7 critical mistakes in micromobility and how to avoid them
December 5, 2023
min. read
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.
Blog
Bid your price: ATOM Mobility launches rider-controlled pricing feature
💸 ATOM Mobility launches “Offer your price” - a rider-controlled pricing feature. Riders can suggest higher or lower fares within pre-set limits. Boosts demand & helps stand out in competitive ride-hail markets 🚖🌍
August 4, 2025
min. read
The ride-hailing market is always changing. From Latin America to Eastern Europe, platforms like inDrive have popularized a new norm: letting riders suggest what they want to pay. Now, in response to this growing global trend, ATOM Mobility is proud to introduce: Offer your price – a fully configurable pricing feature built right into your rider app.
💡How It works
Available on all ride-hail projects, this feature lets riders propose a price – higher or lower than the default fare – within operator-set limits. Drivers can then accept or decline based on the offer.
Here’s how it reshapes the experience:
In the Rider app:
- A new "Offer your price" button appears when selecting a vehicle class.
- Riders can slide or tap “+/-” buttons to adjust price:
- e.g. +30% to get a faster ride 🟢
- or -10% to save on a flexible trip 🔵
- For scheduled rides, this feature is disabled to keep things predictable.
Smart logic behind the slider:
Your admin dashboard defines the limits – say, up to +500% from regular price and down to -30% – and the app calculates step sizes automatically:
- +500% limit → 1 step = 5%
- +100% limit → 1 step = 1%
- +200% limit → 1 step = 2%
Slider position adapts dynamically, depending on your defined range. And yes – the button color and style can be customized to match your brand 🎨.
On the operator dashboard:
You’ll find complete control and clarity:
- Enable/disable the feature per vehicle class
- Set custom % limits for price increase/decrease
- Price card, exports and ride activity logs are all updated with the adjusted ride price
- New ride status - Ride requested (adjusted ride price) for transparency in reporting
What drivers see:
In the driver app:
- Price offers are marked clearly (e.g. 🔻 "Discount requested" or 🔺 "Extra fee offered");
- Final earnings are adjusted accordingly and logged in driver stats.
Who's already doing this – and winning?
Real-world companies are already proving that rider-defined pricing works:
🚘 inDrive (LATAM, Africa, Asia)
Now one of the top global ride-hailing players outside the U.S. (over 200M downloads, active in 700+ cities across 45+ countries), inDrive built its brand around rider-negotiated pricing. It helps them stand out in price-sensitive markets and win over both drivers and passengers with more transparent pricing dynamics.
🚖 Comin (France)
A local success story, Comin has embraced flexible rider pricing to gain traction in several French cities (onboarded 6,000+ drivers). The feature gives them an edge against larger platforms, offering more freedom for users and better utilization for drivers.
These examples show that letting riders bid their price isn’t just a gimmick – it’s a growth strategy.
From our previosu blog “How to Find Your Niche in the Ride-Hail Market”, we saw how localisation and user control drive loyalty and conversion.
This new pricing flexibility supports:
- Emerging markets with income-sensitive riders
- Driver shortages, where riders can tip in real-time
- Brand positioning, letting you stand apart from competition
🚀 Ready to lead the market?
This is just one of the 300+ features available in ATOM’s white-label ride-hailing platform.
Let’s talk about how to launch or upgrade your app with “Offer your price”, advanced pricing logic, and more tools to dominate your niche.
👉 Contact our team and explore how to become the market leader: www.atommobility.com
Blog
Is car sharing profitable in 2025?
🚗💡 Is car sharing still a profitable business in 2025? Short answer – yes, if done right. From rising fleet costs to smarter user behavior and green transport trends, the shared mobility game is changing fast. Learn what makes a car sharing business work today – and why some succeed while others shut down. 👉 Real stories, data-backed tips, and practical advice for operators and mobility founders.
July 23, 2025
min. read
In 2024, the global car-sharing market was valued at approximately €8.9 billion, with Europe accounting for over 50.2% of that total. Analysts forecast it will grow at a CAGR of 11.8% between 2025 and 2033, reaching roughly €24.4 billion by 2033. This blend of urbanization, environmental regulation and a growing preference for flexible mobility continues to create fertile ground for operators - yet not every service finds a clear path to profitability.
Success hinges on your location, business model, fleet, operations and local market dynamics. There are strong success stories, but also many high-profile failures. Here’s a closer look at what really affects profitability in today’s car-sharing market - and what you can learn from real-world cases.
What makes a car-sharing business profitable?
Profitability in car sharing boils down to securing enough paid usage while keeping costs under control. Every unused hour or unnecessary expense erodes margins.
Key factors:
- Fleet utilization – the most important metric. Cars need to be in use several hours each day to cover fixed costs.
- Operational efficiency – cleaning, charging, relocation, maintenance and insurance add up quickly.
- Fleet acquisition – leasing usually optimizes cash flow and scalability, but still carries fixed monthly expenses.
