The European car sharing market is complex, featuring a diverse range of business models implemented on the streets. Operators employ various strategies, such as station-based services, peer-to-peer car sharing, and free-floating services, to address distinct use cases and offer distinct services. In addition, the European car sharing market is one of the largest and the most complex in the world. To address and explain some of these complexities, INVERS publishes the “European Car Sharing Barometer”. This 70-page report helps car sharing operators quickly understand key market dynamics, insights, and trends.

• Legal form cooperative
• Rural car sharing
• Sustainability goals
• Optimum station-density

Mobility is one of the largest car sharing cooperatives in the world. What does that mean for your users and how do you think it affects you as a company?

It is certainly a great advantage that Mobility has been around for over 25 years. We have gained a lot of experience in operating car sharing and have built up a dense network of over 3,000 vehicles. Switzerland is predestined for car sharing thanks to its small size and well-developed public transport network. In urban areas in particular, it is now easy to replace private cars with car sharing. The legal form of a cooperative also helps us to take a long-term perspective and not focus on short-term profit. There are many passionate fans among the members of the cooperative who are personally committed to Mobility and ensure broad support.

You provide car sharing in many rural areas. What advice would you give to other operators to take car sharing beyond the big cities?

It is more challenging to operate car sharing in rural areas. We almost always base our vehicles at railway stations because public transport in Switzerland also works well on the periphery.
On the one hand, more people with an affinity for public transport live near train stations, and on the other hand, this ensures seamless, shared mobility. We also work with municipalities, areas and companies. They have the opportunity to establish Mobility car sharing in their area through sponsorship. Together, we can build a larger network and give more people access to shared vehicles.

Could you describe us your sustainability goals and how you plan to achieve them?

Our car sharing service is already fundamentally sustainable, as one shared car replaces 11 private vehicles. However, Mobility also wants to reduce its own emissions to net zero by 2040 and has therefore committed itself to the Science Based Targets initiative (SBTi). The biggest lever in reducing CO2 emissions is the conversion of the vehicle fleet to electric drives. There are already 600 electric cars in use, and the number is growing. In addition, Mobility customers can voluntarily pay an extra three Swiss Rappen per kilometer driven to take responsibility for the emissions caused by their journey. Every customer contribution is doubled by Mobility and invested in sustainability projects.

What is the optimal station density for station-based car sharing in Switzerland?

The answer to this question is far from trivial. Our 1,600 stations with over 3,000 vehicles are all integrated into a local system that is not the same everywhere. How well an individual location performs is a combination of factors and is not always predictable, even for us. It is clear that a dense network is very important, especially in cities, so that a car is available within walking distance even for last-minute requests. In Switzerland’s largest cities, the nearest Mobility station is usually a five-minute walk away. If the demand is not quite sufficient for a self-service operation, we offer simple and attractive services for companies, municipalities and areas.

Further insights into the European car sharing market

Thank you, Andrea, for sharing your expert insights.

For more information and interesting findings about European car sharing, we encourage readers to check out our 70-page European Car Sharing Barometer 2024 with more expert interviews as well as insights from national car sharing associations. To discover more from Mobility, please visit their website.

Table of Contents

• The Everyday Life of Customer Service Managers
• Solutions to Detect Vape and Cigarette Smoke in Cars
• 1. High-Frequency Cleaning & Ozone Cleaning
• 2. Relying on Customers for Reports
• 3. Regular Inspections by Employees
• 4. Nicotine Tests for Surfaces
• 5. Automated Smoke Detection
• Stop smoking and drive profitability

The Everyday Life of Customer Service Managers

Have you ever asked yourself what the work of a customer service manager at a car sharing company looks like? Let’s look at Clara. She works hard to improve customer experience at the local operator by analyzing customer feedback related to vehicle conditions. But each week on Monday, she gets frustrated by the overwhelming wave of complaints.

The weekend sees the highest car sharing usage rates in her hometown, which is reflected in the vehicle condition. People leave empty bottles, trash, and cigarette butts in the car. Recently, the total number of smoking incidents per week has also increased significantly. As the days get shorter and the temperatures drop, smokers tend to light their cigarettes in their cars instead of going out into the cold rain. No matter if it is their own car, a rental car or a shared one.

In rented and shared vehicles, smoking is not only a violation of regulations, but it also results in high cleaning costs and workload for operators. The sheer volume of complaints about smoking leads Clara to question why some rude minority of customers is ignoring the smoking ban. There must be a reliable way to detect smoking in cars, issue fines to customers who break the rules and thereby protect non-smokers.

Solutions to Detect Vape and Cigarette Smoke in Cars

These are questions that many car sharing operators and car rental companies face on a daily basis. Smoking has become a major challenge for operators, resulting in high maintenance costs and a poor user experience for non-smokers.

We have identified 5 solutions that can help Clara and any other car sharing business to identify smoking incidents in cars. Stay tuned to explore the pros and cons of each solution and which business model they are best suited for.

1. High-Frequency Cleaning & Ozone Cleaning

Intense cleaning on a daily or weekly basis is an obvious answer to keep your shared or rental cars in good condition. However, this is more of a post-smoking solution as it focusses on eliminating smoke residue from the vehicle.

All vehicles are cleaned in this procedure, regardless of the degree of soiling. During each session, cleaners employ high-quality cleaning products specifically designed to neutralize smoke particles and remove residues.

After the standard cleaning, an ozone generator can be used inside the vehicle. This device produces ozone (O3), a molecule that interacts with smoke particles and breaks them down at the molecular level. This process typically lasts a few hours, ensuring thorough reach in all nooks and crannies of the interior. After the treatment, the vehicle is ventilated properly to ensure all residual ozone is expelled, making it safe for the next user.

Which Car Sharing Operators Should Use It?

High-frequency cleaning and ozone cleaning to detect smoking in cars is best suited for premium services where customers expect immaculate cleanliness. It requires significant financial resources to set up a proper cleaning schedule.

Pros

• Top-Notch Vehicle Condition: Frequent cleaning helps maintaining vehicle quality despite heavy usage
• Effective Smell Elimination: Ozone cleaning is highly effective at breaking down and removing smoke particles, ensuring a fresher, cleaner vehicle
• Improved Customer Satisfaction: Regular cleanings and ozone treatment create a more pleasant experience for users, boosting overall satisfaction and retention

Cons

• Cost: High-frequency cleaning and ozone treatments can be expensive, impacting budget allocations for operators
• Downtime for Vehicles: During the cleaning and ozone process, vehicles must be out of service, which can lead to reduced availability for users
• Potential for Ozone Overexposure: If not ventilated properly post-treatment, residual ozone can pose health risks. Proper protocols must be rigorously followed

2. Relying on Customers for Reports

As smoking customers won’t ever self-report their misbehavior, you need to get your feedback from other, unsatisfied customers. Some operators use in-app or email surveys to collect feedback. Others rely on real-time app notifications after a ride, where customers receive a prompt to provide feedback specifically focused on smoke detection and overall vehicle cleanliness.

It is also an option to implement simple buttons into the app, allowing customers voluntary action to report once they recognized smoke odor. All this data helps operators to identify vehicles with many smoking incidents.

Which Car Sharing Operators Should Use It?

Especially large-scale operators with a wide user-range can leverage vast amounts of feedback to quickly identify and resolve common problems. On the other side, budget-conscious as well as free-floating operators can benefit from a cost-effective method for monitoring vehicle conditions without substantial investment in technology or labor.

Pros

• Cost-Effective Monitoring: Low-cost method to continually monitor vehicle conditions without frequent physical inspections
• Direct User Insights: Gain firsthand insights from the people who experience your service, providing real-world data on issues like smoke detection
• Improved Customer Relations: Engaging with customers and acting on their feedback enhances overall satisfaction and loyalty

Cons

• Subjectivity: Feedback can be highly subjective and may not always accurately represent the vehicle’s condition
• Unreported Cases: If a car is idle for a long time after a rental, customers might not notice the smell, but it still builds up over time in the seats
• Lack of Immediacy: The last customer to rent the vehicle does not have to be the one who smoked. There may have been several rentals after smoking before a customer complains
• Implementation Resources: Setting up, managing, and analyzing feedback systems requires resources and coordination, which might strain smaller operators’ capabilities

3. Regular Inspections by Employees

Prior to establishing a regular cleaning schedule, it is possible to implement a regular inspection schedule based on individual intervals. If you have a lot of funds and long rentals, you can check after every trip. If you do shorter rentals and have few employees, you may only be able to check once every few days or weeks.

