Delivery & Ridesharing Services: Frictionless Payments for On-Demand Services

There is no doubt that we have seen the phenomenal growth of Bitcoin in the last few years. In some way or another, it has transformed how we view financial transactions. At the same time, transportation and on-demand services enhance efficiency, sustainability, and accessibility factors. Bitcoin not only brings out the best promising possibilities but also revolutionizes the field of their business.

In this article, let’s focus on how frictionless Bitcoin payments define a more accessible way for delivery and ridesharing services.

• Scalability

Scalability is one of the significant challenges faced by on-demand services. With the platform’s growth, it became essential to expand the network of drivers and partner with businesses to meet the rising demand of users. For some providers, managing such an expansion along with the quality and consistency of the service turned out to be a logistical nightmare. 

• Competition

Whenever any service functions well, it attracts market competition in its domain. Similarly, the rise of on-demand delivery services has created such a scenario. Multiple players accumulate over the same customer base, which leads to sudden price wars and aggressive marketing strategies. This makes it challenging for smaller or primary players to establish their identity in a saturated market.

• Issues with labor

On-demand services are no less than an industry highly reliable on the gig workforce. Workers will find flexibility in this model, but it poses challenges such as labor rights, job benefits, and security. Previously, labor disputes and regulatory concerns have been voiced, forcing the organization to address these issues while maintaining the agility of its existing workforce. 

• Cost of operations

Maintaining the drivers, mobile applications, and customer support services adds to substantial expenses along with the cost of logistics. This brings out the major challenge for the service providers: generating profit. Hence, on-demand delivery services always make it a hassle to keep a balance between the satisfaction of customers and the range of profitability.

• Enhancing supply chain management

Using Bitcoin, one can utilize blockchain tech to track the journey of the products from the manufacturing stage to final delivery. This ensures transparency in every step of the supply chain, making Bitcoin a crucial player in the industry for transporting high-value assets and other perishable goods. Managing a vast network of interlinked supply chains can be possible using a single network.

• Smart contracts in the logistics sector

Smart contracts are the self-executed agreements between the sender and receiver. They reduce administrative overhead and human errors. Maintaining the materials and other resources with emergency backup stock and other things around is hard. On top of that, accurate payments to the vendors or business associates are complex. Bitcoin has proven advantageous in logistics by making it more efficient and automated. 

• Efficient and secure payments

Multiple online and offline service providers utilize Bitcoin as an alternative payment method, simplifying their transaction facilities. Digital currency settlements are generally efficient, secure, and faster than traditional financial transactions. This reduces the risk of handling large sums of money while moving. Another benefit of accepting Bitcoin is that the funds are not shown to the world and are kept anonymous, reducing the chances of theft. 

• Ease in facilitating international trade

Bitcoin and other digital currencies have the potential to simplify international trade. These kinds of trades involve multiple currencies and complex transactions. With the use of frictionless payments, cross-border transfers can be done in a more straightforward manner, cutting the cost of currency conversion and transaction fees. Through such mediums, international commerce becomes more accessible for importers and exporters through global shipping companies.

• Promotes sustainability

The mining process of Bitcoin is energy intensive and has faced criticism for its environmental impact. Still, the technology behind Bitcoin can be a sustainable option for transportation. With the Bitcoin blockchain’s help, one can securely enable charging and payment systems for electric vehicles. Another is blockchain can track and trade carbon credits, incentivizing companies to reduce their carbon footprint. 

• Uber rides

While Uber lacks built-in Bitcoin or frictionless payment, they partnered with Fold in 2018. Fold is an app that lets users convert Bitcoin to USD gift cards for Uber rides, even offering rewards in Satoshi through the Lightning Network for faster, cheaper transactions.

However, Uber’s CEO hinted at accepting Bitcoin directly soon, potentially eliminating the need for third-party services. This aligns with the growing popularity of crypto and potential customer demand.

• Lyft and healthcare transportation

Lyft, a major ride-hailing company, partnered with healthcare blockchain startup Solve. Care in 2019. Through Solve. Care’s app allows users to schedule Lyft rides to medical appointments and pay with Solve coin, the company’s digital currency. This pilot program aimed to improve healthcare access and explore the potential of blockchain technology in healthcare. 

While details and current status are unclear, it highlights the potential of technology collaboration for increased accessibility and convenience in healthcare.

• Ryde, a Singaporean company

Unlike Uber and Lyft, Singapore’s car-hailing app Ryde embraces frictionless payments. Ryde users can convert Bitcoin to their in-app currency, Ryde Coin, pegged to the Singapore dollar, through a built-in wallet. This innovative approach capitalizes on the growing Bitcoin trend, attracting crypto enthusiasts across their Singapore, Australia, and Hong Kong operating regions. Ryde serves as an example for other car-hailing services to explore integrating digital currency payments.

• Other on-demand service companies around the world

STM Transfers (Slovenia): Beyond standard rides, offers bodyguard services and accepts Bitcoin, Ethereum, and Litecoin through GoCrypto for seamless crypto payments.

Cooperativa Radiotaxi 3570 (Italy): Boasts the largest taxi fleet in Rome (3,000+ cars) and leverages technology by accepting Bitcoin payments through the Chainside platform, converting them to euros for the company.