How much capital do you need to start your own shared mobility business?
June 28, 2023
min. read
As shared mobility continues to experience rapid growth – projected to generate up to $1 trillion in consumer spending by 2030 – it's no wonder that entrepreneurs are drawn to explore opportunities in this thriving market.
However, despite the optimistic market outlook, the shared mobility industry doesn't provide a magic shortcut to massive and instant returns on investment – despite what some players in the industry might claim. In this blog post, we'll offer a realistic and experienced-based assessment of the investment needed to get a shared mobility venture off the ground.
We will explore how much capital you need to kickstart your own shared mobility business. With experience in supporting over 100 entrepreneurs worldwide, ATOM Mobility is in a good position to understand the financial details.
We'll discuss the essential expenses involved, including vehicles, software, insurance, and operational costs – the aim is to help you make informed decisions and kickstart your entrepreneurial journey with confidence.
Vehicle costs: how much will you pay?
The most significant cost in starting a shared mobility business comes from getting the vehicles.
Here's what you can expect to pay for a single vehicle:
- Scooters: 750-1000 EUR
- E-bikes: 1300-2500 EUR
- Mopeds: 2000-4000 EUR
- Cars: 12000-20000 EUR
Considering the higher costs associated with vehicles like mopeds and cars, leasing is also a viable option. However, securing leasing partnerships is more challenging for operators without an established business.
The choice of vehicles will ultimately depend on your business model – whether you want to provide affordable or high-end options. For instance, if you opt for top-of-the-line scooters from brands like Segway and Äike, expect to pay over 1000 EUR per vehicle. On the flip side, you can find scooters as low as 400 EUR on the Chinese market, but such a price tag comes with its own set of risks.
Optimal starting fleet size for scooter-sharing businesses
Assuming you've made your decision on the model and brand, the next question is: how many vehicles should you buy? What's the ideal fleet size to start with?
We will focus on scooters – with their affordable price tag, they have become a favored choice for those looking to venture into the shared mobility industry.
Based on what we've seen, operators kickstart their ventures with fleets of different sizes. Some start with a humble fleet of 20 scooters in their first season and then steadily grow to over 100 vehicles in the following seasons, even diversifying into cars and other modes of transportation.
However, starting with a larger fleet offers distinct advantages. Having a bigger fleet means more people will notice your brand, leading to faster adoption of shared mobility within the local community. In other words – a larger fleet speeds up the process of making shared mobility a part of people's everyday commuting routines.
Another crucial point is that operating costs remain relatively consistent for a fleet of up to 200 vehicles. Beyond that, you'll likely need to expand your team, acquire more vans, secure a larger warehouse, and hire an additional technician. But, if you're starting out small, 20 vehicles instead of 100-200 won't lead to significant cost savings in operating expenses. Therefore, it's more cost-effective to begin with a larger number of vehicles from the outset.
Maintenance and insurance
Maintenance costs are also an important consideration. On average, around 10-15% of your fleet will require ongoing maintenance, depending on the brand and model of the vehicles. With a smaller fleet of 20 scooters, it's statistically likely that 2-3 units will be undergoing repairs at any given time. In case your fleet experiences a series of unfortunate incidents, this percentage can quickly escalate, leading to a decrease in the number of scooters generating revenue.
Securing third-party public liability insurance for smaller fleets, which is required by law to protect pedestrians and riders in the event of accidents, can be a challenging task. No matter the fleet size, operators are required to pay an annual premium. This means that smaller fleets, like those with only 20 scooters, could end up paying the same premium as fleets with 150 scooters. For a smaller business, this expense can be quite prohibitive and difficult to manage. Thus, insurance costs are another reason to consider starting with a bigger fleet.
On average, the insurance costs around 8 EUR per scooter per month (paid annually) for fleets ranging from 100 to 200 scooters. These costs may vary depending on the specific coverage requirements set by local authorities.