Employees try to identify cars someone had smoked in to reduce the build-up of smoke odors and contaminants based on the vehicles’ smell. Detailed checklists help to ensure thorough assessment of potential smoke damage, odor, and overall vehicle cleanliness. Once your employees detect smoke or cleanliness issues, they can take immediate steps to clean the vehicle or escalate it to a deeper cleaning process.

Which Car Sharing Operators Should Use It?

Regular inspections are most suitable for station-based car sharing operators. Especially local or regional business can benefit from their smaller territories to implement and manage regular inspections by a dedicated team. They are able to consolidate their resources to a few drop-off locations, saving time and money. Premium operators can offset the additional personnel costs with higher rental prices.

Pros

• Hands-On Monitoring: Provides a tangible, real-time assessment of each vehicle’s condition, catching issues early before they escalate
• Quality Assurance: Regular inspections ensure that service standards are consistently met, enhancing customer satisfaction
• Better Culpability Allocation: Although it’s not 100% reliable and depends on the inspection frequency, regular vehicle checks by employees help narrow down which customers could have smoked in the vehicle

Cons

• Resource Intensive: Requires significant effort and time to conduct regular inspections, which can be a logistical challenge
• No Solid Evidence: The people doing the inspections might not notice the smell because they are in a hurry or because they’re smokers themselves
• Operational Downtime: Vehicles need to be taken out of circulation for the duration of the inspection, potentially reducing availability for users
• Limited Business Models: Only applicable for station-based car sharing operators

4. Nicotine Tests for Surfaces

If you like to use a more advanced way of regular inspections, nicotine test for surfaces might be a good solution for you to detect smoking in cars. You no longer rely on your employees’ trying to smell smoke, but you have solid evidence. These tests allow for collecting surface samples from the vehicle’s interior, changing the color of a reagent when nicotine is detected.

The A-pillar is the best area to start testing since that’s where the cigarette is held and most smoke drifts. Other high contact areas such as seats, dashboards and door handles may also be a first choice for testing. Once nicotine is detected, the car can begin the deep cleaning process.

Which Car Sharing Operators Should Use It?

Similar to the third solution, nicotine tests are also best suited for station-based operators with sufficient staff resources and premium services that want to support their employees with reliable tools to identify smoking incidents. Nicotine tests also become interesting to operators that are in the resale process at the end of the vehicle rental lifecycle. They can use it to prove the cars were always smoke-free.

Pros

• Accurate Detection: Nicotine tests provide specific, measurable evidence of smoking that can confirm or refute suspicions, leading to targeted remediation
• Policy Enforcement: Clear evidence from tests can help operators enforce non-smoking policies more effectively and fairly by correlating violations with tangible evidence
• Customer Confidence: Demonstrating the use of rigorous testing procedures can build trust with customers, ensuring them of a smoke-free environment

Cons

• Cost of Testing Kits: Regular use of nicotine testing kits can become costly, especially for large fleets requiring frequent testing
• Increased Vehicle Downtime: Time-consuming cleaning with test kits can delay vehicle availability for users
• Labor-Intensive Process: Performing tests on multiple vehicles needs many employees and does not scale well
• Potential for False Positives/Negatives: While reliable, chemical tests are not infallible and can sometimes produce false results, leading to unnecessary actions or missed detections

5. Automated Smoke Detection

The most sophisticated solution you can use is an automated smoke detector. Sensors are being installed within the vehicle interior, most commonly on the windshield. These sensors are connected to the telematics unit, which enables real-time access to data on smoking incidents.

The sensors are designed to continuously monitor air quality within the vehicle. When smoke particles exceed pre-established thresholds, the sensors will generate an alert. It immediately notifies the relevant fleet operators via the software layer or app, allowing prompt action to be taken.

To avoid false positives (e.g., smoke from an external source entering the vehicle through an open window), the air quality data is fed through algorithms that can distinguish smoking from other pollution. The system records all instances of smoke detection, providing data for analysis to identify patterns and repeat offenders, with the aim of improving overall fleet management.

Which Car Sharing Operators Should Use It?

Automated smoke detection is best suited for technology-forward operators that embrace advanced technology to maintain high standards of service and operational efficiency. Operators experiencing repeated problems with users smoking can enforce their no-smoking policy effectively, so that customers feel like the rules are actually important and not just suggestions. Automation scales well, it provides a practical solution for large fleets where manual inspections and consistent monitoring would be a challenge.

Pros

• Enhanced Vehicle Condition: Real-time monitoring of smoking and vaping allows for minimizing the time smoke remains in the vehicle and the overall smoking frequency in the fleet, resulting in cleaner cars and maintaining resale value
• Scalability: Automated systems can easily be scaled across large fleets, ensuring consistent monitoring regardless of fleet size
• Telematics Integration: Operators receive information on smoking incidents, vehicle status and usage data directly via their Fleet Management Tool to get strong evidence
• User Accountability: Provides concrete evidence of smoking violations, making it easier to enforce policies and charge penalties while proving the non-smoking policy to other customers

Cons

• Implementation Downtime: Because the sensors have a long lifetime and an easy installation, the implementation of the Smoke Detection modules cause minor downtime
• Vandalism: Malicious customers may attempt to remove the sensors in order to smoke undetected

Detect Smoking in Cars and Drive Profitability

These are 5 solutions that can detect smoking in cars. Not only for Clara and her local car sharing operator, but also for your business. Some solutions fit better to a smaller operator that cannot rely on massive financial resources, others are designed for larger operators seeking operational excellence and scaling options.

The most reliable tool to detect smoking in cars is a smoke detector. It’s time to combat vape and cigarette smoking with market-leading evidence. Stop smoking in your cars and increase your profitability with our new smoke detection solution.

Every smooth car sharing experience needs cutting-edge car sharing technology. There are three solutions to help operators collect vehicle data they need for their business: Telematics integration via CAN, via OBD or pre-installed OEM telematics.

Each of these systems offers unique advantages, allowing for better control of vehicle data, vehicle maintenance and creating an enhanced user experience.

In this article, we will provide a comprehensive overview and a comparative analysis of these three car sharing technologies.

Table of Contents

• Car Sharing Technology: Boosting Shared Mobility
• Car Sharing Technologies and Their Advantages
• Telematics Integration via CAN Bus
• Telematics Integration via OBD
• OEM Telematics
• Car Sharing Technology Overview
• Choose the Right Car Sharing Technology for Your Business

Car Sharing Technology: Boosting Shared Mobility

Since the introduction of the CAN bus in 1986, more and more vehicle data has been made available over time. The original system was designed to reduce the complexity and cost of wiring in automobiles, but soon attracted attention for data collection.

The OBD, standardized in 1996, offered an additional data source for telematics systems. Connected to the CAN bus, it made various data points such as speed, engine health, and diagnostic trouble codes accessible. Car rental and shared mobility services were able to make immediate decisions and take prompt action based on real-time data transmission.

In the early 2000s the Internet of Things (IoT) started to connect vehicles, operators, and users, allowing data flow and automation with enhanced connectivity. Cars outfitted with more computer systems, better network standards and the spread of smartphones have created new opportunities for the car sharing business model. Station-based, peer-to-peer or free-floating car sharing established a seamless experience for customers. With more people considering shared vehicles a viable alternative to personal vehicle ownership, the car sharing market has experienced significant growth. This led to the modern-day solution of the business model with comprehensive telematics platforms that aggregate collected data.

These multi-functional platforms offer comprehensive suites of features, including in-depth analytics, AI-based damage detection, driving behavior analysis, and fleet-wide monitoring. As an alternative to the integration of telematics units via CAN or OBD, some OEMs have recently started to implement factory-installed telematics. All of these capabilities provide car sharing services the ability to integrate with various other systems and car sharing technologies, ensuring a seamless operational experience.

