Mobility is a Big Business
For as long as human civilization has existed, the need to move from one place to another has been a profound constant. This particular characteristics of human behavior has evolved over time, people humans seeking new ways to transit from one point to another in order to make life simple.
Mobility in itself is a huge economic factor and an opportunity of itself. Without going into too much statistics (apologies to our pedantic readers), in the more recent years, the numbers of cars on the roads have increased and drivers have taken their economic empowerment more personal, with lots of ride-hailing platforms out there to choose from – yes, it’s a buffet!
In short, mobility is a big business with the global taxi market worth approximately $108 billion USD. These figures are constantly being challenged by the increasing new forms of ride-hailing experiences, however, experts put the current global mobility as a service (MaaS) value at about $24.1 billion USD and expect this to grow to a value of $230 billion USD in less than a decade (by 2025).
Decentralized Sharing Economy is the Future
The advent of the blockchain, smart contracts, and the decentralized distributed economy has opened up the world to a whole new scope of opportunities. These opportunities have given rise to a host of tokenized digital assets and a prospering new Internet-based economy. While these concepts are still nascent and propose a brighter future, their current development and application streams are magnificent.
Basically, what the decentralized sharing economy does is to bridge the gap between value creators and enhance financial opportunities. This means that it kicks out the middleman, directly connects buyers and sellers of commodities or services, and everyone’s happy.
Leveraging the sharing economy has empowered many developers and investors to build a new economy upon the foundation of smarter systems than those currently available in the world today.
Ride-hailing as a multi-billion-dollar venture has influenced many urban and suburb regions to a large degree, bringing new scopes to drivers’ economic empowerment. Currently, the major regional coverage for the industry spans through USA, EU, Japan, China, India, and Southeast Asia.
The current valuation for the ride-hailing market is about $36 billion USD. Analysts have projected this sum will be approximately $285 billion USD by 2030 which is 8 times the current valuation.
Ride-Hailing is Evolving
Unlike the taxi industry, which dates back centuries ago, ride-hailing in this age, has the advantage of technology and a driver’s motivation for independence. Taxi companies regulated by either the state or transport authorities have made income earnings for drivers more difficult with stringent policies and bottleneck bureaucracies; the worst is envisaged when centralized middlemen entities disrupt the income flow of drivers through huge commissions. This has created an opportunity in this transport sector and many industries today are leveraging projected economic analysis and high-end technologies to proffer solutions.
Market prospects for the ride-hailing industry now cover mobile application developments, rising market demands due to population increase, regional expansions into emerging markets, autonomous economic empowerment and speculative instruments on the financial and capital markets. Like every other growing business, the ride-hailing business in just under a decade ago, has drawn the spotlight to itself, as many entities continue to show interest either as investors or as commuters and even more rapidly by drivers who want to be their own boss and maintain a decent income.
Decentralized Ride Hailing and Emerging Markets
Applying blockchain technology to the ride-hailing service industry will serve to improve the throughput of the entire ride-hailing ecosystem. While there are other organizations with the intentions of creating a wholesome system out of the ride-hailing economy, very few of them hit their principal objectives, and yet do not achieve a wholesome ride-hailing decentralized entity.
DRIFE’s role in this economy is not just to stabilize but also harmonize the different stakeholders in such a way that key players and value creators are at their best in sustaining the growth and implications of the ride-hailing industry. Howbeit, this is not without the proper incentive to do so willingly – hence the decentralized infrastructural model of the DRIFE ecosystem.
Problems in Current Ride-Hailing Infrastructures
While there are quite a number of problems existing within the current ride-hailing business infrastructure, it all comes down to centralization. However, we have detailed other problems in our whitepaper as to why the current ride-hailing businesses aren’t efficient.
Since the beginning of industrialization, the problem of centralization which is the basic infrastructure of private sectors and government systems has plagued every major industry. Generally, it describes a middleman structure that concentrates the flow of power, decision making and the economy to itself, it is hard for any meaningful growth or development to take place with this type of structure in place.
It’s a given that the existing taxi aggregator firms have a centralized system in place, and since this transport model has been mirrored by ride-sharing/hailing industries, the problem percolates.Centralization in the ride-hailing industry stifles growth as it concentrates control towards larger corporations and entities that host these platforms. This essentially leaves other value creators void of rights and less income.
