Everything you need to know before starting your car-sharing business
February 23, 2024
min. read
Is it a good time to start a car-sharing business? Absolutely.
The car-sharing market is booming – it's estimated to grow 20% every year and reach a $20 billion market value by 2032. That's nearly a sevenfold increase from 2022's $2.9 billion valuation.
Despite app-based vehicle sharing being a relatively new entrant in the mobility ecosystem, it has exploded in popularity. People have been quick to pick up on its convenience and ease of use, especially in urban centers where maintaining a private vehicle grows increasingly costly and bothersome.
This spells an opportunity for entrepreneurs keen to answer real mobility demand.
But what is car-sharing and how does it work? What does the business model look like? And what are the first steps for getting started?
Find the answers below.
What is car-sharing and how does it work?
Car-sharing is an app-based mobility service that allows individuals to rent vehicles on a short-term basis. With this service, users gain access to a fleet of vehicles which are typically stationed throughout a city, ensuring that there's always a car conveniently nearby.
The user's journey and benefits of car-sharing
Through an app on their smartphone, users can locate, book, and unlock the closest available vehicle, as well as pay for their journey automatically by adding payment details, thus providing a seamless experience and quick access to a car. Other common benefits for users include not having to worry about fuel or insurance, as those are included in the price.
Cities often encourage the use of shared mobility since it helps decongest streets, free up parking, and minimize the environmental impact of private vehicles on the city. Accordingly, public-private partnerships are common, conferring further benefits for users of this type of shared mobility: free parking, free use of bus lanes, and more.
How does car-sharing work: the business perspective
On the business side of things, the operator is responsible for ensuring that maintenance and logistical tasks for their fleet are taken care of.
This includes regular maintenance tasks, such as vehicle check-ups, repairs, fuel fill-ups, and cleaning. Also, if you have a free-floating model (where users can leave their cars anywhere), the operator should regularly relocate cars to optimal locations for continued user convenience and reliability.
Beyond deploying and maintaining their fleet, operators also oversee the smooth functioning of their mobility app, as well as take care of user verification, namely, ensuring that the people signing up are who they say they are and have valid driver licenses. Of course, like any other business, customer support and other responsibilities tied to running the operation are a given.
The car-sharing business model
So far, we have listed a lot of expenses – maintenance, management, insurance, IT. Add to this salaries, operational overheads, and buying or renting the fleet itself. How do businesses recoup all these expenses and turn a profit?
Note: Since car-sharing businesses operate at scale, they should aim to negotiate lower rates with service providers.
Car-sharing businesses make use of several revenue sources. First and foremost, customers are charged for the time/distance use of the car. Additionally, branding and cross-promotion partnerships (e.g. advertising on the car or the app) are often used to secure additional revenue. It may also be sensible to create membership or loyalty programs to ensure recurring revenue, by offering subscribers added benefits, such as access to premium cars or longer reservation times.
The aim is to have your cars on the road as much as possible, so enterprises typically focus on maximizing vehicle usage and revenue per vehicle. Finding success is about finding balance in a constantly changing landscape – having too few cars may lead to overbooking and dissatisfaction with lack of availability, whereas having too many will lead to inefficient use of resources.
How to start a car-sharing business
As with any business, launching a car-sharing project requires research, investment, development, and strategy. Let's take a look at each in turn.
1. Market research
When exploring opportunities for starting a car-sharing business, numerous factors must be considered.
Audience and demand
Understanding the demographics, preferences, and behaviors of your potential users is crucial. As is determining the level of demand. Some questions you should answer include:
- Who is my target audience – urban commuters, occasional travelers?
- What are their demographics? How should you communicate with them?
- What segment offers the most promise – B2C, B2B?
Competition
Identifying who's already operating in your area and why (or why not) can help you get a better grasp of what works and what doesn't. Some questions you should answer include:
- Who are my competitors – other car/ride-sharing businesses, public transportation?
- How can I differentiate my business from others?
- Has any previous similar business failed in this area – why?
Legal and logistical considerations
Determining whether there are any legal/practical barriers to launching your operations is a smart thing to do before you invest too much time and money into your project. Consider:
- What are the legal requirements for operating this type of business in your area?
- How will you handle insurance and liability issues for your fleet?
- How and where will you run your day-to-day operations? If you're thinking about going electric – does the area have the necessary infrastructure?
While answering these questions isn't necessarily a prerequisite for launching your business, dealing with them early on can save you a lot of headaches down the road.
2. Investment
How much capital do you need to launch a car-sharing business?
It depends most on whether you're planning to rent or buy vehicles for your fleet. While renting is more accessible in the short term, it will take a sizable bite out of your profit. Owning your vehicles is typically the preferred option, as this offers price stability, long-term cost efficiency, freedom of operations, and other benefits.