Different Car Sharing Technologies and Their Advantages

Telematics Integration via CAN Bus

The CAN (Controller Area Network) bus provides a way of communication and data exchange for the different ECUs (Electronic Control Units) in the vehicle. This allows, for example, the engine and brakes to communicate with each other. CAN was developed by Bosch in 1986 and standardized by ISO 11898 in 1993.

The CAN bus gathers all data points related to in-vehicle communication.

To access CAN bus data, operators need a connector to link CAN to the telematics unit. As there is no standardized connector, telematics providers must cut wires. This can make integration more complex as they need to do a CAN analysis and provide custom instructions for each vehicle.

Advantages:

• Comprehensive Data Insights: Access to most of the in-vehicle data for better operational decisions and diagnostics capabilities
• Scope for Action: Depending on the model, CAN lets operators control several vehicle functions
• Reliability: CAN systems are designed to be extremely robust
• Scalability: Scales with additional vehicle systems without significant complexity
• Security: Connection to the telematics unit is hidden so it is better protected against vandalism

Drawbacks:

• Complex Installation: Requires professional and technically skilled installation
• Barrier to Entry: Requires a CAN analysis per vehicle model
• No DTCs: Time-intense to solve problems without Diagnostic Trouble Codes

Telematics Integration via OBD

OBD (On-Board Diagnostics) is a universal port enabling connection of various diagnostic tools in a car. It provides access to vehicle subsystems for monitoring, diagnostics and reporting purposes. In the late 1980s, the California Air Resources Board (CARB) developed the port and standardized it after 1996 with the implementation of OBD-II. Cars in the US are required to be equipped with OBD since 1996, the EU established a similar regulation in 2003.

A telematic connected via OBD can collect basic data such as engine performance, fuel efficiency, emissions, and error codes.

Integrating a telematics unit via OBD involves physical OBD hardware being plugged into the OBD connector. Once connected, operators can send requests via CAN and will get the response from the relevant ECUs.

Advantages:

• Ease of Installation: Quick, plug-and-play installation without professional assistance
• Cost-Effectiveness: More affordable than advanced CAN-integrated telematics, ideal for budget-conscious operators
• Diagnostic Capabilities: Provides essential engine health diagnostics to prevent major repairs

Drawbacks:

• Limited Data Insights: Basic engine diagnostics only; less in-depth data compared to advanced technologies
• Security Concerns: OBD devices are more vulnerable to be stolen or hacked, posing risks on vehicle safety and data integrity
• Limited Control: Less, if any at all, control of vehicle functions and data

OEM Telematics

Telematics pre-installed by an OEM (Original Equipment Manufacturer) are an integrated system designed for remote monitoring and control. First OEM to pre-install telematics was GM with OnStar in 1996. This car sharing technology eliminates the need for operators to install aftermarket telematics.

OEM telematics provide access to extensive data from various vehicle systems, including engine performance, location, and diagnostic codes.

OEM telematics come with pre-installed hardware, including sensors, GPS, and communication modules. However, operators are therefore forced to use the OEM API. This requires development resources to integrate and maintain the API. Additionally, operators will need to integrate a separate API for each manufacturer that they want to use vehicles from. The first APIs are already available today and the trend is going towards more OEMs offering pre-installed telematics. But the question remains how open they’ll be to let car sharing operators access their APIs and data.

Advantages:

• Seamless Integration: Built-in systems ensure compatibility and performance
• More Data (theoretically): If OEMs allow, vast amounts of data and commands are available
• Faster Infleeting: No installation of aftermarket telematics needed
• No Additional Investment: Telematics costs included in purchase price (although purchase price might be higher)

Drawbacks:

• Limited Data: OEMs keep several data points encrypted for operators
• Dependency: Reliance on vehicle manufacturers for updates and support
• Limited Flexibility: Fewer options for customized features and limited selection of vehicle models
• Integration Effort: Large workload and maintenance effort for each OEM API

Car Sharing Technology Overview

Each technology has its own set of advantages and disadvantages. While integration via CAN can provide access to a great amount of data, OEMs are still hesitant to grant operators full access to their data. Integration via OBD is comparatively straightforward, but also has its limitations. Here is an overview of the three car sharing technologies:

Choose the Right Car Sharing Technology for Your Business

Staying flexible and being able to adapt to market conditions is a key challenge for car sharing operators. A solution that covers CAN, OBD and OEM telematics is the optimal choice for your shared mobility business.

INVERS is here to assist you on this. Since 1993, we have been at the forefront of car sharing technology, shaping the future of shared mobility. Our unparalleled expertise and innovative solutions have empowered over 450 mobility services in more than 60 countries, including industry giants like Europcar, Hertz, Miles, Free2Move, and Getaround.

Our cutting-edge CloudBoxx is compatible with CAN or OBD, allowing you to collect all the vehicle-data you need. If you choose OEM Telematics, our OEM integrations harmonize all OEM-APIs to one single, customer-centric API, eliminating the need to integrate and maintain different OEM Telematics.

Contact us to discover what’s the best car sharing technology for you and how INVERS can help you to optimize your car sharing business.

Despite its dense urban layouts, proximity of amenities, and a well-designed public transportation system, Taiwan maintains a strong car ownership culture. The number of passenger cars in Taiwan reached 7,385,394 in June 2024, with a 2024 survey showing that 47% of Taiwanese respondents owned a car. Even more striking, 70% of Taiwanese people would still choose to buy a car instead of renting or sharing.

With services like YouBike, iRent, and GoSmart, shared mobility is gaining momentum, particularly among the younger generation, challenging deeply ingrained cultural norms. But can shared mobility truly thrive in a landscape where parking is as precious as real estate, and regulations remain ambiguous?

Table of Content

• Car Sharing in Taiwan: History and Current Landscape
• Major Players for Car Sharing in Taiwan
• Driving factors of the Taiwanese Car Sharing Market
• Challenges Taiwanese Car Sharing Operators Face
• Future Market Trends for Car Sharing in Taiwan
• Navigating Toward a Shared Future

Car Sharing in Taiwan: History and Current Landscape

The shared mobility market in Taiwan, particularly car sharing, has been experiencing significant growth and development in the past few years. It is expected to generate a revenue of US81.99 million in 2024 and reach a market volume of USD 89.89 million by 2029.

Taiwan’s journey into shared mobility began in 2010 with the launch of YouBike, a bike-sharing service initiated by local manufacturer Giant in collaboration with Taipei’s government. This innovative program provided a cost-effective transportation solution and fostered a sharing mentality among residents. Rhett Ho, former Managing Director of Zipcar Taiwan, notes, “It was a cost-effective solution that gained widespread popularity and encouraged the launch of other shared mobility services.”

iRent entered the market as Taiwan’s first car sharing service in 2015. Backed by Toyota’s extensive experience in the industry, iRent quickly established itself as the market leader and expanded its fleet to over 10,000 vehicles by 2024. The arrival of Zipcar in 2017 marked another significant milestone, increasing the variety of sharing options available to consumers.

The Taiwanese car sharing market experienced a substantial boost during the COVID-19 pandemic in 2020, as many residents turned to car sharing as a safer alternative to public transportation. User numbers and market size surged, prompting operators to enhance cleaning protocols and expand their fleets to meet the rising demand.

Major Players for Car Sharing in Taiwan

Today, Taiwan’s car sharing landscape is dominated by four key players:

1. iRent: The market leader with a fleet of over 10,000 cars and 10,000 electric scooters, offering a diverse range of sharing models, including station-based, one-way, and free-floating options.
2. GoSmart: Backed by Nissan, GoSmart operates a fleet of 2,500 vehicles, providing diverse options and competitive pricing.
3. uRide: Launched in January 2024, uRide is the newest entrant with ambitious plans to double its fleet from 500 to 1,000 vehicles by the end of the year.
4. Zipcar: A well-known brand that has been operating in Taiwan since 2017, offering a selection of vehicles, including premium options like BMW.

Driving Factors of the Taiwanese Car Sharing Market

Several key factors are fueling the growth of car sharing in Taiwan:

Shifting Consumer Preferences

Driven by increasing concerns over air pollution and traffic congestion, younger generations in Taiwan are increasingly prioritizing sustainable and cost-effective transportation options. Many of them are opting for shared mobility solutions instead of owning private vehicles, as car sharing offers a flexible, convenient alternative to car ownership.

