Is This Project The Dream For Car Owners?
Be Aware Do Not Buy Peaks!
If you are going to buy a second hand car, it is a normal procedure to check how much miles the car traveled, how many owners it had and how it looks. While you check that information, the sales man tries to convince you with beautiful stories of an old lady that was the owner, that the car was inside every night and that the engine is almost new. If you fall for these good stories, it is time to negotiate.
When you drive home with your brand new (second hand) car you always think YOU made the best deal instead of the sales man. You are such a hard nut to crack when negotiations start, right? Maybe it is. But the fun fact is that there is so much fraud with car-data. that all the good stories are most probably made up in order to sell you that car. Of course, that is how sales work, but things may change.
Imagine a service where you check everything about the car you like to buy. Within seconds you see if the car is committed to odometer fraud, maintenance history, if the car was involved in any accidents, if the car is committed to crimes and how many owners the car had. Imagine that you had all these information with one click. Imagine that you can use this accurate information when you start your negotiate. Car prices will be so transparant that all great stories can be left behind.
This user case sounds like it is years away. In fact, a Lithuanian company is working on a service that will bring all providers together. A complex job, because all stakeholders like, insurance companies, governments, police and car owners, are involved.
The Project we are talking about is: CarVertical (Cv).
CarVertical is about to develop a blockchain with smart dApps that are going to collect all possible car data including:
- Basis Car Information
- Odometer rollback checks
- Information if the car was stolen once
- Vehicle photo archive including photo’s of accidents
- Damage history
- Vehicle Service Report
As you maybe already know, this data currently is stored in different databases. For example, your insurance company knows everything about accidents you had and your car shop knows if you was on time for service. The biggest issue at this moment is that the information is not shared with all parties. The car salesman that sells you a second hand car does not know that the car was in a huge accident. He also does not know if odometer rollback is committed and he definitely does not know the driving style of the former driver. CarVertical is planning to bring all information together on the blockchain.
A service like this can receive huge support from a lot of stakeholders. Car dealers can determine fair prices. Insurance companies can determine how high the risk of insuring a car is. And you, as a car buyer, knows exactly if the car you love is as good as it looks. It is a win-win to the complete sector if everything works out the right way.
And that IF is a pain in the ass. The concept of CarVertical is really groundbreaking, but we see a huge pitfall: a concept like this only works with mass adoption from the market. And as we all know, the second hand market is sometimes not that fair as it looks like. Everyday grandma’s car is sold hundreds of times, everyday people think they bought a good car because it looked great and everyday people buy cars with wrong odometers. But the most important thing, every day car dealers make a lot of money by selling fairytales. And the funny thing is, if a dealer likes to use the CarVertical service they must pay a lot of money for it. Of course, insurance companies, car owners and car manufacturers are most probably interested in the service (in fact a pilot with BMW Group is signed), but it only works if all parties agrees using this service. Or, if the sector is obligated to use the service by law like the Dutch and Belgian government do with their car-pass to prevent mainly odometer fraud.
The team is not an all-star team and has a big challenge to get all stakeholders a board. At this moment we see this as the biggest concern for CarVertical. Another big project focussing on gathering big data is VeChain. VeChain is partnering with huge players everyday and has equal technology to gather this kind of information, but with a very experienced team, triple A network and developed technology. Of course, VeChain’s main focus is supply chain management, but we all know that it is a matter of code to add this kind of information to their blockchain.
CarVertical is currently a white paper project so the tech is not validated. The team is currently partnering with companies which believe in their concept. Current partnerships includes an incubation program with the Lithuanian government, a pilot project with BMW Group, Autoplius.lt, Diginet, Baltic Moter Trade, GPSWOX, Legator, Tanagra, AutoWin.EU and mita. But, as said above, there are no results yet. Everything is based on trust in the concept.
If you like to know everything about the partnerships please visit: https://www.carvertical.com/blog/partners/
CarVertical’s primary market approach will be consumers that like to use the app. Pretty smart, because ‘customer is king’. If consumers are aware of the advantages they will push the product into the market. It can play out well, if all stakeholders (like insurance companies and governments) are on board then.
CarVertical expects to have a up-and-running service App in over 48 countries by the end of 2022. That is pretty ambitious and if they make it happen CarVertical will have a very serious market capitalisation. X20 from current values is just a cautious estimate.
So, are we investing?
As we mentioned above, the concept is pretty cool and ground breaking. We think this kind of blockchain projects are a huge advantage for society. We know for sure these blockchain projects will be successful and change the world. But, we are not very sure if CarVertical will be that party. Maybe they will make it, maybe they will consolidate with another player (like VeChain) or maybe they will fail. CarVertical is a white paper project and therefore it is hard to tell if the tech will work and big players will board. A concept like this need business seniors that can establish deals with one phone call. But as always, we know a team can surprise, so maybe we put a little stake in this project.
Price at moment of writing