A white label solution or building your own software - what to choose for your vehicle sharing business?

Software is an essential part of your vehicle-sharing business. And it doesn't matter what vehicles your customers are going to share. They will do it through the mobile app. So here is the decision to make – are you going to create the vehicle-sharing software from scratch or choose one of the existing solutions on the market. Hopefully, this article will help you with this decision.

Which one of these two options should you choose? There is no one correct answer and there are advantages as well as weaknesses to both of them.

Imagine that this is your first vehicle-sharing business and you have decided to do everything on your own. You are full of enthusiasm and you approach your CTO or IT partner and promise to come up with the brief. The task doesn't seem too complicated for the software you need. However, the vehicle-sharing business is the one that makes creating the brief so complicated. There are many small details to consider.

First step - long and costly research

If you really have decided to start to develop software from scratch, you should take one step back. Your CTO or IT partner must start with the investigation on what functions you might need and how one thing might lead to another. This might take a lot of time and money. In addition, sometimes you can get an impression of what clients need only by operating in the market. For example, ATOM is operating in 23 countries. Their software that is also a white label solution for vehicle-sharing businesses already includes over 100 different features and settings that users might need. And those features are a collection of suggestions from users made over the course of several years in those markets.

However, the aim of the research is to understand what the vehicle-sharing software might look like. If the investigation is done, you can start to prepare the brief and documentation for developers. Here is a list of some other things that you should consider before starting work on a technical solution:

- backend, as well as frontend of the solution - both should be developed and supported so your team can manage operations;

- there should be two versions of the mobile app - one for users that has a device operating on iOS. Other - for the owners of devices that run on Android;

- whenever Apple or Android updates their operating systems or other 3rd party makes an update, you should be ready to check if everything works on your apps;

- apps should be compatible with smart locks in the case of bikes or IoT solutions in the case of scooters, mopeds, cars that are used on the vehicle;

- the IT solution must be properly tested and debugged - the industry average shows that testing the app takes approximately two-three months;

- if your vehicle fleet has over 100 vehicles, most likely you will have a service team. The most convenient way for the service team to operate is by using the phone app. This means that there should be one more app for the service team. And your team members might also have iOS as well as Android operating systems on their devices. So again – there are two more apps for you to build;

- additionally, you must have an invoicing option and also the option to create reports, see statistics, analyze routes, distribute promotions, launch referral programs, etc. And this list can go on and on.

The software development usually costs from EUR 100,000-400,000 depending on the complexity and features that you might want to include. In addition, you have to keep in mind that nothing ends with development. The software requires testing, private launch, debugging and support. And only then will the software be ready for the public launch. However, more bug fixing should probably be done.

One year and you are ready to go!

This whole process mentioned above takes approximately one year. Of course, fingers crossed that the solution as well as the integration with smart locks or IoT solutions works. There is just one problem - the vehicle-sharing industry is changing very rapidly - new players are coming in, others are expanding, new means of transportation are used for vehicle-sharing. And there are a lot of things that might happen and change in a year. It might be hard to catch up.

Furthermore, competitors are constantly offering and creating new features that were not in the market previously such as subscriptions, which is currently a new trend. For example, ATOM Mobility has created a white label solution for the vehicle-sharing market that constantly collects knowledge from their clients and adds new features. Later those features are integrated into solutions offered to other clients so everyone is up to date. In the case of a custom-made solution, everything is on you - it might take additional time and money.

One more thing that speaks in favor of the white label solution - let's imagine that your business is very successful. You have developed a vehicle-sharing software for the one-vehicle type and you would like to grow by adding other vehicle types. Sorry, not possible. You will have to make significant changes to the existing software or develop the new one. So probably you will have to start over again.

The same problem might apply to extending the fleet. If your business becomes scalable, the software might not be appropriate for a fleet with 20 000 vehicles. White label solution providers are usually ready for such success of their customers as they have already supported thousands of vehicles for some time.

When it is worthwhile developing a custom solution?

However, there are times that it is worth considering developing a custom solution - your own software for your vehicle-sharing business. It is worth doing this, if:

1) You already know that you might need some very specific features, but the company offering white-label solutions can't provide them to you. For example, you want your car sharing software to run on the blockchain. Or you want to create a decentralized sharing service. However, it is only worth investing in such a specific solution if it is a real game-changer for you and you have the data to proof it;

2) You have EUR 500,000 or more available in funding and you have a very strong team of developers that you would like to keep working for your company. You consider them to be your asset. Then, if you are lucky, after some time, someone might be interested in buying your company just because of the team and, of course, the solution you have developed;

3) The co-founder of the company is a very good CTO with high-level technical skills and the ability to lead the team. Then it is probably worth building a team. However, most likely you will build a technological and not a vehicle-sharing company in the end and spent more on development than actually on vehicles.

