How technology is shaping the future of mobility

Technology is helping transform the future of urban transportation by influencing what mobility will look like, and how it will impact the modern city-scape. A recent article by Forbes Technology Council explained that there is a shared consensus around the four key features of future mobility: shared, hybrid, autonomous and electric. The next question becomes, what will mobility services will be available in the coming years? We have done some research to help breakdown the different perspectives on shared mobility as a mode of transportation in the future. 

Why electric?

By 2040, electric cars will outsell gasoline-powered cars

By 2040, electric cars will outsell gasoline-powered cars

Recently consumers have shifted their interest towards electric vehicles as a more sustainable and environmentally conscious option for long-distance travel. Predictions expect electric vehicles to surpass traditional combustion cars within the next 20 years, with 57% of passenger vehicles and more than 30% of global passenger vehicle fleet sales being electric by 2040. With this growth also comes a need for additional charging infrastructure to allow the vehicles to travel further over long distances. Currently there are about 13,000 electric vehicle fast charging stations across the US, compared to roughly 332,000 gas stations. Companies such as Volkswagon, GM and Tesla, have announced they are working on creating charging that will help drive sales in the future. Successful expansion into the market will require cities to develop smart plans that accommodate the needs of electric mobility. 

Why shared?

Shared mobility has grown extensively since Uber (2009) and Lyft (2012) first entered the market. More and more operators continue to emerge worldwide, offering at least one ridesharing service to people in over 700 cities. These services are expected to expand even further in the future as a result of increased urbanization, as well as growing concerns around sustainability, economic stability and emissions. A report by the Internet of Things’ analyst firm, Berg Insights, found the number of car-sharing service users will grow from 50.4 million people in 2018 to 227.1 million people in 2023. Offering mobility as a service is helping reduce the number of single-use vehicles on the road, lending itself to a more functional form of travel.

Why autonomous?

A major challenge facing urban drivers is the issue of congestion and traffic jams. In some metropolitan cities, such as London, the problem lead to the enforcement of congestion charges in their most heavily populated neighbourhoods. In effect since 2003, these charges have helped reduce traffic by 30%, will simultaneously generating funds for the city. But is that enough? Autonomous vehicles are believed to be the next step in reducing congestion. A study conducted by researchers at the University of Cambridge found that when a fleet of autonomous vehicles are effectively communicating, keeping traffic moving smoothly, congestion rates could be reduced by 35%.

Why hybrid?

Micro-mobility is the use of small mobility devices, designed to carry one or two people, or ‘last-mile’ deliveries. This goes hand-in-hand with the rising interest in e-scooters and e-bikes that have seen exceptional sales growth in recent years. The combination of electric with single-use, lightweight vehicles is expected to surpass traditional modes of transportation. In their annual technology, media and telecommunications predictions, Deloitte predicted more than 130 million e-bikes will be sold between 2020 and 2023. Compared to the 1.8 million sold in Europe and 185,000 in the US during 2013, this significant increase suggests that e-bikes and other technology like it are the future of mobility.

How are city’s supporting?

Cities across the world have begun adapting strategies to assist with the future of urban mobility. Being the leader in reducing traffic, Singapore introduced Area licencing Scheme in 1975, enforcing a daily toll charge of $3 or $60 monthly for cars entering a central zone area during peak hours. The city experienced success resulting in fewer cars entering the zone during peak hours, a 35 percent increase in carpools and a minimum of $500 million saved by the city that could be used towards infrastructure improvements. The system has since been updated to an Electrical Road Pricing system in order to match the changing demands of the city’s core.

San Francisco has yet to enforce congestion pricing for its traffic heavy neighbourhoods, however, research is being conducted to determine the best solutions for the city. The Emerging Mobility Evaluation Report by the San Francisco Transportation Authority found 90 percent of all motor vehicle collisions are caused by human error, with approximately 80 percent involving some level of inattention. This has lead to a shift towards alternative modes of mobility and potential pilot projects within the city core. San Francisco has become known for its low income bike share programs. Launching in 2013 the Bay Area Bike Share Pilot requires at least 20% of stations be located in low-income communities, with an estimated 320 stations and 4,500 in 2017. Data collected by the Bike-sharing Blog estimates there are twice as many bike-sharing programs in the world as there were in 2014, with nearly 20 times more bikes available for public use.

