The use of on-demand ride-sharing apps like Uber and Lyft is gaining considerable popularity among daily commuters globally. The industry is ripe for opportunities. Instead of flag-down taxis, customers are willing to pay on-demand ride-sharing providers for convenience and a lower fee. Nonetheless, the industry is full of challenges too. For ride-sharing service providers, identifying and addressing factors that attract passengers and make them lose interest are crucial. With blockchain automotive solutions, stakeholders can develop a customer-centered ride-sharing app that enables them to optimize customer-attracting features while addressing the ones that force them to change a service provider.
Costly Payments due to Intermediaries
In the current scenario, when a passenger books a ride, an email first goes to the company, and then it assigns a driver for a journey.
In this process, the service providers levy a 10-20 percent charge on the total fare. Consequently, it proves costly for a customer while the driver also gets the payment after a commission deduction. Indeed, extra costs arise from the presence of intermediaries between a driver and a passenger.
Often, drivers do not grasp how firms work because of the lack of accountability in the existing ecosystem. You would have come across a concern of peak pricing if you have ever used taxi services. Because of the unknown roles of the company, riders do not have a good idea of the explanation behind the abrupt price spike.
No Data Security and Privacy Mechanisms
Taking control of the safety of both passengers and drivers is one of the big challenges faced by cab companies at present. Taxi organizations spend millions of dollars on user authentication, but cases of false identities and crime are growing daily, despite their attempts. Here is a look at the current model against a blockchain-powered ride-sharing app model.
Current vs Blockchain-based Ride-Sharing
Fast. Secure, and Efficient Transactions
Blockchain will allow riders via the decentralized network to communicate directly with drivers, minimizing the extra costs accrued due to the presence of so many intermediaries.
Transparent and Accurate Pricing Model
Because of the blockchain’s potential to provide accountability, passengers will be allowed to see how the taxi business operates. Pricing will be set based on the basic parameters specified in the Smart Contracts, which will give the system confidence and transparency.
Strengthened Security and Privacy Standards
By creating an appropriate ranking for them, the rules established in smart contracts will guarantee that drivers are not engaged in some form of illegal activity. It will help riders decide whether they want to take a trip with a particular service provider or not.
Streamlined Economic Activities
Anyone will gain money using their vehicle with the approach of a decentralized car-sharing network. Due to the absence of intermediaries, the reduction of service charges will expand market opportunities for those with a smartphone and a secure modern car.