The Blockchain is the new term that is buzzing everywhere. The Blockchain is the new concept of decentralizing any service or sector thereby eliminating the need for a top-down hierarchy which is obvious in any company. No corporate is involved between the vendor and the user, thus getting rid of the middle-man. The Blockchain is already implemented in various service some of which is already a huge success.
Blockchain, in other words, is a series of similar users, connected via the same terminal.
Benefits of Blockchain:
User can decide whether to reveal his or her identity.
Transactions done are almost completely anonymous.
Without the middleman, the vendor can directly enjoy the profit without the need to share the commission.
Corporates do not control you anymore. You are the owner of your service.
Decentralization makes it easy for the users to not fall prey to any corporates.
Affordable service can be enjoyed by every user. No hidden charges are imposed.
The user can choose their person of interest for a particular service.
Rewards are ample and easy to avail.
Decentralization is the first and foremost aim of a blockchain. So one single person cannot claim ownership nor a hierarchy is maintained. Does that mean the blockchain will fall without a proper head?
Certain limitations are made within the blockchain to ensure safety to the users. The people in the community protect one another.
Still, without a leader, it will fall is your thought right?
Yes and No.
It does not have a leader. That’s for sure. It does have admin and people who check at certain intervals and moderate the whole chain.
Hence the blockchain is served only for the purpose it is created.
We, at Wrydes, learned about blockchain and checked its feasibility in the ridesharing economy.
Before discussing our findings let us walk you through the business models of already existing blockchain ridesharing across the globe.
1. Arcade City
A ridesharing blockchain which was formed by a facebook group with 30,000+ members. When Lyft and Uber left the city of Austin over a mandatory fingerprint-based background check for divers, the city was left helpless and a big question for public transportation arose.
Many new taxi companies appeared here and there but none filled the void left by the ridesharing giants – Uber and Lyft.
Meantime, a Facebook group was created where a rider request for a pickup. The driver who is willing will respond to the post with fare and ETA. If both the driver and the rider agree upon the pricing, the rider needs to delete the facebook post.
The whole process was decentralized and the fare is set by the drivers.
Out of this, the Arcade City was developed.
Arcade City is a blockchain consist of riders and drivers. A rider can post the pickup and drop location. The feed is displayed to a driver who then speaks money. If the rider is ok with the fare, he or she can confirm the ride.
Arcade Token is used in this whole process of ridesharing. One can convert this Arcade Token to their currency whenever they feel so.
The Token wallet is loaded and kept ready. When a driver accepts a ride, the token amount is debited from both the wallet of the rider and the driver. Once the ride is completed, the deducted token is credited along with the ride fare token.
The driver has the privilege of determining the fare.
The rider can choose his driver of interest, unlike Uber and Lyft.
No fee is deducted from the ride fare as it is a non-profit platform.
Background checks can be viewed by the rider
The platform itself creates a trust score for the driver based on the number of verifications he or she completed. This score helps the rider to choose the right driver.
A favorite driver can be booked again and again thus worrying less about the commute.
This model does not generate much of revenue for the platform creator. Though some money can be made out of selling the IPO tokens, it is not a profit generating revenue model.
DACSEE stands for “Decentralised Alternative Cabs Serving & Empowering Everyone”.
As the name suggests, it is a decentralised taxi service started in Malaysia and spreading across the globe.
DACSEE is also similar to Arcade City in terms of functionality but its revenue model differs.
DACSEE lets the drivers set the fare and riders can decide with whom they can ride.
But to become a driver in this blockchain an already existing driver must refer.
So let’s assume A is a Driver who is already in the blockchain. A can refer B and make him a part of the blockchain.
Similarly, Driver B can refer Driver C and the chain goes on.
If B completes a ride, 80% of the total ride goes into his pocket. 20% is shared among the referrals and the DACSEE. In this case, 20% is shared between Driver A and DACSEE.
Likewise, if Driver C completes a ride, 20% of his total ride fare is shared among his referrals Driver A and B, and DACSEE.
This is similar to the Multilevel Marketing.
Because of this model, the profit is shared among the entire community and not one person is enjoying the money.
This is the how DACSEE decided to disrupt the ridesharing economy.
In our observation, we found out that Blockchain can be a huge thing when comes to ridesharing economy.
Top ridesharing companies like Uber and Lyft sustain their business with the fundings they have thus reducing the ride fare. This directly affects the drivers who are at the bottom of the corporate hierarchy.
The revenue model adopted by DACSEE is a welcome one as it takes a very little from the drivers share and does not take money directly from Driver’s pocket.
The share given to the company is very reasonable. This amount of money is needed for server cost and maintain the platform.
To Wrap up…
Blockchain will be a huge success in ridesharing if it is able to overcome difficulties like the verified driver, instant ride acceptance, and fair ride cost.
None can deny the fact that unverified drivers possess a huge threat to the platform but platform creators are experimenting new ways to ensure the safety of both drivers and riders.
With rapid evolution in technology, the blockchain can be made safe and more profitable for the drivers in the ridesharing platform.
To know more about implementing blockchain in your taxi service, get in touch with us – Contact Us or write us to email@example.com