Who does carsharing better – OEMs or start-ups?

Who does carsharing better – OEMs or start-ups?

Who does carsharing better – OEMs or start-ups?

The carsharing industry is at a crossroads. Once hailed as the future of urban mobility, it has seen a mix of success and failure, with some players thriving and others closing shop. So we ask: why do some carsharing ventures fail while others continue to grow? And more importantly, what does it take to run a sustainable and profitable carsharing business in today’s competitive landscape?

Recent developments have been telling. Two OEM-backed carsharing ventures have recently shut down, while independent operators continue to expand, and a new entrant – Kia – has just launched its own service. This article takes you into the challenges, key success factors, and the evolving role of technology in the industry.

OEMs vs. startups: What's the difference?

Before diving into specific cases, it’s important to clarify what OEMs (Original Equipment Manufacturers) are and how they differ from startups. OEMs are traditional car manufacturers – companies like Kia, Volvo, or Ford – that primarily produce and sell vehicles under their brand names. Some OEMs have expanded into mobility services, including carsharing, but often struggle because their main focus remains on car sales.

In contrast, startups and independent operators like GreenMobility are built from the ground up as mobility service providers. They don’t manufacture cars but instead focus entirely on the carsharing experience, optimizing operations, technology, and customer service. This difference in core focus often determines success or failure in the carsharing industry.

OEM carsharing ventures

Automakers have long recognized the potential of carsharing as a way to diversify revenue streams, enhance brand loyalty, and explore new mobility business models. However, history has shown that simply putting cars on the streets and creating an app isn’t enough to make carsharing work.

Several OEM-backed carsharing services have struggled to maintain profitability. Volvo’s Volvo On Demand recently announced its closure as part of a broader strategy to optimize costs. Similarly, SEAT ceased operations at the end of 2024 due to declining demand and rising operational costs (€31 million total losses, with €11 million lost in 2023 alone, against a turnover of €16 million).

The challenges OEMs face in carsharing stem from several factors:

  • High operational costs: Fleet management, maintenance, insurance, and parking fees add up quickly.
  • Consumer behavior: Unlike leasing, carsharing requires a behavioral shift from users, who must plan trips around vehicle availability.
  • Integration challenges: Traditional automakers are structured around car sales, not service-based mobility solutions. This makes it difficult to operate carsharing efficiently.

However, these closures don’t necessarily mean that carsharing itself is an unsustainable model. Instead, they highlight the need for a different approach – one that independent players are executing more effectively.

New entrants and independent operators

While OEM carsharing ventures struggle, independent operators like GreenMobility are experiencing growth. Unlike traditional automakers, these companies are built from the ground up as mobility service providers, allowing them to operate more efficiently.

GreenMobility’s growth can be attributed to:

  • A laser focus on carsharing: Unlike OEMs, which juggle multiple business lines, independent companies dedicate their entire strategy to optimizing the carsharing experience.
  • Smart cost control: Leveraging technology for fleet management and maintenance allows them to run lean operations.
  • Strategic market selection: Choosing the right cities with high demand and favorable regulatory environments plays a huge role in their success.

By leveraging a digital-first approach, these companies are able to optimize vehicle utilization, reduce operational costs, and offer a seamless user experience—something OEMs often struggle to achieve.

Does KIA’s entry in carsharing bring new hopes?

Amidst the shifting landscape, Kia has entered the carsharing market with its new service, Hyr & Dela. Unlike previous OEM carsharing attempts, Kia's model focuses on businesses rather than individual consumers. This service allows companies to rent vehicles on a monthly basis and share them among employees, partners, or customers via a digital platform.

Why does this approach make sense?

  • Higher vehicle utilization: By targeting businesses, Kia ensures that its vehicles are in use more frequently than traditional consumer-focused carsharing models.
  • Fleet management efficiency: A B2B-focused model allows for easier scheduling, tracking, and maintenance planning.
  • Electric vehicle (EV) adoption: Kia’s service aligns with the growing trend of businesses adopting EVs for sustainability goals.

If executed well, Kia’s corporate-focused carsharing model could prove to be a sustainable business approach, avoiding many of the pitfalls that plagued previous OEM carsharing attempts.

5 lessons we have learned from this

So, what can current and future carsharing ventures learn from these experiences?

1. Adaptability is key

Rigid business models and a lack of flexibility are major roadblocks to success. Carsharing services need to be highly adaptable, leveraging data to adjust pricing, fleet locations, and service offerings dynamically.

2. Cost management determines longevity

Carsharing is a capital-intensive business. Operators need to optimize fleet efficiency, reduce downtime, and control maintenance and insurance costs. This is where independent operators often outperform OEMs, as they are more agile in managing expenses.

3. Technology is a game-changer

A carsharing platform is only as good as its technology. Companies partnering with mobility tech providers like ATOM Mobility can benefit from advanced booking systems, automated fleet management, and data-driven decision-making—key elements for a seamless and cost-effective service.

4. Market selection matters

Choosing the right city or region for carsharing is crucial. Factors like public transportation integration, parking regulations, and urban population density can make or break a carsharing business.

