In the latest development within the ride-hailing industry, a new mobile application is set to introduce its brand that can be associated with zero commission fees and fair prices through the elimination of the middleman between users and drivers. While this will certainly shake the ride-hailing industry once again, industry experts forewarned that one of the major obstacles which the new industry player will have to face is how to recruit a sufficient number of drivers into this system.
Another homegrown firm along with RydeX which is set to be launched in the first week of May , MVL, is looking to launch their Mass Vehicle Ledger (MVL) App sometime in July of this year. MVL aims to build an ecosystem of players in the car transportation services industry which will potentially include drivers, rental car firms, auto mechanics, repair and service shops, as well as car insurance companies.
Integrated Ride-Hailing App Aims to Bring Market Shake-Up with Zero Commission Fees and Lower Fare Prices
By integrating various industry partners, the app will be able to gather fundamental data related to driving and safety standards, accidents, service repairs, and other car-related transactions on a block chain. Through these efforts, services, businesses, as well as the people behind the automobile industry will become more connected, and in effect, enhance the systems and management of services in the industry.
According to MVL, this type of data analytics can potentially be sold to government agencies or tech companies who can bring this new system to the next level for the greater benefit of society and transportation users.
With this new platform, service providers and app users will be directly linked, and this eliminates the need for a middleman which means no more commission fees for drivers to pay. As of the time being, private-hire car drivers who are signed up with ride-hailing giant, Grab, are charged a 20 per cent commission fee for the app use.
According to the Chief Executive of MVL, Kay Woo, the platform aims to attract the services of 25 per cent of the private-hire car operators in the market, or roughly around 12,000 drivers by the end of 2018.
Currently, MVL has partnered up with Caring Fleet, a local transport firm of about 28 vehicles and 30 drivers, which primarily caters to people with limited mobility and disabilities.
As per Mr Woo, two pricing systems will be set in place: one would be a fixed fare rate for point-to-point rides, which is particularly useful in instances where users schedule and book their trips in advance whereas the second option would be metered pricing.
Another feature which distinguishes MVL from its competitors is the MVL point system which allows drivers to earn points when they deliver additional travel data such as trip reviews among others. The MVL points can be converted to coins, a form of cryptocurrency that can be exchanged for cash or other goods and services at various establishments which accept this type of payment method.
The crypto point system serves as an incentive for users to be more transparent with their trip data, as well as for car operators to maintain or aspire to deliver quality service.
MVL is a subsidiary of easi6, a start-up tech company based in Seoul, South Korea. Easi6 has been involved in the transportation services industry particularly dealing with travel agencies and car rental companies based in Asia. One of the company’s tech milestones include its traffic app which had been used for the 2018 Winter Olympic Games in PyeongChang, South Korea.