Measuring your performance is key to understanding whether you are on the right path for your car sharing business. Without tracking the right metrics, it feels like driving without a dashboard. You don't know how fast you're going or if you're about to run out of fuel.
This lesson will introduce you to Key Performance Indicators (KPIs), the essential data points that measure the health and success of your operation. We will explore the most critical KPIs across operations, customer growth, and financial management. By the end of this lesson, you will know which metrics to track, how to calculate them, and how to use them to build a more efficient, profitable, and sustainable car sharing service.
Tracking KPIs is all about using data to get a clear and accurate view of your business' performance. Consistent measurement allows you to see what is working and what is not. Are your vehicles being used enough to be profitable? Are new customers happy with their first experience? Are your operational costs under control? Answering these questions with data helps you make smarter, faster decisions.
For example, if you see that vehicle utilization is low in a specific neighborhood, you might adjust your marketing or move vehicles to a higher-demand area. Furthermore, when you seek funding, investors will expect to see clear data that proves your business model is viable and scalable. Strong, positive trends in your KPIs are the most powerful way to build confidence and secure investment.
Keeping your cars available for rental is critical for your business. A vehicle can spend too much time in the workshop, out of order while charging, or waiting between its purchase and first rental. You can impact vehicle uptime by creating efficient infleeting processes, minimizing time in the workshop by avoiding vehicle wait times, and using tools to prevent crashes and thefts to keep cars in service. Optimizing this KPI ensures that your vehicles are always available when a customer needs them, maximizing your revenue potential.
How to Calculate:
Uptime (%) = (Time Available for Rentals ÷ Total Operating Time) × 100
This is the core measure of your fleet's productivity. Higher utilization means your primary assets (your vehicles) are generating more revenue, which helps cover fixed costs like insurance and financing. Key factors include vehicle placement in high-demand areas, dynamic pricing, effective rebalancing of the fleet, and minimizing vehicle downtime for maintenance, charging, and cleaning.
How to Calculate:
Utilization (%) = (Booked Minutes ÷ Available Minutes) × 100
This KPI measures your service's end-to-end reliability. A trip can fail before it starts or end unexpectedly mid-journey. The most common failures happen when a customer reserves a vehicle but cannot begin the trip. This can be due to connectivity issues preventing it from unlocking, the engine failing to start, or the car being too dirty or damaged. Another type of failure occurs mid-trip, such as a fuel card not working or an immobilizer malfunction. These events ruin the customer experience, destroy trust, and directly impact revenue.
How to Calculate:
Trip Success Rate (%) = (Completed Trips ÷ (Completed Trips + Failed-to-Start Trips + Mid-Trip Failure Reports)) × 100
This KPI reveals hidden friction in your user experience and is a direct driver of operational costs. Each contact represents a point of confusion or frustration. Common drivers include unclear app instructions, confusion about fueling or parking rules, and unexpected billing issues. Having a reliable telematics solution that ensures your vehicles are always online and unlock when instructed can be a big factor in bringing this number down. Other factors, such as dirty interiors, are more difficult to impact but can also be important levers.
How to Calculate:
Contact Rate (%) = (# Support Contacts ÷ # Total Trips) × 100
You should track the average time required to resolve issues such as theft, breakdowns, and vehicle misuse. Speed is critical here because every minute a car is offline is a minute it is not generating revenue. For example, reducing recovery time from 8 hours to 2 hours saves $240 per incident at a $40/hour labor cost. Quick resolution keeps your operational costs low and your fleet availability high.
How to Calculate:
Recovery Time = Total Time to Resolve Incidents ÷ Total Incidents
This metric links your customer acquisition costs directly to revenue by measuring how many new users take their first trip after passing the 'Know Your Customer' (KYC) identity verification process. A high activation rate shows that your onboarding is effective and that new users immediately see value in your service, as this initial experience is critical for turning them into repeat customers. Success here depends on a simple sign-up process, good vehicle availability, attractive welcome offers, and clear communication to build trust.
How to Calculate:
Activation Rate (%) = (# Users With First Trip ÷ # Users Who Passed KYC) × 100
MAU shows the breadth of your customer base, while trip frequency shows the depth of engagement. Together, they measure your demand momentum and customer habit formation. These metrics are influenced by fleet density, subscription packages or day rates, B2B accounts, and service availability in key areas like airports or business districts.
How to Calculate:
Trips per Active User = Total Trips in Month ÷ MAU
CSAT provides a real-time pulse on trip-level quality, while NPS measures long-term brand loyalty and the potential for word-of-mouth growth. Satisfaction is driven by vehicle cleanliness, availability, app reliability, fair pricing, and the speed and effectiveness of your customer support.
How to Calculate:
CSAT = Average post-trip rating (e.g., 1–5)
NPS = % Promoters (9–10) - % Detractors (0–6)
TCO reveals the true cost to run each vehicle and sets the financial baseline for profitable pricing. It is essential for making smart vehicle procurement decisions. This is determined by the vehicle's purchase price, resale value, energy efficiency, maintenance needs, and insurance costs. Other expenses can also be included, so the exact calculation always depends on your individual setup.
How to Calculate:
TCO per km = Total Costs (Depreciation, Insurance, Energy, Maintenance, etc.) ÷ Total km Driven
Insurance is a major cost, driven entirely by claims. Tracking frequency and severity helps you understand your risk profile and is critical for managing your insurance premiums and profit margins. Key factors include who you accept as a user (e.g., imposing time- or age-based restrictions), whether you use tools to get insights into driving behavior, the urban driving environment, vehicle safety features (ADAS), and if you have workflows for driver education.
How to Calculate:
Frequency: (# Claims ÷ km Driven) × 100,000 Severity: Total Claims Cost ÷ # Claims
This KPI measures the percentage of damage costs recovered from the responsible party. A low recovery rate means your business absorbs the cost of damages, which hurts profitability. Technology can significantly improve this. For instance, MyWheels increased incident traceability from 30% to 93% using AI damage detection. High traceability ensures that you can assign costs accurately and maintain a healthier bottom line.
How to Calculate:
Recovery Rate (%) = (Recovered Damage Costs ÷ Total Damage Costs) × 100
Ultimately, tracking the right KPIs is about understanding the health of your business in real-time. These metrics provide a clear, data-driven picture of your performance, allowing you to move beyond intuition and make informed decisions. By consistently monitoring KPIs, you can see if your core operations are efficient and reliable, if you are successfully growing a loyal customer base, and if your financial model is truly sustainable. Using data to guide your strategy in these key areas is the most effective way to operate intelligently, grow sustainably, and build a profitable car-sharing service.