5. OEMs need a service-oriented mindset

Carsharing is not just about providing access to vehicles—it’s about service excellence, convenience, and user experience. For OEMs to succeed, they need to rethink their approach and adopt a more customer-centric mindset.

The future of carsharing

The carsharing industry is at an inflection point. While some OEM-backed services have faced hurdles, independent operators like GreenMobility and strategic initiatives like Kia’s Hyr & Dela show that success is still possible with the right approach. The key lies in adaptability, cost control, technology integration, and market focus.

As the industry continues to evolve, Kia’s entry into corporate carsharing is an exciting development. With a smart strategy and strong execution, they have the potential to carve out a successful niche in the market.

We’ll be keeping an eye on Kia’s progress and, in the meantime, wishing them the best of luck in their new venture. Let’s hope they are here to stay!

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🔒 We're proud to announce that ATOM Mobility is now officially certified to ISO/IEC 27001 and ISO/IEC 27701, reinforcing our commitment to the highest standards of information security and privacy. Learn what these internationally recognized certifications mean, why they matter for mobility operators, and how they help protect your business and customer data.

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At ATOM Mobility, trust has always been one of the foundations of our platform. Every day, mobility operators ranging from small operators to entreprises around the world rely on us to manage their fleets, customer data and day-to-day operations. That's why we're proud to announce that ATOM Mobility has officially achieved both ISO 27001 and ISO 27701 certification.

These internationally recognized standards demonstrate our commitment to protecting information, managing cybersecurity risks, and ensuring privacy is built into every aspect of our platform.

What do these certifications mean?

ISO 27001 is the leading international standard for information security management. It confirms that ATOM Mobility has implemented a comprehensive Information Security Management System (ISMS) with processes designed to identify, assess, and mitigate security risks across the organization.

ISO 27701 extends this framework by focusing specifically on privacy information management. It validates that we have established robust processes for handling personal data responsibly, transparently, and in accordance with internationally recognized privacy practices.

Together, these certifications provide independent verification that security and privacy are embedded into how we build, operate, and continuously improve our software.

Why this matters for our customers

Mobility platforms process sensitive operational and customer information every day, from user accounts and payment data to fleet operations and business analytics. Protecting this information is not just a technical requirement - it's a responsibility. The certification scope covers ATOM Mobility's SaaS platform and the internal processes used to develop, operate, and support it.

For our customers, this provides additional confidence that:

  • Information security is managed according to internationally recognized best practices.
  • Customer and personal data are protected through well-defined privacy controls.
  • Risks are continuously assessed, monitored, and improved.
  • Security is integrated into our development and operational processes and not added as an afterthought.
  • Our security and privacy practices are independently audited and continuously improved.

Whether you're launching a new shared mobility service or operating thousands of vehicles across multiple cities, you can rely on ATOM Mobility to support your business with a platform built around security, privacy, and reliability.

More than a certification

Achieving ISO 27001 and ISO 27701 wasn't simply about passing an audit.

It required months of reviewing internal processes, strengthening security controls, documenting procedures, training our team, and ensuring that security and privacy are integrated throughout the organization. While the certifications mark an important milestone, they also represent an ongoing commitment.

Maintaining these standards means continuously evaluating risks, improving processes, and adapting to an evolving cybersecurity landscape. For us, this is not the finish line it's another step in building a platform our customers can trust for years to come.

A special thank you to TestDevLab

This achievement would not have been possible without the expertise and guidance of TestDevLab, who supported us throughout the preparation and certification process.

From helping us assess our existing processes to providing practical recommendations and guiding us through the audit journey, their team played an important role in helping us reach this milestone.

"ATOM Mobility approached certification the right way - not as a compliance exercise, but as a chance to formalise and strengthen how they handle customer data. That mindset is what made the process efficient, and it's what will keep the certification meaningful long after the audit."

"For any SaaS platform handling operational and personal data at scale, security and privacy can't be an afterthought bolted on before a procurement review. ISO 27001 and ISO 27701 give companies a common language for proving that data protection is built into how the business runs - the processes, the controls, the accountability. Increasingly, that's not a competitive advantage; it's the baseline customers and regulators expect."

We're grateful for their professionalism, knowledge, and partnership throughout this project.

Looking ahead

As shared mobility continues to grow, so do expectations around cybersecurity, privacy, and compliance. Operators, cities, enterprise customers, and public authorities all expect technology providers to meet the highest standards when it comes to protecting sensitive information.

Achieving ISO 27001 and ISO 27701 reinforces our commitment to delivering a secure, reliable, and privacy-focused platform for mobility operators worldwide.

We'd like to thank our customers, partners, and team members for their continued trust. We'll keep investing in security, privacy, and operational excellence so you can focus on growing your mobility business with confidence.

Ready to build a secure mobility service?

Whether you're launching a new shared mobility operation or scaling an existing fleet, security and privacy should never be an afterthought. At ATOM Mobility, we're committed to providing a platform that combines enterprise-grade security with the flexibility operators need to grow.

If you'd like to learn more about our platform or see how ATOM Mobility can support your business, book a demo with our team. We'll show you how our software helps operators around the world launch, manage, and scale successful mobility services backed by internationally recognized security and privacy standards.

