7 critical mistakes in micromobility and how to avoid them

7 critical mistakes in micromobility and how to avoid them

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.

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.

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.

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.

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.

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.

Interested in launching your own mobility platform?

Click below to learn more or request a demo.

Related posts

More case studies

View allView all case studies
Blog
Cracking the code of car sharing: Best technology for car sharing business
Cracking the code of car sharing: Best technology for car sharing business

🚘💡 What keeps cars in car-sharing businesses connected? From CAN bus and OBD devices to cutting-edge IoT providers like Teltonika, Invers and Geotab, it’s all about the hardware!

Read post

Car sharing is more than just a trend—it’s a game-changer for urban mobility, helping people access vehicles without the headache of owning them. But what makes it all work? Let us introduce the tech behind car sharing and explore how companies like ATOM Mobility make it easier to start and scale your shared mobility business profitably.

The three pillars of car sharing technology

At the heart of every car-sharing operation are three key technologies that connect vehicles to platforms: CAN bus, OBD, and OEM telematics. Here’s what they do and why they matter:

1. CAN Bus: The car’s internal network

The Controller Area Network (CAN) bus acts like a car’s central nervous system, allowing different components to talk to each other. It delivers detailed data—fuel levels, battery status, or even tire pressure—directly to your car-sharing platform. This deep integration also allows remote actions like locking or starting the vehicle.

However, CAN systems require professional installation, which can mean higher upfront costs. For larger operators with fleets that need granular control and detailed diagnostics, it’s a must-have.

2. OBD: Affordable and easy to deploy

On-Board Diagnostics (OBD) devices are the plug-and-play heroes of car sharing. Simply connect them to the car’s diagnostic port, and you’ve got instant access to location, speed, and engine health. They’re affordable, quick to set up, and ideal for small-to-medium operators just getting started.

That said, OBD devices offer less functionality compared to CAN. They’re perfect for a more basic setup but might not suit operators who need advanced data or remote vehicle controls.

3. OEM Telematics: Factory-installed genius

OEM telematics systems come pre-installed in many modern cars. These systems provide seamless connectivity and are highly reliable, enabling features like real-time tracking, diagnostics, and remote locking.

The downside? OEM telematics tie you to the car manufacturer’s system, which can limit customization. If your fleet is from a single brand, this is a fantastic option. For mixed-brand fleets, integrating other devices might make more sense.

The IoT providers helping you succeed

Beyond these three core technologies, IoT providers offer additional tools to supercharge your car-sharing operations. Here are four standout names making waves in the industry:

Teltonika

WEB: https://teltonika-gps.com
Headquartered in Lithuania, Teltonika has been at the forefront of IoT since 1998. With over 1,600 employees, the company specializes in GPS trackers and other connected devices that bring real-time tracking, security, and driver behavior analysis to your fleet. Their scalable solutions are ideal for growing car-sharing businesses.

Geotab

WEB: https://www.geotab.com

Based in Canada, Geotab supports over 2 million vehicles worldwide with its advanced fleet management tools. Their telematics devices don’t just track vehicles—they provide insights into fuel efficiency, maintenance needs, and safety. For operators focused on data-driven optimization, Geotab is a top choice.

INVERS

WEB: https://invers.com/en/solutions/cloudboxx

Germany’s INVERS is a leader in shared mobility tech, offering the CloudBoxx device to connect vehicles with car-sharing platforms. Easy to integrate and reliable, CloudBoxx ensures a smooth experience for operators and users alike. With a strong presence in Europe and North America, INVERS is a trusted name in the industry.

Acacus

WEB: https://www.acacusgroup.com

Operating out of the UAE, Acacus combines IoT and AI to deliver smart mobility solutions. Their tech is widely used in government projects and private fleets, especially in regions embracing smart cities. Acacus brings innovation and reliability to shared mobility operators aiming for cutting-edge solutions.

How ATOM Mobility comes into the picture?

Technology is only as good as the platform that connects it all. That’s where ATOM Mobility shines.

ATOM’s software integrates seamlessly with devices from Teltonika, Geotab, INVERS, and others, making it simple to connect your fleet and manage everything from a single dashboard. No matter the size of your operation, ATOM provides tools for real-time tracking, user management, and secure payments—all with intuitive design and full support.

Whether you’re launching your first car-sharing fleet or expanding across multiple cities, ATOM helps you scale profitably and with confidence. We make the technical stuff easy so you can focus on growing your business.

Why is car sharing the future?

Urban living is changing. People are moving away from car ownership, opting instead for flexible, on-demand solutions like car sharing. It’s convenient, cost-effective, and kinder to the planet.

With tech like CAN, OBD, OEM telematics, and IoT devices driving the industry forward, the potential for shared mobility is enormous. But to succeed, operators need the right tools to manage fleets, optimize performance, and deliver a great user experience.

Join us

Ready to start your car-sharing journey? Book a demo with ATOM Mobility and let’s get moving!

Blog
Fleet management with ATOM Mobility: The future of task automation
Fleet management with ATOM Mobility: The future of task automation

🔧 🚗 Simplify fleet management with automation! ATOM Mobility’s latest Task Automation feature creates maintenance tasks automatically, so you can focus on growth instead of scheduling. From mileage-based services to feedback-triggered check-ups, this tool has your fleet covered.

Read post

Automating fleet management with ATOM Mobility: The future of task automation

Managing a fleet comes with many moving parts—from ensuring vehicles are serviced regularly to addressing feedback and operational needs. ATOM Mobility’s new Task Automation feature optimizes this process by automatically creating tasks based on each vehicle’s real-time parameters, such as mileage, time, user feedback, and ride count. This allows fleet operators to focus on strategic growth while routine maintenance and issue resolution become automated. Here’s how this feature could make fleet operations smoother, efficient, and more scalable for shared mobility and rental businesses.

