Insights and news from the ATOM Mobility team

“We spent two years developing a car-sharing app in-house. And even after all our efforts it still wasn't half as good as ATOM Mobility's platform.” – Peter Mraz, GreenGo's Manager, shares how he found the perfect partner in ATOM Mobility. 

Launch date: May 2021
Country: Slovenia, operates in 4 cities
Web page: https://greengo.city
App Store: https://apps.apple.com/us/app/greengo-by-t2/id1618782932
Google Play: https://play.google.com/store/apps/details?id=greengo.app 

GreenGo is a green vehicle-sharing company based in Slovenia that currently focuses on electric cars. 

The company's story is unique in that it's a project that spun out from its parent company T-2, d.o.o., a local telecom provider with over 400 employees. T-2's owner was enthusiastic about green mobility and set out to bring his vision to life – and succeeded. Today, you can find GreenGo's Renault Zoes and Twingos, Cupra Borns, and VW ID.3s in four cities – Ljubljana, Kranj, Trzin, and Logatec. 

However, the man who's running the show is Peter Mraz, GreenGo's Manager. While he does enjoy access to the parent company's resources, Peter is single-handedly overseeing the entire project and responsible for its success. 

“I do have backup from designers, legal, accounting and so on. And there are maybe 3-4 people who help manage the cars and maintenance. Everything else – it's on me. Thanks to ATOM Mobility, I have been able to manage everything from project start to launch pretty much on my own,” says Peter.

GreenGo's early challenges

Orginally, the idea was to develop the GreenGo car-sharing app in-house – a decision Peter grew to regret.

“It took us two years to develop the app. Even then, it did the job, but it wasn't perfect and it didn't quite go the way we wanted it to. And even after all our efforts it still wasn't half as good as ATOM Mobility's platform,” he shares. 

Indeed, this ongoing struggle pushed GreenGo to explore alternative options on the market and, after some market research, they landed on ATOM Mobility. ATOM Mobility ticked their two most important checkboxes – it offered the core functionalities they required and offered fast time-to-market. 

Originally“Once we made the switch, we launched in 3 months, though we did already have the cars at the ready, which certainly helped,” Peter continues. 

Admittedly, ATOM Mobility didn't immediately fulfil all their needs. 

“We had a very specific vision and requirements. ATOM Mobility was great, but didn't have everything we wanted when we started out. But the platform is evolving quickly. Their team develops something new every 2-3 months and it's very good for us. Since they develop for other companies, too, we also benefit from the updates. Now, ATOM Mobility has everything we need and more,” Peter says.

Still, early on, GreenGo were facing an uphill battle with fierce competition. Slovenia already had one high-profile electric car-sharing company that had established itself in the market, had more experience, and was well-respected among its customers and the general public. 

What was GreenGo's strategy for finding a foothold in the ecosystem? 

A brilliant idea for entering a busy market 

GreenGo carved out its market share by leveraging a strategic partnership with Slovenian Railways. 

“You see, a lot of tourists arrive in Ljubljana and other cities by train. Either internationally or from the airport. So we started off by placing our vehicles in railway stations, allowing us to be the easy choice top of mind for anyone arriving in the city,” Peter explains.  

To further improve convenience for potential customers, GreenGo integrated ATOM Mobility with a local MaaS platform. This allowed people to purchase credits for GreenGo's car-sharing app through the city's own mobility solution. 

Not only did this solidify GreenGo as the most accessible solution for any tourist who used the city's app to buy a train ticket, it also connected it to all the local residents that use the city's mobility app in their day-to-day. 

Now, you'll find GreenGo in four cities and their customers love them, as suggested by the high app ratings and continuous positive feedback. 

In most of the cities, they're using a station based model – where the cars need to be picked up and returned at certain points. However, in the capital they're currently running a hybrid model featuring both free-floating and station-based vehicle sharing. 

GreenGo expects to have to switch to a fully station-based model in Ljubljana, too, as the city is pulling the brakes on free-floating vehicle sharing. But they're not too fussed, as this model is easier to manage and can be a better choice for a still-up-and-coming company. 

Looking to the future – more vehicle types and a focus on B2B

As any company, GreenGo is eyeing growth and expansion. 

‍“Our vision is to become a leading force in the sharing economy,” Peter highlights.

Expanding their fleet with different types of vehicles, specifically – electric micromobility solutions – is one of the avenues GreenGo is exploring. 

In terms of business development, GreenGo has an interesting strategy for the upcoming year, namely, focusing on expanding into the business-to-business (B2B) segment with corporate sharing schemes. 