To get a ballpark estimate for the starting investment, you should add up the total price of cars (EUR 12,000-20,000 per vehicle), insurance, car-sharing software procurement and maintenance, as well as expected operational overhead for getting started. It may also be wise to put aside some funds for unexpected expenses such as repairs.
3. Development and launch strategy
Securing the vehicles and necessary permits can take a while, and you should account for this. During this time, you should put your plans into practice. Establish maintenance protocols and logistical plans for efficient fleet management. Implement user verification processes and responsive customer support for a secure and positive user experience.
As to the IT infrastructure, you can save a lot of resources by choosing a white-label IT solution to power your app and dramatically accelerate your time-to-market. Platforms like ATOM Mobility can equip your business with the app you need – all you have to do is customize it.
Speaking of customization, don't forget about branding. Create a compelling brand identity and plan for targeted launch and marketing campaigns to generate awareness the moment your business is ready for its first customers.
Your car-sharing business journey starts here
Now you know how to start a business in this industry – entering this thriving market demands a blend of user-centric strategies and astute business decisions. But the key to success is reliable partners that can guide you in the right direction. Try out our free floating carsharing software and get on the road today!
Get in touch with ATOM Mobility to discover how you can power your new enterprise the smart way.
Interested in launching your own mobility platform?
Click below to learn more or request a demo.
Blog
How to retain drivers on your ride-hailing platform long term
🚗💬 Why do ride-hail drivers quit – and what makes them stay? We break down insights from the 2025 Gig Driver Report and show how ATOM Mobility helps platforms keep drivers happy with instant payouts, dynamic pricing, and smarter tools.
September 23, 2025
min. read
How to retain drivers on your ride-hailing platform long term
In the ride-hailing business, getting enough drivers online is critical. But keeping them there is what really drives long-term success. Unlike traditional taxi services, ride-hailing drivers are independent contractors. They don’t have fixed shifts, guaranteed income, or long-term contracts. They log on when it suits them, and just as quickly, they can log off – or switch to another app.
That flexibility means you're not only competing for riders. You're also competing for drivers, every single day.
What makes ride-hailing different for drivers
Compared to traditional taxis, the ride-hailing model offers drivers more independence but less security. Taxi drivers usually worked under a dispatcher, used company-owned vehicles, and followed a set schedule. Ride-hailing drivers use their own car, their own time, and often multiple apps.
The benefits are clear: flexibility, lower entry barriers, and instant access to earnings. But the downsides are just as real: unpredictable income, lack of support, and platform instability. For platforms, that means driver loyalty is fragile. Small changes – like delayed payments or fewer rides – can cause drivers to leave.
Why driver retention matters
Most ride-hailing operators focus heavily on passenger growth. But without enough reliable drivers, demand turns into frustration. When wait times grow or no vehicles are available, users abandon the app. This makes driver retention a key metric – not just for operations but also for brand trust and profitability.
It’s more expensive to onboard a new driver than to keep an experienced one. A stable driver base delivers smoother rides, higher ratings, and better service coverage. If your drivers are churning every few weeks, your entire operation becomes reactive.
Inside the 2025 Gig Driver Report
A recent survey by Everee sheds light on what drivers want - and what makes them quit. In May 2025, 419 gig drivers in the U.S. were surveyed. Most of them worked across multiple apps, including Uber, Lyft and Shipt. The full findings are available in the 2025 Gig Driver Report by Everee.
Key findings:
- 68% of drivers work with two or more gig apps every month. Only 32% stick to one.
- 84% say fast access to earnings is important or very important when deciding where to work.
- 70% of drivers want their money within 24 hours.
- 44% would consider quitting if instant payouts became slower or more expensive.
- 21% would leave if onboarding took too long.
These numbers show how sensitive drivers are to delays, unclear policies, and inefficiencies. A small friction point in your system could be enough to push them to a competitor.
Why drivers leave
The survey also highlighted the most common reasons drivers stop working with a platform:
- 59% left after a sudden drop in pay rates or bonuses
- 48% due to fewer available jobs
- 44% when fees or restrictions were added to instant payouts
- 41% because of safety concerns during pickups or drop-offs
- 39% due to rigid scheduling or lack of flexibility
In short, if drivers feel their earnings or control are at risk, they move on. The ride-hailing industry is too competitive for platforms to assume drivers will stay loyal without constant support and improvement.
What platforms can do to retain drivers
To retain drivers long term, platforms need to act on what drivers value most. According to the same report, the top three areas that would increase loyalty are:
- Guaranteed minimum earnings or predictable income
- Better access to instant payouts
- A smoother, faster onboarding process
Additionally, drivers want to feel that their time is respected, their safety is prioritized, and that they are not left guessing about payments or platform changes.
How ATOM Mobility helps you build driver loyalty
With ATOM Mobility’s platform, ride-hailing operators have access to several features designed specifically with drivers in mind.
