Uberization is coming to the car towing market

CarTaxi
CarTaxi
Aug 24, 2017 · 4 min read

100 years after the creation of the first auto-tow truck, the formation of a global blockchain-platform began, uniting all tow trucks in the world for the convenience of consumers into a single online network.

The history of the services of automobile towing begins in the first half of the 20th century. The creator of the first tow truck is an american — Ernest Holmes — owner of an auto repair shop. The businessman often had to deliver broken down cars to the workshop himself, and in 1916 he took part in an operation to “rescue” a car from the river. These events also led him to the idea of creating special equipment for solving similar problems, and in 1919 his invention was patented.

Over the past 100 years, the level of motorization in the world has grown by more than 30 times: back then the total number of cars was about 30 million, and in 2010 this number, according to the Wards Auto research, exceeded 1 billion. In the short-medium term, the market will grow Another 3–5% per year.

Similar growth can be expected in the car towing market, which develops in proportion to the level of motorization. Today, on average, there are 162 cars in the world per 1,000 people: in Russia — 317 cars, in Europe — 508, in the USA — 800 (according to OICA, World Bank). Accordingly, car towing services are relevant for every fifth person in the world, every third in Russia, every second inhabitant of Europe and almost every US citizen.

The most common reason for calling a tow truck is a car break down on the road. And given the growth in the number of second hand cars, such incidents happen more often. For example, in the US, the average age of a car has been growing during the last decade and is about 12 years today. 35% of all cars were produced before 2001, their age is greater than 15 years. The second common cause of car towing are road accidents. Though the number of road accidents is decreasing, accidents on the roads are still very common. For example, only 200–300 accidents are registered daily in Moscow.

As one might see, car towing services are a promising and growing market, but until recently, it has experienced many problems concerning the quality of the service provided. Not long ago there was little competition in this market, car towing services were overpriced and providers refused to take responsibility for the safety of the car they are towing. The services were provided by companies with a small fleet, which resulted in a long waiting period for the tow truck as long as several hours, the driver was forced to overpay for ordering a truck from the other end of the city. Over time, the market was subject to scaling — there were large companies with a large fleet of vehicles. To service their orders they needed dispatchers, which resulted in an increase of cost by as much as 30%. Getting the service at a good price and in a short time was almost impossible. Especially if the need to call a tow truck arose in another city or country: in any new place, you have to look for local operators and dispatchers — there were no interregional and international companies in this market.

Many businesses and industries faced such difficulties. Today they can be solved by modern automation technologies. For instance, the online platform CarTaxi can help solve the main problems of the car towing market, they will unite all car towing services in the world in one application. The best analogy for this type of service would be Uber. The CarTaxi application allows its users to call the nearest tow truck, thanks to the implemented geolocation detection system. This way the user saves time on searching and waiting, and also doesn’t overpay for running tow trucks from far away. The service has already been successfully launched and occupies a leading position in Russia. The next task, which the project already began to tackle, is global automation of the car towing market all over the world. The next countries in order are USA and China. At the end of August, the project launches its ICO.

The services payment system is done through the decentralized technology of blockchain, recognized to date as the most transparent and safe. It allows you to conveniently record payment status with each service provider, maintain a database of all interactions, ensure transparent accounting and offsetting of various types of payments, guarantees full fulfillment of obligations for the user of the service.

The blockchain platform based on Ethereum smart contract removes the need for dispatching services, which reduces the cost of services. In addition, the introduction of a smart contract allows for tracking the process of transporting your car starting from arrival and loading the car by the tow truck to unloading it at the destination. “The Car Taxi application is a revolutionary stage in the development of the car towing market. What used to be a many hour problem for a driver, today is solved by one click through a convenient and familiar interface. For evacuation companies — this is a tool for increasing sales and reducing costs, which the market has long been waiting for, “- the founder of the company Andrei Shatilov commented.

cartaxi

CarTaxi a blockchain platform based on Ethereum, the first in its kind automated service for car towing.

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    CarTaxi

    Written by

    CarTaxi

    blockchain based decentralized platform, connecting all tow truck companies into one platform. It allows you to transport your vehicle quickly and efficiently.

    cartaxi

    cartaxi

    CarTaxi a blockchain platform based on Ethereum, the first in its kind automated service for car towing.

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