Traditional car rental vs peer-to-peer vs on demand car sharing

Traditional car rental vs peer-to-peer vs on demand car sharing

With the increasing demand for shared mobility, we've seen different business models in the car market: traditional car rental, peer-to-peer car sharing, and on-demand car sharing.

In this blog post, we're going to compare these business models. We'll look at the established traditional car rental companies and how they stack up against the newer peer-to-peer and on-demand services. We'll explore how these companies are doing financially – and make some predictions about their possible future.

Traditional car rental

Traditional car rental companies like Hertz, Enterprise, and Avis operate by owning or leasing their own fleets of vehicles. They usually have rental offices and parking lots in strategic locations such as airports and city centers. Customers looking to rent a car make reservations through the company's websites, mobile apps, or by phone. Typically, customers pay a daily or weekly rate, plus additional costs for mileage and optional services like insurance.

Avis – proving that traditional car rental is going strong

Avis was founded in 1946 in Detroit, and it quickly established itself as a major player in the car rental market. Avis is best known for its "We Try Harder" slogan, which was introduced in the 1960s and became a symbol of the company's commitment to customer service. Over the years, Avis has expanded its operations globally. 

Avis had a strong second quarter in 2023. They reported $3.1 billion in revenue, with a net income of $436 million. The company saw an increase in usage compared to the same period in 2022, reaching 70.5%. Avis also performed better than expected on Wall Street, with earnings of $11.01 per share – surpassing the estimated $9.79.

At the end of Q2 2023, Avis had around $1.1 billion in liquidity and an additional $1.1 billion for fleet funding. Avis CEO Joe Ferraro credited the strong results to the company's ability to capitalize on the growing travel demand, particularly during the busy summer season.

Hertz – usage and fleet growth

Hertz was founded in 1918 in Chicago. Over the years, Hertz grew into a global brand, serving both the leisure and business travel sectors. Despite various ownership changes, it has maintained a strong presence in the car rental market.

Hertz also reported a healthy second quarter in 2023. They made $2.4 billion in revenue, mainly due to high demand – rental volume increased by 12% compared to the previous year, and their average fleet grew by 9%.

Each vehicle brought in an average of $1,516 per month during the quarter, thanks to a usage rate of 82%, which was 230 basis points higher than in Q2 2022. As of June 30, 2023, Hertz had $1.4 billion in liquidity, with $682 million in unrestricted cash. Overall, Avis' old rivals Hertz are doing quite well too.

Peer-to-peer car sharing

Peer-to-peer car sharing allows private vehicle owners to offer their cars for rent through platforms like Turo and Getaround. The vehicles are distributed across various neighborhoods and residential areas, offering a decentralized and more flexible system. Customers can use these platforms to find and reserve their vehicles of choice.

Turo – promising financials, uncertain IPO plans

Turo, founded in 2009, began as RelayRides and was later rebranded. Turo offers an online platform that allows individual car owners to rent out their vehicles to other people when they are not using them. The company provides a marketplace where people can list their cars for rent, and renters can search for and book vehicles for short-term use.

Turo has gained popularity as a more flexible and often cost-effective alternative to traditional car rental services. It allows car owners to monetize their vehicles when they're not in use and provides renters with a wide selection of cars to choose from. 

Turo, valued at $1.2 billion in 2019, has seen promising financials. In 2022, they earned $746.59 million, up 59% from the previous year, with 320,000 vehicle listings. They went from substantial losses in 2019 and 2020 to a net income of $154.66 million in 2022.

Turo also grew its marketplace, engaging with 160,000 active car owners and 2.9 million riders worldwide by the end of 2022. However, according to their S-1 filing, they anticipate increasing expenses in the future, which might challenge their profitability.

Turo applied for an IPO on the Nasdaq in 2022 but didn't proceed. The IPO plans were delayed, likely due to challenges like the 2022 tech downturn. However, recently, Turo revived its plan to go public and could list their shares in the fall of 2023.