- Pricing and competition – too low cuts margins; too high drives away users. Finding the right balance is essential.
- Tech stack – a robust platform automates operations, improves customer experience and reduces support costs.
The operators who win are those who combine solid daily usage with lean operations.
❌ PANEK S.A. suspends its car-sharing service to focus on rental
29 March 2025 marked the end of Panek’s car-sharing experiment. Despite peaking at 2 700–3 000 vehicles, Panek never turned a profit in over seven years.
About Panek
- Launch: Car sharing added in 2017 by Maciej Panek, entirely internally funded (no VC)
- Fleet mix: City cars, hybrids, EVs, cargo vans and vintage models
- 2023 acquisition: Regional Rent (+ 45% fleet), making Panek Poland’s largest integrated rental/operator
2024 performance
- Revenue split: Car sharing ≈ 20 % of total. Traditional rental 80 %
- Utilization: 0.7–1.0 rides/car/day
- Maintenance & overhead: Up to €690/car-month
- Profitability: Negative since inception
Why it failed
- Under-utilization: < 1 ride/day vs. ~ 2-4 rides/day needed to cover fixed costs
- Price wars: Fierce competition in Warsaw eroded margins and drove up customer-acquisition costs
- High OPEX: Parking, maintenance, insurance and vandalism pushed costs > €690 per car each month
- Tech drag: Two-year outsourced app development cycle meant poor UX and slow feature delivery
- No public support: Missed out on parking incentives or EV subsidies
Faced with persistent losses, Panek’s leadership refocused on profitable core segments: daily/weekly rentals, corporate leasing and Fleet-as-a-Service.
🚗 WiBLE Spain finds its profitable lane in Madrid
WiBLE (50/50 joint venture between Kia Europe and Repsol) launched in 2018 and has just closed its second consecutive year with positive EBITDA.
- Fleet: 600+ plug-in hybrids (Kia Niro, XCeed, Ceed Tourer)
- 2024 revenue: €6.93 million (+ 5% vs. 2023)
- Usage: ~1 500 trips/day ⇒ 2.5 rides/car/day
- Diversification: Monthly rentals (€599+) now 5% of revenue
- Market share: ~19% of Madrid’s car-sharing market
Key enablers:
- Higher utilization – rides up 15% YoY, driving a 10% lift in core revenue
- Fleet scale efficiencies – added 150 vehicles in 2 years, lowering per-unit costs
- Service diversification – multi-day and monthly rental options opened new revenue streams
After five years of absorbing fixed-cost drag and depreciation, WiBLE now leverages Madrid’s regulatory environment (low-emission zones, parking benefits) and delivers lean, tech-driven operations.
🚗 SOCAR South Korea: scale + longer rentals
SOCAR (backed by SoftBank, SK Inc. and Lotte Group) operates 20 000 vehicles, generates nearly €300 million in annual turnover and has 20% of South Koreans signed up.
- Model: Station-based, pay-per-minute with average rental duration of a whoping 12 hrs
- Segmentation trick: Aging cars shift from on-demand sharing to long-term monthly rentals (10% of revenue), extending resale life with minimal depreciation impact
By pairing massive scale with savvy car lifecycle management, extra-long rental duration, SOCAR converts high utilization into robust profitability.
🚗 Carguru (Latvia)
30 August 2024: Carguru (est. 2017) acquired EV-focused OX Drive (est. 2021), adding 200+ Tesla to the fleet.
- Growth: From just 30 cars and total budget below 500 000 EUR (2017) to over 1 000 cars (mid-2025) via leasing and strategic partnerships
- 2023 turnover: €4 million; 435 000 trips (+35.9 %); 7 million km driven; profit €375 600
Outcome: A combined ICE, hybrid and EV fleet—backed by local expertise and strategic acquisitions - has driven strong growth and high utilization.
🎯 Core suggestions for aspiring operators
- Target 2–4 rides/day per vehicle
- Leverage dynamic/off-peak pricing, B2B partnerships (hotels, offices) and event tie-ins.
- Contain OPEX via automation
- Use predictive maintenance, remote diagnostics and gig-economy cleaning/relocation.
- Secure municipal support early
- Negotiate parking incentives, EV charging access and low-emission zone permits.
- Choose your tech wisely
- Build an in-house development team for full control with higher costs, or adopt a proven white-label platform for speed to market, stability and lower costs.
- Validate unit economics before scaling
- Prove break-even utilization in one zone before expanding to others.
With clear benchmarks and smart execution - drawing on lessons from Panek, WiBLE, SOCAR and Carguru - car sharing can still be a highly profitable component of a modern mobility portfolio.
If you’re planning to start or improve your service, ATOM Mobility is ready to help. We’ve built the platform and supported dozens of teams worldwide - reach out, and we’ll share what we’ve learned.
Image credit: https://kursors.lv/2018/03/13/carguru-palielina-autoparku-un-paplasina-darbibas-zonas-mikrorajonos
Driver App demo credentials - Email: test@atom.com, Password: driver
