DePIN for Mobility: The Future of Ride-Hailing
The term DePIN, short for Decentralized Physical Infrastructure Network, refers to a new way of creating and operating real-world services and infrastructure using blockchain technology.
Rather than being controlled by a single company, DePIN enables a network to be run collectively by its community. People can contribute resources, share in ownership, and earn rewards. It represents a shift toward a more open, transparent, and participatory model for building essential infrastructure.
This blog explains what DePIN is, how it addresses persistent challenges in the mobility sector—particularly in ride-hailing—and the practical benefits it offers to both drivers and riders.
Summary
DePIN applies blockchain to real-world infrastructure, such as ride-hailing, in order to make it transparent, open, and community-governed.
Current ride-hailing platforms face issues including high commissions, limited control for drivers, and opaque data practices.
By contrast, DePIN can improve earnings for drivers, provide tamper-proof onchain records, and give participants a voice through governance mechanisms.
Challenges remain, including varying user priorities, the complexity of blockchain tools, and legal requirements for operating transport services.
Projects like TADA already demonstrate how a hybrid model—combining Web2 usability with Web3 transparency—can deliver tangible improvements in fairness and trust.
Understanding DePIN
A Decentralized Physical Infrastructure Network is a framework where blockchain enables shared ownership and value distribution among the people who actively operate or maintain a physical service. The key difference from traditional systems is that value and control are not concentrated in a single corporate entity.
To illustrate, imagine a group of friends running a lemonade stand. Instead of one person acting as the boss and taking all the profit, everyone who brings supplies, serves customers, or promotes the stand receives a fair share. Sales are recorded in a ledger that cannot be altered, ensuring that everyone knows exactly what was earned and by whom. DePIN works on a similar principle, replacing the physical ledger with blockchain’s secure, tamper-resistant records.
In conventional business models, infrastructure and data are privately controlled. DePIN changes this by making information transparent and verifiable, enabling contributors to trust the system without relying on closed operations.
DePIN is emerging as one of the fastest-growing areas in Web3, alongside Real World Assets (RWA) and AI.
A World Economic Forum report projects that DePIN could reach a market capitalization of $3.5 trillion by 2030, with an estimated 375% compound annual growth rate. This growth potential comes from DePIN’s ability to make infrastructure development and maintenance more efficient and equitable across sectors such as:
Power grids
Mobile telecommunications
AI computing networks
Decentralized cloud storage
Mobility services, including ride-hailing
Among these, mobility stands out as a promising use case. Ride-hailing, in particular, suffers from inefficiencies and inequities that DePIN can help resolve.
Problems in Today’s Ride-Hailing Industry
Ride-hailing services like Uber and similar platforms have made urban travel more accessible and convenient. However, the systems behind them often place both drivers and riders at a disadvantage.
1. High Commissions and Rising Fares
Most platforms deduct a commission of 20% to as much as 50% from each fare. This means that a $10 trip may leave a driver with only $7 or less after fees and taxes.
At the same time, passenger fares have risen due to opaque pricing algorithms, surge multipliers, and added service fees. While platforms maximize revenue, the financial benefits for the individuals providing the service have diminished.
A Business Insider report found that some drivers earned as little as $9–$12 per hour before accounting for fuel and maintenance, leaving net earnings below minimum wage in many cases.
2. Lack of Bargaining Power and Monopoly Concerns
In markets where a small number of platforms dominate, drivers have limited leverage to negotiate better terms. Strikes and protests seen in regions from Indonesia to the United States, reflect frustration over unilateral policy changes, unfair revenue distribution, and consolidation that reduces competition.
3. Opaque Data Practices
Transparency is scarce in the current model. Drivers lack clarity on how fares are calculated, why certain drivers receive more ride requests, or how performance ratings are determined. Riders are similarly left in the dark regarding fare breakdowns and price comparisons. This opacity erodes trust on both sides.
How DePIN Improves Ride-Hailing
DePIN offers a structural alternative that promotes fairness, transparency, and community-driven control.
1. Increased Earnings for Drivers
By removing centralized intermediaries, DePIN allows drivers to retain most of the fare paid by riders. This results in fairer income distribution and potentially lower passenger fares, since there are no large corporate service fees.
2. Transparent and Immutable Data
Blockchain records are permanent and verifiable. Drivers can see detailed trip histories, earnings, and fare breakdowns. Riders can verify that they are charged fairly. The elimination of hidden algorithms fosters trust and creates a solid foundation for future services, such as onchain work history verification or access to financial products.
3. Community Governance
DePIN platforms can integrate governance systems that allow stakeholders—drivers, riders, and other contributors—to influence policy decisions, vote on changes, and shape platform development. This democratic structure helps align the platform’s evolution with the community’s needs rather than solely with investor interests.
Challenges to Full Decentralization
Despite its advantages, implementing DePIN in mobility services is not without obstacles.
Different user priorities mean that while Web3 participants may be enthusiastic about decentralization, most ride-hailing users prioritize reliability, simplicity, and immediate earnings.
Blockchain’s complexity remains a barrier for those unfamiliar with crypto wallets, transaction fees, and confirmation processes.
Regulatory compliance poses another hurdle, as ride-hailing operations require licensing, insurance, and adherence to safety standards which are responsibilities that decentralized networks must address.
Customer support expectations are also a concern; without dedicated teams to handle disputes or urgent issues, user trust can suffer.
These challenges suggest that a hybrid model—blending Web2 usability with Web3’s transparent infrastructure—may be the most practical path forward in the near term.
A Working Example: TADA
TADA, part of the MVL mobility ecosystem, illustrates how DePIN principles can be integrated into a functional, widely used ride-hailing service.
Launched in 2018, TADA operates on a zero-commission model, allowing drivers to keep most of their earnings after a small platform fee. The app maintains a familiar Web2 interface, ensuring that both riders and drivers experience the service without the added complexity of blockchain tools.
However, key operational data—such as fare allocation, driver income, and mobility patterns—is recorded on the MVL mainnet. This data is publicly accessible via the MVL DePIN website, enhancing transparency and accountability.
By combining a seamless user experience with behind-the-scenes blockchain integration, TADA delivers the benefits of decentralization without sacrificing convenience. Its success in markets across Singapore, Thailand, Vietnam, Cambodia, and Hong Kong demonstrates the viability of this approach. A recent partnership with the Drivers Cooperative Colorado (DCC) brings the same model to the U.S., supporting cooperative rideshare services with MVL’s technology.
Furthermoe, DePIN’s intersection with Real World Asset tokenization represents the next frontier in mobility and finance. Understanding this synergy will be key to unlocking further innovation and global adoption—a topic we will explore in the next blog.
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