Getaround – an uncertain future

Getaround is another popular peer-to-peer car-sharing platform that allows individuals to rent out their personal vehicles to others when they are not using them. It's often referred to as the "Airbnb of cars." Introduced in 2011, it is currently accessible in over 1,000 cities in the United States and Europe.

In 2022, Getaround earned $62.3 million in revenue. However, they reported an EBITDA of -$25.0 million, indicating that its operating expenses exceeded its earnings. Overall, the company experienced a net loss of -$46.8 million for the year. Getaround's total assets were valued at $217.1 million.

During its public market debut in 2022, Getaround witnessed a significant decrease in its share value, plummeting by as much as 65%.

In March 2023, the company got a notice from the New York Stock Exchange saying it didn't meet the requirements. This was because their average global market capitalization over 30 consecutive trading days fell below $50 million, and their reported stockholders' equity was also below $50 million.

Overall, Getaround's stock market troubles and weak finances make their future uncertain for now.

On-demand car sharing

On-demand car sharing services like Zipcar and Share Now (formerly Car2Go) maintain their own fleets, which are parked throughout cities in designated spots or on the streets. Customers can access these vehicles in real-time using mobile apps. The pricing structure usually includes fuel, maintenance, and insurance.

Share Now – downsizing, acquired by Stellantis

Share Now, a German carsharing firm born from the merger of Car2Go and DriveNow, now operates as a subsidiary of Stellantis' Free2Move division, offering car sharing services in European urban areas. It has over four million registered members and a fleet of 14,000+ vehicles across 18 European cities.

In late 2019, ShareNow announced the closure of its North American operations due to competition, increasing operational costs, and limited support for electric vehicles. Service in London, Brussels, and Florence was also discontinued.

On May 3, 2022, Share Now was acquired by Stellantis, with the ownership now managed by Stellantis subsidiary Free2Move, following the closure of the acquisition on July 18, 2022.

CityBee – a success story in Baltics

CityBee, founded in 2012 in Lithuania, started as a car-sharing service primarily aimed at businesses. It now operates in the whole Baltic region. Customers can choose from a variety of vehicles, including cars, vans, bikes, and electric scooters. The fleet also includes electric and hybrid cars. CityBee takes care of insurance, fuel, and parking fees in CityBee areas.

In 2022, CityBee reported a sales revenue of €33,168,028, slightly down from the previous year's €39,814,173. However, the company's profitability surged, with a profit before taxes of €2,193,820 – a substantial increase from the €968,722 in 2021. This also resulted in a higher profit margin of 6.61% in 2022, compared to 2.43% in 2021.

CityBee saw its net profit rise to €1,857,517 in 2022, a substantial increase from the €876,986 in 2021. The company's equity capital also grew to €4,688,176, indicating a stronger financial foundation. CityBee shows that on-demand car sharing can succeed with the right approach in the right market.

There's room for different business models

The shared car mobility market is large enough for different solutions to exist together – especially with car ownership costs going up. Companies like Hertz and Avis demonstrate that the traditional rental model remains relevant and holds significant profit potential.

Despite financial challenges, peer-to-peer car sharing and on-demand car sharing are attracting a fresh customer base. Peer-to-peer car sharing offers a more personal touch by letting people rent their own vehicles. On-demand car-sharing services are a great solution for urban residents, offering quick pay-as-you-go access to vehicles. 

While the position of traditional car rental giants might seem unshakeable, it's a fast-moving, evolving market. Regional success stories – such as CityBee – certainly prove that challengers are not asleep.

If you own a fleet, operate a car rental business, or are looking to get into one, ATOM Mobility can equip you with an end-to-end software suite that will put you miles ahead from competition.

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How to choose car sharing software: an operator’s checklist
How to choose car sharing software: an operator’s checklist

🚗 Choosing car sharing software? Look beyond the rider app. Our checklist covers what to test in a demo, from keyless access and fleet operations to costs and support for both car sharing and digital rental.

