Insights and news from the ATOM Mobility team

Back in 2010, a company named Uber made waves in San Francisco by changing the way people hailed cabs. Today, the company has expanded rapidly across the globe. Over the years, Uber's valuation has skyrocketed, and it has evolved from a ride-sharing service to a massive enterprise that competes in the food delivery and car rental markets.

The evolution of Uber from a small startup to a giant is a remarkable story of visionary business practices that revolutionized an entire industry. Let's take a closer look at how Uber achieved its success.

What if you could hire a ride with just your phone?

Garret Camp, one of Uber's co-founders, had a firsthand experience of the issues with conventional taxi services in San Francisco, where he often struggled to find a reliable ride.

For decades, San Francisco had a limited number of taxi licenses. Demand for taxis exceeded the supply, resulting in poor service and long waits. Despite this, the taxi drivers and fleets in San Francisco vehemently opposed any attempts to increase the number of permits, as they were determined to keep competition at a minimum.

Camp came up with the idea of creating an on-demand car service that passengers could track via their phones. Considering San Francisco's notoriously unreliable taxi services, Camp's idea made perfect sense as it provided a solution to increase the number of available rides and inform customers of the expected wait time.

Camp saw the new iPhone app store as a way to make it a reality. With the phone's accelerometer, he could charge passengers by the minute or the mile, similar to a taximeter. Collaborating with fellow entrepreneur Travis Kalanick, they cemented an innovative notion: What if clients could effortlessly summon a ride by means of their smartphones?

Uber officially launched in San Francisco in 2010. The app was an instant hit due to its ease of use: customers could order a ride, pinpoint their location with GPS, and have the fare automatically charged to their account.

The rise of the world's most valuable startup: key milestones

Uber's valuation skyrocketed to $51 billion after funding rounds in 2015, making it the world's most valuable startup at that time. Below are some other significant milestones in the company's history:

• 2010: Uber received its first major funding of $1.3 million
• 2011: Uber launched in New York and France. The company also closed another funding round that year, which valued the company at $60 million.
• 2012: Uber expanded to 20 locations worldwide.
• 2013: Uber continued to grow rapidly, expanding to more than 40 new locations around the world.
• 2015: The company secured additional funding from investors, such as Microsoft and Bennett Coleman & Co, which boosted its valuation beyond $51 billion.
• 2016: The company raised an additional $3.5 billion from Saudi Arabia's sovereign wealth fund to further fuel its expansion.
• 2019: Uber went public through an initial public offering (IPO) with a market value of $75.46 billion, making it one of the biggest IPOs in history. The company raised an additional $8.1 billion through the IPO.

Uber's strategic approach to expanding globally and constantly improving user experiences offers valuable lessons for any tech-driven business. To understand more about the software that powers such services, learn more about our ride-hailing solutions.

What contributed to Uber's success?

Although Uber's success can be attributed in part to its founder's innovative idea, there are other important factors that have played a role in the company's accomplishments. Without proper strategy and execution, the company wouldn't have achieved such heights.

• Light asset base

Uber owes much of its rapid growth to its asset-light business model, which allowed it to expand into numerous markets with ease. Although sales teams and translation work were necessary to enter new markets, the software – their app – was the main asset they offered. With drivers bringing their own vehicles and riders using their own smartphones, Uber didn't have to make significant capital investments to operate in these markets.

Moreover, Uber's technology platform is estimated to have cost less than $2 million to develop, a relatively small investment compared to the company's current valuation. By focusing on building a simple and user-friendly app, Uber was able to create a scalable platform that could efficiently serve the needs of riders and drivers alike.

For ATOM Mobility clients, the app is already there – and it's highly customizable to make sure it fits your business and target market. So, you won't need to invest months and millions of dollars to make your own from scrat

• Emphasis on customer acquisition

Uber's revenue model seems to be based on customer habits rather than brand loyalty. While it's true that many people use Uber regularly, the company's marketing tools rely more on discounts and surge pricing than on building a traditional brand image.

Uber's use of surge pricing is a good example. By adjusting prices during periods of high demand, the company can maximize its margins while still undercutting its rivals when demand is low.

Despite the absence of a traditional brand loyalty program, Uber has managed to establish a foothold in many markets around the world. Its simple and efficient app, combined with its competitive prices and constant promotions, has helped it become a go-to choice for many consumers.

