Who does carsharing better – OEMs or start-ups?

Who does carsharing better – OEMs or start-ups?

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!

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Launching a ride-hailing business from 0 in 90 days
Launching a ride-hailing business from 0 in 90 days

🚕 Thinking of launching your own ride-hailing service? You don’t need a giant budget or years of development. With the right tools and a local-first mindset, you can go from zero to launch in just 90 days. From platform setup and driver onboarding to beta testing and your first 1,000 rides - this guide covers it all.

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Starting a ride-hailing or shared mobility venture can seem overwhelming, but with a clear plan, it's possible to launch in just 90 days. This guide outlines a three-phase process: laying the foundation, building your product and team, and launching - plus tips for growth beyond day 90. By following this roadmap, you’ll validate your idea, ensure legal compliance, create your brand and technology, recruit drivers, and hit the market ready.

Day 0–30: Foundation

Finding a niche

Start with market validation and legal setup. Research your target area to identify unmet transport needs. Maybe large providers don’t serve certain areas, or there’s demand for eco-friendly, or premium segment or niche services like women-only rides. 

Looking to stand out in the competitive ride-hail market? Check out these two insightful reads:

- Finding a niche in the competitive ride-hail market: https://www.atommobility.com/blog/how-to-find-your-niche-in-the-competitive-ride-hail-market-real-world-examples-of-businesses-that-resonate

- Discover how a local taxi union in Sweden supports a new platform to reshape industry standards and build a fairer ecosystem: https://www.atommobility.com/blog/driving-change-with-fair-how-a-small-platform-is-redefining-the-taxi-industry-in-sweden

This should help you define your niche, unique positioning or angle, and ultimately your unique selling proposition to stand out from other players in the market.

Legal compliance

Next step will be forming your business (e.g., LLC) to protect liability and later attract investors. Apply for the necessary permits, such as TNC licenses, and consult local regulations. Insurance is essential – you’ll need commercial liability coverage that also includes drivers. Run background checks to ensure safety and compliance.

Legal compliance checklist:

  • Business registration
  • Ride-hailing or taxi permits
  • Driver background checks
  • Commercial insurance
  • Local regulation compliance (e.g., vehicle checks)

Budgeting for MVP launch

Outline core costs: software, licenses, insurance, marketing, driver incentives, customer support, accounting services, and some reserve. Use a white-label software like ATOM Mobility to avoid costly custom builds. These platforms offer rider/driver apps and backend systems for a fraction of development costs.

Plan an initial marketing budget (e.g., €1,000–€5,000) and allocate driver sign-up bonuses (€100 for 20 rides, for example). Include small expenses like Apple developer accounts or a place in co-working to work from. Keep costs lean and prepare a detailed budget for the first 6-12 months.

Financing: Bootstrapping vs. investors

Once you have a 6-12 month budget prepared, you can choose between personal funding, angel investors, or crowdfunding. Bootstrapping (using your personal capital) offers control but limits scale. Local group of angel investors can contribute €50k–€500k in total and extra mentorship. Crowdfunding helps raise funds while building a local supporter base. For example, you can engage drivers to invest via crowdfunding in exchange for a small equity share in your company and free usage of the platform for a certain period.

Here’s a helpful resource on using crowdfunding to kickstart your venture and get inspired: https://www.atommobility.com/blog/crowdfunding-for-your-vehicle-sharing-business

If your budget analysis shows you need external funding, try at least to launch a small-scale, working prototype with personal funds or an FFF (friends, family, and fools funding) round before entering the investment process. Demonstrating even modest traction significantly boosts your chances of a successful raise.

Please note that securing your first round of funding - whether from crowdfunding or business angels - typically takes six or more months. To keep momentum going, launch an initial version of your product or service, then start the fundraising process.

Day 30–60: Build & integrate

Software

Choosing the right software partner can make or break your new ride-hail venture. From cost efficiency and faster time-to-market to reliability and specialized industry knowledge, the benefits of a white-label solution often outweigh the complexities and expense of building from scratch. Be sure to evaluate each provider’s platform features - rider and driver apps, dispatch system, and payment tools—alongside their proven track record of scaling and entering different markets. Confirm their customization capabilities, pricing transparency, and ability to expand into new service zones as your business grows. Ultimately, opt for a partner that delivers both the technology and the strategic support you need. For more insights on this decision-making process, explore white-label solutions vs. building from scratch and discover Why ATOM for a deeper dive into selecting the right tech partner.

Create a clear branding identity

Start by selecting a memorable name that reflects both your niche and city - AI-powered tools like ChatGPT can speed up brainstorming. Next, design a simple logo and choose core colors using user-friendly platforms such as Canva or Looka. Consistency is key, so use these design elements across your website and social channels.