The doors have opened for industry leaders to start making innovations within auto-mobility, influencing the modern city-scape. In addition to placing restrictions on heavily congested areas, the city of Helsinki has focused its efforts on improving the existing infrastructure and transportation options to encourage people to utilize other modes of mobility. A leader in mobility-as-a-service (MaaS) platforms, the city plans to replace 2.3 billion urban private car journeys annually by 2023. One of the ways it’s begun to accomplish this is through the app Whim. An app developed specifically for Helsinki, Whim provides access to all of the city’s mobility options through a monthly subscription. The future of mobility is at people’s fingertips.

What’s next?

Cities around the world are beginning to explore the possibilities of e-scooters as a means to travel short distances too far to comfortably walk, as well as a potential solution towards reducing the reliance on cars. The city of Tallahassee launched a pilot program in partnership with five major e-scooter companies: Bird, Lime, VeoRide, Spin and Gotch. The purpose is to determine solutions for the major problems being faced, but to also help develop good ridership habits. The companies deployed 200 e-scooters, each capable of travelling 15 mph, under new legislation that allows them to be treated the same as bicycles. With the success of programs such as this, and companies making pledging to maintain social responsibility for user safety, e-scooters as a primary mode of mobility are on the rise. 

Nuro, a self-driving start-up, is one of the few companies to currently have a fleet of fully driverless vehicles operating on public roads. In February 2019, the company secured roughly $1 billion in additional funding from SoftBank allowing them to partner with the grocery-store chain Kroeger’s for a pilot project. The pilot service has been delivering groceries in Houston, Texas since March 2019, with expansions to include other goods like Domino's Pizza and Walmart products. As of right now the fleet stands at about 75 vehicles, with plans to go public in 2020. By introducing fully automated vehicles into the market, the number of people on the road will be reduced, optimizing efficiency and offering greater protection from potential collisions or incidents. 

Nuro self-driving vehicle

Nuro self-driving vehicle

In addition to reducing traffic in major cities, mobility companies are also focusing their resources on addressing concerns of energy consumption and emissions. The smart scooter mobility company, Gogoro, aims to leverage the power of technology in order to change the way technology is consumed and transform how cities operate to improve sustainability. Their first fleet of smart scooters launched in 2015, delivering a high performance electric riding experience to uses in Taiwan. The company also established a network known as the Gogoro Energy Network in Taipei offers more than 1,581 battery swap stations and supports over 199,478 battery exchanges every day. In Europe, a fleet of 3,500 emissionless smart scooters were released across three major countries in 2018, helping reduce CO2 emissions by 123,655 tons and displacing more than 58,731,863 liters of gasoline. By leveraging technological progress and innovations in modern infrastructure, Gogoro is becoming a leader in transportation solutions. 

Electric scooter Gogoro with swappable batteries

Electric scooter Gogoro with swappable batteries

Companies, like Tortoise, are looking to expand the capabilities of scooters even further by introducing fleets that can move autonomously across a city and reposition themselves, without a rider. The goal is to tackle the biggest challenge currently facing operators: relocating scooters. Tortoise plans to use autonomous technology combined with teleoperation to reposition and rebalance dockless, shared e-scooters in cities. The initial deployment will include between 50 to 100 scooters per operator in each market with the intention to equip every fleet with the ability to autonomously reposition themselves. Autonomous micro-mobility like e-scooters and e-bikes are believed to be the start for creating smarter, more technologically advanced cities.

How can we help?