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Choosing car sharing software is more than choosing an app where customers can find and unlock a car. The same system has to verify drivers, take payments, communicate with vehicles, handle problems during a trip, and give your team the tools to keep cars available. The difference between two platforms often becomes clear only when something goes wrong: a customer cannot unlock a car, a payment fails, a vehicle needs to be taken out of service, or an operator wants to introduce advance bookings alongside short trips.

If you are comparing providers, ask them to show how these situations work in the actual product. Here is what to check.

Start with the operating model

“Car sharing” can mean several different things. A free-floating service lets customers find a nearby car and end a trip within an allowed area. A station-based service may require them to return the car to a specific location. Corporate fleets, peer-to-peer services, and self-service rentals have different booking, access, and approval rules.

Write down how your service will work before requesting demos:

  • Can customers start a trip immediately, reserve a car for later, or both?
  • Do they book a specific vehicle or a vehicle category?
  • Where can they pick up and return the car?
  • Will you charge by the minute, hour, day, distance, or a combination?
  • Do you need deposits, subscriptions, corporate accounts, or different prices by location?

Ask the provider to configure these rules in a demo. A platform that supports “car sharing” in general may still require development to support your exact model.

Check the complete customer journey

The app needs to do more than display vehicles on a map. Follow one booking from the first app open to the final receipt. Check registration, ID and driver's licence verification, vehicle discovery, booking, payment authorisation, keyless access, trip extension, damage reporting, and trip completion.

For advance rentals, check whether customers can book from your website as well as the app. Ask to see the complete web-to-app journey: selecting a vehicle and dates, confirming the reservation, and continuing to payment, licence verification, and vehicle access. Find out whether the website can complete the entire rental or whether customers must install the app after booking. ATOM Mobility's web-booker, for example, lets customers reserve on the web and then complete payment, and ID verification in the app.

Then test the exceptions. What does the customer see if verification fails, the car does not unlock, the vehicle is no longer available, or the payment cannot be collected? Can your support team see what happened and resolve it without contacting a developer?

This matters because customers judge the entire journey, including how quickly they can recover when a step fails.

Make vehicle connectivity a separate decision

Car sharing depends on reliable communication between the platform and the vehicle. Depending on the vehicle and hardware, this may include location, lock and unlock commands, mileage, fuel or battery level, and other status data. Ask for a list of supported telematics providers, rather than accepting a general statement that the platform is “hardware agnostic.” For your proposed fleet, establish:

  • Which functions already work, and which require a new integration?
  • Is hardware installation required? Who supplies and supports it?
  • What happens when the vehicle temporarily loses connectivity?
  • Who investigates a failed command: the software provider, hardware supplier, or operator?
  • What are the hardware, installation, connectivity, and integration costs?

Hardware flexibility is valuable when you expand or change suppliers, but the integration for the vehicles you plan to buy now is the first thing to verify.

Look closely at day-to-day fleet operations

The customer app gets the attention, but your team will spend much of its time in the management dashboard and operator tools. Ask a provider to show how staff:

  • Take a vehicle out of service and make it bookable again.
  • Find vehicles that need cleaning, charging, refuelling, or maintenance.
  • Review a trip, customer issue, charge, or reported damage.
  • Change prices, service areas, parking rules, and availability.
  • Assign tasks and check what the field team has completed.
  • Track utilisation, vehicle availability, revenue, and trips over time.

Try these tasks with the roles your own team would use. The question is not only whether a feature exists, but how many manual steps it takes to run your fleet every day.

Consider digital rental if it is part of your plans

Car sharing and digital rental increasingly overlap. An operator might offer cars for short city trips and also accept bookings for a weekend. A rental business may begin with advance reservations and later add app-based, keyless access for shorter trips.

The technology shares many components, but the booking rules can differ. A rental may require advance pickup and return times, vehicle or category allocation, availability calendars, deposits, extensions, and different customer handover processes.

If you may operate both models, ask for a demonstration of both: an immediate hourly trip and an advance weekend booking. Check how the system prevents overlapping reservations, applies the correct pricing and deposit rules, and gives your team a clear view of availability. Also establish whether both models can use the same customer account and management setup, or whether additional products and fees are required.

