In the previous part of the review of the HireGo project, we started talking about what his idea was and found out that HireGo is a decentralized application based on blocking technology, smart contracts and HGO tokens , which allows you to rent a car and lease your vehicle.
The application provides maximum reliability of cooperation and trust between the parties, since for compliance with all conditions, a smart contract with the conditional deposit of tokens is responsible.
In this article, we promised to talk about why more and more drivers are shifting to the concept of vehicle sharing rather than buying cars, as well as why the HireGo application will become indispensable in this industry.
Rent instead of purchase
If in 2015, the participants in the global car sharing industry were about 7 million, by 2020, experts predict, this figure will grow to 26 million people, and in another 5 years - to 36 million.
Why was not renting cars so popular before and why did the drivers start moving to the concept of sharing vehicles?
The thing is that it was simply much more profitable to rent a car than to buy it. The cost of buying a car has grown along with the prices for their maintenance, so renting a car is much cheaper than buying, especially if there is no need for its daily use.
Its role was played also by progressively growing traffic due to the tremendous increase in the number of cars on the roads, as well as the related pollution of the environment. In addition to everything, both in large densely populated and in small towns, the obvious problem with the lack of parking spaces began.
Therefore, in order to save money and improve the situation with an excessive number of cars, drivers increasingly began to move to the side of their lease. So, those who do not use their cars, for example, in the middle of the week, and drive only on weekends, for example, for rest with their family, can freely lease their vehicle to those who need a car for work on weekdays of the week.
Decentralization of lease
The concept of decentralization has changed many industries, so the rental industry of vehicles will not be an exception. Due to the fact that cars are not in the possession of rental companies, and are the property of the drivers themselves, tenants have a clear advantage in saving money for using cars.
Instead of overpaying for renting a car to an enterprise, users can pay directly to car owners for using their vehicles. The concept of P2P involves the removal of any intermediaries, so renting becomes even more profitable than owning a car.
The role of HireGo
The decentralized HireGo application will be the example of the application of the Peer-to-Peer concept, blocking technology, smart contracts and crypto currency. Its main advantages will be a friendly user interface, reliability of cooperation and the lowest possible cost of renting vehicles.
Despite the fact that the application will become an embodiment of quite complex technologies and interaction schemes, its interface will be as simple and intuitive as possible so that even those users who are not familiar with either blocking or crypto currency technologies have no difficulties and used HireGo, like any other mobile application.
The reliability of interaction between the parties (car owners and their tenants) will be achieved through the use of carefully thought-out smart contracts Ethereum. Users can not worry about the fact that the other party will behave dishonestly, because any fraud attempts can be easily eliminated, and the transfer of funds is carried out only if all the terms of the smart contract are met.
And, in the end, the economy. The cost of renting a car directly from its owner, and not from a car rental company, will definitely be much lower, due to the lack of high commissions, because the company, in addition to the cost of the lease itself, will also take into account the costs associated with paying employees , utilities, rent of premises.
In the final part of the review, we will talk about the practical part of the application of decentralized vehicle sharing - the options for using the solution, which will be provided by the creators of HireGo - car rental applications.
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