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Movability publishes interviews with mobility leaders, op-eds and serves as mobility experts for media outlets in Europe. Take a look at some of our work below.
How To Make Car-Sharing Work
Interviewing Hyre CEO on EV policies, OEM unprofitability, Stockholm scale-up and Chinese EVs
Welcome to our latest mobility expert interview! This time I talk to Nils Petter Nordbø, CEO of Hyre, a Norwegian car-sharing operator that’s expanding in Stockholm, even as Volvo On Demand is stopping its operations. We explore why some car-sharing regulations work and some not, how market conditions affect profitability, and the issue of China and the debate we need to have about data sharing.
Why do you think Hyre can succeed in Stockholm while Volvo On Demand is scaling down?
Nordbø:
"Lean operations and offering great cars at reasonable prices. We’ve kept our organization lean and cost-effective from day one. So even if we charge half what Volvo On Demand did, we can still turn a profit. In contrast, car manufacturers (also known as Original Equipment Manufacturers or OEMs)) often attach a “premium” positioning to their shared services, which burden them with overheads. Ultimately, the consumer is left facing a higher price."
You mentioned lean operations. Could you elaborate on why OEM-based car-sharing tends to fail this point?
Nordbø:
"It’s partly cultural I believe. An automaker might have deep pockets and established processes that aren’t optimized for cost efficiency. They also may not prioritize operational improvements. A company whose core mindset is “build and sell cars” can struggle when shifting to a “rent-by-the-hour” model. When we began we had a laser focus on how to keep operational costs low and pass those savings to users in the form of cheaper prices."
Recent article from Movability:
So, if you were advising a city on how to attract car-sharing services, what conditions do you consider ideal?
Nordbø:
"A strong public transport system is key to making car-sharing work. If people can rely on buses, trams, or trains for everyday commuting, they’ll only need a car occasionally, like for errands or weekend getaways. That’s where we step in. We see ourselves as a complement, not a competitor, to public transport. Paradoxically, you want a city that makes daily car use less attractive, for instance through high tolls and limited parking options. "
Are there specific policies that make or break a new car-sharing launch?
Nordbø:
"Absolutely. On a national level in Norway for example, we’d love to see parity with private EV incentives. Right now, Norway charges 25% VAT on shared electric vehicles while private EVs below NOK 500.000 get 0% VAT. This makes it more attractive for people to buy EVs than rent them. At the local level, subsidized parking often favors private EV owners over car-sharing. In one city, we pay 2000 times more for a parking permit than a private EV owner per month. When the goal is to reduce overall car ownership, it’s counterproductive to penalize shared fleets. It’s not my mission to make life harder for private car owners, but I do think it’s unfair to our customers that we have to add extra costs that they wouldn’t face if they owned a private car. Harmonizing such policies could easily knock 35% off our user prices for shared EVs."
That’s a big difference. Are there success stories where cities have encouraged car-sharing through better policies or partnerships?
Nordbø:
"Yes. In Trondheim, for instance, we have a partnership via AtB, their public transport authority. This was established through a procurement on their part. AtB offers their monthly pass users two free hours of Hyre, and we promote each other’s services. It’s a simple but effective synergy: Users see us as the logical way to handle occasional car trips, whereas AtB covers their daily commuting. Such public-private collaborations make it easier for residents to go car-free most of the time."
You mentioned EV versus combustion cars in your fleet. How do taxes and regulations influence which type your customers choose?
Nordbø:
"In general, our customers love electric vehicles. However, if higher VAT on EVs pushes up rental rates, many switch to cheaper gasoline cars. Especially for longer trips, they want an EV with a strong battery range. Those models often come from a mid-premium bracket, and they can get pricey if you add 25% VAT on top. This pivots people to rent cheap gasoline cars instead, because they get more range for less money. If shared EV incentives matched private EV incentives, it would drive more customers toward electric rentals."
Other articles from Movability:
You’ve also raised concerns about Chinese vehicles from a data security angle. Could you explain that briefly?
Nordbø:
"China has always been great at using learning curves to reduce the cost of manufacturing. When they entered the solar PV market the whole world benefited. We will see Chinese OEMs bring down the cost of EVs the same way – which is fantastic! However, cars are different from solar PV. Modern cars are connected and have the potential of being controlled remotely. Given the geopolitical situation, there's been a lot of discussions around apps like TikTok, and more recently, DeepSeek. Historically, governments have banned Chinese players from the Telecom market based on data security arguments. I feel this is a topic which hasn't been debated properly in Norway and the EU. On the contrary, China has imposed restrictions to foreign connected cars in their local market, and the US recently banned Chinese "connected cars" altogether due to national security concerns. We will need a regulatory framework in the EU that addresses these concerns."
Let’s talk about service models. You’re known for station-based car-sharing, while some others do free-floating. Any thoughts on free-float’s viability?
Norbø:
"Free-floating can function somewhat like a cheaper taxi, but in the long term, we suspect that self-driving vehicles or ride-hailing tech may overshadow free-float models. Station-based services are more stable for covering weekend trips or errands outside the city and have more simple operations. In short, different city goals yield different solutions. If the city wants to reduce private ownership for long trips, station-based might work best. If curb management and last-mile trips are big issues, free-float might be more appealing."
Finally, what’s your overall advice for cities and operators looking to grow car-sharing?
Nordbø:
- Align incentives. Shared EVs shouldn’t be taxed or charged more than private cars if the city aims to reduce car ownership and emissions.
- Partner with transit. Show residents how your service complements daily bus or train use.
- Keep exploring. Many smaller cities or emerging markets are tempted to roll out heavy regulations without truly consulting operators, which can backfire. Regular dialogue helps.