‍“With B2C, you need a lot of cars, a lot of investment. Electric vehicles are very capital intensive, which poses challenges for a growing company. B2B offers the opportunity to make the maximum from your existing fleet, which will allow B2C expansion later on. Plus, we already have a sort of successful B2B pilot project under our belts,” says Peter, referring to a corporate sharing scheme they launched with their very own parent company. 

They made four cars available to T-2 employees, which they can take out under certain conditions and packages for a few hours, a day, or a weekend. This sharing scheme proved to be very popular among employees, and Peter is certain other large companies will also be keen to test out this modern benefit for their workers. 

With some ups and downs, GreenGo is steadily carving out its spot in the market. 

What would Peter do differently if he had to do it all over again? 

‍“Choose ATOM Mobility from day 1 and save everyone a lot of headaches and resources,” he laughs. “But, seriously, the time-to-market is so fast, I think you could launch a mobility company from zero in one month.”

Marketing in the mobility business is unique because your fleets – be it scooters, bikes, cars, or mopeds – are like a flexible billboard moving all over the city. Whenever someone chooses your service, they essentially parade it around town like a brand ambassador, and even when your fleet is stationary it attracts significant attention as people constantly see it on the streets. 

In other words, urban mobility businesses enjoy high brand awareness. 

Still, for mobility entrepreneurs, this is the norm. Namely, it's an industry baseline that everyone benefits from and it won't necessarily help you gain more customers, outperform competitors, and boost business. 

To do all of those things, you still need an effective marketing strategy that reaches the right audiences and activates users.

Understanding your target audience

Vehicle-sharing customers are diverse, as are their motivations for using the services. Since you're likely operating in a very specific market, i.e. a particular city or region, it's critical to identify and understand your target audience and the different segments to not only reach and speak to the right people, but also avoid wasteful ad spend. 

Determining who you're marketing to will also help you in defining the messaging and channels you use, which are key for successful campaigns. 

1. Differentiating between B2C and B2B segments

The broadest categories are business-to-consumer (B2C) and business-to-business (B2B). While most people associate vehicle sharing with B2C, e.g. a person zooming on a scooter down a bike lane to make an appointment, the reality is that the far-less-visible B2B segment is thriving with initiatives like corporate car sharing schemes. 

The messaging for these two – the individual on the scooter and the CEO looking to offer a convenient mobility solution to their employees – will vary greatly. Different pain points, motivations, and use cases mean that you must adapt how you talk to each segment and differentiate between the two from the get-go. That is, if you're looking to target both. 

2. Conducting market research to define customer personas

Whether you're focusing on B2C, B2B, or both, you should research who are the people using/buying your services. The goal is to have your marketing efforts reach the right people, and by digging into the background of your customers, you'll gain an understanding of who they are.

To do so, dive into demographics (age, gender), use cases (how, when, and why they travel), and price sensitvity (how much they spend, do discounts affect their decisions), among other things. Companies often craft user personas by putting all of this information together and creating a profile of the average customer, which they then use to develop their messaging. 

Do note that if multiple dominant categories emerge, it's completely normal to have 2-3 user personas. Plus, these can evolve over time, so make sure to conduct ongoing research and refine it according to new data. 

Finding the right marketing channels

Once you know who you're targeting, it's important to find out where these people are to reach them in the most effective way possible. If your primary customers are college students, you're unlikely to find them on Facebook. 

Generally speaking, we can split the marketing channels into two categories – online and offline. 

Online channels

Nowadays, digital marketing is where the bulk of action happens. 

Social media platforms offer a fantastic opportunity to reach your specific audience, as they typically allow advanced targeting. By narrowing down various parameters, such as location, demographics, and even related preferences (the factors we defined when creating user personas), it's possible to have very cost-effective ads that generally reach the people who are most likely to convert. Collaboration ith influencers is also an increasingly effective strategy.

However, you must carefully consider which platforms to advertise on. B2C content will thrive in places like Instagram, but, if you're targeting CEOs and CPOs for B2B services, LinkedIn may prove to be a better fit. It's extremely difficult to accurately predict which platform will perform best, hence it's wise to have a presence on multiple platforms, and allocate budgets according to observed returns. 

Search engine and content marketing is another avenue worth exploring – think of it as your company showing up as the first result when somebody searches for a keyword relevant to your business, e.g. “best car-sharing in (city)”. This can be paid, where your website or app appears as a sponsored result. Or it can be organic, where you produce valuable content that ranks highly on search engine result pages. 

