This refers to multiple people travelling in one car... they also will say "High Occupancy Vehicles only" (or HOV). during periods of heavy traffic, they restrict certain lanes to these cars.
the term "car pool" specifically means multiple people traveling to one location (usually work or the office) in one car. for example, instead of driving to work in the morning, you would wait for your co-worker to pick you up and then you both would drive to the office.