Blockchain-based Ride-sharing Model With Decentralized Governance

Abstract

Digital technologies have gained immense significance in our society and economy. Various sectors embrace technology to optimise operations and achieve efficiency and smooth functioning. One notable example is the rise of technology-powered ride-sharing services, which have witnessed a substantial increase in popularity. These services have emerged as a viable and cost-effective alternative to traditional taxi services, revolutionising people’s commutes. This market is undergoing rapid expansion and evolution, with projections indicating a compound annual growth rate of 16.9% between 2022 and 2030. Ride-sharing service companies have received over $100 billion in investments since 2010. However, research showed that these companies struggled to attain profitability and, at the same time, faced a myriad of challenges in governance, labour disputes, regulatory requirements, and transparency. Furthermore, having centralised systems for on-demand ride-sharing services had various drawbacks like surge fees, convenience fees, payment gateway charges, and more, resulting in high costs and inefficient distribution of profits. It was clear that ride-sharing services needed to do better. This study presented a ride-sharing model that employs blockchain technology, tokenomics, and decentralised governance to improve trustworthiness, transparency, and efficacy in addressing the concerns mentioned earlier. The research model aimed to create a community-driven ecosystem to empower riders and drivers while ensuring fair compensation and high-quality services.The proposed model utilised a proof of concept (POC) research design to achieve its objectives and validate its technical feasibility and effectiveness. The POC involved designing and implementing a prototype blockchain-based ride-sharing platform and testing it. The POC also conducts user testing to collect feedback and iterate on the design.After successfully verifying the minimum viable product (MVP), The platform progressed to the piloting phase, subjected to rigorous testing in real-life scenarios. Implementing the pilot program facilitated additional experimentation, data acquisition, and enhancement of the platform’s functionalities and administrative framework.The outcomes of the functional testing revealed that the model had effectively met all of its operational and system requirements. Moreover, using blockchain technology and token economics offered a promising solution to the limitations of current centralised ride-sharing platforms.The ultimate goal of this blockchain-based ride-sharing platform was to create a sustainable and equitable ecosystem that benefited all stakeholders. By utilising blockchain technology and decentralised governance, the forum provided a fair and transparent environment for riders and drivers while ensuring the platform’s sustainability and scalability.