Organic content may take longer to deliver results, however, it can offer greater long-term return on investment (ROI). For example, if your city is a burgeoning tourist destination, you can create a guide on how to get around the city and include your services as one of the best ways to do so. 

Display advertising is another paid channel and, in essence, it entails paying partners to place ads/banners of your services on their website. For display advertising to succeed, finding the right partners is key. For example, it might make more sense to have your car-sharing service banner appear on a local tourism page or a student club website than a clothing e-commerce store. 

You'll find further digital marketing opportunities with email marketing, referral programs, push notifications and more. With online advertising, experimentation is critical – test various methods and platforms to explore what brings the greatest ROI. 

Offline channels

Offline channels include things such as traditional media (TV, radio, print), outdoor advertising, as well as partnerships and sponsorships. These can complement a strong digital marketing strategy, particularly as it relates to standing out among the competition. 

Fostering brand awareness is its strong suit, as offline advertising typically struggles with driving direct conversions. That is, a bus stop poster may not give you immediate app downloads, but its primary value lies in your business being top of mind when the potential customer is looking for a mobility solution.

Of course, you don't have to – nor should you – go all-in on a single channel. Rather you should dabble in multiple to see what works, and then double down on the most effective channels. 

Allocating ad spend effectively

The goal of any marketing effort is to invest $1 and get more than $1 in return. Working with a limited budget means you must carefully manage your ad spend to get the most out of it. 

First, you should define measurable goals for your marketing campaigns. Setting key performance indicators (KPIs) allows you to measure the success of your campaign. These KPIs – e.g. app download, website visit, account creation, first ride, user activation – can vary between channels, platforms, and campaigns, however, they should always be conducive to achieving your business goals. 

With clear goals, you can evaluate performance. Investing in various channels and seeing how they perform will provide you with insights about which should be left alone, and which are the more lucrative ones that demand prioritzation.

Still, here are some things to keep in mind:

• Adapt your campaigns to each platform. A video of a teenager dancing around your scooter might do great on TikTok and flop on LinkedIn. 
• Take into account that vehicle-sharing, and e-scooters in particular, can be a very seasonal industry and your marketing goals should reflect that. 
• Your campaigns should become more effective over time as you gather more data, so don't get discouraged early on. 
• Always tackle low-hanging fruits first, namely, the opportunities that give you the most returns with the least amount of effort. 

Effective ad budget allocation is a balancing game that you will get better at with experience. Early on, it's about defining achievable goals and finding the easiest way to reach them.  

Making use of ATOM Mobility's features for marketing

Best-in-class software platforms for mobility, like ATOM Mobility, should offer various tools that help you along in your marketing journey. 

For example, ATOM Mobility can inform your overall strategy with the comprehensive analytics business owners can find in their dashboard. Ride and customer data, statistics and heatmaps, reports and insights can all help you get a better grasp of who is using your services and where. This, in turn, may aid in defining user personas and ensure you don't have to start your marketing from scratch. 

More directly, ATOM Mobility also offers inbuilt advanced marketing tools:

• Loyalty and referral programs that drive word-to-mouth marketing,
• Integrated email marketing, in-app messages, and push notifications that help stay top of mind and re-activate existing users,
• Discounts, promos, and bonus zones that appeal to deal-chasing customers.

This article has mostly focused on customer acquisition, however, retention and activation should also have a prominent place in your strategy. By leveraging your own organic communication channels – your app, email subscribers, social media – you can increase customer lifetime value, boosting revenue at low expense to yourself. 

Level up your mobility business 

A well-executed marketing strategy can elevate your business. Putting one together takes effort and resources, but it can be the difference between struggling to make ends meet and a thriving mobility enterprise. 

So, identify your customers, target them where they hang out, iterate and optimize. And make sure to use tools and platforms that help you along the way.

1. Overestimating the number of rides

Overestimating the number of rides can lead to financial strain and operational inefficiencies. When estimating the number of daily rides you plan to get out of your fleet, be realistic and base your prognosis on usage data. 

Generally, ride averages tend to be way smaller than optimistic entrepreneurs hope. A study by mobility enablement data company Fluctuo can give you an idea of trips taken daily by different shared mobility vehicles in European cities in 2022:

• Scooters – 1.7 trips/day, 
• Bikes – 2.9 trips/day,  
• Mopeds – 1.9 trips/day, 
• Cars – 2.6 trips/day.

