The automotive industry is currently undergoing a transformational change with the arrival of self-driving cars and electric cars. On the other hand, companies like Uber have brought a new revolution in terms of daily commutation. But as the front-end development of the automotive industry looks to be catching speed, a lot of work needs to be done in order to streamline the operations and costs while dealing with all the back-end process in a vehicle’s lifecycle.
The Vehicle Lifecycle Industry is immense in terms of market value and is spread across multiple sectors like auto repair, after-market spare parts, vehicle resales, car insurance and others. Study shows that the size of vehicle lifecycle industry in North America and Europe is more than $1.8 trillion.
CarFix, an auto repair platform that aims to optimize services has launched a new project called the Vehicle Lifecycle Blockchain (VLB). VLB aims to unite all these above sectors which are segregated and operate individually, into a blockchain-based ecosystem thereby streamlining the existing practices and creating new business opportunities.
The use of the blockchain technology helps to address two major aspects of integration among the participants of the Vehicle Lifecycle Industry. This includes: i) integrity and recency of records, and ii) conditionality of certain relationships
The first one will ensure the accuracy and immutability of records and thereby help to overcome the inefficiencies and redundancies in routine operating and customers services. This helps to maximize the resale value of vehicles, enforce warranty protections, assert the authenticity of square parts, optimize the insurance policy pricing and much more.
The other aspect is that the blockchain facilitates the legal and operational relationship between participants of the industry upon certain conditions being met. For example an auto loan will only be granted when the car owner takes an insurance policy suitable to the lender. Such type of conditional contract executions can be done through smart contracts.
Advantage of VLB to Different Sectors of the Vehicle Lifecycle Industry
- The Insurance Sector: Vehicle Lifecycle Blockchain will benefit this sector by optimizing the pricing of vehicle insurance policy. VLB further helps the insurer to verify all the past records of the vehicle in its entire lifecycle. As a result, this helps to considerably reduce the claim management costs and helps to build a trust with the client.
- Auto Manufacturers: The blockchain-based solution helps to considerably reduce the warranty claim costs as well as the call recall costs. In case of warranty claims, the Vehicle Lifecycle Blockchain will help to easily verify the maintenance records as well identify the counterfeit parts, if any. It also helps to control pricing for car maintenance performed by authorized dealers. All these things help the auto manufacturer to build its brand thereby increasing customer loyalty.
- Spare Parts Producers: The use of VLB will help spare parts producers in stock optimization process as well as decrease warranty claims in case of faulty and non-original spare parts.
- Car Owner / Fleet Owner/ Car Lender/ Ridesharing/ Service Provider: VLB will help this sector in building trust and confidence in the used car market. This will help to maximize the vehicle’s resale value as well as help in reducing costs for individuals and businesses in ride sharing.
VLB Token Sale
The Vehicle Lifecycle Blockchain is currently having a token sale of its VLB tokens through the ICO route. The VLB tokens are basically the ERC-20 tokens based on the Ethereum blockchain. The total supply of VLB tokens is fixed at 175 million tokens.
Currently, VLB is undergoing the public sale of VLB tokens and will continue till April 8, 2018. The hard cap of the VLB tokens is fixed at $12 million. VLB tokens can be purchased in exchange with ETH tokens where 1 ETH = 650 VLB.
VLB Team and Partners
The founding member team of the Vehicle Lifecycle Blockchain is made up of three members: Vladimir Lupenko, Hannes Chopra and Oskar Hartman. Mr. Lupenko is also the co-founder of CarFix. Hannes Chopra is currently in the advisory role for the development of VLB and has been an ex-CEO of Sberbank Insurance and Allianz-Rosno Insurance.
The other members of the VLB core team hold diverse and varied experience in the field of business development, product development, sales, blockchain development and operations.
On its advisory lists sits a list of eminent personalities with past experience of working in the blockchain and automotive industry with successful project outcomes.
The list of VLB partners include some very big names like QIWI technologies, Uber, Sberbank Insurance and others.
More details of the Vehicle Lifecycle Blockchain can be obtained through its official whitepaper.