DAV Network & Cheaper Transportation

sunnysideupfang (55)in #bitcoin • 6 years ago

Technology has not made transportation cheaper. I’ve used Uber and Lyft often and I know one of the reasons I love using them is because they offer sooo many deals. All these deals aren’t sustainable. You need to know that apps like Uber have seemed cheap for a while due to the massive subsidies they have offered by burning billions of dollars of investor cash. Eventually, that pile of cash is going to dwindle enough to force the company to cease all the price wars. That will create a sudden price hike and people will realize that ride hailing apps like Uber, in reality, did not make transportation cheaper.

The problem with companies like Uber is that a central body exists to ensure everything functions properly. This central body exists as otherwise people wouldn’t trust the service being offered by the app. This is the way companies have work, right? But right now blockchain is changing this by making the idea of trustless systems work. And today I’m going to discuss how blockchain technology is going to change transportation.

DAV (short for decentralize autonomous vehicles) is making a decentralized marketplace for everything related to transportation. Even though the name hints a project aiming at something very specific, DAV can support the trade of any transportation service and not just autonomous vehicles. I think a product like this will be a very strong competitor for the ride hailing industry.

There are Problems with Uber and Other Ride Hailing Apps

People used to think Uber would take over the world, that it would be the Microsoft of ride hailing. That possibility has crumbled as many countries have now access to a local imitation of Uber. So, what went wrong?

Uber is a company where the turnover rate of ride providers is really high. Most of the ride providers eventually leave. To properly function in such an industry, ride hailing apps need central offices to keep hiring new people. They also need these offices to give credibility to their business. A company like Uber needs to buy or rent a lot of office space in every country to get its operations on a global level. These costs are difficult to maintain when a company is young and not making any profits.

Uber did try to expand globally but because expanding such a business is so expensive, Uber has lost billions of dollars every year. This is also true for other ride hailing apps. They have a difficult time expanding and running their operations is very expensive. Reality is that they cannot make transportation any cheaper than the service offered by normal taxis. But DAV can use blockchain technology to change this.

DAV is building a decentralized network and that comes with many benefits. DAV does not need to hire people to offer the ride hailing service. If there is a demand for such a service on its network, someone will fulfill it. DAV lets society fill up its own needs by itself. Instead of connecting customers to itself like Uber does, DAV connects customers directly to the ride provider. This means DAV does not have to deal with turnover costs.

Also, DAV is securing the network by using blockchain technology. People will be able to securely pay for a ride on DAV’s network. Because DAV will not need to have a central authority to build credibility, it does not need local offices across the world. It can easily go global as both customers and ride providers can be a part of the system without having to do anything with a central authority.

Lots of technology companies have tried to make transportation cheaper but they have not seen any real success... but blockchain technology is leading DAV’s decentralized transportation marketplace to make transportation cheaper, and one easy use of this technology is to change ride hailing.