How to avoid: 

Correct estimation of the number of rides per day involves several factors and considerations:

• Conduct thorough research of the target market, including demographics, commuting patterns, existing transportation options, and potential user behavior;
• Evaluate the population density of the areas you plan to operate in (areas with higher density usually yield more ride demand); 
• Analyze the user behavior of similar services in the area – their usage patterns, peak hours, and any seasonal variations;
• Consider running a pilot program in a smaller area or for a limited time to test initial interest and usage;
• Assess infrastructure and accessibility, e.g., availability of bike lanes, parking spots, or docking stations, which can significantly impact the usability and popularity of the service.

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2. Starting with an insufficient fleet to cover operating costs

Not starting with a big enough fleet size to cover operating costs is another common pitfall for micromobility companies. Starting with a small fleet can limit revenue potential and hinder the ability to meet demand, leading to customer dissatisfaction. 

How to avoid: 

In addition to conducting thorough market research and pilot tests, as mentioned previously, follow these tips to make sure your fleet size can cover operating costs:

• Understand the operating costs, including maintenance, charging, staff, and fleet management. Ensure the projected revenue from the estimated number of rides can cover these costs;  
• Ensure your operational model allows for flexibility in scaling up or down the fleet size based on changing demand patterns;
• Apply for ATOM Academy to learn from industry experts with experience in launching micromobility services. Their insights can be invaluable in estimating the appropriate fleet size.

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3. Not budgeting all potential expenses

Budgeting for all potential expenses is essential for financial stability, effective resource management, and risk mitigation, all of which are crucial for the success of a micromobility business. Failure to budget for all possible expenses for the whole year can lead to financial instability and operational disruptions.

How to avoid: 

• Create a detailed list of all potential expenses, including operational costs like maintenance, charging infrastructure, fleet management, staffing, fleet insurance, regulatory compliance, marketing, and administrative fees;
• Analyze historical data from similar services or markets to identify and anticipate various expenses that might arise throughout the year, including unexpected costs and seasonal variations;
• Factor in a contingency fund within the budget to cover unforeseen expenses or emergencies; 
• Conduct regular budget reviews and updates throughout the year. This allows for adjustments based on real-time data, changes in market conditions, or unexpected expenses.

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4. Not being flexible with business models

Inflexibility with business models or the inability to pivot in response to market changes can hinder a company's ability to adapt and grow. It’s crucial for a micromobility service to remain agile and open to adjusting business models based on market feedback and evolving trends.

‍How to avoid: 

• Develop a business model that allows for flexibility, scaling, and adaptation based on market demands and changes;
• Gather regular user feedback – it will enable you to make adjustments swiftly based on user needs and preferences;
• Integrate technology that facilitates business model adaptability – e.g., with ATOM Mobility software, operators can adapt their fleet for different purposes to find the best market fit. For example, if free-floating car sharing is not the best fit for your city, you can pivot to short and long-term rentals with calendar booking, or offer B2B corporate sharing schemes, etc.
• Establish partnerships and collaborations with complementary businesses or services to provide flexibility through diversified revenue streams and collaborative solutions.

5. Choosing the wrong software partner

Selecting the wrong software partner can result in poor customer experience, lower usage, and negative ratings. Even seemingly small system inefficacies can lead to users choosing competitor services instead, so make sure you don’t underestimate UX. Conversely, a convenient and intuitive platform with a wide range of features can help to attract and retain customers.

How to avoid: carefully vet potential software partners, considering factors such as reliability, user-friendliness, customer support, and the rate of new features shipped. Factor in the flexibility of software and whether it would be able to scale with your business when needed.

ATOM Mobility provides all the software you need to launch and scale your own vehicle-sharing, ride-hailing, or digital rental business, including free-floating car sharing. In addition to all the core features you would expect, including a customizable rider app and a feature-rich operator dashboard, businesses can benefit from AI-powered vehicle analysis and advanced analytics tools to support informed business decisions.

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6. Not securing long-term permits 

Operating without long-term permits can lead to regulatory challenges and uncertainty, impacting the company's ability to establish a stable presence in the market. Without a stable operating environment, it becomes challenging to plan investments, expansions, or long-term strategies. In addition, competitors might have an advantage in securing prime operating locations or gaining market dominance, making it harder for the company to establish itself.

How to avoid: 

• Prioritize securing long-term permits to operate, fostering a more transparent, predictable, and sustainable business environment;
• Proactively address concerns raised by authorities to build trust and increase the chances of obtaining long-term permits;
• Be prepared to adapt to evolving regulations and work towards aligning the business model with local policies and community needs.

