Who does carsharing better – OEMs or start-ups?
February 7, 2025
min. read
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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How to retain drivers on your ride-hailing platform long term
🚗💬 Why do ride-hail drivers quit – and what makes them stay? We break down insights from the 2025 Gig Driver Report and show how ATOM Mobility helps platforms keep drivers happy with instant payouts, dynamic pricing, and smarter tools.
September 23, 2025
min. read
How to retain drivers on your ride-hailing platform long term
In the ride-hailing business, getting enough drivers online is critical. But keeping them there is what really drives long-term success. Unlike traditional taxi services, ride-hailing drivers are independent contractors. They don’t have fixed shifts, guaranteed income, or long-term contracts. They log on when it suits them, and just as quickly, they can log off – or switch to another app.
That flexibility means you're not only competing for riders. You're also competing for drivers, every single day.
What makes ride-hailing different for drivers
Compared to traditional taxis, the ride-hailing model offers drivers more independence but less security. Taxi drivers usually worked under a dispatcher, used company-owned vehicles, and followed a set schedule. Ride-hailing drivers use their own car, their own time, and often multiple apps.
The benefits are clear: flexibility, lower entry barriers, and instant access to earnings. But the downsides are just as real: unpredictable income, lack of support, and platform instability. For platforms, that means driver loyalty is fragile. Small changes – like delayed payments or fewer rides – can cause drivers to leave.
Why driver retention matters
Most ride-hailing operators focus heavily on passenger growth. But without enough reliable drivers, demand turns into frustration. When wait times grow or no vehicles are available, users abandon the app. This makes driver retention a key metric – not just for operations but also for brand trust and profitability.
It’s more expensive to onboard a new driver than to keep an experienced one. A stable driver base delivers smoother rides, higher ratings, and better service coverage. If your drivers are churning every few weeks, your entire operation becomes reactive.
Inside the 2025 Gig Driver Report
A recent survey by Everee sheds light on what drivers want - and what makes them quit. In May 2025, 419 gig drivers in the U.S. were surveyed. Most of them worked across multiple apps, including Uber, Lyft and Shipt. The full findings are available in the 2025 Gig Driver Report by Everee.
Key findings:
- 68% of drivers work with two or more gig apps every month. Only 32% stick to one.
- 84% say fast access to earnings is important or very important when deciding where to work.
- 70% of drivers want their money within 24 hours.
- 44% would consider quitting if instant payouts became slower or more expensive.
- 21% would leave if onboarding took too long.
These numbers show how sensitive drivers are to delays, unclear policies, and inefficiencies. A small friction point in your system could be enough to push them to a competitor.
Why drivers leave
The survey also highlighted the most common reasons drivers stop working with a platform:
- 59% left after a sudden drop in pay rates or bonuses
- 48% due to fewer available jobs
- 44% when fees or restrictions were added to instant payouts
- 41% because of safety concerns during pickups or drop-offs
- 39% due to rigid scheduling or lack of flexibility
In short, if drivers feel their earnings or control are at risk, they move on. The ride-hailing industry is too competitive for platforms to assume drivers will stay loyal without constant support and improvement.
What platforms can do to retain drivers
To retain drivers long term, platforms need to act on what drivers value most. According to the same report, the top three areas that would increase loyalty are:
- Guaranteed minimum earnings or predictable income
- Better access to instant payouts
- A smoother, faster onboarding process
Additionally, drivers want to feel that their time is respected, their safety is prioritized, and that they are not left guessing about payments or platform changes.
How ATOM Mobility helps you build driver loyalty
With ATOM Mobility’s platform, ride-hailing operators have access to several features designed specifically with drivers in mind.
The “Offer Your Price” feature allows riders to bid slightly more during high demand or bad traffic conditions, giving drivers the chance to earn extra when it matters most.
Dynamic pricing lets operators automatically raise fares during weekends, holidays, or peak hours so that drivers earn more when demand spikes.
One of the most impactful tools is the instant revenue split system, where a driver’s commission is transferred directly to their Stripe Connect account after every successful ride. This eliminates waiting times and builds trust through real-time, transparent payouts.
To make things even smoother, ATOM Mobility offers a dedicated driver app where drivers can track performance, see earnings, and review ride history.