4) For some reason one of the requirements is to have a source code. Companies offering white label solutions won't be able to help you with that.

There is a power in sharing and this doesn't just apply to vehicle-sharing. You always get access to a strong network when you are working hand in hand with the industry leaders. That's what we at ATOM emphasize in collaboration with our clients. We are ready to share as much as we can because we do really care about our clients’ business. It is important for us that they grow and constantly have access to the latest achievements within the industry.

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Everything you need to know about micromobility fleet insurance
Everything you need to know about micromobility fleet insurance

Discover why fleet insurance is important for shared micromobility operators. Learn how the right coverage provides peace of mind against unexpected challenges.

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For shared mobility operators, fleet insurance should be one of the top priorities. No matter the size or composition of your fleet, having the right insurance can offer peace of mind by protecting your business from unforeseen situations

However, the insurance question can sometimes seem daunting – especially if you're new to the industry. In this article, we will explore the key things you need to know about insuring your shared micromobility fleet.

Why you need insurance

Operating a shared mobility fleet isn’t always smooth sailing. Accidents can happen – whether it's a minor fender-bender or something more severe. Insurance serves as your safety net, offering financial coverage for repairs, replacements, and even potential legal obligations after an incident.

Here are the main reasons why insurance should be one of the top priorities for shared mobility fleet operators: 

Legal compliance: In many places, insurance for shared mobility fleets is a legal requirement. You probably want to comply with these regulations to avoid any potential fines, penalties – or even the suspension of your operations.

Financial security: Insurance also helps keep your business going financially, no matter what happens. Without insurance, accidents, vehicle damage, or theft can seriously impact your finances. Comprehensive insurance coverage can ensure that you're not left scrambling to cover any unexpected expenses.

Understanding shared micromobility insurance

When it comes to insuring micromobility fleets, part of the challenge stems from the fact that the market is relatively new. Some insurance underwriters avoid dealing directly with micromobility because it's seen as an unfamiliar market. 

This is where brokers like Cachet and others specializing in micromobility insurance come in. They partner with various insurance underwriters to provide coverage for operators in this field.

When it comes to shared micromobility, insurance coverage generally has a twofold role: safeguarding assets and handling third-party engagement in the event of accidents.

person riding bicycle during daytime

Liability coverage: Securing third-party public liability insurance for shared mobility fleets is not just a matter of choice – in some places, it's mandated by law. This insurance serves to protect pedestrians and riders in the unfortunate event of accidents, providing financial coverage for injuries and damages that may arise. In other words, it's a safety net that offers peace of mind to operators.

When it comes to mandatory third-party liability insurance, the negotiations with the insurance company usually begin by figuring out what the local authorities require to give them a permit. After that, the insurance policy is adjusted to meet the specific demands outlined by these authorities.

Physical damage coverage: This covers the repair or replacement costs of vehicles if they are damaged due to accidents, collisions, vandalism, or theft. Depending on the policy, physical damage coverage may also extend to equipment like GPS devices, charging stations, and other hardware.

What decides your insurance premium payments?

The amount you'll pay in premiums depends on various factors that are specific to your business This includes your fleet's makeup, where and how you operate, and the level of coverage you're aiming for.

Fleet usage: The more a shared micromobility fleet is used, the more chances there are for things to go wrong. When a fleet is in high demand and used often, there's a greater likelihood that something might happen that requires insurance coverage.

Rider behavior: Insurance companies also consider the fleet's ability to predict and manage undesirable rider behavior. Reckless riding, improper parking, or violating traffic rules can significantly increase the risk of accidents and incidents. Operators that have better measures in place to anticipate and mitigate such behaviors can demonstrate a lower risk profile to insurance providers.

black metal train rail during daytime

Value of the fleet: How much your vehicles are worth individually and as a fleet will affect how much you pay for insurance. If your vehicles are expensive, your insurance premiums will be higher because it would cost more to replace them if they get damaged or lost.

Size of the fleet: Operators can often negotiate more favorable insurance rates for proportionally larger fleets. As the number of vehicles increases, the overall expected risk is distributed and “diluted” as a result – which translates to lower premiums per vehicle. 

However, some brokers like Cachet have embraced a broader approach, ensuring that smaller and medium-sized fleets can also benefit from insurance coverage.

Technology implementation: Shared mobility services that employ technologies like GPS tracking, telematics, and IoT devices can provide insurers with valuable data. This data can then help assess driver behavior and usage patterns, enabling insurers to offer more accurate and tailored premium rates. This also takes into account how simple it is for scooters to be stolen and how well the recovery processes function – which can also play a role in insurance expenses.

Where you operate: The location in which your fleet operates is another important factor. From the insurer’s perspective, different areas pose varied levels of risk. For example, urban mobility – which is associated with a higher risk of accidents – may incur higher premiums compared to vehicles used in rural areas.