Aim for 100 scooters – or 50 if you're low on cash
If we take into account brand visibility, maintenance, and insurance, it’s advisable for new operators to aim for a fleet size of at least 50 scooters. It’s a budget-friendly choice, especially in a location with strong market demand. A fleet of this size can also serve as a market test run.
However, for a more robust start, an ideal fleet size would be 100 scooters. As we mentioned earlier, the operating costs for both 50 and 100 vehicles would be more or less the same. However, opting for 100 vehicles instead of 50 would result in double the revenue. This boost in revenue would make it easier to sustain and expand the business. Having more vehicles would also contribute to better brand visibility in the long run.
Shared mobility software costs and considerations
Once you've got the fleet sorted, the next step is to get your hands on some software.
When it comes to shaping your brand identity, the software you use is just as crucial as the vehicles you offer. Having a top-notch fleet is great, but it won't make a difference if you neglect the software side of your shared mobility service. You want users to easily find, book, and pay for your rides without any trouble.
When it comes to white-label software pricing, it usually involves a one-time setup fee plus a monthly subscription fee based on the number of vehicles – or a dynamic pricing model per usage.
The setup fees for white-label software are typically between 4-10k EUR, depending on the provider and features. The monthly fees will vary based on fleet size or usage.
ATOM Mobility white-label software offers a wide choice of setup options, catering to fleets of all sizes, starting from the smallest and going all the way up to 5k+ vehicles. There is also a special plan for those who want to dip their toes in the water with 20 or fewer vehicles, which doesn’t require a setup fee. It's a great way to test the market and get started without breaking the bank.
Starting your shared mobility venture with 70k
Now that we've got the basics covered, let's crunch some numbers and calculate the amount of money you'll need to kickstart your scooter-sharing business.
Taking into account the costs of vehicles, software, insurance, and other expenses, we're looking at 70,000 EUR.
Here's what you'll need to kickstart your business and keep it running for at least one season:
- 40k for buying 50 scooters
- 10k to procure and maintain software for the season
- 7-10k for insurance coverage
- 5k for a warehouse
- 5k for renting a van
On top of that, you need to consider the ongoing operating costs, which will fluctuate based on the size of your fleet. If you have a fleet of 50-150 scooters, it can be efficiently managed by two owners – or one owner and a couple of part-time employees. The expense of charging the vehicles will depend on the local prices in your area.
So, with around 70k in your pocket, you'll have a decent budget to make things happen in the first year. You can prove your concept, test the market, and learn the ropes along the way. And once you've got a solid foundation, scaling up in the second year becomes a lot easier. Investors will feel more confident jumping on board when they see that your business model is actually viable.
Of course, the 70k figure is not set in stone. The actual expenses will vary based on your location and your willingness to take on additional risks. We've had operators who achieved success with just half that budget – but their journey was certainly more nerve-wracking as a result.
With our suggested budget, you'll also have some breathing space for trial and error as you kick off your venture. This kind of money allows for a smoother and less stressful launch – also increasing the chances of steady growth in the next season.
If you're interested in starting your own shared mobility venture, join our ATOM Academy for FREE to learn more and see if it's the right business for you.
If you'd like to explore the software costs in detail, schedule a demo with our team today.
Interested in launching your own mobility platform?
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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!
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Cracking the code of car sharing: Best technology for car sharing business
🚘💡 What keeps cars in car-sharing businesses connected? From CAN bus and OBD devices to cutting-edge IoT providers like Teltonika, Invers and Geotab, it’s all about the hardware!
November 27, 2024
min. read
Car sharing is more than just a trend—it’s a game-changer for urban mobility, helping people access vehicles without the headache of owning them. But what makes it all work? Let us introduce the tech behind car sharing and explore how companies like ATOM Mobility make it easier to start and scale your shared mobility business profitably.
