Ride-hailing vs ride-sharing – what's the difference?
March 26, 2024
min. read
It's easy to get lost in today's mobility landscape. It feels like every year a new type of vehicle hits the streets, and with it comes some weird new term or category adding to an already deeply confounding list – ride-hailing, ride-sharing, carpooling, car-sharing, on-demand rentals, micro-mobility rentals, shared transportation, Mobility-as-a-service,...
No wonder people prefer using and verbing brand names, e.g. “Uber to the airport” or “grab a Bolt”.
In reality, it's not that complicated. Virtually all of the terms listed above are self-explanatory and by the end of this article you'll have a firm grasp on the industry's terminology.
Understanding the distinction between these various concepts is important for entrepreneurs and anyone else looking to set foot in the industry, as using the correct terms:
- Ensures everyone is on the same page,
- Is relevant for regulatory compliance,
- Matters in all your business endeavors from market research to strategy development.
Since the two terms that people get most hung up on are “ride-hailing” and “ride-sharing”, we'll take a closer look at those, and then follow it up with a disambiguation of the other terms on our list.
What is ride-hailing?
Ride-hailing is – surprise, surprise – the hailing of a ride. Much like with a taxi, it involves hiring a person with a car to pick you up and take you to your destination.
So why don't we just call it a taxi service?
When mobility startups like Uber came to prominence in the early 2010s, they did so by disrupting the cab industry through digitalizing the hailing experience and introducing transparent pricing.
Read more: Uber's company history.
In other words, you could now hail a ride through an app on your smartphone and see exactly how much it would cost. Whereas previously, you had to call a taxi service or try to hail one on the street.
So the term “ride-hailing” was coined to distinguish this new type of on-demand app-based taxi service from the more traditional one. However, over the years, the ride-hailing service portfolio has evolved beyond just taxi-like operations and includes things like hiring drivers for moving, or even taking your kids to school. Traditional taxi companies also increasingly make use of a ride-hailing app.
Accordingly, the meaning of ride-hailing is the hailing of on-demand transportation services via an app. Most often it's used in the context of taxi-like services, but it's an umbrella term that can include other services, too.
Fun fact: did you know that Uber was originally named UberCab? Its founders dropped the “Cab” part since they didn't see themselves as a traditional cab service.
What is ride-sharing?
Again – the hint is in the name. At the most basic level, ride-sharing is sharing a ride. But, as with ride-hailing, there's some nuance that's important to understand.
Today, ride-sharing typically refers to multiple passengers sharing a single private ride on a route that passes their various destinations. You can think about it as on-demand carpooling.
Let's unpack this.
Though there are many similarities between ride-sharing and carpooling, they generally differ in terms of ride organization and journeys. Carpooling often happens informally, in the sense that a group of neighbors or coworkers traveling or commuting on the same route will agree to share a ride to, for example, save on gas. Carpooling can also be very sporadic and is primarily organized through private channels or local bulletin boards.
On the flipside, ride-sharing allows a person to carpool with others by simply finding an available seat through an app – drivers digitally share their route and seat availability and passengers can hop into a suitable ride for a small fee.
Notably, ride-sharing is often most popular with busy routes and times of day, as that's when there's highest demand.
There's a reason why a lot of confusion arose regarding the difference between ride-hailing and ride-sharing, namely, the terms were used interchangeably early on. To this day, “Ride-sharing” is sometimes used as an umbrella term for all app-based mobility solutions, though this is going out of fashion, given the clearer differentiation between solutions.
So, while both ride-hailing and ride-sharing are app-based on-demand mobility solutions for getting to a destination in a private vehicle, they differ in passenger count, cost, route, availability, and popularity.
One key component further distinguishing ride-hailing from ride-sharing is the use of advanced software, designed to optimize operations and enhance user experience. Ride-hailing software supports companies in efficiently managing bookings, payments, and communication between passengers and drivers. To explore how this software can improve the efficiency and effectiveness of ride-hailing services, visit our detailed ride-hailing software use cases page.
Other terms commonly used in the mobility industry
Though ride-hailing and ride-sharing are categories you'll hear most often, it's almost inevitable that you'll encounter other terms, which may sow further confusion.
Let's avoid that – here are some quick explanations of other popular terms.
Car-sharing
Car-sharing or vehicle-sharing is most often confused with ride-sharing, but despite sounding similar, they mean completely different things. Car-sharing refers to the app-based short-term rental of cars. The easiest way to remember it is that with ride-sharing people share a single ride, whereas with car sharing people share a single car – again, it's all in the name.