As an ATOM Mobility user, you can, too, adjust your pricing and/or offer discounts to your end users. Thanks to the built-in functionalities, it can be done in a matter of seconds.

• Solving a real-world problem

Uber's success can be credited to its ability to solve a genuine issue that existed in the transportation industry. In the past, finding a taxi in some areas was a daunting task, and conventional taxi services were frequently unreliable and inconvenient.

One of Uber's co-founders, Garret Camp, was intimately familiar with these difficulties because of his experience with San Francisco's transportation system. Consequently, he knew exactly what he wanted as a customer – a dependable way to hire a ride anytime and anywhere in the city without the hassle of cash and making calls. Uber's rapid growth can be attributed to the fact that it provided a solution to a real-world problem for a large number of its customers.

Now, ask yourself – what's the one thing that annoys you the most when it comes to transportation system in your neighborhood, city, or country? If it's a problem for you, it might be a problem for others as well. And perhaps, it can be solved with a shared mobility solution.

• Constant innovation: additional transportation services

Uber didn't rest on its laurels after the success of its ride-sharing service. At an early stage, the company recognized the potential to provide additional transportation-related services. In fact, Uber's food delivery business is the company's biggest source of revenue, while the rides business generates the most profit.

The company has explored other business areas, such as:

• Uber Eats became a standalone app in 2016, offering food delivery from restaurants to users' doorsteps. It has since expanded to over 6,000 cities in 45 countries.
• Uber Rent, launched in 2017, allows users to rent vehicles and electric bikes/scooters directly from the main app.
• Uber Freight's digital marketplace connects shippers with carriers, allowing them to find and book loads with real-time tracking of shipments.

Uber’s success is largely due to its innovative use of technology to reshape urban mobility. For those interested in the technical side of ride-hailing services, you can learn more about how state-of-the-art software is crucial to these operations.

Lesson learned? Even if you've already built a successful venture, keep looking for new business opportunities. Have a scooter-sharing business? Maybe you can add other vehicles to your offering or launch a ride-hailing solution in partnership with your local taxi drivers, just like Uber. You got the idea.

Uber's turbulent journey to the top

Uber's journey has been far from smooth sailing. The company has faced numerous controversies, both internally and with authorities in different countries. Maintaining team morale and momentum whilst attempting to take on an entrenched industry is no easy feat, as Uber's experience has demonstrated.

Nevertheless, at its core, Uber's story is an inspirational one. The company's impact has been significant and transformative, and it serves as an iconic story of pioneering attitude and determination for aspiring entrepreneurs seeking to solve transportation problems. As co-founder Kalanick succinctly said, "I want to push a button and get a ride." And that's precisely the service they created.

And that’s precisely a service you can offer to your local community with ATOM Mobility’s software.

P.S. For more inspiration, take a look at Uber's very first presentation - https://www.slideshare.net/kambosu/uber-pitch-deck

Thirty years ago, the car was king. A lot has changed since then, and people increasingly see the value in environmentally friendlier micro-mobility transit options. All you have to do is follow the money – by 2030, according to McKinsey, the shared mobility sector will have generated $1 trillion in spending. 

All this means that micro-mobility is a serious business, and like all serious businesses, they have to think about marketing themselves. We've pulled together some of the most creative, fun, and effective shared mobility marketing campaigns out there. See what companies are doing, how they're addressing their audiences, and get inspired for your own campaigns. 

Lime - break up with your ride

Mobility vehicles: electric scooters, e-bikes, e-mopeds

Campaign geography: US, UK, Germany

About the campaign:

Lime, a micromobility company present in 150 cities in 30 countries, launched their “Break up with your ride” campaign in the summer of 2022, offering car owners incentives up to $3,500 in value to stop using their cars for a certain amount of time and choose shared mobility options instead. 

They highlighted several of the downsides of using cars – ranging from environmental factors to sitting in traffic – to convince the drivers of a need for a break. The subtext, while not explicitly states, was that shared mobility is better for the environment and also eliminates many headaches associated with car ownership. 

Lime timed the campaign to coincide with Earth Day, and drivers were able to pledge a certain amount of time that they would go car-free. Participants were able to win Lime merch, gift cards, an electric bike, and Lime rides up to $3,500 in value. 

