In line with Firdosh Sheikh, the co-founder and CEO of DRIFE, blockchain-based ride-hailing platforms may disrupt and revolutionize the trade, very like Uber and Lyft did to the standard taxi trade over the previous decade. To assist this argument, Sheikh, whose ride-hailing platform is already taking up Uber in markets like India, pointed to how the blockchain’s key attributes are already making a distinction.
Blockchain-Primarily based Platforms Can Foster an Equitable Ecosystem
As an example, Sheikh highlighted how the immutability of transactions on the blockchain doubtlessly helps to revive belief between drivers and riders. Sheikh argued that when these events belief one another, the disputes over fares, routes, and driver scores are minimized and this in flip “fosters a extra dependable and equitable ecosystem.”
As well as, the CEO additionally argued in her written solutions despatched to Bitcoin.com Information that ride-hailing platforms constructed on the blockchain have the potential to reinforce riders’ safety and privateness “by encrypting delicate person knowledge and enabling pseudonymous transactions.” By defending riders’ knowledge from hackers and different cybercriminals, these blockchain-based platforms assist to revive confidence within the ride-hailing trade.
In the meantime, Sheikh asserts that, in contrast to centralized ride-hailing platforms like Uber, blockchain-based taxi platforms reminiscent of DRIFE have a greater likelihood of persistently turning a revenue. She highlighted the potential of stakeholder involvement or inclusion in ride-hailing platforms’ governance buildings. Involving each riders and drivers within the decision-making course of “can guarantee inclusivity, equity, and long-term sustainability.”
As well as, by giving stakeholders a voice, the ride-hailing platforms can doubtlessly “reply successfully to altering market dynamics and regulatory necessities.” In her written solutions despatched through Telegram, Sheikh additionally touched on how ride-hailing platforms can overcome among the frequent challenges confronted by drivers.
Beneath are Sheikh‘s solutions to all of the questions despatched.
Bitcoin.com Information (BCN): Since Uber’s groundbreaking launch of its ride-hailing app, the taxi trade has skilled a seismic shift. The influence has been profound, with many extra ride-hailing platforms getting into the scene. From a person’s perspective, these alternate options promise decrease charges and improved service high quality. Nevertheless, many individuals together with you see the blockchain as one other disruptive expertise that might reshape the complete ride-hailing panorama. Now, are you able to briefly clarify why you consider the blockchain and Web3 will drive innovation on this trade?
Firdosh Sheikh (FS): The blockchain and Web3 expertise maintain immense potential to revolutionize the ride-hailing trade. In contrast to conventional centralized platforms, blockchain-based options provide transparency, safety, and decentralization, which might deal with a number of longstanding points within the sector.
Firstly, blockchain expertise can improve transparency by offering an immutable ledger of transactions, making certain accountability and belief between drivers and riders. This transparency can mitigate disputes over fares, routes, and driver scores, fostering a extra dependable and equitable ecosystem.
Secondly, decentralized platforms powered by Web3 expertise can eradicate intermediaries, reminiscent of centralized authorities or companies, thereby lowering charges and empowering each drivers and riders. By enabling direct peer-to-peer transactions, blockchain-based ride-hailing platforms can provide decrease fares for riders whereas making certain increased earnings for drivers.
Furthermore, Web3 expertise facilitates the creation of decentralized autonomous organizations (DAOs), permitting stakeholders to take part within the governance and decision-making processes of the platform. This democratic method ensures that the pursuits of all individuals are thought of, resulting in fairer insurance policies and improved service high quality.
Moreover, blockchain-based options can improve safety and privateness by encrypting delicate person knowledge and enabling pseudonymous transactions. This protects customers’ private data from unauthorized entry and knowledge breaches, thereby enhancing belief and confidence within the platform.
Total, the mixture of blockchain and Web3 expertise has the potential to drive innovation within the ride-hailing trade by selling transparency, decentralization, equity, and safety. As these applied sciences proceed to evolve, they may doubtless reshape the complete panorama, providing customers and drivers a extra environment friendly, equitable, and sustainable mobility answer.
BCN: Do you see the blockchain equally disrupting the ride-hailing enterprise as Uber did a number of years in the past?
