When you hear “cryptocurrency” think decentralization and when you hear “blockchain”, think trusted and secure. Combine the two and you have a secure decentralized technology that eliminates many inefficiencies in the way we do business today. In other words, you don’t necessarily need to pay a company to perform a service that can be done by a trusted decentralized technology at a much lower cost. This is particularly beneficial when multiple companies pay for the same exact service. Ridesharing is a great example.
In its simplest form, ridesharing companies need a vehicle and a driver to function (for now until we have autonomous cars). Since rideshare drivers use multiple platforms, they typically go through multiple background checks and each platform needs to obtain the appropriate insurance. In addition, driver ratings are not uniform across platforms. For example, a driver could be banned from one platform for bad ratings but could apply and drive on another platform.
With respect to vehicles, rideshare companies have internal policies and procedures to assure the vehicle is registered, inspected and in mechanically good condition. If a vehicle is used on multiple platforms, these costs are also born multiple times.
As a result, the cost of transportation to the consumer is significantly higher when operated in a centralized manner vs. a decentralized manner. Blockchain technology has the ability to ensure your rideshare driver has been background checked, identity verified, insured and rated, and can also ensure the vehicle is inspected, and up to date on its maintenance schedule. This would be done one time and a network of drivers and vehicles could be used across all rideshare providers.
In addition, many existing mobility companies are two-sided market places (ride share, peer to peer car share, and SAMEWAY). In April 2018, Apple announced that it is integrating Ripple’s Interledger Protocal into Apple Pay and it appears that Apple is on the path to accept cryptocurrencies as a form of payment. This would ultimately enable a peer to peer payment scheme that bypasses financial institutions.
Enabling peer to peer payment with a cryptocurrency would enable even more efficiencies in mobility market places. For SAMEWAY if we could transact directly peer to peer it would save consumers 5% on every SAMEWAY trip.
It’s exciting times! The combination of cryptocurrencies and blockchain technology has the potential to increase the security of mobility platforms and significantly reduce the cost of mobility services to consumers.
By: David Piperno, Founder and CEO SAMEWAY