Why we love it:

Many shared mobility users are already carless. That's why shared vehicles are an attractive service – it helps them get around. What makes this campaign particularly effective is that they're going after a new segment – car owners. By tying it to Earth Day and positioning the “breakup” as an environmental act of kindness, they're able to tap into car owners' altruism and concern for the environment, rather than trying to sell them on shared mobility. Thus, the use of Lime's e-vehicles is seen as simply a nice side effect – a win-win for both. 

Fun fact: 

This campaign has proven to be so successful, that we’re seeing the same concept applied by other micromobility services like Bolt’s “Break up to break free” campaign. 

Bolt - the first scooter for cats

Mobility vehicles: e-scooters, ride-hailing, car sharing

Campaign geography: global

About the campaign:

The branding team at Bolt, the Estonian-based micromobility service, saw a recurring trend – of street cats enjoying relaxing on their scooters' base (many photos being shared by Bolt users), which is black and warms up under the sun. They jumped on the observation, and put together a cardboard scratching post that looks just like a bolt scooter, complete with scratch pads and comfy cushions for optimal feline lounging. 

The process was documented and shared on social channels – ranging from a series of photos on Linkedin to a video on TikTok. The posts have generated considerable engagement, the Linkedin post has over 2,000 responses and the TikTok has over 291,000 views – currently their most viewed video on their platform (the average views being around 5-6k). Their post includes a post scriptum message and link to a local Estonian animal shelter with cats looking for new homes. 

Why we love it:

It's just a bit of good fun! Who doesn't love a wholesome campaign that has no explicit sales or profit motives, and with fun photos of cats, no less. 

This is a masterful use of client-generated content (the cat photos), and the fun of going the extra mile, constructing a cat scratching post. The inclusion of a CTA (call to action) to support the local animal shelter gives the fun post a deeper, socially responsible message, and by repurposing the content for various social platforms they're able to spread their message to their users and demonstrate their brand values as well. 

Uber - Keep Ukraine Moving

Mobility vehicles: ride-hailing

Campaign geography: global

About the campaign:

In response to Russia's invasion of Ukraine, a country in which Uber was present, Ukrainian Uber drivers started to use the app to help evacuate citizens in need. Uber stepped up to support these initiatives – opening up the platform for global donations to buy much-needed ambulances, and Uber itself committed to match donations up to $1M. 

Within the scope of the campaign, Ukrainian filmmaker Oleg Tomin documented some of the drivers making the perilous journeys to evacuate stranded Ukrainians, and published the series on Youtube. 

The results of the campaign include over 100,000 trips and $5M in donations from global Uber users. Uber is involved in transporting key support personnel and transporting, evacuating, and conserving artwork and archives. 

Why we love it:

While micromobility businesses are just that – businesses – Uber demonstrated leadership in a time of crisis, mobilizing their resources in order to support Ukrainians in times of need and generating support using their global platform. 

Transportation is undeniably a part of critical infrastructure, and Uber was able to play a major role in making sure that their systems, which were already in place could be made use of. While the campaign was not profit-driven, it showed the brand's humanity, a value that likely won't be forgotten by many who have been impacted by the war in Ukraine. 

Turo - Find your drive

Mobility vehicles: car sharing

Geography: USA, UK, Australia

About the campaign:

Turo's “Find Your Drive” campaign highlights the unique pairing between person and car, matching a car's colour and “vibe” with a correspondingly dressed individual. The subtext communicates that your choice of vehicle is a direct embodiment of a person's style. Turo, which lets users choose from various vehicles (including fun, funky, and exclusive models), is saying that there is something that will suit everyone. 

Why we love it:

The campaign is clever in its simplicity – no massive production budgets were required to convey the main message, which in this case is that whatever your personality and preference, there will be a car for hire that you’ll love. 

These images could be repurposed for a variety of platforms, ranging from billboards to online content. The diversity in people photographed ensured that the campaign spoke to a diverse array of people, thus accessing a wider audience.

Lime - sh*tty scooters

Mobility vehicles: electric scooters, e-bikes, e-mopeds

Campaign geography: London, Paris

About the campaign:

While electric scooter use is on the rise, they remain a point of contention in some cities more than in others. To address this concern, Lime created a series of print adverts showcasing some of the main negative opinions regarding electric scooters, with some of the posters reading “Sh*tty scooters!”, “Scooters really p*ss me off” and “These scooters are such a f*cking pain”. 

