What is carsharing and why is it revolutionizing mobility?

Picture of Pol Alcazar

Pol Alcazar

We are witnessing a pivotal moment in the transformation of cities. The growing need to reduce traffic, environmental impact, and the costs associated with private car ownership has driven the emergence of new mobility models. One of the most prominent is carsharing—a sustainable solution that is rapidly gaining popularity and reshaping how we interact with vehicles.

Carsharing allows people to access a shared car without the need to own one, making it an efficient, cost-effective, and environmentally friendly alternative. In increasingly demanding urban environments—where space, time, and money are precious—carsharing addresses many of the challenges faced by modern users.

According to a report by Berg Insight, the number of carsharing users in Europe reached 23.8 million in 2023, and it is projected to exceed 36 million by 2027, with an annual growth rate of 11.4%. Globally, the carsharing market continues to expand, driven by urbanization, technological advancement, and a cultural shift toward more responsible and shared consumption habits.

In cities like Berlin, Madrid, and Paris, carsharing vehicles have become part of the urban landscape, providing a flexible mobility solution for those who want the convenience of driving without the financial and logistical burden of ownership. Mobile technology has played a crucial role in this growth, enabling users to book, unlock, and pay for a car in just seconds using their smartphones.

 

Carsharing: Meaning and definition of the term — Where does it come from?

The term «carsharing» comes from English and literally means «sharing a car.» Its origins date back to the mid-20th century, when the first initiatives began to appear in European cities like Zurich. These early efforts aimed to optimize car usage and reduce the costs associated with ownership.

Today, carsharing is a shared mobility service model that allows users to access a car on demand, without needing to purchase it. This system falls under the broader concept of «Mobility as a Service» (MaaS), where transportation is offered on demand and tailored to each individual’s needs.

Unlike traditional car rental, carsharing is far more flexible: users are charged by the minute, hour, or day, and both pickup and drop-off are typically done without human interaction, via a mobile app. In addition, many companies manage fleets of vehicles strategically distributed throughout cities.

How does carsharing work? A step-by-step guide

Using a carsharing service is designed to be intuitive, fast, and secure. Here’s a detailed breakdown of each step in the process:

  1. User Registration:
    To get started, the user must download the carsharing provider’s mobile app and create an account. During this process, they will need to provide:

    • Personal information (name, address, age, etc.)
    • A copy of a valid driver’s license (some platforms use facial recognition for automatic validation)
    • A payment method (credit/debit card or PayPal account)
  2. Verification and Activation:
    Once the data is submitted, the company verifies the driver’s license and payment method. This step can take anywhere from a few minutes to 24 hours, depending on the provider. After validation, the account is activated and ready to reserve vehicles.
  3. Finding a Vehicle:
    Using the app, users can view available vehicles in real time via an interactive map. They can filter by car type, battery level (for electric vehicles), or proximity.
  4. Reserving the Car:
    The user selects the most convenient vehicle and reserves it with a single tap. Some platforms allow users to hold the car for 15–20 minutes while they reach the location.
  5. Unlocking and Accessing the Vehicle:
    Once at the car, it can be unlocked directly from the app. In most cases, no physical key is required—starting and locking the vehicle is managed digitally.
  6. Starting and Using the Service:
    The driver can use the vehicle for as long as needed, following traffic laws and service conditions. Some services allow for travel both inside and outside the city, and even in other countries.
  7. Parking and Ending the Trip:
    When finished, the car is parked in designated areas (depending on whether the service uses a free-floating or fixed-station model). The user ends the trip through the app and receives a summary with the total cost, trip duration, and drop-off location.

The entire process is fully digital, eliminating the need for in-person procedures and enabling a smooth, hassle-free experience. Additionally, the user doesn’t have to worry about maintenance, refueling, or cleaning—these are handled by the carsharing company.

Benefits of carsharing

Carsharing offers a wide range of benefits for both users and cities. Some of the main advantages include:

  • Cost savings: Not having to pay for car ownership, insurance, fuel, maintenance, or parking results in significant savings for occasional drivers.
  • Reduced traffic and pollution: A single shared vehicle can replace up to 10 private cars. This contributes to more sustainable mobility, with fewer emissions and less congestion.
  • Efficient use of time: By eliminating tasks such as searching for parking or taking the car to the garage, carsharing helps users make better use of their time.
  • Flexible access: The service is available 24/7, offering an immediate solution for short-term transportation needs.
  • Ideal for businesses: Many companies use carsharing as part of their corporate mobility strategy, managing a shared fleet among employees and optimizing resource use.
  • No ownership commitment: Carsharing allows users to enjoy the freedom of driving without the responsibilities that come with owning a vehicle.

Additionally, carsharing promotes greater awareness around car use, helping to build a more responsible and balanced urban mobility model.

 

Differences between Carsharing and Carpooling

Although they are often confused, carsharing and carpooling are two distinct concepts within the shared mobility ecosystem.

  • In carsharing, a person uses a shared vehicle individually for a period of time. The car belongs to a company or organization, and the user pays based on time or distance traveled.
    • Example: Laura lives in Barcelona and needs to run errands throughout the day. Using a carsharing app, she reserves an electric car for 3 hours. She uses it for her trips and returns it when finished, paying only for the time she used it.
  • In carpooling, several passengers share a ride that the driver was already planning to take. The driver offers the empty seats in their car to others going in the same direction.
    • Example: Marcos works on the outskirts of Madrid and drives to his office every morning. To save money and reduce emissions, he posts his daily commute on a carpooling platform. He then shares his car with three colleagues who live nearby and have the same schedule.

Therefore, while carsharing serves as a substitute for owning a private vehicle, carpooling optimizes existing trips. Both models are sustainable alternatives that help reduce the number of cars on the road, but they are applied in different contexts.

At Hybo, we believe these new forms of mobility can transform the daily lives of many people and companies, which is why we support solutions that encourage their adoption.

👉 Want to know more about carpooling and how it can benefit your company or your daily commute?

💡Discover our carpooling module and start sharing rides in a smart and sustainable way.💡

 

The best examples for effective brainstorming in your company in 2025
Scroll al inicio

Fill out the form to download our report