MVL Foundation, a Singapore based startup launched TADA, which is basically a car service based on blockchain technology. However, with the help of blockchain technology, it charges zero commission and accepts payments through digital tokens.
It is a peer-to-peer, on-demand service which operates on “incentive-based blockchain mobility ecosystem” known as mass vehicle ledger (MVL). The ledger connects different stakeholders belonging to the vehicle industry like drivers, riders, auto manufacturers, retailers, auto repair shops and auto insurance companies.
By means of MVL, all the ride data is stored in the central database which allows the complete history of a vehicle to be tracked, recorded and directly available to the stakeholders in the ecosystem.
Drivers are rewarded with MVL points by giving rides, they can earn more points for longer distances. Also, riders can earn MVL points by sharing their ride experience on the website. Later, MVL points can be transformed to MVL coins which is a cryptocurrency of MVL.
Founder and CEO of MVL, Kay Woo, stated that these coins can be cashed out on a cryptocurrency exchange or utilized for payment for other partners in the system such as petrol, repairs and car rides, etc.
He also stated, “The goal is to build a vertical mobility ecosystem in which the MVL token can be used for all sorts of transactions within the mobility industry.”
MVL operated on a “non-profit model” which doesn’t charge its riders any commission fee. However, the system only charges a minimal transaction fee of 3.4% on all credit card payments for rides which are utilized for the maintenance of the system.
How TADA generates revenue from this system?
Woo explains that the system generates revenue by following three methods:
1. By developing partnerships with the car rental or insurance companies, that will pay fees to MVL for using its system to get details of drivers and riders.
2. Secondly, trading in MVL coins, which is presently traded on Idex, a decentralized smart contract exchanged supported by Ethereum.
3. Selling data of riders and drivers to the third-party partners of the MVL system, like insurance companies.
MVL doesn’t possess any of the data, it just offers a system to store the data.
“The data belongs to the drivers; we will first ask for their consent before we use their data. By providing the platform and service for drivers to collect driving data, MVL charges the external parties who use this data.”
From the beginning of March 2018, MVL foundation has acquired about US$16 million through funding, which will be utilized for operations and for providing salaries to 36 employees.
TADA is known as “Let’s ride” in Korean which is growing its user based in Singapore. Presently, the firm consists of 2000 drivers, however, it is in talks with different taxi firms to add more.