As both industry leaders and cities around the world are finding new ways to support the rising trend of micro-mobility, we at ATOM Mobility want to help entrepreneurs looking to enter the market. We believe that shared mobility is the future of transportation, offering assistance with integrating industry-leading vehicles ready for shared mobility, including kick scooters, scooters, bikes, mopeds, cars and more. Our customers have an excellent grasp on the current needs of local markets, and we allow them to focus on marketing and operations, while taking care of the technology. 

Sources:


https://www.bbc.com/news/technology-33183031
https://www.corporateknights.com/channels/transportation/sharing-road-canadian-cities-driving-progress-shared-mobility-15593076/
https://www.forbes.com/sites/forbestechcouncil/2019/11/22/four-keys-to-future-mobility-shared-hybrid-integrated-and-electric/#3feea979339d
https://edition.cnn.com/2019/07/18/cars/electric-car-market-sales/index.html
https://about.bnef.com/electric-vehicle-outlook/
https://www.businessinsider.com/ubers-history#june-2016-kalanick-proclaims-that-uber-was-profitable-in-hundreds-of-cities-globally-but-that-the-money-was-being-reinvested-in-its-war-against-chinese-rival-didi-the-company-said-at-the-time-that-it-was-losing-1-billion-each-year-in-its-fight-against-didi-34
https://www.cnbc.com/2019/11/08/top-ride-sharing-apps-in-europe-asia-south-america-africa-and-usa.html
https://iotbusinessnews.com/2019/11/14/60333-the-public-carsharing-fleet-reached-332000-vehicles-worldwide-in-2018/
https://www.bbc.com/news/world-us-canada-47874725
https://www.sciencedaily.com/releases/2019/05/190519191641.htm
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/846593/future-of-mobility-strategy.pdf
https://www2.deloitte.com/content/dam/insights/us/articles/722835_tmt-predictions-2020/DI_TMT-Prediction-2020.pdf
https://eresources.nlb.gov.sg/infopedia/articles/SIP_777_2004-12-13.html
https://eresources.nlb.gov.sg/infopedia/articles/SIP_832__2009-01-05.html
http://sfcta.org/sites/default/files/2019-03/Emerging%20Mobility%20Studies_11.pdf
https://www.sfmta.com/getting-around/bike/bike-share
https://www.businessinsider.com/bike-sharing-programs-doubled-since-2014-public-bikes-charts-2018-7?IR=T
https://www.smartcitiesworld.net/news/news/helsinki-leads-in-mobility-as-a-service-3308
https://whimapp.com/
https://eu.tallahassee.com/story/news/2019/07/15/electric-scooters-tallahassee-florida-bird-scooters-rental-gotcha-lime-spin-veoride-escooters/1708270001/
https://www.wctv.tv/content/news/Five-companies-launch-e-scooters-in-Tallahassee-during-pilot-program-512748851.html
https://nuro.ai/product
https://www.wired.com/story/softbank-nuro-self-driving-investment/
https://qz.com/1644476/nuro-will-deliver-dominos-pizza-with-its-robots-in-houston/
https://www.theverge.com/2019/12/10/21004678/nuros-driverless-delivery-robots-walmart-houston
https://medium.com/nuro/new-rules-of-the-road-for-california-and-autonomous-vehicles-2fa26a1159cb
https://www.gogoro.com/about/
https://www.tortoise.dev/
https://www.theverge.com/2019/10/15/20910083/tortoise-autonomous-electric-scooters-self-driving-robotics
https://www.fastcompany.com/90417611/it-was-inevitable-the-scooters-are-now-driving-themselves

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Everything you need to know before starting your car-sharing business
Everything you need to know before starting your car-sharing business

What is car-sharing & how does it work? What's the car-sharing business model? How to launch a car-sharing business? Find out here.

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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. 

Get in touch with ATOM Mobility to discover how you can power your new enterprise the smart way.

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32 shared mobility stats from 2023 you should know in 2024
32 shared mobility stats from 2023 you should know in 2024

From the rise of ride-hailing services to the increasing popularity of shared vehicles, the industry's landscape is evolving rapidly. This article presents 32 key statistics from 2023 that provide valuable insights into the current state and future prospects of the shared mobility sector, offering a comprehensive overview for industry stakeholders and observers.

