Kuaidi Founder Chen Weixing Plans To Launch a Blockchain-Based Ride Hailing APP in China
Chen Weixing, a Chinese angel investor and billionaire founder of the ride-hailing startup Kuaidi Dache, revealed his plan to launch a blockchain-based ride-hailing platform to rival the current ride-sharing giant in China Didi on Sunday at the China International Big Data Industry Expo 2018.
This new adventure will be developed in partnership with Yang Jun, a co-founder of China’s delivery platform Meituan. According to a WeChat post from Chen, this blockchain application “is a platform shared by ‘workers’ and ‘consumers’, and will not be controlled by capitalists. It will use a blockchain-based burning model to replace the balance-sheet based revenue model, and use V/L rates to replace the valuation model of price/earning ration”. This platform aims to offer various life-style type services, including ride hailing, deliveries and others.
Chen’s new partner Yang Jun also offered his opinion on the value of blockchain technology at the same event. “I’ve been asking myself what’s the value of blockchain technology. My definition of valuable thing is to see whether and where ordinary people can actually use it,” Yang said, “With the help of blockchain, we can build a different set of economic system from the previous one in terms of ride-hailing services. Thus we can direct traffic from the internet and build many applications to satisfy users’ needs.”
According to China Money Network, Chen also said:”Ride hailing is the first time blockchain will be tested on a social application on mass scale.”
But so far the two entrepreneurs have not disclosed any form of timeline and any other details for the project. It remains to be seen how he plans to address blockchain’s scalability issues for the ridesharing industry.
Founded by Chen in 2012, Kuaidi Dache soared to success quickly in China, and was acquired by another ride hailing app Didi Dache in 2014. Didi rebrand the new entity as Didi Chuxing in 2015. Didi has dominated domestic ride-sharing market and drove Uber out of China through this merger.
Chen’s latest blockchain trial signals that he is back to the car-hailing market , which is expected to pose a new challenge for Didi. Chen Weixing is a true blockchain enthusiast. He has invested in dozens of China’s most valuable blockchain projects, including Binance ,Huobi, Qtum and TRON.