Urban Challenges

Taiwan’s limited land area and densely populated cities make private car ownership impractical for many residents, leading to a growing interest in shared mobility solutions. Rhett Ho adds: “The space constraints, especially in urban areas, have accelerated the adoption of car sharing as a more practical and efficient way to travel.”

Technological Advancements

The rise of digital platforms and smartphone applications has made it easier than ever for consumers to access, book, and manage car sharing services. This technology-driven trend has also spurred the growth of peer-to-peer car sharing, where individuals can rent out their own vehicles. Additionally, car sharing services are increasingly integrated with other forms of transportation, such as public transit and ride-hailing, creating a seamless, multi-modal travel experience for users.

Challenges Taiwanese Car Sharing Operators Face

Despite the growth of car sharing, the market faces significant challenges.

1. Regulatory Ambiguity

Taiwan needs clear guidelines tailored to the car sharing industry. Operators must comply with car rental regulations despite the differences between car sharing and traditional car rental.

Misalignment with Car Rental Rules
Car sharing companies must register as car rental businesses, even though their services are fundamentally different. This creates conflicts with regulations designed for traditional car rentals.

Incompatible Requirements
For example, conventional car rental rules mandate:

• Special license plates for all vehicles
• Specific handover locations
• Fixed, transparent price lists

These requirements often clash with the flexibility of car sharing, especially free-floating services that feature dynamic pricing and minimal physical interaction. However, as Rhett Ho explains, “As long as the government is not complaining, operators keep doing their business.” As a result, this regulatory uncertainty hampers long-term planning and investment.

2. Parking Challenges

In densely populated cities like Taipei, parking is both scarce and expensive. A single parking spot can cost up to 1.5 to 3 million TWD (approximately 42,500 to 85,000 EUR), significantly impacting operational costs.

Limited Availability
Street parking is primarily reserved for residents, while car sharing vehicles must pay hourly rates for public parking, just like any other vehicle. Companies such as Zipcar and uRide currently pay hefty monthly fees to secure reserved parking spaces in the city.

Operational Constraints
The scarcity and high cost of parking limit opportunities for expansion and impact user experience, especially for free-floating models that rely on flexible, easy access to vehicles.

3. Pricing Pressures

Taiwan’s car sharing market is highly competitive, with intense price pressures primarily driven by operators backed by original equipment manufacturers (OEMs). Significant players like iRent (supported by Toyota) and GoSmart (backed by Nissan) can afford to set meager prices thanks to their financial resources, forcing other operators to lower their rates.

Unsustainable Pricing
This aggressive pricing has led to unsustainable conditions for independent operators, with some car sharing services being offered at rates even lower than scooter sharing. For smaller companies, this pricing structure not only makes profitability a constant challenge but could lead to market consolidation.

Current Pricing Landscape

• Scooter Sharing: 180 TWD per hour / 3 TWD per minute (~5 EUR per hour / 0,08 EUR per minute)
• Car Sharing (iRent, GoSmart, Zipcar): 160–300 TWD per hour + Petrol fee 3 TWD per km (~4.5–8.5 EUR per hour + Petrol fee 0,08 EUR per km)
• Car Sharing (uRide): 100 TWD per hour (~3 EUR per hour) (special campaign for almost one year long)

The downward pressure on prices threatens the sustainability of independent operators, who struggle to compete in this pricing war.

Future Market Trends for Car Sharing in Taiwan

Rhett predicts significant growth for car sharing in Taiwan, stating, “Car sharing is set to become the future of car rental in Taiwan.” His market analysis highlights a growing demand and suggests that there is ample opportunity for additional car sharing services. He elaborates, “The more cars available, the more users will appreciate and use the service.”

The former Managing Director of Zipcar Taiwan also draws parallels with the successful evolution of Taiwanese micromobility market. Beginning with just one bike-sharing operator, Taiwan has grown into one of the most advanced micromobility markets. The car sharing sector has the potential to follow a similar trajectory.

Rhett identifies two key factors for industry growth.

• Stable and reliable technology infrastructure for scaling and integrating electric vehicles.
• Clear regulatory framework for car sharing operations.

Rhett emphasizes, ” Significant growth cannot be achieved without government support and an improvement in the parking situation.”

Navigating Toward a Shared Future

Taiwan’s car sharing market stands at a crossroads. While facing significant regulations, parking, and pricing challenges, the industry shows immense potential for growth. The success of micromobility services in Taiwan provides a blueprint for what car sharing could achieve with the right support and infrastructure.

As urban congestion and environmental concerns grow, car sharing is poised to play a crucial role in Taiwan’s transportation future. However, realizing this potential will require a concerted effort from operators, regulators, and urban planners to create a sustainable and thriving car sharing ecosystem.

The coming years will be critical in determining whether car sharing can overcome its current hurdles and become integral to Taiwan’s urban mobility landscape. With the right approach, Rhett is confident that Taiwan could emerge as a model for successful car sharing implementation in densely populated Asian cities.

The global phase-out of 3G networks is underway, making room for advanced technologies like 4G, LTE-M, and 5G. This transition is inevitable, and staying ahead is crucial to prevent sudden fleet disconnections. While adapting to new technology can be challenging, we’re here to guide you through the process.

In this article, we’ll explore the impact of the 3G shutdown on car sharing, the transition from 3G to LTE-M, and how INVERS can support you every step of the way.

Table of Contents

• Understanding Connectivity Generations
• Sunsetting 3G: when and where?
• Why is 3G being shut down before 2G?
• Consequences of delaying the switch
• The INVERS solution for fleet managers
• Managing Telematics Data During the Transition from 3G to LTE-M
• Future-proof your operation

Understanding Connectivity Generations

2G, 3G, 4G, and 5G networks represent different generations of connectivity, each with unique capabilities and limitations:

2G (Second Generation)

2G technology introduced digital voice calls and SMS text messaging, along with basic data services like GPRS and EDGE. While it laid the groundwork for telematics solutions, its power efficiency comes at the cost of slower data speeds.

3G (Third Generation)

3G brought faster internet speeds, better web browsing, and app usage through technologies like UMTS and HSPA. It enabled real-time tracking and basic telematics for carsharing operations. However, 3G still faces higher latency and limited advanced features compared to newer generations.

4G (Fourth Generation)

4G technology offers high-speed internet and supports complex applications. For carsharing, it enables advanced telematics functions such as real-time diagnostics and in-car infotainment. While 4G is a significant improvement, it still experiences some latency and coverage issues in remote areas.

5G (Fifth Generation)

5G provides ultra-high-speed, low-latency connectivity suitable for data-heavy applications like virtual reality and autonomous vehicles. In carsharing, 5G can support advanced applications such as real-time vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications. However, 5G currently faces limited infrastructure and higher deployment costs.

LTE-M (Long-Term Evolution for Machines)

LTE-M is designed specifically for IoT applications, offering excellent signal strength, penetration, and reliability. It’s ideal for carsharing due to its stable and efficient communication between vehicles and central systems. While it has lower data rates compared to 5G, LTE-M is more than sufficient for telematics applications.

NB-IoT (Narrowband Internet of Things)

NB-IoT is another technology worth mentioning. It provides even better penetration than LTE-M, making it suitable for IoT devices in challenging environments. However, NB-IoT does not support mobility, which limits its application in carsharing scenarios where vehicles are constantly on the move.

Sunsetting 3G: when and where?

Many countries have already completed or initiated the 3G network phase-out. This transition allows for faster speeds, reduced latency, and increased capacity to meet current and future communication demands.

