This Blockchain Technology-Based Ridesharing App Bids Goodbye, Find Out Why

Blockchain technology is pretty new, but this ridesharing app that runs on this innovation has announced its closing down. Here’s the story.

Sudden shut down

Late last week, Teleport, a ridesharing app that leverages blockchain technology announced it has shut down.

A netizen on X and an engineer named Chase wrote, “The decision was difficult but necessary. The rideshare market isn’t ready for a decentralized protocol just yet. It was an absolute pleasure working with the entire teleport team, all of whom are extremely talented in their respective verticals – truly top tier…”

The reasons for the closing are regulatory uncertainties and increasing competition, among several other factors. However, they expressed their huge thanks to their users and supporters, though they also said they were disappointed about this outcome.

The website that once allowed users to access their services and learn more about the app has this message posted as if a real-world store is under maintenance.

“This is not the outcome we had hoped for, but we’re incredibly grateful for this community and everyone who believed in the vision and showed up with enthusiasm. Your support meant everything,” Teleport posted. “Thank you for believing in us, and we’re sorry we didn’t find a way to make this business work!”

They added they will share more details about what led to this decision. They also shared they will continue to support off-ramping their users’ remaining USDC balances and exporting their private key until February 28th.

How blockchain helps the ridesharing industry

Solana-run ridesharing app Teleport was once a revolutionary attempt to break the network effect of bigger apps like Uber and Lyft by leveraging crypto coordination tools. With over 400 million people in the world using crypto, this breakthrough project aims to create a more equitable system for drivers and passengers while introducing them to Solana. Solana is a blockchain network.

Teleport was founded in 2022 by Paul Bohm, together with the Decentralized Engineering Corporation that built the app after raising millions of dollars in a seed funding round.

Its entire premise was decentralization and utilizing blockchain technology to lower the costs of its services. Teleport once branded itself as where riders “pay less” and “drivers earn more.” Plus, they also indicated that “early adopters get rewarded.”

It also included a full Solana wallet with every transaction and key data recorded on-chain. As for the ride-share operators, these constituted local entities connecting drivers and riders, or those competing with each other on pricing and service quality.

Blockchain technology has been helping the ridesharing industry in so many ways. This innovation transforms the system and process of ridesharing by improving transparency, security, and trust. It also streamlines transactions via smart contracts, a feature in blockchain technology, which eliminate intermediaries and reduce fees. With this decentralized system, accurate ride records are ensured, as well as more efficient payments, accountability, and service reliability.

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