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Here's what to consider before launching your first fleet.

Step 1: Choose the right city

The success of a scooter-sharing business often depends more on the city than on the scooters themselves. Before investing in vehicles, take time to understand the local market. Does the city issue permits for scooter-sharing operators? Are there already established competitors? Is the population dense enough to support frequent short trips? Well-developed cycling infrastructure and strong public transport networks can also work in your favour by creating first and last mile travel opportunities. Competition isn't necessarily a bad sign. If multiple operators are already active, it usually means there is proven demand. The challenge is understanding whether there's room for another service and how your business can differentiate itself.

Step 2: Build a business model that fits your market

One of the first decisions is choosing how riders will use your service. Some operators choose a free-floating model, where scooters can be picked up and parked anywhere within a designated service area. Others prefer station-based systems that require trips to start and end at fixed locations. Free-floating fleets offer greater flexibility for users, while station-based systems usually provide more predictable operations, simpler charging logistics, and fewer parking issues.

Pricing deserves just as much attention. Many operators combine an unlock fee with per-minute pricing, while others introduce subscriptions, ride bundles, or daily passes for frequent users. It's also worth defining your target utilisation rate before purchasing vehicles. A fleet of 200 scooters averaging five trips per day is generally a healthier business than a fleet of 500 scooters averaging only one or two.

Step 3: Choose hardware that will last

Buying scooters is only one part of the investment. Operators should look beyond purchase price and evaluate durability, battery capacity, weather resistance, maintenance requirements, spare part availability, and the total cost of ownership over several years.

The hardware inside each scooter is equally important. GPS tracking, remote locking, battery monitoring, vehicle diagnostics, and theft protection all depend on reliable IoT connectivity. Many newer operators also choose swappable battery systems because they reduce downtime and allow batteries to be replaced on the street instead of transporting scooters back to a warehouse for charging.

Choosing hardware that integrates smoothly with your software platform will make expansion much easier later on.

Step 4: Select software that can grow with your business

The customer usually sees only the mobile app, but software runs almost every part of a scooter-sharing business. Beyond booking and payments, operators need tools for fleet management, pricing, subscriptions, maintenance scheduling, customer support, analytics, reporting, and day-to-day administration. As fleets grow, managing these processes manually quickly becomes unrealistic. When comparing software providers, look beyond the list of features. Consider how well the platform integrates with your hardware, whether new vehicle types can be added later, and how much of the daily operational work can be automated, what other operators are saying about the software.

Platforms such as ATOM Mobility's vehicle-sharing software bring rider apps, fleet management, payments, maintenance workflows, and analytics together in one system, allowing operators to manage the business without relying on multiple disconnected tools.

Step 5: Think about your first riders before launch day

Successful operators usually spend weeks preparing their first marketing campaigns before the fleet goes live. Referral programmes can encourage existing users to invite friends, while partnerships with universities, hotels, offices, residential developments, and local businesses help introduce the service to potential riders. Introductory discounts often work well during launch, but long-term success depends on giving people a reason to keep coming back after the promotion ends.

Step 6: Prepare your operations before the first ride

Many mobility businesses don't struggle because demand is low – they struggle because operations become difficult to manage as the fleet grows. Before launch, operators should already have clear procedures covering:

  • vehicle inspections
  • charging and battery swaps
  • maintenance and repairs
  • fleet balancing
  • customer support
  • incident reporting

It is also worth deciding when operational action should be triggered. For example, at what battery level should a scooter be collected? How many inactive hours should pass before a vehicle is relocated? When should damaged scooters automatically be removed from service? Answering these questions early helps create consistent operations as the business grows.

How long does it actually take to launch?

Building custom mobility software from scratch can easily take 6-12 months or more, particularly when mobile apps, payments, IoT integrations, and fleet management systems all need to be developed from 0. Custom mobility software also costs 10 times more and may not be delivered in time.

Using a white-label platform shortens that process considerably. With ATOM Mobility's vehicle-sharing platform, operators can often launch in as little as 20 days, depending on branding, hardware integrations, payment setup, and operational readiness. That allows founders to spend less time developing software and more time preparing the business itself.

Launching a scooter-sharing business has never been easier from a technical perspective, but long-term success still depends on execution. Choosing the right city, investing in reliable hardware, selecting software that can grow with the business, and establishing strong operational processes all have a much bigger impact than simply deploying more scooters. The operators that build those foundations early are usually the ones best positioned to scale in the years that follow.

Want to learn more?

For entrepreneurs who want to dive deeper, ATOM Academy (https://www.atommobility.com/academy) is a free online learning platform created by mobility industry experts. It includes practical video courses covering topics such as:

  • How to launch a shared mobility business
  • Fleet operations and maintenance best practices
  • Pricing and business models
  • Marketing, support and customer acquisition
  • Mobility software tutorials and platform walkthroughs
  • Industry trends and expert insights

Whether you're preparing to launch your first fleet or looking to optimise an existing operation, the Academy provides practical guidance based on real-world experience from hundreds of mobility projects worldwide.

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