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7. Ineffective management 

Our final tip is a universal one, as weak management can derail businesses of any size or industry. That said, strong leadership is especially crucial for achieving success in competitive markets like micromobility, where a determined and competitive mindset can be a deal-breaker. 

How to avoid: Whether you’re a manager yourself or a CEO looking to hire one, look for these effective management characteristics:

• Excellent communication skills. Managers must clearly convey ideas, expectations, and feedback to the team, ensuring everyone is on the same page and can work collaboratively.
• Strong and determined leadership. A strong manager must lead by example, inspire their team, set clear goals, and effectively delegate tasks. They should also be able to motivate employees, resolve conflicts, and foster a positive work culture.
• Risk-taking and decision-making. Micromobility startups often operate in evolving markets. A good manager must be comfortable taking calculated risks and making decisions under such conditions. 
• Adaptability and innovation. In the dynamic micromobility sector, managers must be flexible, ready to pivot strategies, develop unique services, and adjust to the rapidly changing market conditions or technological advancements.
• Customer-centric approach: A successful manager focuses on delivering excellent customer experiences, whether it's through user-friendly apps, efficient service, or responsive customer support. 

Know why micromobility companies fail – and yours won’t

Now that we’ve covered the various challenges micromobility companies face, you are equipped with knowledge and practical advice for avoiding these risks. By carefully addressing these key reasons and taking proactive measures to avoid them, you can enhance your chances of long-term success in this rapidly evolving industry.

With the increasing demand for shared mobility, we've seen different business models in the car market: traditional car rental, peer-to-peer car sharing, and on-demand car sharing.

In this blog post, we're going to compare these business models. We'll look at the established traditional car rental companies and how they stack up against the newer peer-to-peer and on-demand services. We'll explore how these companies are doing financially – and make some predictions about their possible future.

Traditional car rental

Traditional car rental companies like Hertz, Enterprise, and Avis operate by owning or leasing their own fleets of vehicles. They usually have rental offices and parking lots in strategic locations such as airports and city centers. Customers looking to rent a car make reservations through the company's websites, mobile apps, or by phone. Typically, customers pay a daily or weekly rate, plus additional costs for mileage and optional services like insurance.

Avis – proving that traditional car rental is going strong

Avis was founded in 1946 in Detroit, and it quickly established itself as a major player in the car rental market. Avis is best known for its "We Try Harder" slogan, which was introduced in the 1960s and became a symbol of the company's commitment to customer service. Over the years, Avis has expanded its operations globally. 

Avis had a strong second quarter in 2023. They reported $3.1 billion in revenue, with a net income of $436 million. The company saw an increase in usage compared to the same period in 2022, reaching 70.5%. Avis also performed better than expected on Wall Street, with earnings of $11.01 per share – surpassing the estimated $9.79.

At the end of Q2 2023, Avis had around $1.1 billion in liquidity and an additional $1.1 billion for fleet funding. Avis CEO Joe Ferraro credited the strong results to the company's ability to capitalize on the growing travel demand, particularly during the busy summer season.

Hertz – usage and fleet growth

Hertz was founded in 1918 in Chicago. Over the years, Hertz grew into a global brand, serving both the leisure and business travel sectors. Despite various ownership changes, it has maintained a strong presence in the car rental market.

Hertz also reported a healthy second quarter in 2023. They made $2.4 billion in revenue, mainly due to high demand – rental volume increased by 12% compared to the previous year, and their average fleet grew by 9%.

Each vehicle brought in an average of $1,516 per month during the quarter, thanks to a usage rate of 82%, which was 230 basis points higher than in Q2 2022. As of June 30, 2023, Hertz had $1.4 billion in liquidity, with $682 million in unrestricted cash. Overall, Avis' old rivals Hertz are doing quite well too.

Peer-to-peer car sharing

Peer-to-peer car sharing allows private vehicle owners to offer their cars for rent through platforms like Turo and Getaround. The vehicles are distributed across various neighborhoods and residential areas, offering a decentralized and more flexible system. Customers can use these platforms to find and reserve their vehicles of choice.

Turo – promising financials, uncertain IPO plans

Turo, founded in 2009, began as RelayRides and was later rebranded. Turo offers an online platform that allows individual car owners to rent out their vehicles to other people when they are not using them. The company provides a marketplace where people can list their cars for rent, and renters can search for and book vehicles for short-term use.