The goal was to show the community that they were listening and that they were doing something to discourage bad behaviour, while also hoping to educate the public, their users, on respectful scooter use in the city. 

Why we love it: 

This campaign is eye-catching and makes waves thanks to its shock-value. More than that, it is also a simple yet highly effective way to address the concerns of society-at-large, while also subconsciously teaching their riders about scooter etiquette. 

Felyx mopeds – #felyxgreenfavorites and #felyxhotspots

Mobility vehicles: e-mopeds

Campaign geography: Rotterdam

About the campaign: 

Felyx, an e-moped sharing platform present in The Netherlands and Belgium, launched a social media campaign making use of hashtags to showcase the places you can go with Felyx mopeds. Two hashtag campaigns have been launched, one being #FelyxGreenFavorites, the other #Felyxhotspots. 

They hosted photoshoots to create a series of images demonstrating interesting destinations within a moped’s ride, as well as different ways to live a greener lifestyle by using Felyx mopeds – from enjoying nature to visiting plant shops.

Why we love it:

The social campaign simultaneously gives people ideas as to how to use the mopeds, and by combining it with environmental messages, they increase eco-conscious individuals’ likelihood of remembering to choose Felyx over other mobility options. By providing a variety of destinations, they’re able to get their users’ creative juices flowing, and thus boosting demand for their services. What’s more is that this is an incredibly simple campaign to execute, and provides social media content – something your brand requires anyway. 

Shared mobility marketing campaigns can be as unique as your brand

These examples show us that there are no rules when it comes to shared mobility marketing campaigns. Simple is often impactful, and the campaigns don't always have to be profit-driven. You can use your campaigns to promote your brand values and personality, thus attracting clients that are on the same wavelength. In the end, they'll become your most loyal customers.

As you're getting close to launching your vehicle-sharing business, one of the important decisions is what payment gateway to use. Without one, you won't be able to collect payments from users via app. But choosing the right solution might feel daunting since so many options are available.

The good news is – we've got you covered.

In this article, you'll find an overview of what payment gateways are, what payment processing solutions integrate with ATOM Mobility, and the key factors to consider when choosing a payment gateway for your shared mobility venture.

What is a payment gateway?

Simply put, a payment gateway is the “bridge” between the customers' payment method and your bank account. It's the tool that validates your customer's card details or credentials for online payment methods (e.g., digital wallets such as ApplePay) to ensure that funds can be transferred to you, the operator.

For ATOM Mobility users, there's an option to choose between two types of payment gateways:

Hosted, when the client is taken to an external payment page hosted by the payment gateway provider to enter their payment details, such as credit card information or login credentials (e.g., PayPal or local bank integrations). In our case, the payment page opens in-app, meaning that the end customer won't know the payment takes place outside of the app.

Self-hosted/native SDK integration is when the payment gateway system is integrated into the app, allowing the client to complete the payment without leaving the site.

Most businesses nowadays use such hosted and integrated payment solutions – those are quick and easy to set up, and the solution provider takes responsibility for transaction validation and security.

How do hosted and integrated payment gateways work?

Your business most likely has a bank account used to manage the company's cash flow. It's, for example, where you make and receive payments for invoices issued.

Now, to start accepting payments at scale, you need to set up a payment gateway that will allow you to automate the process of collecting payments. It's impossible to manually prepare and send an invoice to every customer for every ride – those could be thousands of invoices a day for relatively small amounts.

Payment gateways link your bank account with the customer's chosen payment method that they'll be asked to add when downloading your app. From then on, whenever clients use your shared mobility solution, your payment gateway will collect the money, then transfer it to your bank account within few days.

For their service, payment gateway service providers charge a processing fee, which can be either a specific amount or a percentage of the transaction value. The fees vary depending on the service provider, the type of card the client has added, and more.

For example, Stripe’s regualar fee is 1.5% + €0.25 for European cards. For a €4 transaction, they'd charge 1.5% of €4 + €0.25. That's a €0.265 commission in total.

As you estimate your business' expenses and potential profits, such processing fees must be carefully considered. In the shared mobility industry, such microcharges can quickly add up and “eat” as much as 6.6% of your revenue (see the Stripe example above).

