Arcade City – The death of Uber, Lyft, Didi and Airbnb and all Gig companies

Arcade City is an Ethereum blockchain platform developed by an ex-Uber driver frustrated with the centralized control that Uber had over ridesharing and driver’s income. Read on to understand the potential of Arcade City and why it will destroy the Uber IPO and in fact, destroy all the current rideshare gig programs, and maybe even all centralized gig economies are doomed by nature of blockchain and decentralized networks.

Gig Economy Models

The current business model for gig economies is to develop an app that will connect one group of people to another. A group of people could be homeowners seeking rental income such as Airbnb, or it could be people seeking a ride instead of waiting for a taxi, such as Uber. The models used are based on a fee service, which means that both the clients, the home or car owner and the passenger or renter pay a fee to the centralized network owner. This model builds active and passive income; it starts by building a vast network of clients using the app and then becomes passive when a critical mass is reached, and clients use the system out of habit while the company continues to market for new active income.

Blockchain

Enter the blockchain, this wonderful code originally designed to replace currencies but failing to do so due to regulation and the way currencies are maintained. However, it was not a total failure, the blockchain emerged to be a real hero of change and has evolved in new platforms. One of these platforms is called Ethereum. Ethereum is a blockchain derivative that allows for a more flexible way of trading.  Basically, blockchain/Ethereum are platforms that sit on every user’s PC, so if you connect to the chain you become a link, and you hold a part of the chain and all the data on it. All trades are balanced and cannot be completed until everyone has authorized this agreement. This secures the data across millions of systems, and when sealed, a block of the chain is time stamped, encrypted and unbreakable.

The Ethereum blockchain allows for a focused number of peers to connect rather the whole system. This speeds things up and keeps some of the transactions on a more personal level. However, they are still secured in a blockchain environment.

Ethereum Model

Arcade City is an Ethereum based rideshare platform. It allows drivers and passengers to link up and request a ride in the same manner Uber does. It goes one step further, each driver has access to their own fee and payment scheme, which means it’s a fully decentralized system. Lets take Phoenix Arizona for instance; if you live there and are seeking a driver, you would log into the Arcade City app and request a ride, the same way you would in Uber app. The system would find you the closest driver and just as Uber sends a request to the driver, so too will Arcade City.

Where is the difference? It’s in the connectivity and payment screen. In Uber app, there is a middle person; Uber. In Arcade city there isn’t. The passenger makes a direct link to the driver, and the driver gets paid directly. No fees, no Uber, no shit.

Arcade City Option

Arcade City provides a true decentralized gig platform where drivers and passengers can meet up and coordinate rides. It acts as a sort of super taxi rank hire system, and drivers make a personal deal with the passenger. This means that drivers that are already “self-employed” independent contractors can enjoy the true freedom of being such by using Arcade City. Cutting out the middlemen and enjoying all the benefits without the problems.

Arcade City Pros and Cons

Pros:

• Provides a truly decentralized platform
• Drivers get full payment with no fees
• Drivers have three options; choose the standard fee per mile and minute option or offer a “global” fee for the ride. The third option is there is no rate, and every driver sets his/her own rate, making the system even more competitive.
• Riders can negotiate a fee.
• Riders can choose their driver, not just the closest one.
• There is no “big daddy” go-to when something happens, only the driver and the passenger

Cons

• There is no driver filtration system; you don’t know if the driver picking you up is safe
• There is no car filtration system, so you don’t know if the car is good
• Passenger doesn’t know if the driver has appropriate rideshare insurance.
• There is no “big daddy” go-to when something happens, only the driver and the passenger

Bottom Line

Arcade City might be the first of many blockchain de-centralized gig economies that come to replace the centralized ones that made Uber, Lyft, Airbnb and many more millionaires. I am not saying it’s bad to get rich; I am just saying that business life is a sleeping dog, if you wake it up you get bitten. Taxi drivers got bitten by gig economies, now maybe its gig economies time to be bitten by blockchain.

We wish to thank Bikram Bhangoo, the co-founder of Ridesharing Forum, who helps rideshare drivers and riders to find answers to their most pressing questions. He has given over 10,000 rides with Uber and more than 3,500 rides with Lyft.