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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Explore the future of mobility: must-attend events in Q4 2024
🚀 Ready to explore the future of travel and mobility? Here are the top 2024 (Q4) events for business owners and those looking to enter the mobility space! Don’t miss these opportunities to connect, learn, and meet ATOM Mobility team💡
October 14, 2024
min. read
ATOM Mobility will be attending three major events that focus on micro-mobility, car rental and taxi industry. We’re looking forward to making new connections, meeting potential partners, and showing how our platform can revolutionize shared mobility. Here’s where we’ll be and why you should join us!
World Travel Market (WTM) London 2024
- When: November 5-7, 2024
- Where: London, UK
- Website: World Travel Market London
WTM London is one of the biggest events in the travel and tourism industry, but it’s not just for travel enthusiasts! There’s a growing focus on sustainable urban mobility, making it an exciting event for businesses in the micro-mobility and vehicle-sharing space.
With industry leaders from all over the world, this is a fantastic chance to network and learn about how mobility is becoming a key part of travel experiences.
EU Taximesse 2024
- When: November 8-9, 2024
- Where: Cologne, Germany
- Website: EU Taximess
The EU Taximesse is Europe’s top event for taxi and ride-hailing services, but it's not just about taxis anymore. This event is also a great place to explore new mobility technologies, including vehicle-sharing and fleet management solutions. If you’re working in or alongside these industries, this is the event to check out.
Micromobility America 2024
- When: November 14-15, 2024
- Where: Costa Mesa, California, USA
- Website: Micromobility America
If you’re into micro-mobility, is the event to be at! Taking place in California, this event brings together industry leaders, startups, and city planners to discuss the latest trends in urban transportation. From e-scooters to e-bikes, it's a hub for everything micro-mobility. We’re excited to be attending this event to explore how cities can build smarter, greener transport solutions. Whether you're a startup, an investor, or a city planner, we'd love to connect and discuss how we can collaborate to transform urban mobility.
Why are these events a must, if you’re working in the field?
Connect with industry leaders: These events are the perfect place to meet key players in the mobility industry. Let’s chat and see how we can work together to drive innovation in micro-mobility and vehicle-sharing.
Discover the latest trends: Stay ahead of the curve by learning about the newest technologies and business models shaping the future of transportation.
Grow your business: Whether you’re a startup looking for partners or an established company aiming to expand, these events offer incredible opportunities for collaboration.
Shall we meet?
Are you planning to attend any of these events? Reach out to us – we can’t wait to connect!
Don’t miss out on these amazing mobility events in the last quarter of 2024! Whether you're in Cologne, London, or California, these events offer an unbeatable chance to learn, network, and explore the future of urban transportation.
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Unlocking new revenue streams: B2B partnership ideas in shared mobility
🚀 Want to boost your fleet’s profit? By teaming up with other businesses and trying new B2B ideas, you can generate more revenue and streamline your operations. Explore some interesting B2B revenue-generating ideas!
October 7, 2024
min. read
In the ever-evolving shared mobility industry, diversifying revenue streams is essential for long-term stability and growth. At ATOM Mobility, we are committed to equipping operators with a robust SaaS platform that not only keeps your business running efficiently but also adapts to new challenges. By exploring B2B opportunities within the shared mobility space, you can expand your use-case and tap into new revenue possibilities. Harness the power of our SaaS platform alongside your innovative ideas to unlock fresh opportunities and foster sustainable growth.
Are you ready to supercharge your fleet revenue? The traditional routes are great, but sometimes it’s time to think outside the box—or rather, outside the vehicle. Let’s explore how expanding your use-case to B2B can drive revenue within the shared mobility sector.
What is B2B in Mobility?
Shared mobility often conjures images of B2C operations where individuals rent or share vehicles, B2B mobility represents a different approach. In this model, services are specifically designed for use by members of corporations, organizations or communities (business-to-business).
For instance, a hotel might offer scooters for guests to explore the area, or a company could provide employees with discounted access to shared vehicles for business trips or commuting. These examples highlight B2B mobility, where a shared mobility operator partners with a business or organization. This collaboration not only generates financial benefits for both parties but also helps companies reduce their carbon footprint and creates new revenue streams for mobility operators.
Here are some creative ideas to enhance your fleet revenue through innovative B2B partnerships and new opportunities:
Franchising
In shared mobility, a common franchising approach involves operators partnering with other mobility providers, allowing them to operate under your brand and software. In this model, the franchisor provides a comprehensive operating system, including its brand, products, services, and operational framework. This offers a turnkey solution for managing a shared mobility business. Franchisees receive extensive support, such as site selection, development guidance, operational manuals, training, marketing strategies, and ongoing business advisory services.