All of this adds up to a professional, transparent experience for drivers - and a stronger incentive to stay on your platform long term.
A dedicated driver app helps drivers track performance, earnings, and ride history. This kind of visibility increases engagement and reduces confusion. Instead of contacting support for payment questions, drivers can see everything directly in the app. The experience feels more professional and structured – which increases the chance they’ll stay longer.
You can explore the dedicated driver app in more detail on driver app overview.
Faster onboarding leads to faster activation
Another key piece of retention is how quickly drivers can get started. Platforms that make onboarding long or confusing lose drivers before the first ride. ATOM Mobility supports streamlined onboarding flows with pre-filled fields, automatic document validation, and built-in guides. In some cases, drivers can be onboarded, verified, and ready to drive within hours – not days.
A better experience creates loyalty
Drivers are not just users of your app – they are ambassadors of your brand. Every interaction they have, from the first sign-up to the latest payout, shapes how they feel about your platform. If it’s smooth, fair, and rewarding, they’re likely to stay. If not, they’ll be gone before the next weekend rush.
By investing in the right tools and understanding what really matters to drivers, platforms can reduce churn, increase satisfaction, and build a loyal driver base. And in a market where supply is everything, that loyalty pays off.
If you're building a ride-hailing operation and want to give your drivers a reason to stay, ATOM Mobility gives you the technology to make it happen. From instant payments to dynamic pricing and a dedicated driver app, everything is designed to keep your fleet active and engaged – for the long haul.
Blog
ATOM Connect 2025: Where Europe’s shared mobility leaders meet
👉 ATOM Connect 2025 is an exclusive shared mobility networking event hosted by ATOM Mobility in collaboration with INVERS. This focused gathering will bring together industry leaders, innovators, and decision-makers from Europe's car-sharing and car-rental sectors to explore the future of shared mobility.
September 16, 2025
min. read
What happens when professionals from Europe’s car sharing and car rental industries gather under one roof? You get a day filled with fresh ideas, insightful discussions, and valuable connections that help shape the future of mobility. That’s what awaits at ATOM Connect 2025 - a dedicated industry event hosted by ATOM Mobility in partnership with INVERS.
This year’s gathering takes place on October 30, 2025, in Riga, Latvia, at the panoramic top floor of the AC Hotel by Marriott. With views stretching across Riga’s historic Art Nouveau district, the setting offers an inspiring backdrop for meaningful conversations about the next steps in shared mobility.
Date & Time: October 30, 2025, from 15:00 onwards
Location: AC Hotel by Marriott, Riga (top floor with panoramic views)
Hosts: ATOM Mobility & INVERS
Format: Expert talks, interactive Q&A, networking sessions, and evening drinks
Topics covered:
- Market insights from INVERS
- Scaling car sharing businesses
- Digital transformation in rentals
- Corporate mobility opportunities
- Eastern Europe’s shared mobility landscape
Why Attend ATOM Connect 2025?
Learn from industry experts
The agenda is designed to address today’s most relevant mobility challenges. Expect data-driven insights from INVERS, practical strategies for scaling car sharing operations, discussions on digital rental solutions and corporate mobility, plus a closer look at the unique opportunities and challenges in Eastern Europe.
The event will also be joined by BYD, one of the world’s fastest-growing electric vehicle makers, who will showcase their innovative, affordable EVs at our event.
Build valuable connections
ATOM Connect 2025 is a focused gathering that brings together operators, rental businesses, and mobility experts from across Europe. With a mix of talks, networking breaks, and an evening reception, the event offers the perfect setting to exchange experiences, discuss challenges, and explore future partnerships.
Join the Conversation
If you’re active in car sharing or rental industry and want to stay ahead in a rapidly evolving market, ATOM Connect 2025 is a must-attend event. Together with INVERS, we’re creating a space where the European shared mobility community can connect, learn, and look toward the future.
👉 Save the date and request your spot today*: https://www.atommobility.com/atom-connect-2025
*Please note: ATOM Connect 2025 is intended for shared car mobility and car rental industry professionals. Registration requests will be reviewed before confirmation.
Driver App demo credentials - Email: test@atom.com, Password: driver
