Could a decentralized, token-backed, system like Duber eventually displace Uber?

That was the thesis supported by Mike Novogratz in a recent interview with Bloomberg.

More about Mike Novogratz can be found here:

https://steemit.com/crypto/@jrcornel/mike-novogratz-this-will-feel-like-a-bubble-when-we-are-usd20-trillion

In fact he seemed pretty confident that he could do it rather quickly and rather easily:

(The bulk of that is at the end of the video)

Here is how it would work:

According to Mike, Uber is ripe for disruption due to their fat margins, currently in the 30% realm.

Mike said they could create a company called Duber, do an ICO and raise somewhere in the $30-$40 million dollar range, and launch a coin.

The business would operate much the same way Uber does currently, but the prices would be slightly cheaper since it would be decentralized.

So instead of paying say $12 for a ride, a user might be charged $8 or so.

That alone will cause many people to want to use it, but it gets better...

The coin is the game changer.

People will have the option to pay with a Duber coin. The coin will be immediately convertible to cash.

Which means that drivers will get paid in a coin that they can either hold or convert immediately to cash.

Eventually as the network grows, some people will chose to hold the coin and hoard them.

The supply will be limited so the value will start to increase.

Even people that use Dubers will hold the coins so that they can get a ride whenever they need one.

As the network grows, so does the value of those coins.

Then everyone who uses Dubers will start to tell other people to use Dubers because they have a financial interest in the system.

As the system grows so does the value of their coins.

There is very little need to continue to market/advertise as every single user essentially becomes a stake holder/investor in the network.

Mike's exact wording:

"Every user has a vested interest in getting more people into the system."

(Source: https://www.cryptoglobe.com/latest/2018/06/hedge-fund-manager-mike-novogratz-talks-about-future-of-the-crypto-space-and-factors-that-will-bring-in-institutional-investors/)

Talk about giving people an incentive to use your business!

It's not quite as easy or as simple as it sounds right here, but you get the idea of what he is talking about.

The really interesting thing is that Uber just recently disrupted the taxi business, and now just a few short years later, their business model is already in jeopardy from something like Duber coming along and disrupting them.

Stay informed my friends.

Image Source:

https://safenetforum.org/t/duber-decentralise-self-driving/13959

Follow me: @jrcornel