Completed 3G network shutdowns

• Asia-Pacific: Taiwan, Singapore
• Americas: United States of America
• Europe: Italy, Germany, Norway, Netherlands, Switzerland

Ongoing 3G shutdowns

1. Asia-Pacific:

• Japan: Japanese carriers like NTT Docomo, KDDI, and SoftBank plan to shut down their 3G networks by 2026​
• South Korea: Telecom companies like SK Telecom and KT have begun phasing out their 3G services​
• China: Phasing out 3G to make way for 4G and 5G, supporting shared mobility services​​
• Australia: Telstra shut down its 3G network in mid- 2024, with other carriers following suit​

2. Americas:

• Mexico: Plans to shut down 3G networks by 2024​
• Brazil: Working to phase out 3G to facilitate the rollout of 5G

3. Europe:

• Belgium: Gradually phasing out 3G​
• Spain: Gradually phasing out 3G, expected to complete by 2025​
• Portugal: Moving towards phasing out 3G, with plans to complete by 2025​​
• Austria: Plans to shut down 3G by the end of 2024​
• UK: Expected to maintain 3G services until the late 2020s but shifting towards 4G and 5G​

Planned 3G Shutdowns

1. Asia-Pacific:

• Hong Kong: Has yet to announce a specific sunset date for its 3G network, but it is transitioning towards 4G and 5G​
• Thailand: Transitioning away from 3G, with major providers focusing on expanding 4G and 5G coverage
• India: In the process of phasing out 3G, with a solid shift to 4G and 5G​​​
• New Zealand: Mobile operators plan to shut down 3G by the end of 2025

2. Americas:

• Canada: Bell, Rogers, and Telus plan to shut down 3G by the end of 2025

Why is 3G being shut down before 2G?

The shutdown of 3G networks is a complex process that differs by country. While some regions are phasing out 3G before 2G, others are taking different approaches.

In many cases, telecommunications carriers are maintaining 2G networks for IoT applications due to:

• Spectrum and power efficiency
• Widespread global coverage, especially in rural areas
• Cost-effectiveness for large-scale IoT deployments
• Regulatory requirements in some regions

However, the reasons for shutting down 3G networks often include:

• Repurposing spectrum for more advanced 4G and 5G services
• Improving overall network efficiency
• Reducing maintenance costs for older infrastructure

By phasing out older networks, carriers can focus on newer technologies while still maintaining basic connectivity for IoT devices through remaining 2G networks (where applicable) and newer low-power wide-area network (LPWAN) technologies like LTE-M. This approach enables a smoother transition to advanced technologies while ensuring essential IoT services remain available.

Consequences of delaying the switch

Just because your country still supports 3G technology doesn’t mean you should sit and wait it out. Delaying the switch from 3G to newer networks can lead to significant operational and financial challenges:

1. Data delays, fleet tracking disruptions, and operational inefficiencies

Slow data transmission and increased latency can disrupt real-time location updates, vehicle tracking, booking systems, billing processes, customer service response times, and overall operational efficiency.

2. Non-compliance with regulatory mandates

Many regions require modern communication technologies for safety and operational efficiency. Failing to upgrade may lead to penalties and legal issues.

3. Increased maintenance costs

Maintaining outdated 3G devices will become more expensive as telecom providers phase out support, leading to higher service charges and difficulty finding replacement parts.

4. Loss of Competitive Edge

Competitors using newer technologies will offer better service quality, attracting more customers and increasing market share. Falling behind in technological upgrades can lead to a significant loss in business opportunities and revenue.

5. Forced rapid transition

Transitioning while 3G is still available allows for a gradual upgrade. Delaying may force a sudden, rushed transition, leading to operational disruptions and increased costs.

The INVERS solution for fleet managers

INVERS offers a comprehensive telematics solution built to ensure seamless connectivity and operational efficiency.

What is the INVERS Solution?

The INVERS CloudBoxx is a high-performance telematics device designed for car-sharing operations. CloudBoxx utilizes LTE-M for high-speed, resilient machine-to-machine connectivity. LTE-M excels in maintaining connections in challenging environments such as underground parking and dense urban areas. It is standardized internationally and available in over 50 countries, making it ideal for multi-region operations. Additionally, CloudBoxx supports 2G as a fallback option.

How it works

Managed Connectivity uses highly available, fail-over secured VPN connections distributed across multiple regions for consistent global service. CloudBoxx features dual SIM technology, eliminating the need for user-provided SIM cards. Each SIM can connect to hundreds of networks worldwide, ensuring optimal connections by automatically switching to the best available network. eSIMs can be remotely managed, reducing the time and effort required to activate and manage large fleets of vehicles.

Managing Telematics Data During the Transition from 3G to LTE-M

A common concern is compatibility. The INVERS CloudBoxx is vehicle-agnostic and features streamlined installation and configuration procedures, allowing you to easily in-fleet any vehicle.

Transition timeline

The typical transition and onboarding process to the INVERS CloudBoxx takes a structured approach to minimize disruption. The transition can be completed in a matter of weeks, depending on the size of your fleet and specific requirements. INVERS provides a detailed transition plan and extensive support throughout the process, including technical assistance and training programs.

Contingency Plans

INVERS has robust contingency plans to address unexpected delays in the 3G shutdown or issues with 4G/LTE/5G networks. INVERS’ managed connectivity service ensures that your fleet can switch to alternative networks if there are issues with the primary network.

For instance, in February 2024, several undersea cables in the Red Sea were damaged, disrupting internet connectivity between Europe and Asia. INVERS’ support team monitored and managed connectivity for car-sharing operators in Asia. They identified a routing problem outside the INVERS system and proactively set up additional network communications to keep car-sharing operators in the Southeast Asian region online.

Future-proof your operation

As cellular networks evolve from 3G to 4G and beyond, INVERS CloudBoxx stays ahead of the curve. Its multi-band capability seamlessly adapts to emerging technologies, ensuring your fleet remains connected even as networks change. With LTE-M as its primary technology and 2G as a reliable fallback, CloudBoxx offers uninterrupted connectivity across 50+ countries, keeping your car-sharing operations running smoothly now and in the future.

Talk to us today to learn how we can support your transition and help your business thrive in the evolving telematics landscape.

Imagine stepping into your shared vehicle for a stress-free drive, only to be hit by the unmistakable scent of stale cigarette smoke and cigarette ends all over the middle console. This scenario isn’t just unpleasant – it’s a major operational challenge for car sharing operators.

Traditionally, it was impossible to know what customers did in vehicles during rentals. Some customers have therefore become used to ignoring the smoking ban in car sharing vehicles. As a result, their smoking leaves operators with higher cleaning and maintenance costs and drives away other customers from the service.

This article will examine the challenges that smoking poses for car sharing operators, revealing that there is a lot more to deal with than just a smelly car. We will explore how reliable tools can be used to identify and address smoking in shared cars.

Table of Contents

• Smoking in Cars: A Change in Sight
• Key Challenges for Car Sharing Operators
• The Lack of Evidence
• How to Deal with Smoking in Car Sharing Vehicles?
• Advantages of Smoke Detectors in Car Sharing
• Conclusion

Smoking in Cars: A Change in Sight

Lighting cigarettes in cars is controversial. While some people enjoy relaxing with a cigarette on the road after a stressful day, others are bothered by the smell or do not want to expose themselves to the health risks of involuntary exposure.

Until the early 2000s, smoking in cars was as normal as smoking in restaurants, offices or on airplanes. It was a lifestyle and people enjoyed it wherever they could.

Legal Basis for Private Cars

In the new century, health concerns and complaints from non-smokers led governments around the world to consider implementing new anti-smoking laws. This also extended to cars. Cyprus became the first European country to ban smoking in private cars in 2004. Today, countries such as Italy, France, and Ireland already have at least partial bans on smoking in private cars when minors or pregnant women are present. Germany is also considering similar legislation.

Smoking Regulations of Car Sharing Operators

Smoking is forbidden in all car sharing and car rental vehicles. Each operator has a smoking ban and fine in their terms and conditions to protect themselves from this behavior. Unfortunately, they have no real way to enforce it. A rude minority of customers takes advantage of this and ignores these rules, possibly because it is not their property.

Although the daily percentage of smokers in the EU is only at 19.7% – with large car sharing markets like Germany even below (15.7%) – smoking in shared cars is quite prominent.

There are no statistics on this, but a quick look on the street confirms that a number of customers smoke or vape in shared vehicles. Especially on the weekend nights. In addition, a quick look at one- or two-star reviews on app stores shows how annoyed a lot of people are with dirty and smelly cars.

Key Challenges for Car Sharing Operators

Other than a highly hazardous air quality and a bad smell, vehicles that someone smoked in present a few additional challenges for car sharing operators:

• Revenue Loss from Downtime

  Just one cigarette can require thorough cleaning to remove tobacco smoke odors and stains. This can take vehicles out of service for extended periods, thereby reducing fleet availability and leading to lost revenue from vehicles being unavailable for rental.

