Blockchain’s Serve Delivery Aims At Last Mile Servicebr>
Serve, a blockchain logistics company, is developing a blockchain protocol aimed at last mile delivery and decentralizing distribution of all services. By enabling on-demand delivery of any product or service, Serve plans to cut costly transaction fees up to 40 percent by removing the middleman.
As a side benefit, Serve also opens up opportunities for small vendors and independent service providers by not requiring them to be restricted to any particular third-party service platform. With Serve, a delivery driver can deliver food, offer rideshare, and transport a package through one platform. This enables users to access every driver, every restaurant, every product.
“Some of today’s biggest delivery services are overcharging both merchants and consumers for what should be a convenient service; however, the inconvenient truth is that without decentralization, the middleman profits more than the merchant at the expense of the consumer,” said Shahan Ohanessian, CEO of Serve. “Serve aims to address problems plaguing the current shared economy, such as platform fees as high as 40 percent, low accountability, limited service areas and competition for SMEs from big businesses.”
Serve will enable businesses to create a profile, which is then validated by users employing blockchain technology. The Serve protocol will also allow users to transact directly with enterprises to buy goods and services. These goods and services can then be delivered on-demand with low transaction costs to the user –– only the usual delivery fee. Consumers can also earn rewards by participating in the community, validating reviews, submitting content, and visiting locations.
Serve plans to introduce its smart contracts, wallet, pilot program, and token ecosystem in a number of markets in the coming months.
Chief technology officer Roman Tsarovsky talked with Block Tribune about the plans.
BLOCK TRIBUNE: Walk me through how this works. I want a pizza. What’s the steps?
ROMAN TSAROVSKY: You have two options for placing the order.
Option 1. Go directly to an Enterprise Vendor (Pizza Store) connected to our protocol. Purchase through the white label iOS, Android or Web Application using tokens or credit cards.
Option 2. Users will be able to go directly to our Serve Application which allows direct access to all data on the blockchain. They can search local Enterprises and review all options in their area. Our Serve application will be available for iOS, Android, and Web.
We allow the use of Credit Cards through our partnerships with banks. You will have an opportunity to specify the desired delivery price or go with the industry recommended delivery cost based on the time, location area and past order history. The enterprise will stake tokens and fulfill the order. Once ready (Usually 15-20 minutes before completion) the service provider will stake tokens and accept the service (delivery). Because everyone has a stake in the transaction, everyone will do their best to deliver the highest quality product with the goal of achieving the highest customer satisfaction. Once the transaction is completed successfully, the platform will release the funds and staked amounts to the correct parties in the transaction.
BLOCK TRIBUNE: What companies will be most affected by your success – Uber, Lyft, Amazon, mom-and-pop delivery services?
ROMAN TSAROVSKY: Our intention is not to disrupt the aforementioned companies. Instead, we consider ourselves empowering them. All of the big players are dealing with issues such as high driver turnover, trust and transparency in the transactions, and the high cost of onboarding drivers. By creating a decentralized global workforce, these large players can connect to Serve and start benefiting from reduced advertising, no turnover, and no cost of onboarding drivers. Since drivers are required to stake tokens and users are given the ability to review verified transactions, all enterprises, regardless of size, can have the same level of confidence in the global workforce.
BLOCK TRIBUNE: How will you compensate your delivery drivers? Will they receive the same fee no matter what they deliver?
ROMAN TSAROVSKY: Since we are a truly open economy, we give the power back to service providers and users. Both users and service providers will have the opportunity to set their desired costs and fees.
This allows for a pure supply and demand economy that benefits everyone involved. With time, we will be able to use this data to intelligently predict and suggest fees for both drivers and users. Regardless of the suggested fees, the final costs will be agreed upon by the enterprises, providers, and users.
BLOCK TRIBUNE: In California, there’s a huge tax coming for car owners, and gas prices are always in flux. How will you account for this to your delivery people?
ROMAN TSAROVSKY: Since every driver works for themselves, they will be able to set their own prices. This will facilitate a global marketplace for all goods and services. As mentioned above, we will report and make available the historical data as assistance to all using our protocol.
BLOCK TRIBUNE: Under the current system, what goes into determining an appropriate transaction fee? How will you be able to beat that?
ROMAN TSAROVSKY: If you are referring to the current middleman transaction fees, they range from 30% to 60% depending on the platform. Each large platform has high overhead fees that include, advertising, on-boarding, training, technology and customer service. Ultimately, the Vendors, Service Providers, and Users are required to pay for the extra costs. By eliminating the need for middlemen and giving control back to each business and service provider, the final cost for Users will be greatly reduced.
Our protocol will not be charging any transaction fees. This allows for anyone with the knowledge of blockchain technology and finances to join our platform. We understand that small to midsize businesses may not have the knowledge or finances to build the technology to integrate with our platform. This is why we will provide our Enterprise Software (Used for the past 5 years) as a white label solution for anyone who needs it. To those who use this solution, we will require a small 1%-3% fee per transaction to help maintain the enterprise software moving forward.
BLOCK TRIBUNE: Will you legally vet your delivery people? Will they be bonded?
ROMAN TSAROVSKY: Yes, all Service Providers will have to go through a background check, drivers license check and insurance verification. We welcome and reward qualified verification agents as part of our protocol to vet each individual. Since each transaction will have reviews directly associated to them, the platform will maintain a high level of quality.
BLOCK TRIBUNE: Will the bulk of your deliveries be small and local – like pizza – or will you be looking at bigger loads and trying to incentivize your delivery people to step up?
ROMAN TSAROVSKY: We are creating a global service economy by allowing the world to work as one global workforce. This means that all types of transactions from local delivery, transportation, rideshare, gig economy and other services will be feasible through our platform. Service providers will, therefore, be able to expand and accept any transaction they feel comfortable with.