest article, we explore top apps (like Donkey Republic, MOBY Bikes and Forest) that show what a modern rental experience looks like. Plus, we explain where a full platform like ATOM Mobility fits in when you're ready to scale.
January 28, 2026
min. read
Running a rental or sharing business today means delivering a smooth, digital-first experience. Whether you rent cars, bikes, scooters or other vehicles – users expect to book online, pay, verify identity if needed, unlock a vehicle, and ride or drive without extra friction.
To make that happen reliably, you need good vehicle rental software or platform backing your service. Below are some successful examples of apps and platforms that show how this works and what is possible.
Donkey Republic
Operates in several European cities offering shared bikes and e‑bikes. Users find a bike in the app, unlock it with a smartphone, ride, then park at a designated drop‑off spot and end the rental. Pay‑as‑you‑go, daily rates or memberships are all handled via the app.
MOBY Bikes
Targets electric bicycles and e‑cargo bikes across certain regions, with a “tap‑and‑ride” system that uses its proprietary app for booking, unlocking, and rental management. The platform supports mixed-use fleets (shared bikes, cargo bikes, delivery fleet, even B2B rentals), which illustrates flexibility – useful for operators exploring different business models beyond simple consumer rentals.
Forest
It is a dockless e‑bike sharing operator in London. It runs a large fleet and offers bike‑sharing through a mobile app. The service demonstrates how a relatively simple, dockless rental model can scale at urban level using app‑based rentals, unlocking, and flexible parking.
These examples show how micromobility‑focused services already rely on booking, payment, unlocking and fleet management tech – the same core capabilities needed by any modern vehicle rental business.
What makes these apps work – and what to borrow from them
From these operators you can observe several useful traits that a good rental/sharing software should provide:
- Seamless user journey: crate account in seconds → search → book → unlock → ride/drive → return. Users don’t need paper contracts or to meet staff to get a vehicle.
- Flexible pricing & rental models: per-minute, hourly, daily, subscription, memberships – enables both occasional users and frequent commuters.
- Smart access control and vehicle tracking: unlocking via app or smart lock, GPS tracking, drop‑off in defined zones or docking stations, helps maintain order, reduce theft, and support dockless models.
- Support for different vehicle types: from bikes to e‑bikes and cargo bikes – showing that underlying software can be agnostic to vehicle type, useful if you plan a mixed fleet.
- Scalable fleet operations and maintenance: availability updates, booking history, maintenance logs, geofencing or parking zones – these help manage many vehicles across zones without chaos.
These are exactly the kinds of features you need when you move from small‑scale operation to proper fleet business.
Why to choose ATOM Mobility
If you plan to just test the market or to operate a larger and more complex fleet - multiple vehicle types, multiple cities, or advanced operational requirements - a full-stack platform like ATOM Mobility becomes essential.
ATOM Mobility is designed for operators who need full control over the entire mobility operation: booking flows, unlocking logic, payments, KYC/ID verification, backend administration, fleet analytics, dynamic pricing, and multi-modal rentals across cars, scooters, bikes, and more.
The platform provides a unified backend that supports cars, scooters, e-bikes, mopeds, and additional vehicle types within a single system. Operators can manage bookings, payments, users, smart locks or connected vehicles, fleet health, and city-level scaling without fragmenting their tech stack as the business grows.
This approach offers far greater flexibility than single-vehicle or bike-only solutions and removes the need to migrate systems when expanding into new vehicle categories or markets. Check out the full service here.
How to choose: when to use franchising vs full platform
Join a franchising when you:
- prefer operating under an established brand
- value a clear operational playbook and central support
- want simpler marketing thanks to brand recognition
- are comfortable with limited control over technology and product decisions
- accept franchise fees or revenue sharing in exchange for convenience
- don’t need heavy customization or experimentation
Use a full platform (like ATOM Mobility) when you:
- aim to manage a larger, mixed fleet (cars, scooters, bikes, e-bikes)
- need full backend control (admin, analytics, pricing, reporting)
- require payments, KYC/ID verification, and automation built in
- want freedom to customize booking flows, pricing, and partnerships
- plan to scale across cities or add new vehicle types over time
- prioritise brand ownership and customer relationship control
- want no revenue sharing or franchise fees
There isn’t a one‑size‑fits‑all solution
For simple bike or e-bike fleets, the technology barrier is already low. Joining a franchise can be a fast way to get operations running with minimal setup.