• Damage to Vehicle Interiors

  Smoking can cause long-term damage to upholstery and other interior components by accelerating wear and tear, causing seats and other surfaces to deteriorate. This reduces vehicles’ lifespan and resale value.

• Increased Cleaning and Maintenance Costs

  Smoking in vehicles requires frequent and intensive cleaning to remove odor and residue, significantly increasing operational costs. This includes professional cleaning services and the use of specialized equipment and materials. Also, you either have to spend money getting cleaning personnel to the cars or hire someone to drive vehicles to the cleaners.

• Negative Customer Experience

  The presence of smoke odors can lead to customer complaints, dissatisfaction, and potential loss of repeat business. A poor user experience can tarnish the brand’s reputation and lead to negative reviews and decreased customer loyalty. Imagine a parent picking up their kids from school and entering a smelly car. Kids are waiting and there is no time to get another car. This is an unfavorable experience that endangers the health of the family and will almost certainly result in a negative review.

• Health and Safety Concerns

  Secondhand smoke exposure poses health risks to customers and staff members, particularly those with allergies or respiratory issues. Ensuring a smoke-free environment is essential for the well-being of all users, to protect children and families and to maintain a safe and welcoming service.

• Even Worse Vehicle Condition

  If customers feel like no one cares what happens to the car, they won’t either. Customers who are inconvenienced by tobacco smoke exposure or the quality of the vehicle interiors may also be more inclined to leave trash or smoke in the vehicle themselves. In the end, this creates a self-perpetuating problem.

The Lack of Evidence

The issue of smoke detection is comparable to that of detecting damage to the shared car. When smoke or damage is reported from a customer at the beginning of the rental, it does not necessarily mean that the previous customer caused the damage. It is possible that the previous customers did not notice or did not care about the bad smell in the vehicle.

Consequently, operators are experiencing difficulties in correctly allocating liability and are confronted with two significant challenges:

• Smokers will try to deny their wrongdoing most of the time. It is typically understood that smoking bans are not enforced, and customers are keen to avoid paying any extra fee.
• On the other hand, incorrectly applied penalties to innocent customers result in a decline in user experience and negative user ratings. This makes operators hesitant to send out fines because they don’t want to run the risk of false positives.

How to Deal with Smoking in Car Sharing Vehicles?

Car sharing operators can continue to rely on customers feedback and non-smoking education campaigns. However, this may not have a significant impact on reducing smoking in car sharing vehicles.

Unlike scratches or dents, smoking is usually done intentionally, with the full knowledge that it is forbidden. Of course, smokers won’t ever self-report, whereas customers that cause damage will contact customer support in some cases – depending on severity.

There are two solutions to monitor and detect smoking incidents and minimize smoking in shared cars: On-board cameras and smoke detectors. Most operators are reluctant to use cameras due to GDPR concerns and the fact that customers do not want to be filmed while driving. As a result, they prefer smoke detectors, which serve a similar function in vehicles as they do in buildings.

It is common practice for operators to rely on photoelectric smoke detectors for this purpose. These detectors utilize a laser and light scattering to find smoke particles and trigger an alarm. To prevent false positives, these sensors can be calibrated to a specific amount of smoke particles. This makes them an extremely reliable tool that can also detect vapes – even with open vehicle windows.

Advantages of Smoke Detectors in Car Sharing

The reliability of smoke detectors offers a number of additional advantages for operators dealing with smoking customers. These advantages extend well beyond the improvement of vehicle conditions and an increased user experience for non-smokers.

• Fewer Smoking Incidents

  The presence of a smoke detection system alone can act as an effective deterrent, discouraging users from smoking in shared vehicles and changing their smoking behavior while driving. It also raises customer awareness of the immediate consequences for non-compliance. Therefore, you can reduce maintenance costs and downtime for cars with unpleasant smoke odors.

• Accurate Enforcement

  Clear evidence of smoking in real-time is essential to fairly and accurately enforce no-smoking policies. It ensures that you only hold the responsible parties accountable, preventing potential disputes and maintaining trust with compliant users.

• Policy Credibility

  Demonstrating that smoking violations are detected and documented with reliable evidence reinforces the credibility of your no-smoking policy. This encourages all users to comply, knowing that violations will be accurately recorded and penalized. Non-smoking customers appreciate that you’re working to protect them and improve their experience, knowing they don’t need to fear any health consequences while renting one of your cars.

• Legal and Financial Protection

  Clear evidence protects you from potential legal challenges and helps to justify cleaning fees or penalties charged to customers. It ensures that any financial claims related to smoking damages are well-supported, minimizing risks of backlash or refunds. You get reliable proof for your leasing and resale partners that your vehicles are protected from smoking.

Conclusion

Smoking in shared cars has become a major challenge for car sharing operators, even though their terms and conditions prohibit it. Advanced and reliable smoke detectors give you the ability to identify smoking incidents and fine users for their misbehavior. Customers are discouraged from smoking and you can thereby increase the overall user experience.

Interested in our smoke detection solutions? Click here for more information.

Reliable car sharing hardware is the backbone of any shared mobility service. A strong tech foundation is crucial for a seamless car sharing experience. But what hardware specifications should you prioritize to elevate your car sharing business to the next level?

Here are five key attributes of connected car sharing hardware to look for.

Table of Contents

• Reliability and Durability
• Real-Time Connectivity and Data Integration
• Security and Compliance
• Scalability and Flexibility
• Analytics and Insights Generation
• Industry-Leading Car Sharing Hardware

Reliability and Durability

Reliability is the most important attribute of your car sharing hardware. It enables your customers to have a smooth user experience. Convenient bookings, easy vehicle access, and seamless rental experiences are all facilitated by reliable, always-on connectivity. This essential attribute reduces downtime, provides higher fleet availability for your customers, ensures hassle-free and delay-free processes, and thereby increases overall satisfaction.

The hardware should be durable enough to last for the entire vehicle lifecycle in your fleet. Hardware that requires frequent replacements is a liability for car-sharing operators. It’s costly, time-consuming, and necessitates taking cars out of service, resulting in lost revenue.

Real-Time Connectivity and Data Integration

As digital technology advances, data-driven fleet management is a powerful tool for any shared mobility business. With comprehensive data integration, you gain instant access to vehicle data such as GPS position, fuel level, operational status, and usage. This not only facilitates rapid decision-making, but also enables real-time monitoring of the vehicle’s health to prevent breakdowns.

Using live data enhances operational efficiency and improves customer service. It lets your support team control the vehicles’ immobilizers remotely, or open the central lock for vehicle access, thereby solving problems quickly with a few clicks.

Security and Compliance

Reliable car sharing hardware is equipped with sophisticated security and compliance features. By deterring unauthorized access to vehicles and the vehicle keys, it ensures only authorized users can operate them.

While all the technology allows operators to digitally manage their fleets, it must also comply with privacy regulations. None of the customer’s sensitive user data should be available to third parties. A protected telematics communications architecture ensures user data is handled and stored securely and shared only with authorized entities when needed.

Scalability and Flexibility

The car sharing market is still growing, with operators continuously seeking to expand their share by entering new regions or leveraging existing ones. Connected car sharing hardware must allow for flexible scaling and customization of your fleet without a complete system overhaul. Vehicle-agnostic scaling options are key because they support a variety of vehicle types and sizes. Flexible hardware allows for quick adjustments to new business models or market demands.

Once implemented, the system must also be scalable and flexible. Updates and preferences must be performed remotely via the fleet management tool to eliminate the need for manual hardware operation. The right hardware solution also allows operators to switch to any software while retaining the hardware or to add more features or models.

Analytics and Insights Generation

Collecting and analyzing car sharing data has become crucial for success. While gathering information on vehicle usage, driving patterns, and maintenance needs is relatively straightforward, the real challenge lies in extracting valuable insights and actionable information from this data. Effective analytics can transform raw data into strategic advantages, helping operators optimize their services and make informed decisions.