Payment gateway providers that integrate with ATOM Mobility

The ATOM Mobility platform integrates with a number of payment gateway solutions, which will allow you to collect payments wherever your business is based. Once you've chosen the one that's right for your business and set up the account, you can connect it to your ATOM Mobility account.

But first things first – here are the many options available to you:

Stripe

Stripe is one of the most popular payment processing solutions worldwide, allowing businesses to accept and manage online payments. It enables businesses to accept credit and debit card payments, digital payments, and more. Stripe also supports Apple Pay, Google Pay, Bancontact, iDEAL and more.

Pros

• Supports 135+ currencies
• Easy to set up, with an intuitive user interface
• Supports a wide range of payment methods
• Transparent pricing – flat rate per transaction, no monthly fees
• With the help of ATOM Mobility, you can get a significant discount on transaction fees

Cons

• Doesn't operate everywhere in the world
• Fees for international transactions can be higher than competitors'

Payment processing fee (without discounts provided to ATOM Mobility clients):

• 1.5% + €0.25 for European cards
• 2.5% + €0.25 for UK cards
• 3.25% + €0.25 for international cards

Adyen

Adyen is among the largest companies in the payment processing market. This payment processor supports over 250 payment methods, including Apple Pay, Google Pay, PayPal, and Klarna.

Pros:

• Supports 187 currencies
• A wide range of payment methods and currencies supported
• No monthly or setup fees

Cons:

• Transaction fees may be a bit unpredictable, as they vary a lot depending on the payment method
• Adyen requires new merchants to have at least 1 000 000 EUR in annual turnover, so it may be complicated to open an account. ATOM Mobility can assist with special conditions, as our customers have no minimum threshold.

Payment processing fee:

• €0.11 + payment method fee (see here)

Checkout.com

Checkout.com allows merchants to accept payments from a variety of payment methods, including credit and debit cards, various alternative payment methods (PayPal, digital wallets), as well as various local payment methods. Checkout.com has great coverage where Adyen or Stripe do not operate.

Pros

• Supports transactions in 150+ currencies
• Easy to set up, clean and intuitive interface
• Quick payouts

Cons

• The pricing structure is a bit complex & fees may vary depending on transaction volume
• Supports 18 payment methods – less than their competitors

Payment processing fees:

• 0.95% + $0.20 for European cards
• 2.90% + $0.20 for non-European cards

HyperPay

HyperPay provides payment processing solutions for businesses of all sizes and enables operators to accept both card and digital payments. HyperPay covers the MENA area – Middle East North Africa – and integrates with the ATOM Mobility system.

Pros

• Easy to set up and integrated with the operator's website or mobile app
• Supports a wide range of payment options – payment cards, digital wallets, MADA, bank transfers

Cons

• The pricing structure is a bit complex & fees may vary depending on the payment method and the volume of transactions
• You can't just create an account – you must get in touch with HyperPay to do it

Payment processing fees:

Depends on the currency and payment method; not stated on the website.

Bambora

A payment processing solution that's available in multiple countries around the world. It offers a range of payment options, including credit and debit cards, e-wallets such as PayPal and Alipay, and more.

Pros

• Supports payments in multiple currencies
• Supports a variety of payment options – including AliPay, which is widely popular in China

Cons:

• Not available in all countries
• Setting up Bambora can be a bit complex for those with limited technical expertise
• $49 set-up fee

Payment processing fees:

Fixed fee ($0.10-$0.30) + percentage fee (1.7%-3.9%)

Regional payment solutions

ATOM Mobility integrates with several regional payment gateways, which is helpful for businesses focusing on specific markets. Providing users with an option to pay for your services in their local currency and with a payment method they're familiar with, helps ensure customer satisfaction and loyalty.

Kushki

A payment gateway for businesses in Latin America. Processing fees depend on the country and payment method but typically are between 2.5% and 5% per transaction.

Flutterwave

A payment gateway for businesses in Africa. Transaction fees depend on the payment method and the volume of transactions – usually between 2.9% and 3.8% per transaction.

LiqPay

A payment system is primarily available in Ukraine and other countries in Eastern Europe. Payment processing fee – 1.5% per transaction.

ConcordPay

A payment processing platform that's primarily available to businesses based in Ukraine. Fees for card transactions range from 1.5% to 3%.

Klix

A payment solution for businesses in the Baltic region of Europe. It allows users to make a payment by simply entering their phone numbers. Payment transaction fees start at 1.3% or min. €0.10.