When it’s time to launch your online presence, opt for no-code platforms like Squarespace, or Carrd to create a minimal landing page in minutes -no developers needed. Clearly present your core message (e.g., “Premium, all-black Mercedes rides in [City].”), include links to your rider/driver apps, and offer driver sign-up form. This straightforward approach helps potential users and drivers quickly understand and trust your brand.

Driver onboarding (first 50 drivers)

Your service can’t run without drivers, so make their onboarding experience as smooth and appealing as possible. Start by defining tangible benefits - like 0% commissions for the first three months, niche perks, or local partnerships—that set you apart. Reach out via social media, online communities, and direct messaging to recruit your initial loyal driver base. Host webinars or info sessions to keep them engaged and address any concerns.

Keep in mind, your first drivers are crucial for user satisfaction: they are the face of your service and heavily influence each ride’s quality. Consider providing branded merchandise and clear guidelines—such as offering free candies or bottled water, opening doors, or any other gesture aligned with your unique selling proposition (USP).

To streamline onboarding, create a simple website form for sign-ups, ensure fast document verification, run background checks, and offer concise training modules. Incentives like sign-up bonuses or a zero-commission period can help you recruit your first group of drivers quickly. You might also guarantee initial earnings (covering fixed fees from your budget) to build driver trust while you grow your user base.

Goal: By day 60, aim to have at least 50 drivers signed up and ready to serve your launch zone, setting a solid foundation for your platform’s success.

Day 60–90: Test & launch

Closed beta testing

Before a full launch, invite a small group of friends, family, or early supporters to test your app and simulate real-world scenarios. Focus on the essentials: ride requests, payment processing, GPS accuracy, and cancellation flows -ideally at various times of day and on different devices. Take a few actual rides with real drivers to see how they follow outlined procedures and interact with riders. Gather feedback to uncover any usability issues or unexpected driver behaviors.

During this phase, refine your internal processes as well. Decide how you’ll handle customer inquiries - whether via a dedicated help email, chat support, or both - and respond promptly to build trust. If you have a team, ensure everyone is on the same page about responsibilities, communication guidelines, and how to address rider or driver concerns. This targeted approach helps you iron out potential issues, polish the user experience, and establish robust support protocols before going public.

Public launch

Decide whether to roll out quietly (a soft launch) to iron out any last-minute bugs or make a big announcement with a press release. If you choose the latter, pitch your story to local media outlets, emphasizing your community-first approach to mobility. Launch promotions - like 50% off first rides or a €5 sign-up credit - are a great way to attract early adopters and generate buzz.

Make sure your driver pool is ready to handle demand by coordinating schedules and availability. Consider offline tactics, too: distributing flyers in high-traffic areas, setting up campus booths, or sponsoring community events can help you gain local exposure. Once you’re live, keep a close eye on rider feedback (e.g., ride ratings, app store reviews) and address issues swiftly to maintain a positive user experience.

Marketing & growth to 1,000 rides

Partner with local influencers to promote your app, offering free rides or small payments in exchange for authentic social media posts. Focus on influencers your target audience trusts. Implement app referral programs - reward users and their friends with ride credits to spark word-of-mouth growth.

Keep engagement high by sharing milestones and user success stories online. Show up at local events, offering exclusive promo codes to attract new riders. Begin with small-scale digital advertising, reinvesting as you generate revenue and learn which channels work best. Track core metrics like sign-ups, ride volume, and wait times so you can make data-driven decisions and refine your strategy in real time.

Post 90 days: Scaling

Customer support & operations
As your platform grows, consider outsourcing or automating aspects of customer support. Create a help center or FAQ to guide users to quick solutions, and keep daily operations under close watch so you can resolve any issues swiftly. To remain efficient, hire part-time help (e.g., marketers or fleet managers) who can handle specialized tasks without inflating your overhead.

Fundraising
With initial traction in place, you’re in a strong position to secure additional funding. Present clear data on ride volume, user retention, and revenue growth to potential angel investors or crowdfunding platforms. Government grants may also be available for sustainable transport initiatives, so explore those opportunities. Be specific about how the funds will be used - for instance, "We need €100 000 to expand into two new cities and reach 10,000 rides per month."

The 90-day timeline
Although launching a ride-hail platform in 90 days is ambitious, a focused strategy and lean tooling can make it possible. Stay agile, keep service quality at the forefront, and set tangible milestones for each stage. With strong local insights and consistent execution, you can carve out a lasting presence in the mobility space.

Growth & expansion
Before moving into new cities, solidify your position in your initial market. Continue recruiting drivers and reaching fresh rider segments through targeted partnerships and loyalty programs. If you decide to scale further, use your 90-day playbook again—tweaking it for each new region’s unique challenges and opportunities. Good luck!