Leverage ATOM Mobility's dashboard subaccount system to grant Franchisees access restricted to their specific operations and the fleet you assign, enabling your partners to efficiently manage vehicle sharing or digital rental operations under your brand.
Explore corporate fleet solutions
Many businesses are on the lookout for reliable, scalable fleet solutions for their corporate needs. By positioning your fleet as an ideal solution for corporate transportation, you can open up new revenue streams. For example, you can partner with a larger company and allow their employees to use your fleet at a special price during working days. At the same time, the company can assign different mobility budgets to various employee groups to use in your app. In such cases, the company, your partner, will cover the rides of their employees at specially agreed rates.
Check out our corporate account management for more insights on how to get started. Businesses often need transportation solutions for employee commutes, client visits, and even business trips. Tap into this need, and you’ll see your fleet revenue soar.
There are two core cooperation models with larger companies:
- Allowing their employees to use publicly available vehicles at specific times via your app, with all rides covered by the company.
- Dedicating, and potentially branding, a portion of your fleet for a specific company, making it available exclusively to them and their employees. In this model, you provide the support, software, and maintenance, ensuring that this fleet is accessible only to that company.
Join forces with local hotspots
By teaming up with local cafés, retail stores, or entertainment venues, you can offer special promotions to their customers. It’s a win-win! Local businesses get more foot traffic, and you get a steady stream of new riders or renters. This works very well in micro-mobility.
For example, you could offer a discount on vehicle rentals to patrons of a local restaurant or provide shuttle services for events at a nearby theater. Plus, it’s a great way to make your fleet a local celebrity!
Dive into delivery and logistics sector
With the explosion of e-commerce, there’s a significant opportunity in the delivery and logistics sector. You can partner with online retailers or local businesses in need of delivery services, offering either a full-service solution, including delivery, or simply leasing vehicles to them.
By providing dedicated delivery solutions or offering special rates for bulk deliveries, you can tap into a lucrative market and scale from there. Your fleet can become the preferred delivery solution for online shops and local stores, increasing your revenue while keeping your vehicles in constant use.
Create exclusive tourist packages
Tourism is another goldmine for fleet revenue. Collaborate with travel agencies, hotels, or tourist attractions to offer exclusive transportation packages. Imagine a package deal where tourists get a ride to all the must-see spots in town with a single booking. It’s convenient for tourists and profitable for you!
For inspiration on how to cater to tourist destinations, check out our Vehicle Fleet Owners’ Guide to Tourist Destinations.
Leverage event partnerships
Events, from corporate conferences to local festivals, are perfect opportunities for fleet revenue growth. Partner with event organizers to provide shuttle services, VIP transport, or event-specific rentals.
You could also offer branded vehicles as part of the event experience. Imagine your fleet driving event-goers around town, all while being seen by thousands of potential new customers.
Offer vehicle subscription services
Subscription services are on the rise. Why not offer a vehicle subscription model where businesses can subscribe to access a variety of vehicles based on their needs? This model can provide steady, predictable revenue and attract customers who prefer flexibility over long-term commitments.
ATOM Mobility’s private fleet options can easily be adapted to fit a subscription model. Learn more about our private fleet solutions to see how this could work for you.
To ensure your new B2B offering is successful, follow this easy five-step process for each new B2B revenue direction you want to test:
- Identify partners: Research and reach out to businesses that could benefit from your B2B offering. At this stage, presentations and text will be sufficient, and the main goal is to collect feedback and gauge interest.
- Customize services: Based on the feedback collected, tailor your offerings to meet each partner's specific needs and address their pain points for better value. This is a good time to sign an agreement with them.
- Set up the platform: Ensure your technology and fleet are ready for B2B. Partner with experts like ATOM Mobility for seamless technical support and easy onboarding.
- Run a pilot: Test your approach with small-scale pilots to gather feedback, assess the financial model, and improve your solution.
- Scale up: Once pilots succeed, expand to new partners and regions using the insights gained.
Ready to boost your revenue?
There’s a whole world of opportunities out there to enhance your shared fleet revenue through creative partnerships and innovative B2B solutions. At ATOM Mobility, we’re here to help you explore these exciting possibilities and take your fleet to the next level.
Ready to get started? Join ATOM Mobility today and discover how you can create a fleet that’s not just functional but also profitable. Let’s drive innovation and success together!
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