Can Uber be replaced by a blockchain?

Yes! Uber is just not in harmony with the Western norms of society-property relationship. Hence, it may be doomed to fail in the long run.

The Uber business model has two key ingredients: 1) Matching the driver and the car with a customer by means of technology, 2) Keeping the monetary relationship between the driver and the customer outside the ride and in the company’s control.

Uber keeps these two key functions within company’s control centrally, by means of owning the relationships between involved parties. The second function, taking over the payment relations between the driver and the customer is essential for the existance of the company: Uber has to be in the circuit of payment to earn money and to exist.

With a decentralized payment mechanism, such as one based on a blockchain token can replace the existing credit card payment in Uber. The first function of finding the nearest driver is an already solved problem with several mobile apps doing exactly that.

Thus, Uber can in theory be replaced with a decentrally operating blockchain smart contract based app.

Blockchain artist, entrepreneur

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