Arcade City Uses Blockchain Tech to Take on Uber
Driver-owned ridesharing startup Arcade City, the developer of an open marketplace where riders connect directly with drivers by leveraging blockchain technology has now launched its mobile application for Apple iOS and Google Android devices.
Ridesharing startup Arcade City has launched its mobile application that will be available at Apple and Android app stores. The platform was launched in a direct response to rate cuts by Uber and Lyft in January this year.
A press release by the company revealed that more than 3,000 drivers had signed up, the majority of whom are current and former drivers of Uber and Lyft. The company claims that drivers have already delivered over 1,000 rides to customers in more than 100 cities spanning 27 states in the U.S. and drivers are also said to be active in Australia.
Arcade City Founder and former Uber driver, Christopher David spoke up the company’s decentralized platform by revealing the following in a statement:
The Achilles’ heel of Uber and Lyft is their centralized management of pricing. By decentralizing that decision to the level of the driver and rider, Arcade City frees the driver to be an entrepreneur and empowers the rider with control over their entire experience.
Arcade City’s business model differs from the likes of Uber in that riders are able to review driver profiles in advance of choosing their ride.
Notably, drivers are also free to set their own rates which will be available on their profiles. The service also extends to deliveries and roadside assistance, beyond a ridesharing service.
Furthermore, the company also contends that nearly half of its current drivers give rides on a ‘pay what you think is fair’ basis for riders. (Reference image below.)
Ethereum Blockchain
The platform uses blockchain technology via the Ethereum platform “to issue crypto-equity” to drivers, a model which will allow drivers to own up to 100% of Arcade City by 2020.
The Ethereum platform is chosen over Bitcoin as it is “more suitable for governing peer-to-peer interactions.”
The release also revealed that drivers in Mexico, Canada and Sweden will join Australia and the United States with the platform launching in the three new countries this spring.
Featured image from Shutterstock.