The “Offer Your Price” feature allows riders to bid slightly more during high demand or bad traffic conditions, giving drivers the chance to earn extra when it matters most.
Dynamic pricing lets operators automatically raise fares during weekends, holidays, or peak hours so that drivers earn more when demand spikes.
One of the most impactful tools is the instant revenue split system, where a driver’s commission is transferred directly to their Stripe Connect account after every successful ride. This eliminates waiting times and builds trust through real-time, transparent payouts.
To make things even smoother, ATOM Mobility offers a dedicated driver app where drivers can track performance, see earnings, and review ride history.
All of this adds up to a professional, transparent experience for drivers - and a stronger incentive to stay on your platform long term.
A dedicated driver app helps drivers track performance, earnings, and ride history. This kind of visibility increases engagement and reduces confusion. Instead of contacting support for payment questions, drivers can see everything directly in the app. The experience feels more professional and structured – which increases the chance they’ll stay longer.
You can explore the dedicated driver app in more detail on driver app overview.
Faster onboarding leads to faster activation
Another key piece of retention is how quickly drivers can get started. Platforms that make onboarding long or confusing lose drivers before the first ride. ATOM Mobility supports streamlined onboarding flows with pre-filled fields, automatic document validation, and built-in guides. In some cases, drivers can be onboarded, verified, and ready to drive within hours – not days.
A better experience creates loyalty
Drivers are not just users of your app – they are ambassadors of your brand. Every interaction they have, from the first sign-up to the latest payout, shapes how they feel about your platform. If it’s smooth, fair, and rewarding, they’re likely to stay. If not, they’ll be gone before the next weekend rush.
By investing in the right tools and understanding what really matters to drivers, platforms can reduce churn, increase satisfaction, and build a loyal driver base. And in a market where supply is everything, that loyalty pays off.
If you're building a ride-hailing operation and want to give your drivers a reason to stay, ATOM Mobility gives you the technology to make it happen. From instant payments to dynamic pricing and a dedicated driver app, everything is designed to keep your fleet active and engaged – for the long haul.
Blog
ATOM Connect 2025: Where Europe’s shared mobility leaders meet
👉 ATOM Connect 2025 is an exclusive shared mobility networking event hosted by ATOM Mobility in collaboration with INVERS. This focused gathering will bring together industry leaders, innovators, and decision-makers from Europe's car-sharing and car-rental sectors to explore the future of shared mobility.
September 16, 2025
min. read
What happens when professionals from Europe’s car sharing and car rental industries gather under one roof? You get a day filled with fresh ideas, insightful discussions, and valuable connections that help shape the future of mobility. That’s what awaits at ATOM Connect 2025 - a dedicated industry event hosted by ATOM Mobility in partnership with INVERS.
This year’s gathering takes place on October 30, 2025, in Riga, Latvia, at the panoramic top floor of the AC Hotel by Marriott. With views stretching across Riga’s historic Art Nouveau district, the setting offers an inspiring backdrop for meaningful conversations about the next steps in shared mobility.
Date & Time: October 30, 2025, from 15:00 onwards
Location: AC Hotel by Marriott, Riga (top floor with panoramic views)
Hosts: ATOM Mobility & INVERS
Format: Expert talks, interactive Q&A, networking sessions, and evening drinks
Topics covered:
- Market insights from INVERS
- Scaling car sharing businesses
- Digital transformation in rentals
- Corporate mobility opportunities
- Eastern Europe’s shared mobility landscape
Why Attend ATOM Connect 2025?
Learn from industry experts
The agenda is designed to address today’s most relevant mobility challenges. Expect data-driven insights from INVERS, practical strategies for scaling car sharing operations, discussions on digital rental solutions and corporate mobility, plus a closer look at the unique opportunities and challenges in Eastern Europe.
The event will also be joined by BYD, one of the world’s fastest-growing electric vehicle makers, who will showcase their innovative, affordable EVs at our event.
Build valuable connections
ATOM Connect 2025 is a focused gathering that brings together operators, rental businesses, and mobility experts from across Europe. With a mix of talks, networking breaks, and an evening reception, the event offers the perfect setting to exchange experiences, discuss challenges, and explore future partnerships.
Join the Conversation
If you’re active in car sharing or rental industry and want to stay ahead in a rapidly evolving market, ATOM Connect 2025 is a must-attend event. Together with INVERS, we’re creating a space where the European shared mobility community can connect, learn, and look toward the future.
👉 Save the date and request your spot today*: https://www.atommobility.com/atom-connect-2025
*Please note: ATOM Connect 2025 is intended for shared car mobility and car rental industry professionals. Registration requests will be reviewed before confirmation.
Driver App demo credentials - Email: test@atom.com, Password: driver