When connected to advanced car sharing software, reliable hardware allows operators to take advantage of additional solutions that help to optimize asset deployment:

• Driving Behavior Analysis: Identifies patterns of aggressive driving, enabling targeted interventions to improve safety and reduce vehicle wear and tear
• Damage Detection: Automatically detects and reports new damages, ensuring timely repairs and maintaining vehicles in good condition
• Fleet Utilization: Uses data to reduce idle times and maximize vehicle uptime

Choose the Industry-Leading Car Sharing Hardware

INVERS has been a leading technology provider in the car sharing industry for over 30 years, seeing our customers as partners since day one. Your success is our success. Our support team of highly experienced professionals is available to assist you and your business 24/7.

We understand the challenges operators face and have developed a range of solutions to address them effectively with our connected car sharing hardware. The INVERS CloudBoxx is the industry-leading car sharing telematics solution, allowing you to make any vehicle sharing-ready and benefit from unparalleled reliability.

Find out more on our INVERS CloudBoxx and learn how you can become INVERS’ next success story!

The car sharing industry is complex, featuring a diverse range of business models implemented on the streets. Operators employ various strategies, such as station-based services, peer-to-peer carsharing, and free-floating services, to address distinct use cases and offer distinct services. In addition, the North American car sharing market is one of the largest in the world. To address and explain some of these complexities, INVERS recently published an quality report on “Car Sharing in North America”. This free-of-charge, 50-page report helps car sharing operators quickly understand key market dynamics, insights, and trends.
Our report also highlights statistics and findings from the Mexican, as well as the US and Canadian markets. To shed light on some of the Mexican market specifics, we therefore were very happy to sit down with Punto’s Founder & CEO, Dagoberto Cedillos, for this interview.

• Car sharing in Mexico
• Punto’s business model
• Vehicle model choice & experience
• How to take car sharing in Mexico to the next level

How would you describe the Mexican car sharing market?

Car-sharing in Mexico is still in early days. Mexico is a broad country with various large cities. Only a few have a population density that hit the sweet spot for car-sharing, such as Mexico City. Therefore, car sharing has not yet been a concept that has been widely adopted. The use case for Punto is slightly different to traditional car sharing however, as we focus on providing a tool for work rather than just a medium for travel.

How does Punto work? Can you explain your focus on gig economy workers to us?

Punto offers a fleet of vehicles available for short or long term hire with the purpose of being used to work as a driver in rideshare and/or delivery platforms. The characteristics of the vehicles, pricing and user experience are all tailored for this specific use. Punto aims to maximize profit generation for these driver customers by leveraging economies of scale in fleet acquisition, maintenance and insurance as well as by having a dedicated team and fleet with characteristics suited for this end use.

A reason why car-sharing is a good fit with the gig economy use case is that drivers relying on this source of income need to minimize the down-time of their vehicle as much as possible. Occupancy and driven kilometers in each of our vehicles is much higher than for a traditional car-sharing fleet, and therefore maintenance, wear and tear naturally as well. If a customer experiences an issue with their vehicle, they have the possibility of swapping and working without interruption. Of course, additional wear and tear is priced in our offering, but the reduction of down-time is key and far outweighs this cost premium.

How do you select your vehicle models and what’s your experience with them?

Because of our use case, we put a lot of focus into choosing vehicles that are extremely reliable and safe for our driver customers as well as their passengers. We purchase vehicle models that have been truly tried and tested, and which have spare parts that are broadly available.

We also install a CNG (compressed natural gas) retrofit for fuel cost reduction on our entire ICE fleet and therefore take into account various technical engine requirements. We’ve learned through experience that very novel vehicle models are not optimal to operate in car-sharing as technical issues and delayed sourcing of parts can affect your business’ profitability.

What can be done to take car sharing in Mexico to the next level?

I believe available technologies are already at a level which make the customer experience very efficient, both from the vehicle hardware (sharing and telematics) and the customer (smartphone and digital payments) side of things. Greater adoption will naturally come as cities grow and develop, and as the market demands it.

Further insights into the Mexican car sharing market

Thank you, Dagoberto, for your great insights.

For more information and interesting findings about North American car sharing, we encourage readers to check out our 50-page Car Sharing in North America white paper. To learn more about Punto, please check out their website.

From New York’s bustling streets to San Francisco’s tech hubs and Canada’s diverse cities, car sharing is revolutionizing mobility in North America. Our panel discussed car sharing trends, successes, and challenges; here are the highlights.

Table of Contents

• How do you evaluate and decide what new neighborhoods or markets to enter?
• How do you balance profitability and long-term growth?
• How can car sharing operators tackle the challenges of parking and urban congestion?
• Why have European operators had a hard time establishing themselves in North America?
• Mobility as a Service (MaaS) collaboration initiatives
• North American car sharing operators’ top competitor

How do you evaluate and decide what new neighborhoods or markets to enter?

Deciding on new markets for car sharing expansion requires a balanced approach of data-driven insights and intuitive judgment. Evo’s expansions into Burnaby and Nanaimo illustrate this process effectively. Key criteria for evaluation include:

• Population density and demographics
• Presence of robust transit systems and walkability
• Commercial infrastructure and points of interest
• Support from local governments

How do you balance profitability and long-term growth

Marco Viviani, Communauto’s VP of Strategic Development, emphasized that car sharing is a long-term business that requires patience and strategic vision.

To balance profitability with sustainable growth:

• Focus on volume and affordability
• Control costs
• take a long-term perspective
• Prioritize steady growth over rapid expansion

By maintaining this balanced approach, car sharing businesses can achieve profitability while continuing to expand their impact on urban mobility over the long term.

How can car sharing operators tackle the challenges of parking and urban congestion?

Zipcar’s Head of Marketing and Public Policy, Justin Holmes shared an effective strategy they’ve been using for the past decade: working directly with cities to access curb space for parking their vehicles. This approach has seen substantial growth in partnerships with both free-floating and round-trip car sharing services in major cities like New York.

Another growing trend is partnering with residential developers to offer car sharing as an amenity. As people relocate to cities, this presents great opportunities for car sharing operators to integrate their services into new urban developments.

Why have European carsharing operators had a hard time establishing themselves in North America?

European car sharing operators face distinct challenges when entering the North American market. These challenges are primarily due to differences in mobility culture and market maturity. Pam Cooley, Executive Director of the Car Sharing Association, explained that while Europe has a well-established car sharing ecosystem, North America presents a ‘colder’ market where car sharing is less ingrained in the culture.

The North American expansion process demands a different approach and level of commitment compared to European operations. Operators aren’t simply offering a service but often pioneering a new mobility concept in many regions. This pioneering role is further complicated by North America’s unique regulatory landscape, with varying state and local regulations posing additional hurdles.

European operators must be prepared for a more challenging, resource-intensive, and time-consuming expansion process in North America.

Mobility as a Service (MaaS) collaboration initiatives

Co-opetition, a term coined to describe a collaboration between competitors, has emerged as a powerful strategy in the North American car sharing sector. An example of this approach is TransLink’s 2018 RideLink initiative in Vancouver, Canada, which united car-sharing, bike-sharing, and public transit providers to simplify access to shared transit options.

Amitis Khorsandi, Director and Founding Member of Evo Car Share, explained that the collaboration was driven by a shared mission to reduce reliance on personal vehicles. While integrating different operations and technologies posed challenges, the project’s progress demonstrates that competition can lead to innovative solutions and enhanced service offerings in the car-sharing industry.

North American car sharing operators’ top competitor

Despite the diversity of the North American car sharing landscape, with over 70 operators identified in our white paper, all face a familiar opponent: the deeply ingrained culture of personal vehicle ownership. Justin Holmes highlighted the emotional and societal equity invested in car ownership as a persistent challenge for car sharing operators.

Despite the diversity of the North American car sharing landscape, with over 70 operators identified in our white paper, all face a familiar opponent: the deeply ingrained culture of personal vehicle ownership. Justin Holmes highlighted the emotional and societal equity invested in car ownership as a persistent challenge for car sharing operators.

More from the webinar

Our panel of experts also touched on working with local governments, car sharing in rural areas, EV’s and other future trends, and more. You can watch the full webinar recording here if you missed the live session or want to revisit the discussion. You can also download the Car Sharing in North America white paper, which was central to a lot of the discussion.