However, operators with long-term ambitions - expanding into multiple vehicle types, scaling across locations, or maintaining consistent service quality - typically outgrow narrow tools. In those cases, a full-stack platform like ATOM Mobility offers the flexibility and control needed to support growth without rebuilding the tech foundation later.
Some operators start small and migrate as complexity increases. Others choose to build on a full platform from day one to avoid future transitions. The right choice depends on how clearly you define your growth path, desired level of control, and operational complexity from the start.
Blog
How AI is already powering shared mobility: Real-world use cases from ATOM Mobility
📱AI in shared mobility isn’t a future trend – it’s already here, and for good. From detecting car damage to forecasting demand and verifying parking in real time, operators are using AI to reduce manual work and run more efficient fleets. In this new article, we break down 3 real use cases already live on the ATOM Mobility platform: 👁️ Vision AI, 🔍 Precision AI, 📊 Prediction AI. See how AI is changing shared mobility, and how you can start using it now.
January 21, 2026
min. read
Artificial intelligence is no longer just a trend in mobility. For modern vehicle sharing and rental services, AI is already solving real operational problems and unlocking new ways to grow. At ATOM Mobility, several AI-powered features have already been implemented into live products and tested by operators across Europe.
This article shares three real-world AI use cases that are already helping operators reduce manual work, improve asset control, and better match vehicle availability to demand.
1. Vision AI: Camera-based parking control for micromobility
Micromobility parking continues to be a challenge in cities where dockless vehicles can end up blocking sidewalks, crossings or entrances. Manual checks are costly and often too slow to solve the problem in real time.
ATOM Mobility now uses computer vision to solve this. With Vision AI, riders take a photo when ending their ride. The system analyses the image using a neural network to understand if the vehicle is parked correctly – within a designated zone and without creating obstructions. If not, the app notifies the user and prevents trip completion until the parking is corrected.Each parking photo is automatically tagged as “Good parking”, “Improvable parking” (the user receives guidance on how to improve the parking), or “Bad parking” (the user is asked to re-park).
If the user fails to submit a “Good parking” photo after several attempts, the system will accept the photo with its current tag (“Improvable” or “Bad parking”) and flag it in the dashboard for further customer support review.
This solution has been live with many operators already. It helps reduce complaints, improve compliance with city regulations, and lowers the need for manual reviews.
2. Precision AI: Detecting car rental damages with cameras and machine learning
In traditional car rental, damage inspection is slow, manual, and often inconsistent. With self-service rentals becoming more popular, operators need a smarter and faster way to verify a vehicle’s condition between trips.
ATOM Mobility has integrated AI-powered damage detection using computer vision. Customers scan the vehicle at pick-up and drop-off. The app compares images and flags scratches, dents, or other visible damage with high accuracy. This allows operators to quickly assess responsibility and reduce disputes.
The system helps protect the fleet, lowers repair costs, and adds trust for both users and operators. It’s especially useful for car sharing and self-service rental models where physical handovers are skipped.
3. Prediction AI: Forecasting demand and automating vehicle relocation
One of the biggest cost factors in shared mobility is rebalancing the fleet. If scooters or cars are idle in the wrong location, revenue is lost. At the same time, relocating vehicles manually is expensive and not always efficient.
ATOM’s AI models use historical trip data, usage trends and contextual signals (such as day of the week or weather) to forecast demand and suggest the best relocation zones. This gives operators a map of where and when to move vehicles – improving utilisation and saving time.
The system can even be combined with automated relocation logic, where users are incentivised to park in high-demand areas. This shifts part of the rebalancing cost from operators to riders and keeps the fleet productive.
Why this matters now
AI tools are finally reaching the stage where they can operate reliably, even in complex environments like cities. These examples are not abstract ideas or lab tests. They’re active features helping ourcustomers run leaner, smarter fleets today.
For micromobility operators, Vision AI reduces complaints and ensures regulatory compliance. For car rental providers, Precision AI saves hours of staff time and improves trust. And for both, Prediction AI improves margins by making sure vehicles are where users need them.
What’s up next?
These are just the first steps. AI in mobility will continue to expand with smarter pricing engines, voice-based support, predictive maintenance, and more. But the examples above already prove that even small AI integrations can bring major improvements.
At ATOM Mobility, we continue building these tools directly into our platform so that operators don’t need to develop them in-house. If you want to see how these AI-powered features work in action, get in touch with our team.
AI in shared mobility is not about replacing people. It’s about giving operators better tools to run faster, smarter, and more efficient services.
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