Automobile giant BMW within the framework of the start-up program launched a pilot blockchain-platform to track the distance overcome by rented cars, CoinDesk writes.
The project is carried out in partnership with DOVU, the blockchain startup, one of five start-ups working with BMW Group UK in the Innovation Lab incubator, presented in February.
DOVU together with Alphabet, the “daughter” of BMW, which manages fleet management, has developed a system that encourages drivers to provide information on the mileage of rented cars.
This system, according to DOVU Director for Product Development Alex Morris, should help BMW in understanding how active its cars are and how it can affect them.
Morris also said that in exchange for data drivers will receive tokens, and added:
“We, in fact, want to build on the DOVU platform the economy of a closed cycle. Drivers will be able to receive tokens, and then use the DOVU ecosystem to spend these tokens on various services – for example, to take new tires or something like that. The categorization of the award is determined by the partner (in this case – BMW). The definition is carried out in a smart contract. If the parameters meet the requirements of a smart contract, drivers will receive tokens.”
As a parameter for the award BMW decided to choose the mileage. According to Morris, the current automatic tracking system is unreliable and doesn’t provide information that the company could use.
As a result, the pilot program will require drivers of rental cars to provide weekly mileage data that will be recorded in the DOVU unit.
“At the moment, mileage is the most important factor in estimating the cost of resale cars,” says Morris. “This problem was very important for them, so when we offered the idea of encouraging tokens, they were very happy.”
According to the community manager DOVU Max Lomusho, the first part of the partnership – the verification of the concept – has already been completed. Now the startup goes to the second phase, in which the platform will be tested by drivers. It will last, according to Lomusho, another 6-8 weeks.
In the end, the platform, according to the plan, should become “an ambitious system of awards that can take into account the data of different cars, with something like a unified wallet for token-awards,” says Morris.
In addition, according to Morris, the startup intends to work with smart cities and has already begun negotiations with several candidates to determine how earning and spending tokens can be used in public transportation and other areas of the city.
A few months earlier, the startup DOVU – previously received funding from venture capital unit Jaguar – completed the ICO, as a result of which it managed to raise $6 million.