Exezine

A payment gateway that provides online payment solutions for businesses in Azerbaijan. The fee for card transactions is 5%.

Local bank integrations

Another option is to offer your clients to pay through their local bank integration. Since people tend to prefer payment solutions they are familiar with, offering your clients the option to pay through their local bank integration may help you convince new users to give your ride-sharing service a try.

Expressbank

A bank integration primarily for businesses operating in Azerbaijan, Bulgaria and Albania. Fees for card transactions typically range from 0.7% to 1.5%.

PUMB 

A bank integration primarily for businesses operating in Ukraine. Fees for card transactions typically range from 1.5% to 2.5%

First Atlantic Bank

A bank integration for businesses primarily operating across the Caribbean and Central America. Fees for card transactions vary – contact the bank for more information.

New integrations

Currently, the ATOM team is working on 3 new payment integrations so our clients have more options and can find the most suitable solution for them. If you have a preference regarding the payment gateway, you can talk to our team, and we will plan the integration process together.

Key factors to consider when choosing a payment gateway

As you see, there are dozens of payment gateway solutions available. But which one is the one and only for your business? 

Before you make your decision, here are six crucial things to consider:

1. Stability and SLA - how secure and stable the solution is. This should be the first criterion, as cooperating with an unstable solution will lead to losses. Do other similar businesses use them? Do they have case studies? Does their support answer within a reasonable time?
2. Costs and fees – what will it cost you to set the solution up? How big are the transaction fees? Are there any additional monthly fees? Try to estimate the volume and value of your monthly transactions – for many payment gateway solution providers, the fees depend on these factors.
3. Payment methods supported – people are different, and so are their preferences regarding online payments. Some prefer to pay with digital wallets, while others only trust banks and their integrations. The more payment methods you'll be able to offer, the larger audience you'll be able to attract.
4. Regions operating in – does the chosen payment gateway even work in your region? Also, if you're aiming to build a global ride-sharing business, you may want to select a payment gateway with a worldwide presence. 
5. Holding time – how long can the funds be cleared and transferred to your bank account take? For most payment gateways, it's usually 3-7 days. Generally, the sooner you receive your money, the easier it will be for you to manage your business.
6. Currencies supported – check whether your payment gateway supports payments in different currencies. People want to pay in their local currency, so you want to ensure they have such an option.
7. Security – as a rule of thumb, you want your payment gateway to be level-1 PCI DSS compliant and have fraud detection features.

To sum up

Choosing the most appropriate and cost-efficient payment gateway may feel daunting at first, but the secret to making this process easier is just knowing exactly what you want and need. 

Where is your business going to operate? 
How big is your target market?
How much can you make in your first year in business? Be realistic.
Where do you see your venture in 3-5 years?

By answering these questions, you'll have a clearer picture of what you need from your payment gateway solution provider. 

Good luck!

Whether you're an experienced mobility veteran or a first-time entrepreneur, there are several things you need to keep in mind when choosing or upgrading your fleet for the 2023 season – be it cars, ebikes, or scooters.

In 2023, we'll see cities and countries implement stricter mobility management regulations and new safety requirements. Customer expectations will continue to grow in tandem with rising competition. And technological advancements will push the electric mobility industry to new heights.

To stay competitive and meet customer demand in terms of both quality and quantity, it's crucial to not only choose the right fleet for your business, but also carefully manage the related decisions that come with such an order. This will help you avoid running into unwelcome surprises both in the short- and long-term.

Here are the aspects to keep in mind when choosing your fleet this year:

1. Shipping prices are lower than last year

Following a hectic 2022 for logistics, 2023 brings good news for businesses – shipping prices have come down significantly and supply chains are finally starting to show some stability.

Recent research indicates that there has been a significant decline in freight rates, reducing shipping costs by up to 50% compared to last year's peaks. The falling cost of shipping provides mobility businesses with the opportunity to make better use of their resources and can even make a significant difference in business viability.

That said, it's difficult to accurately predict the trajectory of shipping prices going forward. Previous years have been characterized by perpetual instability and there is a possibility that costs may rise again due to global events. Hence, shipping expenses should be top-of-mind when considering ordering new vehicles, particularly from overseas.