A typical centralized company uses discriminatory strategies to manipulate the prices which riders pay per trip. The aim often time, is to create a stream of higher revenue at the expense of the rider and often times the driver also.Another problem frequently observed in centralized infrastructures is the breach of user data. These firms actively collect data from riders and drivers, which are fed to proprietary algorithms to find the best possible match. This has facilitated the growth of these firms by allowing them access to more markets and customers receiving affordable rides. In turn, these models have helped in creating highly valued privately held corporations across the globe. But what eludes most people is that it is also the perfect example of a centralized structure.
A recently report of a data breach in 2016 was released, where the names, phone numbers and email addresses of more than 20 million people who use the Uber Technologies Inc.’s service in the U.S were leaked.
Moreover, there are cases of exploitation in the name of the commission, data breach and high level of control to a central authority. Currently, there are a couple of major players operating in different regions and are engaging in price wars which results in a high burn rate of their investments. The ulterior motive of such endeavors is to create a monopoly or duopoly market where they can inflate the prices and commissions at will, and with an iron hold over the governance.
As for these commissions, current ride-hailing platforms charge drivers high commissions and, have increased the commission from an initial range of 15-18% to as high as 20-30%. This is a relatively large share among companies that likewise run online marketplaces to connect buyers and sellers.
So technically, what we have of a centralized infrastructure is the manipulative hike in commissions, data breaches and centralized control over drivers and their income.
What’s Our Solution?
DRIFE is a completely decentralized ride-hailing platform powered by the EOS blockchain with the intent of empowering value creators within our ecosystem – these include the drivers, riders, and community developers. DRIFE plans to disrupt the existing business model and remove the corporate intermediaries involved in the transactions.
What we’ve created in the DRIFE ecosystem is a new paradigm for the ride-hailing industry. We are the first platform in this niche to express the full features of the decentralized ride-hailing economy.
RIFE Ecosystem: Value Creators & Extractors
At the core of our ecosystem are our value creators (Drivers) and extractors (Riders) – we take good care of them:
A. Drivers: DRIFE aims at shifting the focus from the existing commission-based platforms to a decentralized network with a new economic model, where 100% of the fare paid by ‘Rider’ goes directly to the ‘Driver’. We at DRIFE are determined to make an economy of Zero commission on rides, only annual Membership Fee from the driver which will give them access to DRIFE platform to get connected with the riders.
The platform fee can be paid in either DRIFE token or Fiat currency and will accrue annually, with the first year Membership Fee paid by the drivers acting as a security deposit. Drivers will be given equivalent DRIFE tokens, which is locked into the DRIFE platform as long as the Driver remains in the community. Anytime the driver wants to exit from the community, they will be free to liquidate their DRIFE token for themselves.
The second-year membership fee will give drivers access to DRIFE platform only with no DRF token equivalent given. Funds collected through membership fee will be used for pay day to day expenses to run the platform.
B. Riders: passengers receive special exclusive discounts (T&C applies) when DRIFE tokens are used to make payments for trips. Further, as incentives and bonuses when they behave appropriately during rides. More so, feedbacks on the driver, trips, overall DRIFE platform use, and network building are incentivized through the DRIFE token.
Other key participants in our ecosystem:
C. Developers*: a community of open-source developers are incentivized through bug bounties and for other potentially creative in-app developments that will user experience through UI interaction for both riders and drivers.
D. Investors*: it’s our desire that our product will have an indirect impact on adopters ‘outside’ our user ecosystem. This will include long-term investors, traders on both decentralized and centralized exchanges and all future potentials the DRIFE token will have as a result of interaction with our product and is adoptability. Incentives here will involve periodic airdrops, selfdrops, and airgrabs. More so, staking rewards are competitive and far beneficial than what is currently obtainable on other decentralized projects.
What We Offer?
We are initiating the creation of a utility token called the DRF token, which will power our platform and give its holders an opportunity to leverage on the best services the ride-hailing industry can provide.
- To the drivers, we offer the opportunity to earn full fares, no hidden commission or charges.
- To the riders we offer the experience of the best of safety, security and affordable ride-hailing.
- To our investors, we offer open access to the growing global MaaS economy.
It is important to note that our AI component functions as a buffer system, giving it the ability to self-learn and adapt to the changing environment in order to provide the best of services anytime and anywhere.
In summary, our economic model (GET model) encourages active participation from the community members towards the building and maintenance of the ecosystem.