ATOM Mobility supports vehicle sharing and digital rental on its platform. The useful question for any provider, including us, is how your exact combination of models would be configured and operated.

Compare the full cost, not just the software fee

A low monthly licence fee can be attractive, but it may be only one part of the cost. Request a proposal that separates:

Launch, Setup, branding, app publication, migration, and training

Monthly minimums, fees per vehicle or booking, and included modules

Payment processing, refunds, deposits, and any additional transaction fees

Telematics hardware, installation, data plans, and new integrations

Ongoing work such as support level, custom development, and third-party services

Compare the likely cost at your launch fleet size and at a realistic larger fleet. Ask what happens if the fleet is seasonal or grows more slowly than planned.

Build, buy, or combine the two?

Building in-house can make sense when a company has the engineering capacity and needs a customer experience or operating model that available platforms cannot support. It also means taking responsibility for project management, app updates, payments, vehicle integrations, security, monitoring, and support long after launch.

A white-label platform can shorten the route to market and spread that technical work across an established product. In return, you depend on the provider's supported features, integrations, development priorities, and service levels.

Slovenian car-sharing operator GreenGo initially spent two years developing its own app before switching to ATOM Mobility. Its experience shows why it is worth comparing the time and resources required to build with what an existing platform can already deliver. Read GreenGo's story: https://www.atommobility.com/blog/greengo-chooses-atom-mobility-to-power-its-electric-car-sharing-business

There is also a middle option: use a platform for core bookings, fleet management, and vehicle connectivity while building selected experiences or integrations yourself through APIs. If this is your plan, review the API documentation and confirm what your team can actually read, change, and automate.

5 things to request in a provider demo

Before signing, ask each shortlisted provider to demonstrate the same scenarios:

  1. Register and verify a new rider, then make a booking and unlock the proposed vehicle.
  2. Extend a trip, report damage, end the booking, and see the final charge.
  3. Resolve a failed unlock or payment from both the customer's and support team's perspectives.
  4. Remove a car for maintenance, assign the task, and return it to availability.
  5. Configure your actual pricing and parking rules without developer assistance.

Use your intended vehicle models, payment markets, and operating rules in the discussion. For anything that cannot be shown, ask whether it is already available, needs configuration, requires paid development, or is only planned.

The best car sharing software is the one that supports your model reliably, gives your team control over daily operations, and leaves room for the business you intend to build next. A practical demo and a complete cost proposal will tell you more than a long feature list.

If you are evaluating car sharing alongside self-service rental, talk to ATOM Mobility about your fleet and operating model. We can show you how both models work on the platform and help you plan migration and scaling.

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Unlock more mobility opportunities with the ATOM Mobility and Umob partnership
Unlock more mobility opportunities with the ATOM Mobility and Umob partnership

🌍 Reach more riders with ATOM Mobility and Umob. The integration gives shared mobility operators an additional distribution channel, helping attract new customers, generate more bookings and improve fleet utilization.

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The future of mobility is not just about operating vehicles. It is about creating convenient journeys that bring different transportation options together in one simple customer experience.

That is why we are excited to highlight our partnership with Umob, helping mobility operators expand their reach and become part of a growing multimodal mobility ecosystem.

Whether you operate shared cars, scooters, bikes or mopeds through the ATOM Mobility platform, integrating with Umob allows your service to become accessible to thousands of Umob users looking for a convenient way to travel.

Why this partnership matters

Today's users expect flexibility. They don't think in terms of individual mobility providers, they simply want the fastest, easiest, and most convenient route from A to B.

Umob brings different mobility providers and transport options together in one app. Users can find, compare, book and pay for different mobility options without having to download a separate app or create a new account for every provider.

By connecting your fleet to Umob, operators can:

  • Reach new customers through an established MaaS (Mobility as a Service) platform.
  • Increase vehicle utilization by attracting additional demand.
  • Become part of multimodal journeys that combine public transport, shared mobility, taxis, and other transportation options.
  • Grow without investing in additional customer acquisition channels.