2. Choosing vehicles: you get what you pay for

It may be a smart idea to reinvest the savings from falling shipping costs into the vehicles themselves. While cheaper brands might look appealing, bear in mind that they typically require more maintenance than their more expensive counterparts.

Accordingly, a larger upfront investment into more durable and reputable vehicles may pay off in the long run, as you benefit from reduced need for maintenance and the labor that comes with it. Better durability also means a longer vehicle lifespan.

For example, some of the largest shared e-mobility operators purchase their fleet from OKAI, which vehicles are known for their durability and can be ordered from the company's warehousing facilities in Europe. Segway and Feishen are two other Chinese manufacturers that also provide stock from their European warehouses. If you prefer EU-manufactured vehicles, you may want to consider the Estonian scooter manufacturer Äike.

Cheaper models may still be a fantastic option for first-time mobility entrepreneurs aiming to validate their business idea. However, anyone in it for the long haul should carefully weigh the risks and benefits of large investments in lower-end models.

That said, if buying a brand-new fleet is too costly for your business, consider used vehicles that were previously owned by other operators in the EU. It can be a more cost-efficient alternative for operators just starting out. Check out our vehicle marketplace, reach out to us, and we'll help you put your fleet together.

3. Regulations will change and your fleet must adapt

The micromobility industry has long been loosely regulated, but now this is quickly changing. This year, we can expect new and stricter requirements, especially when it comes to kick scooters. And you must be ready to adapt your fleet to meet these emerging requirements.

In other words, along with swappable batteries and a durable design, things like scooter modularity and adaptability will become more important than ever before. These features are crucial not only for integrating new technologies as they emerge, but also in their ability to comply with newly introduced regulations.

For instance, the growing movement to make helmets a requirement with kick scooters should lead you to consider models that either have these locks, or can be retrofitted to add them. Otherwise, you may find yourself with an unusable fleet.

4. Invest in spare parts ahead of time

Researching and purchasing extra batteries and recommended spare parts beforehand can help reduce downtime and ensure that your fleet is always ready to perform at maximum efficiency. “Getting at least a 50% share of spare batteries along with the initial order is a good idea,” suggests Dominik Graaf, advisor at FEISHEN New Mobility.

Dominik also highlights that, when it comes to spare parts, it's better to stock up on extra ones, than to find yourself with an incapacitated fleet for months as you wait for critical parts to be shipped. The best way to determine which and how many parts you need is to ask your manufacturer of choice.

Manufacturers typically have comprehensive metrics about the performance of their own products – they know the weak points, they know the lifespan, and they know the most common issues. Accordingly, they're uniquely positioned to make good recommendations about spare parts and often offer pre-made packages along with the initial order. You can expect the cost for spares to be around 2-5% of the value of the scooter.

5. Understand the associated costs of importing vehicles

If you've been researching manufacturers and their prices, you'll probably have reached the conclusion that it's cheaper to order from overseas than buy locally. There are significant price differences between, for example, buying scooters in the EU vs Asia, even when purchasing from the same manufacturer.

But the price of the vehicle is only half the story.

According to Dominik Graaf, the reason for the price difference is import-associated costs – when ordering from Asia, you will have to bear all the costs for shipping, customs, and delivery. Not to mention the hassle of managing the entire process. Whereas when you buy from a European warehouse, the bulk of these costs have already been paid by the manufacturer and are accordingly priced into the scooter or other vehicle.

Once this is accounted for, the price difference falls sharply.

Moreover, buying in Europe confers various other advantages, the most important being dramatically shorter lead times, reducing the time until you see the first scooters from months to weeks. Additionally, it gives you a local contact point, as well as simplifies accounting and other managerial processes.

Do note that, at the end of the day, it may still prove cheaper to buy from overseas. However, unless you've got the experience and tenacity to deal with international shipping and its related headaches, we recommend starting as locally as possible.

Bring it on, 2023

To summarize – we're at a unique time when falling costs offer more businesses the option to consider longer-term investments. Be it more durable scooters or well-stocked backup parts, now is a good time to be forward-thinking.

With the right fleet and the right mobility platform and software, your business will be well-positioned to navigate the challenges and opportunities of the 2023 season.

If you're looking to purchase vehicles for your mobility-sharing business, start with exploring ATOM Mobility's vehicle marketplace.

Need help or advise on business, software, or vehicles? Let's talk!