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7 proven ways to boost your car sharing ratings
7 proven ways to boost your car sharing ratings

🚗 Want to keep your car sharing ratings high? Customers expect reliability, transparency, and great service - and their reviews reflect it. From AI-powered photo verification to seamless IoT connectivity, here are 7 game-changing solutions to improve your ratings and build trust with your users.

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Car sharing can be a tough business. Your fleet is constantly in motion, customers have high expectations, and every review can impact your reputation. The difference between a good business and one that struggles often comes down to customer satisfaction – and that means keeping your ratings high.

So, what are the best ways to improve ratings in car sharing? Here are some smart solutions that can make a real impact.

 

1. AI-powered photo verification to prevent surprises

No one likes picking up a car and finding it scratched, dented, or dirty. AI-powered photo verification helps prevent these problems before they affect your ratings. The system ensures that users take proper photos before and after their ride. If a car is parked badly or a photo doesn’t show the vehicle correctly, the system flags it. This reduces disputes, increases accountability, and improves overall service quality.

Users also feel more secure knowing that they won’t be held accountable for damage they didn’t cause. This small step significantly improves trust in your service, which in turn helps maintain higher ratings over time.

Want to integrate this? Check out how ATOM Mobility supports smart integrations.

 

2. Customer support that actually helps

Fast and effective customer support is a game changer. Users expect quick answers, especially when they’re locked out of a car or facing a technical issue. Integrating tools like Zendesk, Intercom, or Mavenoid provides live chat, automated AI-powered answers, FAQs, and even emoji-based responses to make communication smoother. Happy customers leave better ratings – it’s that simple.

A great support system also means fewer negative reviews, as frustrated users are less likely to vent online when they can quickly get the help they need. Plus, automated FAQs help users solve minor issues on their own without waiting for a response.

3. Great IoT connectivity for a better experience

A smooth, uninterrupted experience is one of the biggest factors in user satisfaction. Vehicle connectivity solutions ensure that cars are always accessible when needed. Imagine a user trying to unlock a car, but the IoT lags or the car doesn’t respond. Frustrating, right? Integrating reliable IoT solutions minimizes these issues, making your service more dependable. ATOM Mobility supports a wide range of IoT modules like Teltonika, Geotab, INVERS and several others. This means your fleet remains connected, responsive, and reliable no matter what car models you have in your fleet.

A connected fleet also allows operators to quickly detect vehicle malfunctions, battery levels, and maintenance needs, ensuring cars remain in top condition before issues escalate.

See how seamless connectivity makes car sharing better.

 

4. Let users rate their ride

Giving customers a voice is essential. By allowing them to rate their ride, you get valuable insights into what’s working and what’s not. Did they like the cleanliness? Was the car easy to access? Was the trip smooth? This data helps you adjust and improve, keeping your service top-notch. Plus, users appreciate being heard, which encourages them to leave better reviews.

Encouraging feedback also lets you identify problem areas before they turn into frequent complaints. A proactive approach keeps customers engaged and boosts loyalty.

 

5. Clear and simple pricing

Surprise fees are a surefire way to get bad ratings. Users want transparency when it comes to pricing. Make sure your app clearly displays all costs upfront, including any deposits, insurance fees, or extra charges. Simple and honest pricing leads to trust, and trust leads to better reviews.

It also helps to offer clear explanations of what happens in case of late returns, damages, or toll fees. When users know what to expect, they’re less likely to be upset when additional charges apply.

6. Keep your fleet in top shape with preventive maintenance

It might sound obvious, but maintaining your vehicles properly is a huge factor in customer satisfaction. No one wants to deal with a car that smells weird, has a flat tire, or makes strange noises. Regular inspections, automated maintenance tracking, and in-app damage reporting help keep your fleet in top condition. Implementing task automation can further improve fleet maintenance, ensuring vehicles are always in optimal condition with minimal manual intervention. Well-maintained cars, happy customers, higher ratings.

Adding small touches like air fresheners, charging cables, and regular interior cleaning can elevate the user experience. Even if a vehicle is a few years old, good upkeep makes all the difference in perception.

7. All-in-one dashboard for smarter management

You can’t improve what you don’t measure. An advanced dashboard lets you track vehicle performance, monitor customer feedback, and optimize operations in one place. ATOM Mobility’s dashboard solution provides detailed analytics, helping you stay on top of issues before they affect your ratings.

By leveraging data insights, operators can identify peak rental times, adjust pricing models, and plan fleet expansions accordingly. A well-optimized system keeps operations efficient and users satisfied. Additionally, vehicle damage management helps customers easily report damages, allowing operators to address issues faster and improve overall service quality.

Improving your car sharing ratings isn’t rocket science, but it does require the right tools. By integrating AI-powered photo verification, enhancing customer support, ensuring seamless connectivity, and keeping your fleet well-maintained, you can significantly boost user satisfaction. And when customers are happy, your ratings – and your business – will thrive. 

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