FS: Sure, the blockchain has the potential to disrupt the ride-hailing enterprise equally to how Uber did a number of years in the past, albeit in numerous methods. Whereas Uber revolutionized the trade by introducing a user-friendly app and a gig economic system mannequin, blockchain expertise guarantees to disrupt the sector by addressing underlying points reminiscent of transparency, decentralization, and belief.
Uber’s disruption was primarily pushed by its progressive enterprise mannequin, which streamlined the method of discovering and reserving rides, providing higher comfort and affordability for customers. Nevertheless, Uber’s centralized construction additionally confronted criticism for its management over pricing, knowledge, and driver compensation.
In distinction, blockchain-based ride-hailing platforms intention to decentralize management, providing clear and trustless programs the place transactions are recorded on an immutable ledger. This transparency can mitigate points reminiscent of value manipulation, unfair remedy of drivers, and knowledge privateness issues, resulting in a extra equitable and user-centric ecosystem.
Total, whereas Uber’s disruption targeted on bettering person expertise and effectivity, blockchain expertise has the potential to disrupt the ride-hailing enterprise by essentially remodeling its underlying infrastructure, governance, and economics. As blockchain-based options proceed to evolve, they could reshape the trade in methods which are each progressive
and sustainable.
BCN: Are you able to inform our readers about your journey of constructing and ultimately launching a decentralized ride-hailing platform?
FS: DRIFE began and continues to be a private journey. It began throughout an UBER experience to an airport in India. I’ve at all times been a person of taxis as my technique of transportation beginning early on once I moved to Delhi for my research, after which afterwards in Bangalore whereas I used to be working as a monetary analyst. But one midnight drive to an airport modified every thing.
It was on that night that the UBER driver had requested me to cancel the journey telling me he would take me at a a lot lower cost. Asking him why, I found that UBER was taking 35% fee leaving him with a revenue of lower than 50% after price.
After that drive, I started chatting with all of the drivers I might use for rides. The identical story emerged, excessive commissions, no medical insurance, and a sense that they had been caught in a vicious circle and nonetheless struggling.
I spoke to 1,000 drivers, and behind my thoughts, I remembered how my father had began his profession as a taxi driver, and the way as a younger lady I might wait patiently for his return whereas he labored exhausting to earn cash for his household.
It was then I made a decision that I needed to vary this. I had examine how bitcoin had supplied freedom to the monetary sector and realized blockchain may do the identical for the mobility sector.
I name it Taxi 3.0 for brief. In my expertise, Taxi 1.0 was the place individuals would guide an unmetered taxi and agree the fare with the driving force. Taxi 2.0 was the place huge tech received concerned and every thing moved to the platform. It was actually a technical disruption and other people may guide and discover a taxi with a few faucets on their cell phones.
DRIFE is Taxi 3.0. It’s disrupting the disruptors of Taxi 1.0, the Taxi 2.0. Whereas Taxi 2.0 was a win due to expertise, it will definitely grew to become a loss for the driving force. In Taxi 3.0, the neighborhood, the market, and the driving force are in management not anybody else. The market units the costs; there aren’t any commissions and solely a subscription price to make use of the platform in order that with each experience, the cash belongs to them. This direct connection permits for extra personalised and customised ride-hailing experiences, the place riders can select drivers based mostly on particular standards, reminiscent of driver ranking, automotive sort, and different preferences.
Our journey of constructing and ultimately launching a decentralized ride-hailing platform started with a daring imaginative and prescient to revolutionize the transportation trade. It began with the launch of DRIFE in Bangalore, India, throughout our pilot part. With simply 25 drivers onboard initially, we launched into a mission to rework the best way individuals commute in city areas.
Since our humble beginnings, DRIFE has skilled exponential development, with our platform now boasting over 30,000 drivers and serving a thriving neighborhood of 300,000 riders in Bangalore alone. Our journey from a small-scale pilot to a number one participant within the ride-hailing sector is a testomony to the dedication, perseverance, and innovation of our staff.
As we proceed to broaden our presence and influence, our dedication to offering a clear, honest, and user-centric ride-hailing expertise stays unwavering. We’re happy with how far we’ve come and excited concerning the future potentialities as we attempt to make transportation extra accessible, environment friendly, and sustainable for all.
BCN: Uber’s battle or incapacity to persistently generate a revenue has raised questions concerning the sustainability or profitability of ride-hailing apps normally. How does using the blockchain assist make ride-hailing companies like DRIFE worthwhile or sustainable undertakings?