On-demand rentals
On-demand rentals is a category describing vehicles that are instantly available for rent, usually through an app. This includes both micro mobility solutions, like scooters and bikes, as well as larger vehicles like mopeds and cars. For those following along – yes, car-sharing is a type of on-demand rental!
Shared transport
As mentioned in the previous sections, “ride-sharing” is often incorrectly used as an umbrella term for all on-demand app-based mobility solutions. The correct term is shared transport or shared mobility. Shared transport is a broad category that includes both multiple people sharing a vehicle simultaneously (i.e. ride-sharing), as well as individual people sharing a vehicle over time (i.e. car-sharing/on-demand rentals).
Ride-hailing and other on-demand services related to mobility are also often categorized under the shared mobility umbrella.
Mobility-as-a-Service
Mobility-as-a-Service or MaaS is an approach to urban transportation that seeks to integrate a variety of mobility options (both public and private) into a single super-solution that answers a traveler's every mobility need. Often, MaaS solutions are sought out by local municipalities to provide effective alternatives to car use and minimize a city's carbon footprint.
Is the terminology really that important?
As you can see, a lot of the confusing mobility terms are simply categories and categories of categories – don't worry if you can't remember them all. If you know the difference between ride-sharing and ride-hailing that's already plenty.
Anyone in the mobility industry will tell you that it's perfectly acceptable to ask for clarification when talking specifics, as it's common for people to interpret these terms differently, and language barriers can be particularly troublesome for getting on the same page.
That said, you SHOULD pay close attention to the terminology if you're doing research for your own mobility business. A ride-hailing business is completely different from a ride-sharing one, and it's important not to compare apples to oranges during market research, as it can undermine your business from day one.
Other than that, all you have to remember is that ride-hailing is hailing a ride and ride-sharing is sharing a ride. Simple as that.
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From phone tap to smooth ride: the tech stack behind modern shared mobility
🛴📡 That smooth ride you just took? It was powered by a whole ecosystem of hardware and software you never saw. From IoT modules in the vehicle to real-time dashboards and rider apps, shared mobility relies on a solid tech stack to stay online, secure, and profitable.
December 2, 2025
min. read
You open an app, spot a scooter on the map, and within seconds it unlocks with a click. You ride off, expecting the battery to be charged, the brakes to work, and the whole process to feel effortless. From the very first ride, shared mobility set the standard: vehicles should always be nearby, ready to go, and the whole experience should feel seamless. What most riders never think about, though, is the complex mix of hardware and software working in the background to make every smooth ride possible.
Why the tech matters
Technology is the baseline for the shared mobility business model. Every ride depends on it. Vehicles need IoT hardware to lock, unlock, and report their status. Connectivity has to be stable so operators always know where assets are and what condition they’re in.
IoT, or the Internet of Things, is the technology that connects physical devices – like scooters, bikes, or cars – to the internet. Each vehicle contains a small embedded device (the IoT module) that sends and receives data through mobile networks. This connection allows operators to remotely control key functions such as locking, unlocking, location tracking, and firmware updates. In short, IoT is what makes a vehicle “smart” and manageable at scale.
On the software side, riders expect apps that feel instant and intuitive, while operators rely on dashboards for fleet health, pricing, and support. Add in the realities of theft, battery swaps, downtime, and local regulations, and the stakes become clear. Without a reliable tech stack, even small failures – a scooter that won’t unlock or a payment that stalls – can quickly break user trust and hurt the business.
Where it began
Over the years, several manufacturers have entered the shared mobility IoT space, offering different hardware configurations, network technologies, and integrations. Companies like Teltonika (Lithuania), Comodule (Estonia), Invers (Germany), OMNI (China) and others produce modules compatible with various vehicle types and connectivity standards. Each provider focuses on specific strengths – some prioritize energy efficiency or compact design, others emphasize global coverage or advanced diagnostics. Choosing between them depends on the type of vehicles, operational scale, and software ecosystem an operator plans to use.
Our partner, Comodule was already developing IoT for micromobility when the Corona pandemic hit. Overnight, cities shifted and everyone needed their own safe, private way to move around. Shared scooters and bikes suddenly went from being a niche service to an essential part of urban transport, and the demand for IoT skyrocketed. For IoT manufacturers, it meant long days in development and manufacturing, pushing hard to deliver reliable devices at scale for brands like Uber, Lime, and Hive.
