Blockchain Takes a Step Forward to Taxi Industry

The Blockchain technology in the local transportation or taxi is just a continuation of the evolution that took place over centuries. People look for useful techniques in the provision of transport services and management.

From the ancient modes of transport like the use of animals and carts, to complex machinery, the transport industry has turned into an established ecosystem with the administrative departments.

Taxis are everywhere

The taxi-systems exist in almost every major city around the world. It is an essential part of modern life. Given the importance of travel in everyday life, it is not surprising that the taxi is in high demand, and the industry is extremely competitive. According to estimates, the global market for taxi ranges from $50 to $100 billion.

The traditional systems of taxi management revolve around centralized organizations. For example, in Lagos, Nigeria, local unions and associations require that every taxi operator is registered and pay the periodic fee for the association. It is a way to ensure the proper licensing of taxi drivers, but the centralized governance nature leaves opportunity for theft and mismanagement. According to estimates, the global market for taxi ranges from $50 to $100 billion.

Decentralization benefits

Implementation of a partially decentralized taxi systems such as Uber and Lyft, have introduced some needed competition in the taxi industry. It gave passengers more opportunities. It leads to lower tariffs and improves service quality. However, despite the degree of decentralization these systems implement, single database, and one company still manage them.

Blockchain takes a step forward

Since the implementation, Blockchain has been spreading rapidly in every industry. The signs of this technology in the taxi industry are already evident. The transition to the new phase will not be an unexpected development for the industry continually evolving over time and through the centuries.

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 tokenization and using Blockchain based applications for managing local transport systems are processes that appeared long ago. It is likely that there will be many taxi services based on Blockchain and tokenization. It is mostly due to the various advantages offered by technology, especially in the area of personal control and decentralization.

For example, imagine you are in a new city, where the local currency is completely different from where you come from, and you need a taxi service to take you from the airport to the hotel. The use of Blockchain services automatically eliminates the need for any form of currency conversion because the token price remains unchanged and it is available worldwide.

Technology for an average person

In many circles, Blockchain technology is described as the technology for the ordinary person. This description proves correctness by giving people more control over their resources. It also helps to open markets in various industries ensuring a level playing field for all participants.

The Blockchain implementation will automatically ensure the transparency of the industry; opaque unions and associations will no longer prevail over the will of taxi drivers and passengers. Instead, anyone who has the token will retain full control over all of the benefits associated with such tokens, whether exchange for other tokens or fiat or payment of taxi fares.