How can car-sharing help to save the planet? (bonus: most popular car sharing apps review)
September 27, 2021
min. read
Climate changes this summer have warned us as never before. Greenhouse gas (GHG) emissions from transportation account for about 29 percent of total U.S. greenhouse gas emissions alone, making it the largest contributor of U.S. GHG emissions. It is not easy to refuse the comfort that car ownership provides. However, nowadays you have the option of sharing cars and only using them when necessary.
At first glance, owning a car looks convenient, and indeed it is in terms of driving. But it also means constant costs and the loss of value of your property - your vehicle. Experts say that a car loses between 15% and 20% of its value each year.
Car owning vs car sharing
What else do car owners pay for? Constant investments have to be made in repairs and maintenance, for example, when washing the car or changing the oil and filling it with gas, or charging in the case of an electric vehicle. In addition, adjustments to the weather conditions are mandatory, for example, changing tires before the winter and summer seasons. The car should have insurance while in traffic and you should also cover parking costs not to mention the fact that you have to have places to park your car that could be easily reached from home, as well as from the office.
You can avoid all those troubles when choosing a ride-sharing option - your car will always be full of gas or charged, clean, and with the equipment that is adjusted to the season. No additional costs - just pay for your ride and leave the car where it is convenient for you. Moreover, if you need a bigger car for the ride with the whole family, you can have it! Just choose a SUV closer to you with the car-sharing option. And pay less for a small car if you are riding alone.
Car sharing is also more convenient than renting a car. Renting invariably means planning, scheduling, and getting to the parking lot for rented cars. Renting sometimes also involves hidden costs. Car-sharing is easier - if the car is not available at the moment at the closest to your location, look around in the app and you will definitely find a spot, where a car is available near you.
Game changer
Nearly 90% of Americans own cars. Unfortunately, this means not only a convenience for car owners but also traffic jams and pollution. And according to The Guardian, this quantity of cars costs the economy $124bn. So car-sharing has been seen as a real game-changer. According to a Berkeley study, one car for sharing can replace 7 to 11 privately owned vehicles. Thus cities can become greener not only in the context of reduced levels of air pollution, but also significantly reduced parking lots. Moreover, this means less wear on roads as fewer cars drives around the streets.
Fine, but what is the real advantage, when there are still a lot of cars on the street? How does this actually help to save the planet? Well, with car-sharing there still will be fewer cars on streets and in traffic. Car-sharing providers are thinking of their business so they will always choose the most fuel-efficient cars. Whenever possible, electric cars are going to be included in their fleet. Electric cars have zero emissions. Also, more small cars are going to be available as people who are driving alone don't need big cars or ones that consume a lot of fuel. This means less air pollution. And the air is also less polluted during the manufacturing process because 1/5 of emissions released in a car’s lifetime come from its production. This amount is even smaller with electric cars as they are smaller themselves so they cause less greenhouse gas emissions in production.
Of course, there are also some downsides to switching to car sharing. For example, manufacturers cannot be happy with smaller demand. A lot of factory workers and their families depend on the demand and income from car production. In addition, fewer public transport users mean less income for public transport companies.
Struggles for car-sharing businesses
There are still quite a lot of struggles for car-sharing business owners. For example, experts emphasize that car sharing is beneficial only in areas with the appropriate population density. In other words, there should be a demand for the service. The biggest challenge of the car-sharing business is to survive in small villages where people usually travel large distances to work and it is more convenient and probably even cheaper for them to have their own cars.
The other issue worth mentioning, which is a challenge faced by big cities is parking lots. There should be enough free spaces in the city to park cars. Especially in high-density areas. If this possibility is not available and users have to travel long distances from the parking lot to the office or house, users will soon lose interest in the service.
What other obstacles should car-sharing business owners consider? Demand for cars via sharing is not constant. There are peak hours that are hard to manage due to the limited amount of vehicles, while users easily get upset if a car is not available when they need it. In addition, people want to use car-sharing across as wide a geographical area as possible. This creates challenges for car-sharing business owners, as there should be enough users all around, who are willing to use the service.
Best car-sharing apps according to Google Play and App Store
● Share Now (car2go & DriveNow)
App Store Rating: 4.8/5
Google Play Rating: 4.4/5
There is no monthly or membership fee - users pay while using the service. Rates depend on vehicle and location and gas is included in the price so there is no need to refuel. There is a 24-hour limit on rental time or the option to select the trip package while indicating the length of the trip. No reservations are required - pick up and drop off the vehicle anywhere within the area of operation.
● Zipcar
App Store Rating: 4.5/5
Google Play Rating: 3.8/5
Zipcar charges $7 per month or a $70 per year membership fee. There is also a one-time $25 application fee. Car sharing service costs $10 per hour or $82 a day. It is possible to rent a car for hours or days however there are a few plans available. Prices vary depending on location. Gas, insurance, and 180 miles are included in the price.
● Getaround
App Store Rating: 4.7/5
Google Play Rating: 3.7/5
This app has a $99 hardware fee. After three months, a $20 per month subscription fee kicks in. Daily rental rates can range from $20 to $80 depending on vehicle quality and insurance is included in the price. A variety of privately-owned cars, vans, and trucks are available. It is possible to rent them by day or hours. Drivers pay for gas and replace what they have used.
● Turo
App Store Rating: 4.8/5
Google Play Rating: 4.9/5
Cars are available on the app anywhere from $20 to $100 depending on vehicle quality and only daily rentals are possible. It has classic and specialty vehicles. Drivers pay for gas and must replace what they have used. Cars can also be delivered to a location if required.
You can take part in the car-sharing business as a user, as well as a car-sharing business owner. If you want to create your own platform, this is what you have to consider and keep in mind.
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Blog
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
