Blockchain in Taxi Industry: Technology for Ordinary People

By | 02.12.2017

Blockchain technology in the local transportation or taxi industry is only the continuation of an evolution that has gone on for centuries. Mankind has long sought more efficient technologies both in transport service providing and industrial administration.

From ancient forms of transportation that involved trekking, the use of animals and carts, to the complexity of present-day machines, the transportation industry has developed into an organized ecosystem with basic administrative departments.

Taxis are everywhere

The local taxi systems that exist in almost every major town and city across the globe have proven to be quite essential to modern life. Given the importance of commuting in daily life, it’s unsurprising that taxis are in high demand and the industry is exceedingly competitive. It is estimated that the global taxi market fluctuates between 50 and 100 bln dollars.

Traditional taxi management systems have revolved around centralized organizations. For instance, in the city of Lagos, Nigeria, local unions and associations demand that every taxi operator must be registered and pay periodic dues and levies for running the association. This is supposed to be a way of ensuring proper licensing of taxi drivers, but the centralized nature of its management leaves room for misappropriation and poor management.

The benefits of decentralization

The introduction of partially decentralized taxi systems like Uber and Lyft introduced some necessary competition into the taxi industries. This has provided commuters with more options, leading to reduced fares and better quality service. However, despite the extent of decentralization that is introduced by these systems, they are still governed by a single database and run by a single company.

Blockchain takes it a step further

As Blockchain implementations are speedily sweeping across every industry, signs of the technology overtaking the taxi industry are clear already. For an industry that has been continually evolving over time and across ages, moving into a new phase will not be a surprising development at all.

According to Tomas Peleckas, Founder of A2B Taxi:

Licensed taxi drivers are essential to the industry for purposes such as security and appraisals. The situation in the market is an inspiration towards the creation of a platform designed to connect customers with professional and accredited drivers directly. Providing a mobile application for customers to find a licensed driver, as well as drivers to manage their business more efficiently will go a long way in creating a sanitized taxi industry. It is an essential tool for both the security of commuters and motivation towards quality services.

Implementing the concept of tokenization, or using Blockchain-based apps to manage local transportation systems is a development that has been long coming. It’s likely that many taxi services based on Blockchain and tokenization will spring up. This is largely due to the various benefits that Blockchain offers, especially in the area of personal control and decentralization.

For example, imagine traveling to a new city where the local currency is totally different from where you are coming from, and you need taxi services to take you from the airport to a hotel. Using a Blockchain-powered service automatically eliminates the need for any form of currency conversion as the value of the token remains the same and is available all over the world.

A technology for the common man

In many circles, Blockchain is described as the technology for the common man. This is a description that is proving its correctness in  by giving regular people more control over their resources. It also services to open up the marketplace in various industries while enabling a level playing field for all involved.

Blockchain implementation will automatically enable a transparent industry; opaque unions and associations will no longer override the will of taxi drivers and commuters. Instead, anyone who holds a Blockchain token will retain full control of all the benefits associated with such tokens, be it in exchange for other tokens or fiat, or for the payment of taxi fares.

cointelegraph.com

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