Why the Ridesharing Sector Requires a Paradigm Shift
In the last few years, the world has witnessed exponential growth of the ridesharing economy, with no signs of slowing down. This growth is made possible by the massive spread of smartphone adoption and internet connectivity across the world’s emerging cities, the ridesharing economy is expected to grow eightfold by 2030 to $285 billion. In 2017 alone, more than five billion rides were completed. The user base of ridesharing services is expected to grow up to 500 million by 2021. Simultaneously, the number of young people without vehicles continues to grow.
Sad to say, this explosive growth in the ridesharing sector has so far created a market dominated by mercenary ridesharing corporations that treat drivers poorly while relying on their low incomes to boost their business. Driven by profit, these companies are drawn primarily to highly populated areas, leaving many fast growing, vibrant cities within the emerging markets without a transport alternative. This in turn creates a resentment within the workforce, and sours the relationship with the customers as well. Riders also frustrated with pricing surges, which represent an increase of normal fare with a multiplier whenever there’s a pronounced growth of ride requests. Surge pricing has led to poor customer satisfaction and bad press
Concerns with Traditional Ridesharing
RESENTFUL DRIVERS: Drivers of major ride hailing companies invest a significant fortune in purchasing vehicles that are compliant to required standards, but are mostly unable to recoup the costs when subsidies end. This is because the 25% commission charged by most ridesharing services takes a significant toll on their earnings and leaves them destitute. A recent Bloomberg article showed that drivers working for these companies “earn pay that is just above the poverty line”. Drivers have expressed anger through protests in places like South Africa, Kenya, and Nigeria, though this has not resulted in a positive change. Vite’s model will bring significant relief to drivers, enabling them to earn enough to meet their goals and head towards financial freedom.
TAXIS AND DECLINING BUSINESS: The current ridesharing movement has left taxis behind in a rapidly changing landscape. Most riders prefer to use ride hailing apps, and this has damaged the industry and diminished the taxi customer base. Many taxi drivers have taken up new jobs. Taxis exist all over the world but there are rarely opportunities for them to join the ridesharing movement. Vite will work with the finest taxi fleets and private drivers, in order to offer more drivers this opportunity, while not compromising the quality of our service
REGULATIONS AND GOVERNMENT: Unethical practices by ridesharing firms, such as circumventing laws, ignoring local taxi services, and using unvetted drivers has led to government crackdowns on ridesharing services in some markets. This is a far cry from Vite’s complete compliance plan and an all-social impact model that gives back to the cities by investing 1% of our income directly into social projects, such as road safety initiatives. DATA AND SECURITY BREACH: Data security is of paramount importance to us. Popular ridesharing apps have faced negative publicity for data breaches and leaked customer information, most notably in the spring of 2014. This will be prevented by storing data on the distributed ledger, which can never be altered or changed. Vite platform is built to utilize this advantage and achieve data transparency and security.
Opportunities with ViteCoin
Utilizing the power of blockchain to power payments between riders and drivers will make transactions seamless, less costly and safe. Our hybrid fiat and token payment system will allow for maximum user reach, considering that people without knowledge of cryptocurrencies won’t be left out. The in-built Vitecoin wallet will have an intuitive, seamless user interface, available at the click of a button. Vitecoin will also be used for tipping and rewards programs within the app and will become the mainstream payment method in the next few months. Verified users will be able to create their VT wallet at sign up.
Eliminate Counterfeit and Identity Theft
The circulation of counterfeit currency poses a serious threat to financial institutions and users of ridesharing services. Recent developments in photographic, computer and printing technologies along with the availability of low cost equipment have made the production of counterfeit currency and identity theft common. By using Vitecoin as the settlement layer between riders and drivers, the issue of counterfeit currencies will be eliminated.
Circumvent Fees on Credit Cards
Credit cards are not easy to obtain and utilize due to overdrawn bureaucracy procedures due to fears of fraud and misuse. Moreso, charges per transaction are high and inconvenience both riders and drivers. Vitecoin will eliminate the use of credit cards and banks by allowing for a seamless, direct transfer of Vitecoin from rider to driver once a ride is completed. Drivers in turn can decide to keep their Vitecoin secured in their wallet or cash out
Borderless Payment-Fast and Reliable Growth
One of the revolutionary features of Vitecoin is being a universal currency accepted by all drivers and riders on the Vite network. This would make it possible for the Vite services to expand into new markets much easier, as riders would have freedom in payment with very low transactional fees. Vitecoin is essentially a superior payment solution, for now and the future.
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