Two of the widely known players in the ride-sharing economy are Lyft and Uber, whose taxi booking services have successfully distorted the industry for transportation. These two international ride-sharing services have not only changed the face of public transportation but also that of private means of transportation. What makes these taxi booking apps an instant hit is the fact that they act as cheaper alternatives to expensive car renting services.

Now let’s have a look at the blockchain technology that claims to disrupt these ride-sharing platforms with its services.

Introduction to Blockchain Technology

The blockchain definitely seems to be a trending topic nowadays: the buzz surrounding it doesn’t seem to slow down. This shared database technology has now been claimed as the next big thing in the world of technology. And why not? The blockchain is showing us how its services can be used in different industries, whether it’s retail, travel or banking.

Today, as stated by many experts, blockchain can also help us in creating a peer-to-peer sharing economy. So keep on reading more to learn more about what the role of blockchain is transforming ride-sharing platforms like Uber.

Role of Blockchain in Sharing Economy

In a blockchain-based model, the end-users i.e. the cab riders will be able to book a cab, pay the driver, give a review or rating to the driver using a decentralized platform. This platform is very different from a centralized platform where you will find a number of intermediaries from the system.

Some of the reasons why blockchain-based ridesharing models are being considered are the elimination of unexpected price urges, a lack of transparency in the taxi-booking process, a lack of standardized security measures and many more.

Looking at the present-day scenario, there are now several companies that are offering ride-sharing services and the competition is rising rapidly. So if a ride-sharing platform like Uber wants to stay ahead in the race for the best cab booking platform, then it is important that Uber also implement emerging technologies. In this case, it’s the blockchain technology!

This is the reason why the leading blockchain app development companies are now being contacted and hired by brands to integrate their taxi booking applications with the technology of blockchain.

Pain Points on Ride-Sharing Platforms

Below are some of the main pain points that we are currently facing on these ride-sharing platforms:

  • Lack of Transparency: There’s no denying the fact that, the users feel like there is a lack of transparency in today’s taxi booking environment. This lack of transparency has made it very difficult for end-users to understand how actually things function on a ride-sharing platform. One of the main issues faced due to this is the unexpected price surges while booking a cab. This is because riders are not aware on what basis these price surges are taking place.
  • Lack of Safety: Another pain point is that of lack of safety and proper standards, this refers to both the safety of the riders as well as the drivers. Even so, the ride-hailing companies are spending millions and millions of dollars on verifying their drivers and registering their end-users. Still, there have been many incidents that have led us to believe that security is not up to the mark.
  • Higher Costs: One of the main issues that are faced by people who are dependent on these ride-sharing applications to effectively perform their day-to-day tasks is the high fees that are being charged on each cab ride. On average, a taxi-booking company charges 10 to 20% for the entire cab ride price, which further results in price elevation.

Benefits of Blockchain on Ride-Sharing Platforms

These are some of the essential benefits that ride-sharing platforms like Lyft and Uber could have with the help of blockchain technology:

  1. Cost Reduction: With blockchain, cab riders will be able to directly contact cab drivers through the blockchain decentralized platform, which will completely eliminate the involvement and need of intermediaries from the process.
  2. Security Measures: Because of the usage of blockchain smart contracts, the safety and security standards will automatically improve. As it would also make sure about the non-involvement of cab drivers in any illegal activities. Thus, generating a true and accurate rating for drivers. With this facility, drivers can also decide if they want to accept a cab service from a specific provider or not.
  3. Pricing Transparency: With the integration of blockchain into the ride-sharing platforms, it will also offer transparency in the pricing of each cab ride. The cab customers will also be able to know how they are getting charged and what is the actual functioning of the taxi booking app. This feature will also help in establishing trust between the rider and the ride-hailing services.
  4. Great Economic Opportunity: By following the blockchain’s decentralized ride-sharing platform, any person would be able to join a cab booking service provider. This will create endless economic opportunities for people that own a vehicle but are not utilizing it. This will further reduce the service fees from the companies while promoting safer business opportunities.

Final Verdict

The benefits that blockchain offers for ride-sharing platforms are overwhelming, which somehow paves a promising road for the coming future. As a popular taxi booking company, Uber has now become a crucial part of today’s public and private transportation systems. And combined with the technology of blockchain, a perfectly decentralized solution holds the caliber of disrupting the entire ride-sharing industry while eliminating the need for any third part in the process.