Ridesharing has changed the world, but its business model is brokenPROBLEM Ridesharing industry loses ~$8-10B a year due to race-to-the-bottom price competition created by lack of loyalty (classic “competition is for losers” scenario described by Peter Thiel)
Existing ridesharing apps such as Uber,Lyft, Didi Chuxing, Grab etc. have done a great job priming the market by conditioning both drivers and riders to use ridesharing apps, but have failed to inspire loyalty to any particular app (drivers often drive for multiple apps simultaneously and riders do not hesitate to switch for a lower price)
BitCab will offer long term vesting tokenized rewards (Loyalty Tokens, or LT) to incentivize target behaviors on the platform (e.g., driver/rider required to conduct a minimum number of rides per month to retain their non-vested LT)
BitCab is not a corporation, it is a decentralized network of users playing various roles in BitCab ecosystem. Users inviting new riders, drivers and other participants to the community will be rewarded with generated tokens for all useful activities of the users they referred, FOREVER. This creates a two-way social incentive for users to continue using BitCab to create value for their friends rather than a faceless corporate, and for Champions to motivate their referrals to keep contributing BitCab ecosystem.
BitCab gamifies driver and passenger experience with blockchain allowing to embed real, predictable monetary rewards into the gamified UI.
The convergence of these three factors has the potential to usher in a new era of mobility moving away from rigid platforms controlled by faceless corporates who change the rules at will to a decentralized ecosystem owned by its users and secured by immutable, trustless blockchain.
- BitCab economics is built around CAB token. All transactions on BitCab blockchain will ultimately be settled in CAB (although for fast adoption Riders and Drivers will be able to choose to pay and be paid in fiat currencies on the front end - but with transactions still settled in CAB at market rates on the back end). This will create real demand for CAB token tied to volume of transactions in the ecosystem. Essentially, all CAB tokens, existing and future, are hence by definition backed by the present value of all future transactions (mostly car rides) on BitCab ecosystem.
- Like any other currency, CAB can be used to buy and sell goods and services even beyond the BitCab ecosystem. In case of BitCab success, there will be good reasons for wider application of CAB, such as millions (and billions) of users of the currency and it being backed by real value of mobility services it can be redeemed for unlike vast majority of both crypto and fiat currencies.
- The present value of all future mobility services on BitCab ecosystem therefore represents not the ceiling, but the floor for the value of CAB. There is unlimited upside in CAB being adopted for wider uses - similarly to BTC, LTC, ETH and USD.
800 million CAB tokens will be issued prior to platform launch.
- In the pre-ICO 50 million tokens will be offered at a 50% discounted price of $0.01 per token
- In the ICO 500 million tokens will be offered at the price of $0.02 per token The remaining 250 million tokens (out of 800 million total initial supply) will be distributed in the following way:
- 71.5 million tokens (8.9% of total amount) will be distributed among team members. Team members will not sell any CAB tokens for 12 months after the ICO
- 20.5 million tokens (2.6% of total amount) will be distributed among advisors. Advisors will not sell any CAB tokens for 3 months after the ICO
- 48 million tokens (6% of total amount) will be reserved for airdrop activities
- 10 million tokens (2% of public sale amount) will be reserved for BitCab Bounty Program
- 100 million tokens will be retained by BitCab Foundation for market making, development funding and operations funding purposes
- Arkadiy led launch of Uber in Ukraine as Country General Manager and brings 17+ years of business experience in high tech startups, technology, consumer products, private equity and consulting
- MBA from INSEAD
- Technical consultant
- Brings 10+ years of full stack software engineering and system architecture experience (including as CTO at IRAengine, a blockchain fintech startup, and software engineering in financial services industry)
- PhD candidate in Computer Science researching AI and blockchain related topics
- 15+ years of business experience, including at fast growth tech startups (Avito), management consulting (McKinsey), technology consulting, finance (deputy head of strategy at a leading retail bank)
- MBA from SDA Bocconi (Italy) and PhD in Economics from Lomonosov Moscow State University
- International experience in venture capital investing and technology startups development at different stages
- MSc in Financial Economics from London School of Economics
- 5+ years of software engineering and quality assurance experience at Yandex
- MSc in Finance and Applied Mathematics from Lomonosov Moscow State University
- 8+ years of software engineering with a focus on developing cloud services and distributed databases
- MSc in Information Technology from Bauman Moscow State Technical University
- Involved with blockchain technology since 2013 and creator of Syscoin
- 18 years of experience in software engineering and development
- Specialized in machine learning, artificial intelligence, client/server development & distributed systems
- Financial markets experience of 10 years for algorithmic trading across equities & forex
- Joined Syscoin Community in 2014
- Joined Syscoin Team as Marketing Director in 2015
- Began marketing career in 1990
- Shifted roles between CEO and Creative Director at Image House Inc. from 1991 - 2008
- UI Developer for ETunnels Inc. and ONetrix Solutions Inc.
