How to launch a carsharing service? + startup checklist

Sharing business
city car sharing

Launching a carsharing service is a complicated, serious, and risk-prone step. Here you can find out what you need to know to reduce your risk.

Market and customer analysis

Draw a profile of your target customer and count how many such customers are in your market. Then explore their itineraries and the days they use the car, and where they go.

Also think about who it is best to work with: B2B or B2C? This can be done by taking a closer look at the businesses in your area and the specifics of their activities. Maybe they need help with food delivery, or they need frequent transportation for staff in the city.

Car fleet: petrol vs. electric

When choosing petrol or electric vehicle, we advise you to focus on the financial aspect and consider the following questions:

  • What is cheaper a petrol car or an electric car?
  • What kind of cars do local banks lend for?
  • Do you have incentives to purchase a car in your country? It should be noted that many countries have set up incentives to purchase electric cars and even subsidize such purchases.
  • What is the difference in insurance between an electric car and a petrol car?

The point on the cost of maintenance is highlighted separately. Learn more about fuel costs, consumables, etc.

Marketing = Marketing manager + budget!

Anything works without marketing, so you need a marketing expert who can work for results. And do not forget your marketing budget.

Software: requirements and suppliers

Good software supplier should assist with the following:

  • connection of existing vehicles to the car fleet control panel;
  • selection of vehicles to the car fleet;
  • consulting on marketing and promotion;
  • formation of the technical team;
  • training in the use of the admin panel.

The software must meet the following requirements: optimal connection price, quick implementation under the customer, flexible configuration of the algorithms, and constant updates (improvements).

Please note that you are welcome to familiarize yourself with our software free of charge. To do that, ask for demo access to the admin panel.

Team = «Great Five» + Marketing manager

Mechanic – Fixes technical faults and malfunctions of shared cars. 

Auto Electrician – Services auto-electrician. Often such employees are hired on an outsourcing basis 

Electric Vehicle Repair Specialist – Resolves any electric vehicle repair issues: motors, power inverters, etc.

Security Specialist – Deals with vandals, go to the courthouse, collect money from them, and take care to minimize those risks. A lawyer or local police representative may be such a staff member.

Marketing expert – Helps to professionally promote the sharing company

Administrator – Keeps track of the car fleet and organizes solutions to technical problems

Call Center Operator – Communicates with clients, disagrees with negativity, and gives feedback to marketing.

Investment: investor, bank, friend, or another option?

Do you need to find investment or sell an apartment to start sharing? ) The most popular financing options are the help of a friend, a loan from a bank, or the rental of a car. Based on our observations, it is the funding issue that is the most frequent reason for the long launch of car sharing.

To understand the cost of entering the market, let’s calculate. The minimum car fleet should include at least 20 cars for a small city. Generally, they are A or B-class cars: Fiat 500, Opel Corsa, Toyota Yaris, Toyota Corolla, and others. Their cost starts from 14 thousand EUR. And the minimum cost for the car fleet will be 280 thousand euros. And for a large city, such costs may be twice as high.

Checklist for launching a carsharing business

To begin car sharing, you should do:

  1. Analyze the market, in other words, make a portrait of the customer, understand his needs, and “transport psychology”. 
  2. Choose the fleet – petrol or electric? First, look at the financial side of it.
  3. Find a marketing expert and spend money on advertising – otherwise, it’s all for nothing!
  4. Choose the software – find a company that will do the work “turn-key” and will be willing to provide long-term technical support. Estimate the proposal’s cost as well.
  5. Gather the team – it is composed of a “Great Five” and a marketer expert.
  6. Find an investor – it can be a friend, a bank, a car lease, or your own money. 

If you are ready for an exciting adventure into sharing business and are looking for transport management software – contact us!