Blockchain in Taxi Industry: Technology for Ordinary People

Blockchain technology in the local transportation or taxi industry is only the continuation of an evolution that has gone on for centuries. Mankind has long sought more efficient technologies both in transport service providing and industrial administration.

From ancient forms of transportation that involved trekking, the use of animals and carts, to the complexity of present-day machines, the transportation industry has developed into an organized ecosystem with basic administrative departments.

Taxis are everywhere

The local taxi systems that exist in almost every major town and city across the globe have proven to be quite essential to modern life. Given the importance of commuting in daily life, it’s unsurprising that taxis are in high demand and the industry is exceedingly competitive. It is estimated that the global taxi market fluctuates between 50 and 100 bln dollars.

Traditional taxi management systems have revolved around centralized organizations. For instance, in the city of Lagos, Nigeria, local unions and associations demand that every taxi operator must be registered and pay periodic dues and levies for running the association. This is supposed to be a way of ensuring proper licensing of taxi drivers, but the centralized nature of its management leaves room for misappropriation and poor management.

The benefits of decentralization

The introduction of partially decentralized taxi systems like Uber and Lyft introduced some necessary competition into the taxi industries. This has provided commuters with more options, leading to reduced fares and better quality service. However, despite the extent of decentralization that is introduced by these systems, they are still governed by a single database and run by a single company…

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