For ATOM Mobility customers, the integration is designed to provide a straightforward way to unlock new distribution opportunities while continuing to manage their core operations through the ATOM Mobility platform.

How the integration works

Through the ATOM Mobility platform, participating operators can connect their fleets with Umob, enabling users to discover and use available vehicles directly through the Umob app.

Once connected, vehicles from participating operators can appear in Umob alongside other available mobility options, giving users one clear overview of the different ways they can get from A to B.

Users can discover an available vehicle, reserve and unlock it, start and end their ride, and pay directly through Umob.

The integration is designed to support:

  • Real-time vehicle availability.
  • A seamless booking and ride experience for users.
  • Secure communication between platforms.
  • Consistent operational control for fleet operators.

Operators continue to manage their fleet, pricing, service areas and day-to-day operations through the ATOM Mobility platform, while Umob provides an additional channel through which users can discover and access their vehicles.

Business impact

For mobility operators, connecting with Umob creates an additional distribution channel without changing the way they manage their day-to-day operations through ATOM Mobility.

By making vehicles available to thousands of Umob users, operators can increase their visibility at the moment people are actively looking for a ride. This creates the potential to attract new users, generate additional bookings and improve fleet utilization over time.

Every market is different, but many operators see MaaS partnerships as an important part of their long-term growth strategy. 

Launch partner spotlight: ZEUS Mobility

One of the first ATOM Mobility operators to launch through the Umob integration is ZEUS Mobility, an ambitious European e-scooter sharing provider with a strong focus on innovation, a dynamic approach and challenging the established players in the market.

Fittingly, the partnership itself started through the ATOM Mobility network.

ZEUS and Umob first met at an ATOM Mobility event in Riga. While the initial introduction happened during the event, it was over drinks later that evening that the conversation really started.

ZEUS had already come across the Umob brand on mobility vehicles while travelling and had been impressed by the professional approach the company was taking. That recognition quickly turned into a conversation about how both companies could strengthen their propositions by working together.

From there, the integration moved forward quickly. ZEUS describes the preparation and integration process so far as “clean, professional and smooth.”

For ZEUS, the partnership creates an opportunity to strengthen the visibility of its brand, reach new customers and support its wider European growth ambitions.

Following its acquisition of Superpedestrian in May 2026, ZEUS is looking to accelerate its growth throughout 2026 and 2027, with the Umob partnership forming part of that ambition.

“ZEUS is thrilled to be partnering with Umob in European markets. Following our acquisition of Superpedestrian in May 2026, ZEUS is seeking to rapidly grow through 2026 and 2027. This partnership can help to drive this growth and reach new customers in new markets. We look forward to a rewarding partnership.” - Damian Young, ZEUS Mobility

About Umob

One app to ride them all. Umob is an all-in-one mobility platform that brings different mobility providers and transport options together in one app.

Users can find, compare, book and pay for shared bikes, e-bikes, scooters, mopeds, public transport, taxis and other available mobility options through one account and one payment experience. Instead of downloading and registering with a separate app for every provider or every new city, users can open Umob and see the available mobility options around them.

Today, Umob is available in 28+ countries and 300+ cities, giving thousands of users an easier way to access different forms of mobility both at home and while travelling.

Key facts

  • One app for different mobility options.
  • Find, compare, book and pay in one app.
  • Available in 28+ countries and 300+ cities.
  • Thousands of users already use the Umob platform.
  • Multiple local mobility providers within one user experience.
  • The same ride, for the same price as with the local provider.
Umob app
Ready to expand your reach?

If you're already operating your shared mobility service on the ATOM Mobility platform, connecting with Umob could be the next step toward reaching more users and becoming part of a truly connected mobility ecosystem.

If you're interested in enabling the integration or learning more about how it works, get in touch with our team. We look forward to helping more operators connect, collaborate, and make sustainable mobility easier for everyone.

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