ICO Review: Vite
Vite is a peer-to-peer rideshare marketplace built on the blockchain.
With the popularity we’ve seen with Uber and Lyft over the years, it makes sense that Vite wants to take their shot on cutting costs by putting ridesharing on the blockchain. Aiming to raise a hard cap of $10,000,000, here’s what we think of their whitepaper:
Vite believes that the ridesharing industry is expected to grow eightfold by 2030, breaching $285 billion. Furthermore, they view this industry to experience the following issues:
- Resentful drivers, which stems from the approximate 25 percent commission charged by most ridesharing companies.
- Taxis and declining business, which Vite hopes to recruit drivers from these previous industries.
- Regulations and Gov’t, where unethical practices from ridesharing firms such as circumventing the law and using unvetted drivers, which has caused lawmakers to crack down in some areas on ridesharing overall.
- Data and Security Breaches, which we’ve already seen customer data being exploited.
Vite views their market as primarily serving younger people, with their first market penetration coming in the Mena region of Africa.
The vision for Vite is to tokenize payments in the global ridesharing industry by making vitecoin (VT), the currency that settles transactions between riders and drivers, removing the need for carrying cash or credit card fees. Furthermore, Vite notes that they have a social impact model, which is designed to benefit society and create mutually enriching experiences for riders.
Opportunity with Vitecoin
Vite believes the following will be significant improvements and opportunity within the ridesharing industry:
- Eliminate Counterfeit And Identity Theft, which has been a problem in the ridesharing industry where customers are charged for rides that aren’t theirs.
- Circumvent Fees on Credit Cards, especially since many of these are transferred to the consumer.
- Enhance Rider And Driver Safety, which occurs because payments are done on the blockchain, reducing the risk for drivers or riders to be robbed.
- Borderless Payment, Fast Growth, which Vite believes will help when expanding into new markets.
Vitecoin will be the intermediary currency between riders (senders) and drivers (recipients).
Unique Business Model
Stemming from improving the current efforts by ridesharing companies, Vite aims to offer a few different incentives particular to their business model, including:
Driver Empowerment Program, which is essentially letting drivers keep what they earn, with a 5-10 percent commitment into the Vite Impact Fund (VIF), which is used to maintain the technical infrastructure, as well as fund social causes.
Social Impact, which will be the Vite Impact Fund, where their goal is to promote road safety initiatives where Vita is available.
Vite views the following insights as what’s going to help them grow to be successful:
Localization Strategy: This involves working closely with cities to adapt service delivery and tailor the product to local needs. Vite has already implemented this within their beta launch in Mauritius.
Priority To Making Drivers Happy: Vite aims to make driver relations a top priority, aiming to help them with their financial goals.
Maintain Private And Taxi Fleets To Ensure Fluid Service: Vite plans to partner with taxis and private drivers to ensure a large pool of drivers is available at all times.
Great Customer Service: Finally, Vite will have a customer service model that is based around customer service.
How It Works
With an MVP already available for Android and iOS, the Vite App already has a peer-to-peer ridesharing marketplace testing in Mauritius. Furthermore, they plan to unveil their payment wallet for both riders and drivers within the app by August.
The ridesharing process works similar to systems like Uber and Lyft, only with the need of purchasing Vitecoins beforehand with fiat or credit card. Drivers will be able to cash out their coins at a Vite local office.
The customer acquisition process for Vite will include marketing that attracts riders to the platforms. To accomplish this, they plan on streamlining the Vite app and value proposition to encourage word of mouth, especially on social media. With 11,000 signups within the first 48 hours of their Mauritius launch, their hope is to obtain a similar reach across other markets as well. Here are some specific executions they give on marketing approaches:
- App Store Advertising
- Social Media Campaigns
- Peer-To-Peer Referrals
With how popular ridesharing has been across the board, Vite being at the forefront of implementing a blockchain solution could be an interesting prospect, however, that’s not without its limitations. Although they state in their whitepaper that drivers are looking to earn more, they don’t make any mention on if customers will receive a lower price. After all, leaving the comforts of Uber or Lyft to join this newcomer simply just because their on blockchain is untested, even with the success of their Mauritius launch. However, Vite does do a great job on touching all the other bases, which makes their project one worth considering.
Overall, if you think blockchain is ready to take over the ridesharing industry, then Vite isn’t a bad bet to consider, especially with how relatively early this field currently is.
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