Traditional car rental vs peer-to-peer vs on demand car sharing
November 22, 2023
min. read
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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Blog
Why taxi companies fail in 2026 (spoiler: It’s marketing)
Most taxi companies don’t fail because of tech - they fail because no one knows they exist 👀 In today’s market, competing with Uber isn’t about features, it’s about demand. 📈 No brand, random marketing, “Later” mindset results in low utilization & slow growth. In this article, we break down the most common mistakes - and how to build a marketing system that actually drives rides 🚀
April 13, 2026
min. read
Most taxi and ride-hailing companies don’t fail because of bad technology. They fail because no one knows they exist. In a market shaped by players like Uber, demand is no longer something that “just happens.” It’s engineered. Built. Optimized. Repeated.
Yet many operators still treat marketing as something secondary - something to figure out after the launch, after the fleet is ready, after drivers are onboarded. By then, it’s already too late.
A common pattern we see is this: a company launches with a functional product, maybe even a solid operational setup, but without a clear brand or acquisition strategy. A few campaigns are tested, some budget is spent across different channels, but nothing is consistent. There is no clear positioning, no defined audience, and no system to measure what actually works.
The result is predictable. Growth is slow, utilization stays low, and pressure starts to build. At that point, marketing becomes reactive - driven by urgency rather than strategy. Discounts increase, experiments multiply, and costs rise faster than revenue.
This is where many businesses lose control of their unit economics.
Why bad marketing happens
Poor marketing rarely comes from a lack of effort. It usually comes from wrong priorities. Many operators believe they have more urgent problems to solve - fleet, drivers, operations - and that marketing can wait. It feels logical in the short term, but in reality it’s a short-sighted decision that creates much bigger problems later.
Another common issue is lack of direction. Marketing activities exist, but they are scattered and unstructured. There is no clear target audience, no defined positioning, and no consistent brand language. Without that foundation, even well-funded campaigns struggle to deliver results.
This is where the gap between smaller operators and companies like Uber becomes obvious. The difference is not just budget - it’s clarity. They know exactly who they target, how they communicate, and how they measure success.
Without that clarity, marketing becomes noise. And noise doesn’t convert.
When marketing is treated as optional
In early stages, many companies treat marketing as a “nice to have.” Budgets are allocated to everything else first, and whatever remains is used for promotion - if anything is left at all. The assumption is simple: launch first, invest in marketing later.
The same thinking often leads to another mistake - launching with a weak or non-existent brand. A generic app, no clear identity, no differentiation. It may save money initially, but it creates a much bigger problem: people don’t remember you, and you can’t build demand around something that has no identity.
At some point, reality catches up. Growth is slower than expected, revenues don’t match projections, and pressure builds. That’s when companies switch into reactive mode. Marketing becomes urgent instead of strategic. Discounts increase. Random campaigns are launched. Budgets are spent faster, but results don’t improve. Panic replaces planning - and panic-driven marketing almost never works.
How to build a marketing system that actually works
Forget random marketing. It doesn’t scale. If you want predictable growth, start here:
- Map all key marketing activities needed to generate demand (which 2-3 channels you will use to attract users?)
- Define your target audience (how you are different from others?)
- Set a realistic marketing budget upfront
- Work with professionals who understand mobility (execution matters)
- Focus on a few channels that actually convert
- Track core KPIs: installs → first ride → retention
- Continuously adjust based on real data, not assumptions
The earlier you build this system, the faster you reach profitability.
How ATOM helps operators grow
At ATOM Mobility, we’ve seen this dynamic across hundreds of mobility businesses globally. The difference between those who scale and those who stall rarely comes down to technology alone. Execution is what separates them.
That’s also why we expanded beyond software and, together with industry experts, launched a dedicated marketing service to support operators directly.
We help mobility businesses go from zero to scalable demand - covering go-to-market strategy, branding, performance marketing, app store optimization, and continuous growth management, all tailored specifically for ride-hailing and taxi operators.
👉 Learn more and see how we can support your growth:
https://www.atommobility.com/marketing-agency
Blog
ATOM Mobility API: Build your own mobility experience on top of a proven platform
⚡ Launch faster and integrate anywhere with ATOM Mobility API. Build your own mobility experience without rebuilding the backend. Learn how ATOM Mobility API lets you integrate, customize, and scale faster.
April 2, 2026
min. read
Shared mobility is moving beyond standalone apps. Operators today are expected to integrate into existing ecosystems - from hotel and airport platforms to corporate travel tools and MaaS apps. Building all of that from scratch is slow, expensive, and hard to scale.
That’s why ATOM Mobility offers a fully developed OpenAPI - allowing you to build your own mobility experience on top of a proven backend.
From app to platform
Most mobility solutions are still built as closed systems. That creates friction: integrations take time, custom features require heavy development, and expanding into new channels becomes complicated.
An API-first approach changes this.
Instead of rebuilding core functionality, operators can use ATOM Mobility as the underlying system and build their own layer on top. Booking flows, payments, vehicle control, and operational logic are already there - accessible via API.
What this enables in practice
With API access, mobility can be embedded directly where users already are.
- A ride can be booked from a hotel website. A car can be unlocked through a partner app. A custom frontend can be built for a specific market without touching the backend.
- At the same time, operators can connect their own tools: from internal dashboards to finance and reporting systems (for example, Power BI) creating a more automated and scalable operation.
The result is not just a mobility app, but a flexible system that can adapt to different markets, partners, and use cases.
What you can manage with ATOM Mobility API
🚗 Booking & ride management - search vehicles, reserve and unlock, start and end trips, manage ride status.
💳 Payments & users - create and manage users, handle payments and pricing, access booking history.
🛴 Fleet & operations - vehicle status and location, zones and restrictions, pricing configuration.
🔌 Integrations - connect third-party apps, sync with external systems, automate workflows and more...
Few use cases we already see
1. Embedded mobility in partner platforms
Booking directly from (no app download needed):
- hotel websites
- airport kiosks
- corporate travel portals
- MAAS apps (such as Umob)
2. Custom frontends and apps
Operators build:
- branded web apps
- niche UX flows
- country-specific experiences
All powered by ATOM Mobility backend.
3. IoT and hardware integrations
- sync vehicle data
- control locking/unlocking
4. Automation & internal tools
- reporting dashboards
- finance automation
- customer communication flows
Instead of spending months building core systems, operators can use ATOM API and focus on what actually drives growth - distribution and partnerships.
Interested to learn more or try it out?
Learn more:
https://www.atommobility.com/api
Explore the API:
https://app.rideatom.com/api/docs
Driver App demo credentials - Email: test@atom.com, Password: driver
