TL;DR

• By leveraging open crypto networks, Teleport (the web3 ride sharing app) is able to undercut Uber by 60%.

Full Story

A new technology’s first ‘killer application’ is rarely sexy.

• Computer’s had word processing

• The internet had plain text on a screen

• And smart phones had mobile email access

(If you ask us — smart phones didn’t get sexy until the launch of the Jeremy Renner Fan Club app. No? Ok. Moving on).

This is all to say: we think the consumer driven adoption of web3 technology will likely come through a combination of gaming and social applications…

But they won’t be web3’s first killer application. We already have that — and it’s payments. (Sexy? No. Powerful? Yes.)

Specifically: open payment networks — which are reaching a point where they are cheaper, faster, and easier to access (globally) than traditional options.

And it’s allowing new businesses to hijack long-established, third party networks — all while staying dangerously competitive on price.

Take Teleport (the web3 version of Uber) for example:

Teleport and Uber are essentially just pieces of software that match drivers with passengers.

Difference is…

Uber has to pay for private infrastructure, real estate, 32k+ employees and interest payments on its $9.5B in debt — all while answering to shareholders that want to see month-on-month revenue growth.

Which is partly why Uber, takes — get this — 45% of each fare!

The other side of that spend goes towards paying into a vicious downward spiral of incentives and advertising.

Uber drivers feel like they’re not being paid enough → so they leave at a higher rate → so Uber then spends on marketing to attract new drivers → offering them sign up bonuses → which come out of the pocket of existing drivers…

(Repeat).

But the Solana-based TRIP network does a bunch of heavy lifting right out of the gates…

Developers, like the folks behind Teleport, can come in and build a sleek app interface, and avoid the need to invest as heavily in infrastructure, real estate, and head count.

The main problem Teleport needs to solve is attracting riders/drivers, which they’ve been able to do in early testing, largely through word of mouth.

They’re able to take a 15% cut of fares (as opposed to Uber’s 45%) and pass the savings on to the riders/drivers.

Which, after just one weekend of test operations in Austin, helped to double their overall driver count.

Will it scale?

No idea!

But its lowering rider/driver costs, while the lowered barrier to entry for competitors to join the TRIP network provides a solid incentive for Teleport to keep their prices as low as humanly possible.

We love to see it!