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The Crucial Role of Profitability in Shared Mobility

By 28/08/2023May 13th, 2024No Comments
Profitability in Shared Mobility

The shared mobility sector is experiencing unprecedented growth, with cities worldwide embracing the benefits of sustainable and efficient transportation. However, amidst this boom, the importance of profitability cannot be overstated. For shared mobility operators, profitability isn’t just about revenue generation; it’s about ensuring the long-term sustainability and viability of their services. Two critical operations that significantly influence profitability are maintenance and deployment. Let’s delve deeper into the economic value of these operations and their impact on profitability.

Maintenance: The Backbone of Service Quality

  • Safety and Compliance: Regular and meticulous maintenance ensures that vehicles meet safety standards, reducing the risk of accidents and liabilities. In many regions, compliance with safety regulations is mandatory, and failure to adhere can result in hefty fines or service suspensions.
  • Recharging and Battery Swapping: A crucial part of maintenance involves recharging and swapping batteries. If users find the vehicles charged, they are more likely to book them, ensuring continuous and efficient fleet usage. On the other hand, a discharged vehicle is an unusable vehicle, which can negatively impact profitability and the user’s perception of the service.
  • User Trust and Retention: A well-maintained fleet translates to reliable service. Users are more likely to trust and stick with a service that offers clean, functional, and safe vehicles. This trust directly impacts customer retention rates, a key metric influencing profitability.
  • Longevity of Assets: Regular maintenance extends the lifespan of vehicles, ensuring that operators get the maximum return on their investment. By prolonging the operational life of each vehicle, operators can defer the significant costs associated with fleet replacements.
  • Operational Efficiency: Efficient maintenance operations, powered by predictive analytics, can preemptively identify issues before they escalate, reducing vehicle downtime and ensuring optimal fleet availability.


Deployment: Strategically Positioning for Success

  • Optimizing Asset Utilization: Strategic deployment ensures that vehicles are placed where demand is highest. This optimization reduces idle time and ensures that each vehicle generates maximum revenue.
  • Reducing Cannibalization: Over-deployment in specific areas can lead to ride cannibalization, where too many vehicles compete for the same set of users. Understanding the right balance is crucial to ensure that every deployed vehicle contributes positively to the bottom line.
  • Dynamic Adaptation: Urban mobility patterns are not static. They change based on various factors like time of day, weather, events, and more. Effective deployment strategies adapt dynamically to these patterns, ensuring that supply aligns perfectly with demand.
  • Cost Efficiency: Deployment isn’t just about placing vehicles; it’s about relocating them based on demand shifts and vehicle type. Efficient deployment strategies minimize the costs associated with vehicle relocations, such as labor, fuel, and time.

Understanding the Economic Value

Both maintenance and deployment have direct and indirect economic implications. Direct costs, such as repair expenses or deployment labor, are easily quantifiable. However, the indirect economic value, such as user trust, brand reputation, and asset longevity, although harder to quantify, can significantly impact long-term profitability. A relevant challenging aspect to quantify is also the unsatisfied demand — determining how many potential users, who intended to use a vehicle, refrained from doing so because it was unavailable, uncharged, or other reasons. Despite the challenges in quantification, these indirect factors can significantly impact long-term profitability.

For shared mobility operators, the journey to profitability is multifaceted. While revenue generation is crucial, understanding and optimizing the economic value of core operations like maintenance and deployment are equally vital. By focusing on these areas, operators can not only enhance profitability but also ensure the long-term success and sustainability of their services.

Unlocking the Future of Urban Mobility with SWITCH – Street WITCHer

In the bustling landscape of urban mobility, the quest for efficiency, sustainability, and profitability is relentless. Introducing SWITCH – Street WITCHer, a B2B SaaS platform meticulously crafted to redefine fleet management and city planning. By tapping into a huge pool of high-quality data-driven insights, SWITCH empowers mobility providers and local administrations to fine-tune vehicle distribution, refine maintenance operations, and envision more streamlined transportation systems.

SWITCH’s Modular Mastery

At the heart of SWITCH – Street WITCHer lies a suite of software modules, each tailored to address specific facets of shared mobility planning and management:

  • Data Visualization and Management: This all-encompassing dashboard offers a panoramic view of fleets and cities, integrating diverse data sources into a visually intuitive interface. Customizable alerts ensure that fleet managers and city officials are always in the loop about pivotal events or shifts in fleet dynamics.
  • Events & Future Insights: With the proprietary “Switch score”, this module deciphers the influence of city events on mobility demand, enabling proactive vehicle distribution and maintenance planning.
  • Performance Forecasting: Harnessing the prowess of AI, this module paints a vivid picture of anticipated trips, fleet utilization, and other pivotal metrics, ensuring vehicles are strategically positioned to meet imminent demand.
  • Rebalancing: A module that’s all about equilibrium. By synthesizing data from the Performance Forecasting module, it pinpoints areas of demand-supply mismatch, guiding fleet managers in judiciously repositioning vehicles.SWITCH rebalancing
  • Operations Manager: A testament to SWITCH – Street WITCHer‘s commitment to efficiency, this module employs a sophisticated routing algorithm, optimizing shared vehicle operations by generating the most efficient routes, taking into account traffic data, vehicle attributes, and specific objectives.
  • City Insight: An innovative tool empowering users to simulate thousands of scenarios, identify optimal decisions regarding fleet size, parking/hub allocations, and EV charging station distribution. By amalgamating diverse data streams, it offers invaluable insights, enabling informed decisions that bolster fleet performance and sustainability.SWITCH city insights


Embarking on a Journey with SWITCH – Street WITCHer

For those eager to delve deeper into the huge potential of SWITCH – Street WITCHer, a treasure trove of information awaits at From in-depth feature breakdowns to compelling case studies, discover how SWITCH is reshaping the urban mobility landscape. Schedule a demo with our experts and embark on a journey towards data-driven excellence. With SWITCH – Street WITCHer, you’re not just managing fleets; you’re sculpting the future of urban mobility. Join us in this endeavor and steer your operations towards a brighter, more sustainable horizon.