FS: The usage of blockchain expertise in ride-hailing companies like DRIFE can contribute to their profitability and sustainability in a number of methods:
1. Diminished Operational Prices: Blockchain permits decentralized, peer-to-peer transactions with out the necessity for intermediaries, which might considerably scale back operational prices related to conventional fee processing and administrative overhead. By eliminating third-party charges and streamlining processes, ride-hailing platforms can function extra effectively and obtain increased revenue margins.
2. Clear Pricing: Blockchain-based ride-hailing platforms provide clear and immutable transaction information, offering customers with visibility into pricing mechanisms and fare buildings. This transparency builds belief amongst riders and drivers, encouraging higher participation and loyalty. Moreover, by eliminating hidden charges and value fluctuations, blockchain platforms can entice extra customers and enhance total income.
3. Honest Compensation for Drivers: One of many key challenges confronted by conventional ride-hailing firms like Uber is making certain honest compensation for drivers whereas sustaining aggressive fares for riders. Blockchain expertise permits the implementation of dynamic pricing fashions, reminiscent of auction-based or token-based programs, the place drivers have extra management over their earnings. By permitting drivers to set their very own charges or take part in incentive packages, blockchain platforms can entice and retain expert drivers, main to raised service high quality and buyer satisfaction.
4. Tokenization and Incentive Mechanisms: Blockchain-based ride-hailing platforms can leverage tokenization and incentive mechanisms to reward customers for lively participation and engagement. By issuing utility tokens that may be earned by way of referrals, loyalty packages, or different actions, platforms like Drife can incentivize each riders and drivers to contribute to the ecosystem. These tokens can then be used for discounted rides, premium providers, and even as a type of fee throughout the platform, driving person adoption and growing income alternatives.
5. Decentralized Governance and Sustainability: Blockchain expertise permits for decentralized governance buildings the place stakeholders have a voice in decision-making processes. By involving drivers, riders, and different neighborhood members in platform governance, blockchain-based ride-hailing platforms can guarantee inclusivity, equity, and long-term sustainability. Decentralized governance additionally fosters innovation and flexibility, enabling platforms to reply successfully to altering market dynamics and regulatory necessities.
Total, using blockchain expertise in ride-hailing companies affords a spread of advantages that may contribute to their profitability and sustainability. By lowering prices, growing transparency, empowering stakeholders, and fostering innovation, blockchain-based platforms like Drife have the potential to reshape the trade and create worth for all individuals.
BCN: Many drivers have highlighted many issues they expertise with completely different ride-hailing apps however maybe the commonest or essential ones are extreme commissions charged by ride-hailing platforms and delayed funds. How does your platform strike a steadiness between the wants of drivers and the corporate particularly since your ride-hailing app prices a near-zero fee?
FS: At our ride-hailing platform, we prioritize the wants of each drivers and the corporate by implementing a enterprise mannequin that fosters equity, transparency, and mutual profit. We acknowledge that extreme commissions and delayed funds are vital ache factors for drivers within the ride-hailing trade, and we now have taken proactive steps to handle these points.
At the start, our platform operates on a near-zero fee price construction, which suggests that almost all of the fare paid by riders goes on to the drivers. By minimizing or eliminating commissions, we be certain that drivers can earn a good and sustainable revenue for his or her providers. This method not solely incentivizes drivers to hitch our platform but additionally encourages them to supply high-quality service to riders.
At DRIFE, we prioritize the monetary well-being and autonomy of our drivers by providing progressive fee options and clear price buildings. One of many key options of our platform is the in-app driver pockets, which offers drivers with unprecedented management over their earnings. In contrast to conventional ride-hailing platforms which will take 48 hours to 7 days to course of funds and settle accounts, our drivers can withdraw their earnings instantly after finishing a experience. Which means drivers should not depending on us to facilitate funds or settlements, empowering them to entry their funds each time they want them.
Moreover, we function on a subscription mannequin, whereby drivers pay a subscription price to achieve entry to our platform. This price covers the price of using our expertise and providers, permitting drivers to leverage our platform to attach with riders and earn revenue. By working on a subscription mannequin, we be certain that our drivers have a transparent understanding of the prices related to utilizing our platform, with out the uncertainty of fluctuating commissions or hidden charges. This clear price construction underscores our dedication to equity and driver empowerment, enabling drivers to maximise their earnings and obtain monetary stability.
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