That sharp rise in demand forced them to grow quickly and gave valuable experience in building technology that could perform under real pressure. Fleets that trusted Comodule devices had a backbone they could rely on: vehicles that could be located, unlocked, secured, and managed internationally. Just as important, the IoT had to integrate seamlessly with software systems (like ATOM Mobility). That’s why building robust API and SDK tools became critical – enabling operators to connect hardware to their platforms, control fleets in real time, and access the information needed to keep moving.
IoT as the brain of the vehicle
Inside every connected scooter or bike sits a IoT module, the “brain” that links the vehicle to the cloud. It connects through cellular networks, constantly sending data about location, speed, and battery status. When a rider taps “unlock” in the app, that command travels through the cloud to the module, which triggers the electronic lock and wakes up the vehicle. The same connection allows operators to set geofenced no-parking zones, push over-the-air updates, or activate a sound alarm if the scooter is being tampered with. Battery sensors inside the module report charging cycles and health, so operators know exactly when a pack needs to be swapped or replaced.
All of this data is streamed in real time to the fleet management system, giving providers the ability to monitor hundreds or even thousands of vehicles simultaneously. For operators, these capabilities mean higher uptime, faster theft recovery, and precise control over the entire fleet – the difference between running a struggling operation and a profitable one.
Selecting the right IoT hardware is a long-term decision that affects the entire fleet’s performance. Operators should evaluate network compatibility (2G/4G/5G/eSIM) and regional coverage, integration options such as open APIs and SDKs, and reliability under different weather conditions. Battery efficiency, after-sales support, firmware update policies, and compliance with standards like CE or FCC also matter. In short, IoT isn’t just a component – it’s the operational backbone of any shared mobility business.
Rising expectations in the market
As shared mobility matured, the bar kept getting higher. New scooter generations came with swappable batteries, sturdier frames, and better onboard electronics. Riders got used to apps that respond instantly, process payments in seconds, and show vehicle availability with pinpoint accuracy.
At the same time, competition rose, not only from global players but also from smaller, local operators launching fleets in their own cities. For these companies, reliable hardware was no longer enough. They needed the software layer that connects everything: smooth rider apps, powerful operator dashboards, and analytics to make smarter decisions. Yet many lacked the time and resources to build software on their own.
Software as the missing piece
As fleets grew and competition intensified, operators realized they did not have time or funds to develop their own software layer. They needed a market-ready platform that ties everything together – apps that riders enjoy using and dashboards that give operators full control of their business. That’s where solutions like ATOM Mobility come in.
Platform connects directly with IoT through APIs and SDKs, so every unlock command, error code, or battery update flows instantly between the rider’s app and the operator’s dashboard. Almost any company can launch a fleet with this stack – from large-scale operators to small, local newcomers.
The power of integration
When hardware and software work seamlessly, the rider experience feels effortless. A simple tap in the app sends a command through the cloud to IoT, which unlocks the vehicle and streams live data back in milliseconds. The operator instantly sees the vehicle’s status in the dashboard: battery level, GPS position, and any error codes.
If the scooter leaves a geofenced area, the system reacts automatically. If maintenance is needed, the alert is flagged before it becomes a breakdown. By combining the hardware with software, fleet providers get one complete ecosystem – a stack built to keep vehicles online and users satisfied.
From seamless rides to smarter cities
From a rider’s perspective, shared mobility should always “just work.” That won’t change. But the technology stack behind it is becoming more sophisticated every year. Stricter regulations demand safer and more transparent services, while cities are pushing for integration into broader Mobility-as-a-Service platforms. IoT and software together provide the data and control that operators need, not only to stay compliant but also to improve fleet efficiency and sustainability and to provide insights for city planning.
For users, that sophistication will translate into something simple: services that are more reliable, safer for everyone on the road, and smarter – with data from real-world usage helping to shape better vehicles, better infrastructure, and better cities in the future.
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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.
November 6, 2025
min. read
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:
- 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. - 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. - No paperwork, no friction
Everything is handled in-app: driver’s license verification, payment, pickup, and return. - Unlock with your phone
Smartphone access makes key handover unnecessary. Some services also offer remote unlock support if something goes wrong. - 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:
- Reduced staffing costs
With no need for front desk staff at every location, operators save significantly – especially at airports and peak-time zones. - Higher fleet utilisation
Real-time data enables better fleet distribution, faster turnover between rentals, and reduced downtime. - 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. - Fewer manual errors and disputes
Digital contracts, ID checks, and timestamps reduce risk and improve accountability. - 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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