Updated on August 23, 2021 by Arnie Adamsen
Technology is revolutionizing the way we do business. New advancements in the automotive industry, transportation, and logistics are solving old problems. Because livery business owners are always looking for ways to save time, money, and resources, let’s look at some ways that crypto projects are expected to revolutionize fleet logistics, insurance costs, and payment processing on the go.
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Problem: Networks that aren’t reliable enough for accurate fleet vehicle tracking.
Mobile fleet tracking apps rely on cell towers to pinpoint the location of fleet vehicles. This means that there may be large gaps in the available location history and real-time updates if your drivers go through an area with poor cell coverage. Using the cell phone for other purposes can inadvertently cause gaps in coverage if different apps or functions create conflicts. Cell tower positioning is also less accurate than GPS satellite positioning.
GPS tracking, on the other hand, needs signals from at least four satellites contemporarily to deliver an accurate position. The signal can be disrupted by buildings, trees, and bad weather. Plus, if the mapping app is out of date, it can cause tracking errors.
Solution: High-precision GPS connected devices using a worldwide, open-source wifi network.
One tech company is working to change this. Helium has launched a wireless project that encourages individuals to install wireless hotspots. The incentive comes in the form of a cryptocurrency called the Helium coin (HNT) that the hotspot owner earns when users connect to their hotspot. The opportunity to make passive income from putting up wireless hotspots has created a huge demand for the the Helium hotspots. The ultimate goal is to have a global network of Helium hotspots providing wireless coverage everywhere.
Not only would this give people access to the wifi wherever they go, but is opening the door for companies to build devices for monitoring and tracking all sorts of things, 24/7, anywhere in the world. New IoT devices are hitting the market that take advantage of this extended wifi network with long-range coverage for tracking vehicles when they start moving, monitoring speed, and then switching to sleep mode when the car stops to save battery power. As the world’s fastest growing wireless network expands, these low-power, high-precision GPS tracking devices will provide extremely valuable data that will help locate limos, track drivers’ progress, improve uptime, livery dispatch, estimate arrival times, recover stollen cars, and much more.
Watch this video to see how blockchain technology used in crypto projects is being implemented to simplify tracking and transactions in the commercial shipping industry. This type of case study gives us an idea of how the same technology could be applied to improve livery operations.
Problem: Insurance is too expensive for fleet vehicles.
Black car and limousine insurance has skyrocketed in recent years. This is true for business owners with large commercial fleets and just a few cars. Industry experts blame the price hikes on ongoing issues like higher liability and insurance settlements, rising maintenance costs for fleet vehicles, distracted drivers, and poor infrastructure.
Though the average age of chauffeurs and limo drivers is ticking up as well, which usually helps lower commercial insurance rates, the post-pandemic labor shortage is forcing many livery operators to hire younger drivers as they rebuild their fleet. So, the average age of drivers is actually expected to go down in coming months and insurers have always demanded higher rates for younger drivers.
Solution: Limiting commercial car insurance rates based on use.
Insiders in digital currency foresee blockchain technology revolutionizing the way vehicle insurance is charged. Usage-based insurance could use a blockchain database to collect and store driving data of commercial vehicles from sensors. This would help fleet owners to save money on insurance rates by limiting costs to the minimum needed to cover actual milage. It has the potential to further reduce insurance costs by providing insurers more transparency and access to information that measures safe driving patterns.
Problem: Clients want easier ways to pay for rides.
From the clients’ perspective, they really just want to get to their destination on time in the most convenient way. Ridesharing platforms are trying to tailor to this as best as possible. For example, Lyft has added Venmo payment options for riders who want to get around town easier. Uber has teamed up with Fold to enable riders to pay drivers with Bitcoin.
When it comes to livery car services, clients also want to pay for rides easily—without squabbling over who foots the bill or invoices for business expenditures. From the perspective of fleet managers, the ability to track bills, visualize payments, and business expenses is fundamental to growing their business. But livery management software doesn’t always facilitate ride booking, client payments, business transactions, and fleet logistics all in the same program.
Solution: Faster, more secure transactions with all payment methods.
Using the same blockchain structure, fleet owners would have greater visibility and transparency regarding all payment information. Distributed Ledger Technology (DLT) can help streamline billing, secure cardholder data, and speeding up transaction processing, especially for international transactions, with a wider variety of payment methods. And it’s already doing this for other industries.
Added benefits of using blockchain that are connected to accounting could include immediate reimbursements and clear payment dispute resolution. Additionally, the prospect of paying for rides with cryptocurrency could mean eliminating processing and transaction fees and decreasing dependency on traditional banks.
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