The ride-sharing industry is preparing for another paradigm shift with Web 3.0 protocols, which allow startups and drivers to bid on rides using a matching algorithm, according to the Decentralized Engineering Cooperation (DEC), the company behind the TRIP protocol, based on Solana, which enables mobility-based applications.
According to DEC, in the TRIP ecosystem, businesses and drivers can collaborate and compete in a shared marketplace. The protocol also rewards the most active participants with staking on its governance, both for drivers and customers.
The first company to operate on TRIP is Teleport, a decentralized ride-sharing app due to launch in December and managed by parent company DEC. On October 27, the company announced a $9 million seed funding round co-led by Foundation Capital and Road Capital.
DEC CEO and Teleport co-founder Paul Bohm told Cointelegraph that Web3 technology, including TRIP, will compete to replace “closed platforms managed by corporate monopolies by open source decentralized protocols, competitive and fair to all.”
Bohm stated that the additional funding will be used to “Launch TRIP permanently in specific cities.” It will also help the company reach its decentralization milestone.
By using a blockchain-based solution, drivers using the TRIP ecosystem can pay using USD Coin (USDC) in Solana and fiat currencies through Apple Pay, while drivers will be able to accept the stablecoin as payment directly to their bank accounts or have it deposited in their wallet.
“By turning ridesharing into a protocol, Teleport is building what we couldn’t build at Uber in 2010, and what Uber should be building today,” said Ryan McKillen, a former Uber employee and one of the investors who joined the seed round. Other investors include Thursday Ventures, 6th Man Ventures, 305 Ventures, and Common Metal.
The size of the ridesharing market is expected to grow to $344.4 billion by 2030, according to Precedence Research
Data from Statista shows that Uber is the most popular ride-sharing app in the world, with 93 million people using the app on a monthly basis.
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