- Assistant Communications Officer/ Web developer for Cariboo Regional District
- Co-founder in Rega risk sharing - fintech startup that is aiming to reinvent insurance.
- Banker with 15 years of experience.
- PhD in Business Administration and Management from Saint Petersburg State University of Engineering and Economics
- Advises BitCab on product management, technology and strategy
- Wealth of product management, tech entrepreneurship and software engineering experience
- Senior Product Owner at Booking.com, previously CTO at Glownet (a payments startup)
- MSc in applied mathematics, computer science and systems analysis from Lomonosov Moscow State University, MSc in digital business from IE business school
- Advises BitCab on investment and general business topics
- 17+ years of experience in technology, entrepreneurship and private equity
- Founder CEO of Visyond (an analytics startup), previously technology innovation leader at Vodafone, VP at Mubadala, partner at Primest Capital
- MBA with distinction from London Business School, masters in electronics engineering from Politecnico di Torino
What is BitCab?
BitCab is Uber 2.0 for the age of blockchain, with a superior platform ecosystem and technological model enabled by tokenization. In addition to standard ride-sharing functionality, it uses blockchain and gamification to strengthen network effects on both supply and demand side, create a self-funding viral growth mechanism and a much more advanced and diverse decentralized ecosystem.
What problem(s) are you trying to solve?
Existing ride-sharing apps such as Uber, Lyft, Didi Chuxing, Grab etc. have done a great job priming the market by conditioning both drivers and riders to use ride-sharing apps, but have failed to inspire loyalty to any particular app (drivers often drive for multiple apps simultaneously and riders do not hesitate to switch for a lower price).
This is resulting in main ride-sharing players burning billions annually in battles for both drivers and riders, while drivers and riders do not have a stake in the success of any particular platform.
The key difference between a profitable business and one that struggles to cover cost of capital is a sustainable competitive advantage — something to compete on which is more important the price. All current players ride-sharing are forced to play the negative-sum pricing game because there is no basis for differentiation.
BitCab seeks to solve this problem by creating differentiation enabling driver and rider loyalty through long term vesting tokenized rewards, an immersive gamified experience and a social and financial stake in the ecosystem (a rudimentary version of this approach was triedby Juno who tried giving equity to drivers but failed due to US equity reporting requirements and was acquired by Gett for $200M; tokens, gamification and blockchain ecosystem are much more robust and flexible tools to achieve loyalty).
Why does BitCab need blockchain and tokens?
Blockchain tokenization is the most robust and flexible technological model available to create and grow a diverse decentralized ecosystem because it functions based on pre-defined immutable “code is law” rules rewarding pre-defined behaviors in an effective and efficient way and does not require trust in a central authority or a central bureaucracy to administer. It also does not need a centralized clearinghouse to administer transactions leading to lower transaction costs and more security. This means more value to accrue to many diverse stakeholders proportional to their contributions to the ecosystem.
Who is your competition? What sets you apart from competition? Will BitCab model be easy to copy?
Platforms live and die by network effects. Tokenization gives BitCab powerful and sustainable competitive advantages over traditional ride-sharing platforms such as Uber, Lyft, Didi Chuxing, Grab and others:
* Firstly, stronger supply side network effects. Uber faces severe criticism and “negative loyalty” of their Drivers leading to high churn and high Driver acquisition cost — Drivers often work for multiple competing apps and readily switch to new apps offering better terms. BitCab solves this problem by awarding Drivers LT tokens — long term vesting incentives based on the number of rides completed over time and customer feedback (similar to SteemPower awarded to SteemIt authors and curators) — in addition to their fare. To further solidify loyalty, BitCab gamifies driver and
passenger experience with blockchain allowing us to embed real, predictable monetary rewards into the gamified experience.