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The shared mobility industry has experienced significant growth and transformation in 2023, with various segments such as ride-sharing, vehicle rental, and micro-mobility witnessing substantial changes.

From the rise of ride-hailing services to the increasing popularity of shared vehicles, the industry's landscape is evolving rapidly. This article presents 32 key statistics from 2023 that provide valuable insights into the current state and future prospects of the shared mobility sector, offering a comprehensive overview for industry stakeholders and observers.

General – Shared mobility industry

The global shared mobility market is expanding rapidly, projecting a substantial increase in revenues and ridership. By 2030, it is poised to double its share of urban transport journeys from 2023. Additionally, the number of individuals earning from shared mobility services is forecasted to rise notably. 

In Europe, shared vehicle services demonstrate considerable growth, with an increase in multi-mobility users. At the same time, European cities are the strictest shared micromobility regulators, limiting the number of operators and implementing various rules.

Global

  1. The shared mobility market worldwide revenue was projected to reach US$1.43T in 2023. Statista
  1. Shared mobility is expected to make up 7% of all urban transport journeys globally by 2030, up from 3% in 2023. Shared Mobility's Global Impact
  1. The global shared mobility market size is expected to grow at a CAGR of 41.65% from 2023 until 2030. Shared Mobility Market Analysis Report
  1. More than nine million people were estimated to earn an income from shared mobility services in 2023, and the number is forecasted to grow to 16M by 2030. Shared Mobility's Global Impact
  1. In the shared vehicles market, the number of users is expected to amount to 5.09B users by 2027. Statista
  1. The average revenue per user (ARPU) was expected to amount to US$180.90 in 2023. Statista
  1. In global comparison, most revenue from shared mobility is generated in China (US$358B in 2023). Statista
  1. Africa has the strongest income growth from shared mobility services: jobs are expected to increase by 113% from 2023 to 2030. Shared Mobility's Global Impact
  1. Ride-hailing drivers typically earn above the minimum wage in Europe (+37% in Berlin and +91% in Tallinn) and above the wages for jobs with comparable skill levels in Africa (up to +130% in South Africa and Nigeria). Shared Mobility's Global Impact

Europe & UK

  1. There is a significant growth in the use of shared vehicle services, with a 221% increase recorded. Free Now report
  1. The number of multi-mobility users has also grown by 27%. Free Now report
  1. Comparing Q3 2022 and Q3 2023, shared mobility ridership is up 1%, and fleets are down 2%, meaning Total Vehicle Distance (TVD) slightly improved across the board. Q3 2023 European Shared Mobility Index
  1. Out of 32 European authorities that regulate shared micromobility operations, more than two-thirds have implemented rules on geofencing (26), parking (25), removal or repositioning of vehicles (25), fleet size limits (24), and fleet rebalancing and redistribution (22). POLIS report on How European Cities are regulating Shared Micromobility
  1. Around half of the European authorities limit the number of operators, demand insurance, set speed limits, specify conditions for vehicles and their maintenance, and have instructions for the end of operations. POLIS report on How European Cities are regulating Shared Micromobility 
  1. Juniper Research has ranked Berlin as the leading smart city in Europe in 2023 thanks to its mobility-as-a-service (MaaS) app Jelbi, which incorporates public and private transport. Other cities in the European top five are London, Barcelona, Rome and Madrid. Cities Today

Cars

Shared car ridership has increased significantly, with notable upward trends in Q3 2023. The global ride-hailing market is also projected to witness substantial growth, with increased user numbers and an uptick in popularity over taxis in the United States. In Europe, German cities, led by Berlin, continue to dominate in total shared car ridership. 