Car sharing in North America is poised for significant growth, driven by innovative strategies, strategic partnerships, and a focus on overcoming the cultural attachment to personal vehicle ownership. Amitis puts it, there are still many hurdles to overcome, but the technology is there, and we are all excited to be a part of it.

Want to be notified about future webinars on trends, fleet management, and carsharing in North America? Sign up for our news updates!

In the evolving world of shared mobility, where consumers are spoiled for choice, standing out is a monumental challenge. From car sharing to ride sharing, from single day trips to weekly rentals. There is more than just one mobility solution to choose from. Unless you’re a big name, what separates you from the rest is what users think about you. It is often best shown in these little stars and reviews.

It’s a harsh reality: your app’s rating can make or break your business. Negative reviews can deter potential customers before they even book their first ride. You cannot afford negative ratings; it all boils down to customer experience, a massive pain point for any car sharing operator.

But fear not! We have identified eight car sharing solutions that can transform your user experience, boost your ratings, and elevate your brand image.

Table of Contents

• The power of stellar ratings
• What drives users to leave negative reviews?
• Car sharing solutions to boost your user ratings
• 1. Reliable telematics
• 2. Automated rental process
• 3. Real-time vehicle condition monitoring
• 4. Data-based fleet management
• 5. AI-driven damage detection
• 6. Driver behavior monitoring
• 7. Dirt prevention
• 8. Vehicle movement monitoring
• Boost your user ratings

The power of stellar ratings

Since every car sharing journey starts with the mobile app, potential users decide whether to download and use your app based on its ratings and reviews. First impressions count: if your app doesn’t look good or has only one or two stars, it will quickly fall off a potential customer’s list.

A solid rating differentiates your brand in the market and reinforces your position as a reliable and trustworthy service provider. It helps to establish a profitable car sharing business. The app stores favor apps with better ratings because they care about providing a good user experience, too.

Simply put, high user ratings translate to trust, an increased user base, and reduced customer acquisition costs for any car sharing business.

What drives users to leave negative reviews?

Not every negative review is an indication of your service or business model. However, every negative review is a potential customer loss, and these reviews highlight a gap between what customers expected and what was delivered. So, what drives users to leave those dreaded one-star reviews?

• Vehicle Availability: Users expect specific cars to be available when and where they need them.
• Vehicle Connectivity: Downtimes and connectivity issues before and after the rental process are major pain points.
• Vehicle Accessibility: Difficulty in locating and accessing vehicles can deter users.
• App Performance: Slow loading times, poor user interface, and app design can push users away.
• Complex Processes: Complicated registration, verification, and booking processes can frustrate users.
• Vehicle Condition: Poorly maintained or dirty vehicles negatively impact the user experience.
• Customer Support: Inefficient problem resolution and inaccessible support can turn a minor issue into a major complaint.

Car sharing solutions to boost your user ratings

Now that we have identified these common complaints, it’s time to tackle them with our top eight car sharing solutions.

1. Reliable telematics – Stay connected anytime, anywhere

Reliability is the backbone of a successful car sharing service. Constant connectivity ensures a seamless rental process from booking to driving and return. The failure of a service to function as intended is a source of customer frustration.

Depending on the telematics architecture of the vehicle telematics, you can also obtain valuable data for maintenance and conduct real-time diagnostics for troubleshooting.

Reliable connectivity leads to better ratings because:

• Your customers can start or end their rental anytime, anywhere, even in underground parking or areas with poor cellular connection.
• You can monitor issues, incidents, and problems in real-time, showcasing your commitment to reliability and customer experience.
• Choosing a reliable tech stack with the right car sharing hardware and car sharing software minimizes downtimes and ensures your service is accessible for every rental.

2. Automated rental process – From tap to drive in seconds

The automated rental process with keyless access is a major advantage of car sharing over traditional car rental. Users want to quickly rent a car without hassle. From tap to drive in seconds, no more filling out forms in front of a rental counter or over the phone with a service rep.

A user-friendly mobile app for vehicle booking is essential. Customers will likely leave a negative review if the booking process is too complicated or the app performance could be better.

Automated rentals & keyless access leads to better ratings because:

• The streamlined booking process reduces waiting times.
• You prioritize user convenience and satisfaction by providing hassle-free vehicle access without manual key handover.
• Conditions for smooth rental completion (e.g. all windows must be closed) maintain premium vehicle condition.

3. Real-time vehicle condition monitoring – Keep your fleet in top shape

Maintaining a well-functioning fleet is crucial. Automated maintenance scheduling based on telematics data ensures that vehicles are always in prime condition. This proactive approach prevents breakdowns and guarantees operations without massive downtimes.

Real-time vehicle monitoring leads to better ratings because:

• You can schedule your routine maintenance based on actual data, minimizing vehicle downtime and maximizing your maintenance crew’s efficiency.
• Instead of spending time and resources on roadside assistance and on-location troubleshooting, you take a proactive preventative approach to ensure higher availability thanks to always-ready vehicle condition.

4. Data-based fleet management – Smart deployment for maximum satisfaction

Optimized vehicle deployment is essential for effective fleet management. You need to be flexible and adaptive to provide vehicles in high-demand areas. But take the guesswork out – you need data-driven strategies.

Data-driven fleet management lets you anticipate peak times and high-demand regions to maximize resource utilization, from vehicle availability to support staff. Additionally, it enables the possibility to share your fleet with other operators, thereby increasing revenue potential.

Data-based fleet management leads to better ratings because:

• You are matching supply with demand to prevent overbooking and waiting.
• You provide reliable and efficient support, less waiting times, and better problem resolution.
• Your cars are not sitting idle in lots while customers complain about a vehicle shortage.
• You can strategically position your fleet based on seasonal and event-based planning.

5. AI-driven damage detection – Spot it when it happens

Vehicle damage can significantly impact operating costs and customer satisfaction. No one wants to rent a car with dents and scratches. Automated damage detection systems, especially those powered by AI, help maintain vehicle conditions and foster transparency.

The last thing you want is to let drivers get away with unreported damages or wrongly accuse your customer of damages incurred by someone else.

AI-powered damage detection leads to better ratings because:

• Transparency about damages enhances trust among your customers.
• It reduces conflict between operators and users as damages can be assigned to a specific rental period.

6. Driver behavior monitoring – Keep an eye on vehicle usage

Don’t be gentle, it is a rental. This mindset remains prevalent in the car sharing industry, a pain point that operators struggle with. Luckily, there are driving analysis tools that can help you monitor driver habits and vehicle longevity. Operators can identify and address misbehavior by tracking speed, acceleration, braking, and cornering, enhancing the overall user experience.

Driver behavior monitoring leads to better ratings because:

• More responsible driving will lead to improved vehicle conditions.
• Social responsibility strengthens the brand image.

7. Dirt prevention – Clean rides, happy riders

Clean vehicles are crucial for a positive user experience. Private car owners typically maintain their vehicles and the vehicle interior in good shape. For the cleanliness of car sharing vehicles, it often comes down to don’t be gentle, it is a rental again.

Proactive cleaning schedules based on telematics data ensure vehicles remain in top-notch condition, enhancing the perception of service quality.

Dirt prevention leads to better ratings because:

• Proactive car cleaning keeps vehicles in top-notch condition.
• Clean cars enhance the perception of service quality.

8 Vehicle movement monitoring – Combat theft and misuse

Theft, towing and illegal joyrides present a significant challenge for car sharing operators. Each incident results in reduced vehicle availability for customers and substantial costs associated with reintroducing the vehicles into the fleet.

Advanced solutions can help to minimize downtimes for towed or stolen cars. By constantly monitoring incoming telematics data, these tools can identify suspicious vehicle movements and alert the operator, allowing for prompt action.

Vehicle live monitoring leads to better ratings because:

• Guarantees sufficient vehicle availability.
• Better insurance conditions mean lower prices for customers.

Boost user ratings with market-leading car sharing solutions

Implementing these eight car sharing solutions can significantly reduce negative reviews and enhance the overall user experience. By focusing on reliability, convenience, and cleanliness, you can build a strong brand image and attract more satisfied customers.

Leverage your business with market-leading car sharing solutions. INVERS is a pioneer in shared mobility solutions, offering reliable telematics to start car sharing or scale your existing business. Contact us, to explore all our solutions