* Secondly, stronger demand side network effects. Riders currently have very few reasons to stay loyal to a particular app — and indeed often check multiple apps for each ride and go with the one offering the lowest rate. BitCab solves this problem with a robust gamified tokenized loyalty program awarding Riders LT tokens for unlocking achievements (e.g., completing certain number of rides, completing a ride of certain length, completing certain number of rides in one day, maintaining a 5.0 rating etc.) — which aligns Riders’ incentives with the long term success of the platform ecosystem and engages them in a continuous gamified experience with real rewards.
* Thirdly, safer and cheaper transactions. All transactions will ultimately be settled in CAB tokens on the blockchain — creating intrinsic value for CAB tokens (CAB tokens are thus backed by rides similarly to how dollar used to be backed by gold). However, the Riders will have the option to pay in CAB, BTC, ETH, or their local fiat currency — and the Drivers will have the option of getting paid in any of these currencies.
* Finally, that is truly decentralized ecosystem with various roles, and users can take multiple roles in the ecosystem — e.g., a Driver who also uses the service as a Rider when going to a bar on the weekend and promotes BitCab to his friends as a champion to create an additional income stream. Or a token holder who, holding a large amount of CAB and LT, runs a node as a Witness and uses his CAB and LT holdings to earn spread as a market maker and lend CAB to borrowers.
Interestingly, existing players (be it giants like Uber and Didi Chuxing or smaller players such as Lyft, Grab, Gett, Careem) will not be able to access these benefits. Their cap tables and fiduciary duty make them slaves to their shareholders thus preventing them from sharing value with ecosystem participants in the way BitCab can, meaning BitCab will maintain these powerful competitive advantages over them.
Key summary is presented in the table below:
Who is on your team and why are you qualified to do this?
To bring BitCab vision to life, we have assembled a unique international team with a wealth of experience in blockchain, software engineering, ridesharing, tech startups, venture capital, finance and general business. Our team includes alumni of Uber, McKinsey, Yandex, Avito and multiple other fast growth tech startups, leading financial institutions and consulting firms. You can find the profiles on our web site and connect us via LinkedIn.
Why hasn’t anyone done this before?
It is still early days for blockchain applications in the physical world. We believe BitCab can be one of the first harbingers of a new era — similarly to how Amazon brought Internet to the physical world.
Why is now the right time for BitCab? What megatrends are your tailwinds?
Consumers have been primed to ride sharing and broader sharing economy. Blockchain is becoming ready for real world applications at scale. At the same time, no company in the world of ride sharing has been successful in inspiring loyalty in divers or riders. We believe BitCab “secret sauce” of applying gamification and real tokenized blockchain-based rewards is the missing ingredient to solve the loyalty program, create the first truly differentiated and “sticky” ride-sharing app and move the industry from the world of centralized platforms to a decentralized diverse ecosystem.
Will BitCab survive shift to autonomous vehicles in the coming years?
As mentioned above, platforms live and die by network effects. In the world of traditional ride-sharing, these network effects apply to both supply (drivers) and demand (riders) sides. In a world of L5 autonomy these platforms will lose the value of their supply side networks while demand will become even more important. BitCab will retain not only its competitive advantage in higher rider loyalty (due to long term vesting tokenized rewards and gamified experience), but also the loyalty of other ecosystem players such as Champions who promote the ecosystem making the advantage in network effects ever stronger. In addition, BitCab drivers will be much better prepared for this shift due to having accumulated long term tokenized rewards and having the opportunity to build new marketable skills e.g. by earning tokens for marketing the ecosystem to more participants and providing customer support.
Won’t activity-based token emission lead to inflation?
Emission of tokens as rewards for specific events which increase value of the ecosystem (e.g., more rides, high customer feedback) is similar to matching money supply to economic activity. In reality, even when money supply grows much faster than economic activity, this does not necessarily result in high inflation: As an example, please see the chart below of US growth rates in money supply, growth of GDP and inflation.