Task automation for fleet management

ATOM Mobility’s Task Automation feature builds on its ongoing focus to simplify fleet management. This new addition enables operators to automate task creation based on specific vehicle metrics, reducing manual effort and enhancing overall fleet efficiency.

The idea is brilliantly simple: instead of creating tasks manually (which can be tedious and time-consuming), this tool will automatically create tasks for you based on pre-set conditions.

With Task Automation, you can set specific parameters that will trigger task creation, such as mileage, ride count, ratings, or time. Picture this: every 5,000 kilometers driven, the system can automatically create a “Tire Check” task. Or if a specific vehicle receives user ratings below two stars, a “Low user review, check up required” task can be triggered. This approach to task generation not only saves valuable time but also ensures that vehicles receive consistent care based on real usage and performance, not guessing.

How task automation works in a nutshell

Setting up Task Automation in ATOM Mobility’s dashboard is designed to be as seamless as possible. The process essentially boils down to three simple steps:

  1. Log in to the ATOM Mobility platform, and head to the Fleet Maintenance section under “More.”
  2. Create a new automation: Specify the task type (like check-ups or cleaning ro anything else), set priority (low, medium, high), choose the relevant vehicle model, and add an optional description.
  3. Set a trigger parameter and value: Choose the metric that will trigger the task, whether it’s mileage, ride count, user feedback, or time schedule.

Once everything’s set, the system will keep track of these parameters for each vehicle, ensuring that when a trigger is met, a task will be created automatically and added to the dashboard. You’ll have everything you need to keep each vehicle in tip-top shape without manual oversight.

Why task automation is a game-changer for shared mobility operators

It’s no secret that keeping up with fleet maintenance can be a full-time job—and then some. Task Automation is built to give you time back in your day and enhance fleet health without excessive manual work. Here’s how it shines:

  1. Minimizing downtime and maximizing efficiency: With automated tasks created on schedule, you’re reducing the chance of missing maintenance, which can lead to unexpected breakdowns or, worse, unsatisfied customers.
  2. Boosting customer experience: Users expect seamless, safe, and reliable rides. By setting automated checks based on feedback ratings, you can address any hiccups before they escalate, like a regular check-up triggered when user ratings dip, ensuring issues are handled swiftly.
  3. Optimizing resource allocation: Operators save time, money, and stress by allowing ATOM’s platform to handle task creation. Staff can then focus on actual maintenance rather than constant monitoring and task creation, ultimately lowering operational costs.

Examples of task automation in action

To illustrate how powerful Task Automation can be, here are some scenarios where it could make a real difference for fleet operators:

  • Mileage-based maintenance: Automatically set oil changes or tire rotations every 5,000 kilometers. No more sticky notes or vague reminders—once the mileage threshold is hit, the task is created instantly, saving time and maintaining vehicle health.
  • Feedback-based follow-ups: Let’s say you have a popular scooter, but a few users have noted a squeaky brake. Once the feedback drops below a specific rating, an automatic check-up task is created. That way, you don’t have to wait for a cascade of bad reviews before you act.
  • Time-based cleanings: Hygiene is crucial, especially in shared mobility. You could set a task to clean and sanitize vehicles after a set number of hours or rides, ensuring each user gets a fresh experience without needing someone to track hours.

Task automation meets scalability: ideal for growing fleets

For any business with a growing fleet, Task Automation provides a clear advantage. By using parameters to generate tasks, you can scale up without needing additional manpower just to manage scheduling. As your fleet grows, Task Automation scales with you, handling more vehicles and keeping you updated on the health and performance of each.

Think of it as a maintenance manager that grows alongside your fleet without increasing your operational costs. It’s no longer about manually checking every vehicle at every mile marker; it’s about letting the system manage maintenance alerts while you keep your attention on strategic growth.

Dedicated fleet manager app

Getting started with task automation on ATOM Mobility

Setting up Task Automation is straightforward, but don’t hesitate to ask ATOM Mobility’s team for more detailed guidance. Here’s a quick overview to get you started:

  1. Select your trigger: Choose between kilometers, hours, ride count, or ratings, based on what matters most to your fleet.
  2. Define your task requirements: Each task is customizable, so you can specify different needs depending on the type of vehicle or its usage.
  3. Monitor with ease: Once in place, the automation will handle task creation. Just check in via the dashboard to monitor progress and handle any high-priority issues as needed. All the information and tasks are synced between the dashboard and fleet manager app.

ATOM Mobility’s commitment to innovation means we’re constantly updating our features to make fleet management more efficient and automated. Task Automation isn’t just a convenience—it’s an opportunity to elevate how you manage and grow your fleet in a sustainable way. With automation taking care of repetitive tasks, your team can focus on what really matters: delivering an outstanding experience to every rider.

Why now’s the time to automate with ATOM Mobility

The shared mobility industry is moving faster than ever, and staying competitive means embracing tools that make operations smoother and more efficient. ATOM Mobility’s Task Automation feature is a game-changer that brings automation to the forefront, allowing operators to focus on high-impact work while leaving routine tasks to the platform.

Whether you manage a fleet of e-bikes, scooters, or vehicles, automated maintenance can streamline your operations, prevent issues before they arise, and let your team work smarter, not harder. 

Explore more about ATOM Mobility’s fleet management solutions on their blog and discover other products that can help you on your way to creating a micromobility fleet!

Launch your mobility platform in 20 days!

Multi-vehicle. Scalable. Proven.