  1. Shared car ridership has grown by 22% from Q3 2022 to Q3 2023. Q3 2023 European Shared Mobility Index
  1. The car-sharing market size was worth USD 2.9B in 2022 and is estimated to showcase around 20% CAGR from 2023 to 2032. Global Market Insights
  1. The biggest increase of car ridership in Europe in 2023 happened in Riga, thanks to the emergence of Bolt Drive. Antwerp saw the 2nd most growth due to the introduction of Miles Mobility Q3 2023 European Shared Mobility Index
  1. German cities continue to dominate the rankings for total ridership per city. In Berlin, there are 30% more shared cars on the streets than in 2022. Q3 2023 European Shared Mobility Index
  1. The ride-hailing market worldwide is projected to grow by 6.97% (2023-2028), resulting in a market volume of US$215.70B in 2028. Statista
  1. Ride-hailing services were anticipated to hit a record number of users in 2023, with an additional 6.6M users in the US, representing a 10.1% increase and finally recouping its pandemic-era losses. Insider Intelligence
  1. In the United States, ride-hailing is reported to be used more frequently than taxis, with around a fifth of respondents being occasional users of ride-sharing services. Statista

Electric scooters and mopeds

Electric scooter (e-scooter) ridership has declined, although it remains the predominant shared mobility choice, constituting 42% of total ridership. Moped ridership in Europe has similarly decreased, influenced by exits of key market players. 

E-scooters have emerged as an environmentally friendly alternative, with 10% of rides directly replacing car journeys. Citizen referendums in Paris and evolving regulations in Amsterdam reflect the dynamic landscape of the electric scooter and moped market.

  1. E-scooter ridership has fallen by 14% from Q3 2022 to Q3 2023. That said, scooters are still the most popular shared mobility transport mode, with 42% total ridership. Q3 2023 European Shared Mobility Index
  1. Moped ridership in Europe has fallen by 28% from Q3 2022 to Q3 2023 due to the departure of some players in key markets. Q3 2023 European Shared Mobility Index
  1. Electric scooter usage patterns show 10% of rides directly replace car journeys. Shared Mobility's Global Impact
  1. Thus, e-scooters have contributed to a reduction of up to 120M car-kilometers traveled, helping to reduce car-related emissions by an estimated 30,000 tons of CO2e. Shared Mobility's Global Impact
  1. On 2 April 2023, Paris held a referendum on shared e-scooters, and 90% of voters gave their vote against renewing the contract of three shared micromobility companies to operate around 5,000 e-scooters each. CNBC
  1. In Amsterdam, moped ridership has grown by 22% despite new regulations on helmets being brought into effect. Q2 2023 European Shared Mobility Index

Bikes

The global bike-sharing market shows significant growth. In Europe, station-based bikes have increased in popularity. Dockless bikes experienced an impressive surge as well, following the 2023 scooter ban in Paris. Overall, bike fleets and ridership are expanding across major European cities, contributing to a robust Trips/Vehicle/Day (TVD) ratio.

  1. The global bike-sharing market is projected to reach US$12.68 billion by 2027, growing at a CAGR of 10.71% from 2023 to 2027. Statista
  1. Station-based bike ridership in Europe has grown by 11% from Q3 2022 to Q3 2023. Station-based bikes are the second most popular shared mobility transport mode, with 30% total ridership. Q3 2023 European Shared Mobility Index
  1. After the 2023 scooter ban in Paris, dockless bikes have boomed 144%. Dockless bike ridership more than doubled YoY in September (x2.5) and October 2023 (x2.3).  Q3 2023 European Shared Mobility Index
  1. Fleets and ridership are growing across Europe, especially in cities like Paris, London,Copenhagen and Antwerp. The combined TVD of dockless and station-based bikes is a very healthy 2.9. Q3 2023 European Shared Mobility Index

Rolling into 2024

The shared mobility market continues to expand. With ride-sharing and micro-mobility playing pivotal roles, the future of shared mobility appears promising. The insights gathered from these statistics are crucial for understanding the shared mobility market's trajectory and its implications for the broader transportation ecosystem.

Let's make 2024 a year of shared mobility!

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