Level of coverage: The level of coverage you choose directly affects how much you pay in premiums. Opting for higher coverage limits means you get more comprehensive protection, but obviously, it also means your insurance costs go up.

a scooter parked on the side of a bridge

Choosing the ideal insurance for your fleet

Every shared mobility fleet and business is different, so your insurance needs will depend on things like the type and size of your fleet, where you operate, how much risk you're comfortable with, and of course – how much you are willing to pay. 

For example, do you require coverage for specific risks, like vandalism, or perhaps your fleet is composed of premium vehicles that are more expensive? To make it more relatable, let's dive into a practical case of a shared micromobility operator's experience with insurance.

How Hoog found the right insurance with Cachet

The concept behind Hoog Mobility is to revolutionize transportation in smaller Estonian towns. They recognized the need for efficient and eco-friendly local travel and brought a shared mobility solution often seen in big cities but missing in smaller communities: electric scooters.

Cash-strapped mobility startups often worry about potential damage or vandalism happening to their shared vehicles. This concern is shared by traditional insurance companies too. As a result, these insurers might hesitate to provide coverage for shared scooters, and if they do – it's usually at a higher cost.

Faced with this challenge, Hoog initially operated without insurance due to the steep expenses. But that changed when Cachet provided them with a customized insurance solution that perfectly suited the company's needs. Hoog also realized that the initial worry about vandalism wasn't as much of an issue as they thought. But still – having insurance for their fleet turned out to be a sound financial decision that gave them peace of mind.

Concluding remarks

Don't underestimate insurance – it's just as crucial as having a top-notch fleet and solid software. Insurance is best approached proactively – discovering you've cut corners after an unforeseen event will cost you significantly more.

Getting insurance for shared micromobility might be a bit trickier since it's still a new concept, but we've seen that even smaller fleets can make it work – it's just a matter of finding a suitable partner who understands your needs.

At the end of the day, insurance isn't merely about meeting legal requirements – it showcases your dedication to safety, responsible operations, and the well-being of everyone involved in your mobility business.

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Why and how should authorities promote shared mobility
Why and how should authorities promote shared mobility

Unlocking the power of shared mobility – how authorities can drive change and improve transportation.

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Shared mobility is gaining momentum – offering prospects for reducing traffic, cleaning up city air, and providing users with more flexible transportation options. However, despite its potential, shared mobility often seems to take a backseat to traditional public transportation and private vehicles in the eyes of local authorities and infrastructure planners.

Experts see shared mobility as a game-changing revolution in transportation. It surpasses the earlier revolution of the 20th century when personal cars became widely affordable and accessible. Now, with the rise of shared mobility and environmental concerns, the old notion of "one car per person" is becoming outdated.

In light of this, authorities worldwide should proactively prepare for a future where shared mobility plays an increasingly significant role. In this blog post, we'll explore different ways authorities and legislators can encourage shared mobility – and why it's totally worth it.

The positive impact of shared mobility

Shared mobility has the potential to fix some of the problems we face with transportation today, benefiting users, cities, and the environment. Here are the key benefits of shared mobility:

  • Reduced congestion: Shared mobility can alleviate traffic congestion, leading to smoother traffic flow and shorter commute times.
  • Environmental sustainability: Shared mobility can reduce the number of vehicles on the road, resulting in lower greenhouse gas emissions and a smaller carbon footprint. This helps combat air pollution and mitigate the environmental impact of transportation.
  • Improved transport accessibility and flexibility: Shared mobility services make transportation more accessible, especially for those without private vehicles or limited mobility options. They also offer convenient alternatives to traditional transportation methods.

Considering the urgent need to combat climate change, shared mobility holds a significant promise as a greener transportation option. The European Union's Green Deal aims to achieve a 90% reduction in transportation-related greenhouse gas emissions by 2050. Shared mobility – coupled with increased adoption of electric vehicles and a broader shift in transportation behaviors – will likely play an important role in achieving this goal.

However, for shared mobility to truly flourish and revolutionize transportation, it needs a supportive environment backed by legislative frameworks and infrastructure planning. So, let's take a closer look at how authorities can foster wider adoption of shared mobility.

1. Favorable regulations with an eye on the future

In the past, shared mobility solutions and business models have faced challenges in gaining acceptance from regulators. A prime example is the initial response of local authorities to Uber’s novel services at the time – ordering them to cease their operations immediately.

Shared mobility services can disrupt traditional transportation models – which may not be welcomed by everyone. However, the undeniable popularity of these services, exemplified by the rapid success of Uber, demonstrates the high customer demand.

Instead of battling against it, authorities might want to shift their focus to creating a supportive legislative framework, recognizing the significant benefits shared mobility can bring. It means regulations that prioritize safety, fair competition, consumer protection, and quality standards – creating an environment where shared mobility can thrive and provide reliable services to customers.