Turo has gained popularity as a more flexible and often cost-effective alternative to traditional car rental services. It allows car owners to monetize their vehicles when they're not in use and provides renters with a wide selection of cars to choose from. 

Turo, valued at $1.2 billion in 2019, has seen promising financials. In 2022, they earned $746.59 million, up 59% from the previous year, with 320,000 vehicle listings. They went from substantial losses in 2019 and 2020 to a net income of $154.66 million in 2022.

Turo also grew its marketplace, engaging with 160,000 active car owners and 2.9 million riders worldwide by the end of 2022. However, according to their S-1 filing, they anticipate increasing expenses in the future, which might challenge their profitability.

Turo applied for an IPO on the Nasdaq in 2022 but didn't proceed. The IPO plans were delayed, likely due to challenges like the 2022 tech downturn. However, recently, Turo revived its plan to go public and could list their shares in the fall of 2023.

Getaround – an uncertain future

Getaround is another popular peer-to-peer car-sharing platform that allows individuals to rent out their personal vehicles to others when they are not using them. It's often referred to as the "Airbnb of cars." Introduced in 2011, it is currently accessible in over 1,000 cities in the United States and Europe.

In 2022, Getaround earned $62.3 million in revenue. However, they reported an EBITDA of -$25.0 million, indicating that its operating expenses exceeded its earnings. Overall, the company experienced a net loss of -$46.8 million for the year. Getaround's total assets were valued at $217.1 million.

During its public market debut in 2022, Getaround witnessed a significant decrease in its share value, plummeting by as much as 65%.

In March 2023, the company got a notice from the New York Stock Exchange saying it didn't meet the requirements. This was because their average global market capitalization over 30 consecutive trading days fell below $50 million, and their reported stockholders' equity was also below $50 million.

Overall, Getaround's stock market troubles and weak finances make their future uncertain for now.

On-demand car sharing

On-demand car sharing services like Zipcar and Share Now (formerly Car2Go) maintain their own fleets, which are parked throughout cities in designated spots or on the streets. Customers can access these vehicles in real-time using mobile apps. The pricing structure usually includes fuel, maintenance, and insurance.

Share Now – downsizing, acquired by Stellantis

Share Now, a German carsharing firm born from the merger of Car2Go and DriveNow, now operates as a subsidiary of Stellantis' Free2Move division, offering car sharing services in European urban areas. It has over four million registered members and a fleet of 14,000+ vehicles across 18 European cities.

In late 2019, ShareNow announced the closure of its North American operations due to competition, increasing operational costs, and limited support for electric vehicles. Service in London, Brussels, and Florence was also discontinued.

On May 3, 2022, Share Now was acquired by Stellantis, with the ownership now managed by Stellantis subsidiary Free2Move, following the closure of the acquisition on July 18, 2022.

CityBee – a success story in Baltics

CityBee, founded in 2012 in Lithuania, started as a car-sharing service primarily aimed at businesses. It now operates in the whole Baltic region. Customers can choose from a variety of vehicles, including cars, vans, bikes, and electric scooters. The fleet also includes electric and hybrid cars. CityBee takes care of insurance, fuel, and parking fees in CityBee areas.

In 2022, CityBee reported a sales revenue of €33,168,028, slightly down from the previous year's €39,814,173. However, the company's profitability surged, with a profit before taxes of €2,193,820 – a substantial increase from the €968,722 in 2021. This also resulted in a higher profit margin of 6.61% in 2022, compared to 2.43% in 2021.

CityBee saw its net profit rise to €1,857,517 in 2022, a substantial increase from the €876,986 in 2021. The company's equity capital also grew to €4,688,176, indicating a stronger financial foundation. CityBee shows that on-demand car sharing can succeed with the right approach in the right market.

There's room for different business models

The shared car mobility market is large enough for different solutions to exist together – especially with car ownership costs going up. Companies like Hertz and Avis demonstrate that the traditional rental model remains relevant and holds significant profit potential.

Despite financial challenges, peer-to-peer car sharing and on-demand car sharing are attracting a fresh customer base. Peer-to-peer car sharing offers a more personal touch by letting people rent their own vehicles. On-demand car-sharing services are a great solution for urban residents, offering quick pay-as-you-go access to vehicles. 

While the position of traditional car rental giants might seem unshakeable, it's a fast-moving, evolving market. Regional success stories – such as CityBee – certainly prove that challengers are not asleep.

If you own a fleet, operate a car rental business, or are looking to get into one, ATOM Mobility can equip you with an end-to-end software suite that will put you miles ahead from competition.