The three pillars of car sharing technology
At the heart of every car-sharing operation are three key technologies that connect vehicles to platforms: CAN bus, OBD, and OEM telematics. Here’s what they do and why they matter:
1. CAN Bus: The car’s internal network
The Controller Area Network (CAN) bus acts like a car’s central nervous system, allowing different components to talk to each other. It delivers detailed data—fuel levels, battery status, or even tire pressure—directly to your car-sharing platform. This deep integration also allows remote actions like locking or starting the vehicle.
However, CAN systems require professional installation, which can mean higher upfront costs. For larger operators with fleets that need granular control and detailed diagnostics, it’s a must-have.
2. OBD: Affordable and easy to deploy
On-Board Diagnostics (OBD) devices are the plug-and-play heroes of car sharing. Simply connect them to the car’s diagnostic port, and you’ve got instant access to location, speed, and engine health. They’re affordable, quick to set up, and ideal for small-to-medium operators just getting started.
That said, OBD devices offer less functionality compared to CAN. They’re perfect for a more basic setup but might not suit operators who need advanced data or remote vehicle controls.
3. OEM Telematics: Factory-installed genius
OEM telematics systems come pre-installed in many modern cars. These systems provide seamless connectivity and are highly reliable, enabling features like real-time tracking, diagnostics, and remote locking.
The downside? OEM telematics tie you to the car manufacturer’s system, which can limit customization. If your fleet is from a single brand, this is a fantastic option. For mixed-brand fleets, integrating other devices might make more sense.
The IoT providers helping you succeed
Beyond these three core technologies, IoT providers offer additional tools to supercharge your car-sharing operations. Here are four standout names making waves in the industry:
Teltonika
WEB: https://teltonika-gps.com
Headquartered in Lithuania, Teltonika has been at the forefront of IoT since 1998. With over 1,600 employees, the company specializes in GPS trackers and other connected devices that bring real-time tracking, security, and driver behavior analysis to your fleet. Their scalable solutions are ideal for growing car-sharing businesses.
Geotab
WEB: https://www.geotab.com
Based in Canada, Geotab supports over 2 million vehicles worldwide with its advanced fleet management tools. Their telematics devices don’t just track vehicles—they provide insights into fuel efficiency, maintenance needs, and safety. For operators focused on data-driven optimization, Geotab is a top choice.
INVERS
WEB: https://invers.com/en/solutions/cloudboxx
Germany’s INVERS is a leader in shared mobility tech, offering the CloudBoxx device to connect vehicles with car-sharing platforms. Easy to integrate and reliable, CloudBoxx ensures a smooth experience for operators and users alike. With a strong presence in Europe and North America, INVERS is a trusted name in the industry.
Acacus
WEB: https://www.acacusgroup.com
Operating out of the UAE, Acacus combines IoT and AI to deliver smart mobility solutions. Their tech is widely used in government projects and private fleets, especially in regions embracing smart cities. Acacus brings innovation and reliability to shared mobility operators aiming for cutting-edge solutions.
How ATOM Mobility comes into the picture?
Technology is only as good as the platform that connects it all. That’s where ATOM Mobility shines.
ATOM’s software integrates seamlessly with devices from Teltonika, Geotab, INVERS, and others, making it simple to connect your fleet and manage everything from a single dashboard. No matter the size of your operation, ATOM provides tools for real-time tracking, user management, and secure payments—all with intuitive design and full support.
Whether you’re launching your first car-sharing fleet or expanding across multiple cities, ATOM helps you scale profitably and with confidence. We make the technical stuff easy so you can focus on growing your business.
Why is car sharing the future?
Urban living is changing. People are moving away from car ownership, opting instead for flexible, on-demand solutions like car sharing. It’s convenient, cost-effective, and kinder to the planet.
With tech like CAN, OBD, OEM telematics, and IoT devices driving the industry forward, the potential for shared mobility is enormous. But to succeed, operators need the right tools to manage fleets, optimize performance, and deliver a great user experience.
Join us
Ready to start your car-sharing journey? Book a demo with ATOM Mobility and let’s get moving!
Driver App demo credentials - Email: test@atom.com, Password: driver