Shared mobility is constantly evolving, which means that regulations need to be flexible and adaptable to keep up with emerging technologies and new challenges. For example, as autonomous vehicles become a possibility, authorities will need to establish guidelines for their safe integration into existing transportation networks.

2. A collaborative approach

Collaboration between local authorities and businesses can be a decisive factor in creating a favorable environment for shared mobility. By working together, they can tackle common challenges, share data, and develop integrated transportation solutions.

Public-private partnerships can also involve incentives like tax breaks or subsidies to encourage the adoption of shared mobility. For example, offering tax breaks to companies that implement ride-sharing programs for their employees can encourage the use of shared transportation options instead of individual cars. Similarly, providing subsidies for shared mobility providers can help offset the initial costs of implementing and expanding their services.

Sharing data between shared mobility platforms and transport authorities is another way to benefit from this cooperation. The platforms have valuable information on accidents, trip patterns, and driver availability. Sharing this data with local authorities can help improve the transportation network, enhance travel apps, and identify underserved areas.

3. Building infrastructure to support the future of transportation

To meet evolving transportation needs, authorities should invest in infrastructure that supports innovative modes of transportation like electric vehicles and shared mobility services. By considering the needs of shared mobility users, infrastructure planners can make it a much more attractive transportation option.

Here are the key infrastructure needs for shared mobility:

Integration with existing infrastructure: To offer users smooth and effective transportation choices, shared mobility must seamlessly integrate with current transport systems like public transit. It should enable users to plan multi-modal journeys and switch between different modes of transport without hassle. For example, users should be able to seamlessly transition from a shared bike or scooter to a bus or train.

Charging stations: Keeping shared electric vehicles performing at their best relies on maintaining their charge. This requires establishing a network of strategically positioned charging stations throughout urban areas. If we're aiming for more people to use electric vehicles, we need to make charging them easy and accessible.

Dedicated parking: Shared mobility services need designated parking areas for their vehicles, such as bike racks and car-sharing parking spots. Well-organized parking infrastructure can reduce street clutter and make it easier for others to grab a shared mobility vehicle.

Information infrastructure support: Running shared mobility services smoothly, including handling bookings, payments, and logistics, depends greatly on a reliable information infrastructure foundation. With the advent of advanced networks like 6G, users will increasingly rely on this infrastructure to stay connected and make the most of these services.

The shared mobility landscape in France

Paris's recent ban on free-floating e-scooters has put France in the spotlight. To take a closer look at the shared mobility environment in France, we turned to Manon Lavergne, CEO of Viluso, a shared micromobility operator. We asked for her insights on the state of micromobility in the country.

Since the Mobility Orientation Law in 2019, the French government has been working to make shared transport easier to access everywhere. At COP 26 in 2021, France undertook to cut its CO2 emissions by 55%.

According to Manon, personal vehicle ownership in urban settings is losing favor among many French citizens, and Paris stands out as a shared micromobility epicenter. The city pioneered self-service shared mobility networks like Vélib' (2007), Autolib' (2011), and Cityscoot's shared electric scooters (2016).

However, in April 2023, Paris residents voted to ban free-floating e-scooters in the city. The reasons behind this decision included riders competing for space with pedestrians on sidewalks and complaints about e-scooters cluttering the pavements when parked. 

Captur's case study on e-scooter parking habits in Paris revealed that the majority of users encountered no problems when parking scooters in designated bays. However, outside of the designated areas, users had to compete with other vehicles, resulting in poorer parking choices.

This example again emphasizes the need for proper infrastructure to support shared mobility. Lots of cities around the world were mainly designed with private cars in mind – which can create challenges for accommodating shared mobility solutions.

Anne Hidalgo, Paris' Mayor, campaigned with a strong green agenda and has introduced various changes to tackle pollution and traffic jams. Her vision includes a "15-minute city" where people can access work, shopping, healthcare, education, and leisure within a 15-minute walk or bike ride from their homes.

Yet, the chaotic state of free-floating e-scooters in Paris resulted in their ban. This scenario raises a question for other global cities: How can shared mobility be encouraged without disrupting other transportation choices and pedestrian movement?

According to Manon, the upcoming 2024 Olympic Games in Paris, which will draw many visitors, will provide valuable insight into the city's transportation system – including the viability of shared mobility.

Shared mobility is here to stay – so start planning today

By adopting a supportive approach, authorities worldwide can play a crucial role in enabling the full potential of shared mobility. While it may require a shift in mindset, the potential gains of reduced congestion, environmental sustainability, and improved transportation options make it a worthwhile consideration. 

We know that shared mobility is here to stay and will only expand in the coming years. By taking a more proactive stance, authorities will be in a better position to integrate and maximize the full benefits of shared mobility.

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