Keeping an eye on driving profiles: how car sharing providers monitor users

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The promise of car sharing is unlimited freedom on four wheels, without the burden of owning a car. However, reality is catching up with many users and raising the suspicion that the promise of the providers is increasingly being overshadowed by rip-offs and questionable penalty fees. This tarnishes the attractiveness of the car-sharing model.

The case of Hamburg marketing expert Engin Buldak , reported in Der Spiegel, is exemplary: after a 16-minute drive in a borrowed car, he received an ominous “warning” for “conspicuous driving behavior”. Miles Mobility, Germany's largest car sharing provider, threatened him with a fine of 250 euros if he repeated the offense – without any concrete evidence or details. According to the report, Buldak, who has been driving accident-free for 14 years, feels unjustly accused and patronized. He doubts the accuracy of the measurement technology used. The way in which car sharing providers handle the data and confront their customers is “outrageous.”

Sensors as secret controllers

Such cases are increasing. The technology behind them is not everyone's cup of tea: modern car sharing vehicles are equipped with countless sensors that are actually intended to boost assistance systems. In addition, there are often telematics boxes attached to the windshield, which apparently also transmit suspicious driving data to the providers' control centers and, if necessary, to car insurers. Heavy acceleration, drifting, but also smoking or vaping in the car are detected and lead to sometimes drastic charges.

A glance at Miles' General Terms and Conditions of Business and Rental reveals a whole list of such flat-rate penalties: 250 euros for “aggressive driving behavior,” 150 euros for “special cleaning,” and 100 euros for smoking, for example. According to Der Spiegel, the Baden-Württemberg consumer advice center criticizes these additional fees, which are not immediately obvious. Oliver Buttler, head of the consumer law department, believes that the level of charges is often disproportionate and legally inadmissible. He advises those affected to defend themselves against such demands.

Data protection threatens to fall by the wayside

A Miles spokeswoman defended the company's approach. The sensor data was intended to detect “improper driving” and warn customers. The threatened penalties served “as a means of exerting pressure for greater contractual compliance” and were also intended to compensate for the costs of potentially taking the vehicles out of service in the event of significant violations.

The fact that the cars used for car sharing are comprehensively tracked has been considered problematic for many years. In some cases, movement profiles are created down to the second, with data protection literally at risk of falling by the wayside. However, the EU transport ministers actually wanted the 2016 Amsterdam Declaration to guarantee effective protection of privacy when using vehicle information and at the same time work towards greater road safety.

Miles itself was suspected in 2023 of not having paid parking fees of up to 30 million euros to the state of Berlin since 2019. The provider was accused of manipulating the GPS data of vehicle locations to evade payments.

The parking dilemma: who is responsible?

The parking of vehicles is also a recurring source of controversy. Providers insist on the so-called 48-hour rule, according to which the last user is responsible for ensuring that the car can be legally parked for two days. This leads to questionable situations in which customers are prosecuted for fines and towing costs, even though the relevant proceedings have subsequently been dropped.

Car sharing is generally regarded as a successful model. With over 5.5 million registered app users and 297 providers, the market is booming. However, the increasing anonymity that comes with the fully digital registration and rental process also attracts black sheep. Sporty joyrides, vandalism, and theft are considered a trivial offenses by some users. Some providers react to this by excluding younger drivers on the weekend.

(mma)