Tokenizing Car Reservations Can Open Up A Trillion-Dollar Market
The post Tokenizing Car Reservations Can Open Up A Trillion-Dollar Market appeared on BitcoinEthereumNews.com. Opinion by: Evan Kuhn, president of DeLorean Labs When car manufacturers develop a new model, their fragmented logistics and sales cycle mean that even if a customer puts down a deposit, they have no feasible or reliable way of projecting delivery for that car. Eager car buyers can wait months or even years after paying their deposit, without knowing where they sit in the queue for delivery. This is why new models are priced over the sticker price when cars first enter the market. There has been no industry-wide solution — but tokenized reservations will open up a multitrillion-dollar market. The broken logic of modern car reservations Reserving a car model today is incredibly inefficient. Car buyers pay massive markups when new models are rolled off the lot because there is no foresight into manufacturing schedules. The options are, if you want the new car now, you have to pay a considerable premium over the sticker price, and if you’re going to pay the regular sticker price, you have no say or idea as to when you will get delivery of your car. So, how big is this problem? A recent APAC hospitality study showed cancellations via Booking.com account for 40% of revenue. In comparison, Expedia sees 24%, suggesting tens of billions at stake globally, while ticket resale platforms extract 30% markups, leaving both artists and fans worse off. Automobile waitlists remain even more opaque. Dealers have bilked buyers with $30,000-$70 ,000 markups on Ford F‑150 Lightning orders, demonstrating a lucrative secondary market created entirely by information asymmetry, even without a formalized “black market.” Even manufacturing suffers, with 15%-30% of capacity sitting idle, as per a McKinsey report, because small firms lack access to tradable reservation systems. Smart contracts on the blockchain elegantly solve problems associated with information asymmetry. Tokenized flat…
The post Tokenizing Car Reservations Can Open Up A Trillion-Dollar Market appeared on BitcoinEthereumNews.com.
Opinion by: Evan Kuhn, president of DeLorean Labs When car manufacturers develop a new model, their fragmented logistics and sales cycle mean that even if a customer puts down a deposit, they have no feasible or reliable way of projecting delivery for that car. Eager car buyers can wait months or even years after paying their deposit, without knowing where they sit in the queue for delivery. This is why new models are priced over the sticker price when cars first enter the market. There has been no industry-wide solution — but tokenized reservations will open up a multitrillion-dollar market. The broken logic of modern car reservations Reserving a car model today is incredibly inefficient. Car buyers pay massive markups when new models are rolled off the lot because there is no foresight into manufacturing schedules. The options are, if you want the new car now, you have to pay a considerable premium over the sticker price, and if you’re going to pay the regular sticker price, you have no say or idea as to when you will get delivery of your car. So, how big is this problem? A recent APAC hospitality study showed cancellations via Booking.com account for 40% of revenue. In comparison, Expedia sees 24%, suggesting tens of billions at stake globally, while ticket resale platforms extract 30% markups, leaving both artists and fans worse off. Automobile waitlists remain even more opaque. Dealers have bilked buyers with $30,000-$70 ,000 markups on Ford F‑150 Lightning orders, demonstrating a lucrative secondary market created entirely by information asymmetry, even without a formalized “black market.” Even manufacturing suffers, with 15%-30% of capacity sitting idle, as per a McKinsey report, because small firms lack access to tradable reservation systems. Smart contracts on the blockchain elegantly solve problems associated with information asymmetry. Tokenized flat…
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