Source: FRED economic research, World Bank
The graph clearly shows that money supply did grow faster that the GDP not causing any inflation.
This empirical fact combined with the fact that market cap of startup companies tends to reflect growth expectations and hence grow faster than revenue growth as well as all CAB and LT tokens representing the net present value of all future mobility services on the platform allows us to hypothesize that there is a lot of potential for token value appreciation rather than inflation.
Will drivers and riders have to transact in tokens? Is there enough convenience, stability and trust?
We are planning to launch BitCab globally with fiat transactions enabled in key target geographies (see roadmap in the white paper for details). The riders and drivers can both choose whether they want to transact in CAB or fiat. Fiat transactions will face higher transaction fees to nudge users to switch to CAB, but to attract more adopters the option to transact in fiat will be offered.
Do riders and drivers need any particular technical skills or understanding of the blockchain to use the app?
No. The app interface will be seamless and similar to any other ride sharing app (with more gamification to make it feel more like a new smartphone game than just a ride sharing app) with all the blockchain magic happening on the back end.
How will you accept payments in (countries where payments in tokens are not allowed)?
It is important to remember that BitCab does not plan to accept or make payments from or to users. Payments happen directly on a decentralized blockchain ledger and flow either from riders to drivers or are generated by the blockchain and released to ecosystem participants for their contributions. Every user is solely responsible for making sure their actions in all aspects of life including using BitCab blockchain are in compliance with the laws of any applicable jurisdictions.
I am a citizen of US / China / other country. Can I buy CAB tokens in ICO?
China prohibits its citizens from participating in any ICOs hence we unfortunately cannot allow any token sales to Chinese nationals in our ICO.
Accredited investors from the US are welcome to participate in our SAFT offering. Non-accredited investors are unfortunately barred from participating due to US law.
Whichever country you are a national of, no information on this website, white paper or coming from BitCab in any other way can be interpreted as legal advice, and you are solely responsible for complying with all applicable laws in your jurisdiction.
Will users of the ecosystem need to have a cryptowallet?
A wallet for CAB and LT will be built into the app and your personal address will be automatically generated when you install the app and sign up for BitCab.
What is the price of CAB token?
If buyers commit $X of capital for the ICO (in addition to $8.5M of early bird token sales), there are three possible scenarios of how these 3 billion tokens will be distributed:
If less than $60M committed (3 billion tokens times $0.02 per token), X/0.02 tokens will be awarded to buyers at a price of $0.02 per token, with the balance retained by BitCab Foundation for future capital raises to fund BitCab development (along with the committed funds).
If $60M committed, all 3 billion tokens will be awarded to buyers at a price of $0.02 per token, with committed — funds retained by BitCab Foundation for future capital raises to fund BitCab development.
If more than $60M committed, all 3 billion tokens will be awarded to buyers at a price of X divided by 3 billion per token, with committed funds retained by BitCab Foundation to fund BitCab development.
What is you expenditure plan? How will you spend money collected in ICO?
Our destination does not depend on the amount of capital raised, but the speed to get there will as capital is the fuel for any startup’s growth engine.
If minimum funding target of $0.5m is not reached, all funds will be returned to token buyers (token buyback at the price the buyers paid) and BitCab will explore alternative financing options.
Are there technology limitations? For example, blockchain transactions are not fast (1 transaction / 10 seconds), is it a problem for the ecosystem?
Existing blockchain solutions (e.g., Waves enables 16 transactions per second) are already orders of magnitude faster and cheaper than bank transactions, hence they are a competitive advantage for BitCab over fiat-based competitors rather than a limitation.
If I don’t take part in ICO, don’t like tokens but would like to play some roles in ecosystem, be rider, driver etc., how can I make it?
You can ride and/or drive with BitCab without owning any tokens to start, while some other roles (e.g., Arbiter) will require holding an LT deposit to ensure one’s decisions are aligned with the interests of the ecosystem.
If I transact only in fiat, will I pay high commission/fee for exchange fiat on tokens and vice versa
Commissions will depend on your country, but yes, fiat transaction fees will always be higher due to bank transaction fees as well as market dynamics. Which is a great reason to buy CAB in bulk in advance and use it to pay for rides with almost zero commission fees.