What is Mobility-as-a-Service and why MaaS matters for your mobility business?
May 17, 2024
min. read
What is Mobility-as-a-Service and why MaaS matters for your mobility business?
MaaS is short for Mobility-as-a-Servive, and simply put, it combines various mobility options into a single unified mobility app for a city or region.
Today, we have more options for getting from point A to point B than ever before. Vehicle-sharing, ride-hailing, and all sorts of rental services for all types of transports have grown deeply ingrained in our day-to-day lives, fundamentally changing how we choose to move and commute through cities.
But, as we all know, quantity doesn't necessarily equal quality. Just because there are many more options for transportation, doesn't mean that they're the most effective for getting where you want to go:
- Crossing an entire city on a scooter will quickly become costly and exhausting.
- Renting a car may still have you stuck in traffic.
- Commuting with a rental moped may be less environmentally friendly than potential alternatives, e.g. public transportation.
- Managing half-a-dozen applications to find the best deals also gets tiresome.
That's where MaaS comes in.
In what follows, we'll take a closer look at what is Mobility-as-a-Service, explore some examples of MaaS implementations, and how MaaS may impact your own mobility business.
Mobility-as-a-Service definition
MaaS solutions integrate various forms of transport services into a single multimodal mobility service accessible on demand. These different transport forms include public transport, as well as ride, car-sharing, and bike-sharing, and others.
Multimodal simply means that users can combine various types of mobility when planning their journeys, e.g. taking a bus for the first leg of the trip and then hopping on a scooter for the last mile.
MaaS has been the talk of the mobility industry for years now and the Mobility-as-a-Service market size is projected to grow explosively over the coming years, especially in the Asia Pacific region.
What are the benefits of Mobility-as-a-Service?
Multimodality is one of the main ones for end-users. Others include a single payment system and general ease-of-use made possible by having multiple mobility services under one roof.
Typically, there are different payment plans available – a monthly subscription model with a fixed monthly fee or “pay-as-you-go” model, where each booked trip is priced separately.
But MaaS is not JUST a mobility service aggregator for city dwellers.
The primary client of a MaaS solution is the municipality. A MaaS solution is first and foremost intended as a way for a city to modernize and gain control over its mobility networks and data.
MaaS lets the local government offer a convenient mobility solution, while equipping the city with insight on transit data, movement flows, and mobility preferences. It also empowers the city to nudge desirable traveler behavior, i.e. promote certain modes of mobility.
For example, the city might subsidize discounts for an integrated bike rental solution during the summer to encourage people to choose cycling over other types of transportation.
MaaS brings together both public and private players – MaaS platform developers, mobility service providers, public transport authorities, and others – and project ownership typically lies with a public institution, hence it may be inaccurate to speak of a general Mobility-as-a-Service business model.
While individual mobility providers may profit from integration as it allows them to reach a broader audience, the MaaS project as a whole will usually operate at a loss. After all, at its core lies public transportation and its core purpose is to improve quality of urban life, not make profit.
Still, MaaS comes in all shapes and sizes, so what are the models of Mobility-as-a-Service? Let's explore this through some examples.
Mobility-as-a-Service examples
One textbook example of a MaaS solution is Berlin's Jelbi. Created by Trafi and Berlin's public transport authority BVG, it brings together every kind of public and shared mobility – ready to be booked in a moment’s notice right from the app.
With Jelbi, Berliners can easily plan multimodal journeys, buy public transport tickets, and pay for services with all the most popular payment methods. With public transport as the backbone, Berlin has built mobility hubs – physical stations across the city, where people can switch from public transport to shared mobility – to facilitate convenient multimodal transport and encourage people to leave their cars at home.
Trafi was also behind yumuv in Switzerland, which was one of the first that trialed a regional MaaS solution with subscriptions connecting the three cities of Zurich, Bern, and Basel. Though it was only a research project, its ambitious scope spells the potential future of MaaS – a country-wide mobility solution accessible from a single app.
In fact, such a solution has already seen the light of day – glimble. Created by another major player in the MaaS development scene, Moovit, glimble enables easy travel within the Netherlands, offering most of the same benefits as Jelbi, but on a national scale.
A MaaS solution done differently
Technically, if we look at MaaS as a unified multimodal mobility app, then Google Maps also qualifies as a MaaS solution, though it stands out for its global scope and not being tied to any particular city.
Google has proactively partnered with micro mobility partners in various regions, has integrated public transport timetables, and done more to offer a convenient route planning solution. However, the lack of payment integrations and minimal adaptation to local markets makes Google Maps more of a map application with some MaaS capabilities, rather than a full fledged MaaS solution. By the way, are you aware that ATOM Mobility customers can easily showcase their vehicles on Google Maps for free?
Why does MaaS matter to your shared mobility business?
If you're a micro mobility service provider and your city is mulling over launching a MaaS solution, it may be wise to get your foot in the door. Having your service integrated within the city mobility app confers various benefits.
For one, it enables you to reach more people. Being on the city's MaaS app will expose your service to commuters that might otherwise elect to choose other modes of transportation. It also helps overcome a critical adoption barrier – people will be able to conveniently use and pay for your solution, without having to download and sign-up on your individual app.
Secondly and continuing the previous point, it's potentially free advertising. Cities are invested in maximizing their MaaS solution's adoption and spend significant resources in popularizing it. As a result, partnering service providers can piggyback on the marketing efforts of the public transport authority.
Thirdly, it embeds your business with an additional layer of legitimacy. Namely, your solution being chosen by the city gives it an air of “official”ness, especially if your competitors aren't on it. Once again, this may help attract more users.
MaaS – an evolution in urban mobility
MaaS lets cities and their citizens take control over a rapidly evolving mobility landscape. With so many different types of transportation and dozens of companies competing over customers, it can all get a bit hectic.
At the end of the day, finding the best way – be it quickest, cheapest, or environmentally friendliest – is in the interests of both cities and travelers and that's exactly what MaaS tries to offer.
Whether MaaS will become a standard across cities is yet to be seen, as MaaS companies, much like other large-scale mobility businesses, continue to struggle to reach profitability with Finnish startup MaaS Global recently filing for bankruptcy. Still, the technology behind it was snatched up soonafter by Dutch MaaS company umob, signalling faith in the MaaS project at large.
So, if you're a mobility service provider, MaaS is something that you shouldn't ignore.
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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
