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Powering the Automotive Industry’s Next (r)Evolution

Automotive Information and Transaction Hub on The Blockchain: Capturing Connected Vehicle Data and Communicating Local Demand

to Manufacturers, Distributors, Dealers, Repair Centers and Owners

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Over the last decade, the automotive industry has witnessed a remarkable technological revolution. From integrated navigation, wi-fi, sensors and cameras, we’re privy to a level of digital interactivity thought impossible just a few years ago. Modern vehicles are evolving into drivable connectivity hubs right before our eyes. Nowhere is this more evident than with the manufacturers who make the cars and parts, the distributors that sell them, and the service centers who consume them. While it is relatively straightforward to purchase a technology-laden new phone every couple of years, vehicles have decidedly more permanence.

Gartner estimates that by the year 2020 there will be over 250 million connected vehicles on the road, with the number of installed connectivity units in vehicles worldwide increasing by 67 percent and consumer spending on in-vehicle connectivity doubling. Ernst & Young, similarly, predicts that 88 percent of all new cars will feature embedded telematics by 2025, amounting to 16 million new cars in the United States. Research conducted by Intel shows that connected cars are the third-fastest-growing technological device after phones and tablets. For the $250 billion aftermarket industry, the need to embrace connectivity has never been more compelling.

Built-in vehicle sensors will aggregate and provide data in ways never imagined just a decade prior. When all is said and done, the push towards a mobility ecosystem will allow cars to be directly connected to their manufacturers, the distributors who stock their parts, and the repair shops who service them.

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Deloitte states that “across all parts segments, and throughout the supporting infrastructure beyond the vehicle’s walls, the Internet of Things and its proliferation of sensors can enable suppliers to gather reams of new data on parts’ performance and environment. Advanced analytics and real-time processing may allow parts and vehicle systems to reach new levels of performance, durability, and efficiency.”

However, despite these advances the automotive industry is under intense pressure from an ever-expanding vehicle mix, distribution battles, inventory obsolescence, cashless payments integration, IT infrastructure challenges, and continued disruption from mobile parts marketplaces. Faced with these challenges, it comes as no surprise that OEMs and the aftermarket are struggling to keep up.

To reap the benefits of our connected future, the industry requires complete transparency and interconnectivity between man, machine, and external organizations. Blockchain is the only technology that can adequately address these challenges. What has been lacking until now, however, is a blockchain platform able to ensure these advances deliver as promised.

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The Automotive Blockchain

Powered by Blockcurr and Ethereum, SHIFTMobility’s Platform is the industry’s first and only blockchain-based hub for all information and transactions that touch a vehicle. While other organizations are busy debating the implementation of blockchain through emerging consortiums, our platform is currently deployed in leading automotive businesses. Thousands of users are leveraging SHIFTMobility applications in real world scenarios to capture blocks of vehicle transaction and service data and deliver local demand insight directly to our partners.

The Blockcurr cryptocurrency system consists of decentralized application infrastructure for creating blockchain applications supported by cryptocurrency payment options and interoperability with Ethereum. The system facilitates transaction processing with enhanced data security, auditability, and transparency across all its platform tiers, thereby improving trust amongst anonymous participants. It incorporates digital identity to authenticate users, performs transaction verification, its provenance, and record asset and value exchange on a distributed ledger. AUTON is ERC20 compliant.

As it stands, vehicle ownership, registration, connected vehicle data, repairs, inspections, and parts replacement information is fragmented. With SHIFTMobility, data from the driver to the car, insurance, service visits, real-time condition, maintenance to be performed, service history and more are captured in a single unbroken, immutable, highly secure, distributed and transferable chain – recording 4,000 GB of data per day per vehicle.

By maintaining vehicle service histories and events triggered by a vehicle on a blockchain, we provide greater transparency to stakeholders across multiple vehicle caretakers. Tokenized data means diminished friction between participants and real-time engagement between customers, workers, and vehicles.

“In an age of privacy concerns and rapid evolution in vehicle technology, our automotive blockchain platform will ensure the security and integrity of customer and vehicle information while maintaining the intrinsic benefits of a globally connected ecosystem. As pioneers in this field, all our solutions use blockchain to secure, distribute, and validate transactions across all our constituents. We now look forward to offering the infrastructure necessary to drive blockchain adoption across the industry.” Pavana Jain, CEO and Founder SHIFTM

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Primary Use Cases

Vehicle and Record Ownership

Following a car purchase, an invoice is signed, title registered with the DMV, insurance coverage secured, and occasionally an extended warranty is purchased from either the manufacturer or a third-party provider. After the keys are handed over, tracking of vehicle ownership, services, and records is mostly done with paper receipts. In some countries, it is even difficult to define the true owner of a vehicle after it changes hands primarily due to intermediaries and the complexities involved in title changes.

The process of title transfers from one owner to the next involves visits to the local offices and may involve notaries for certification. Because of the difficulty in identifying the driver or the owner during accidents and emergency, insurance claim processing can also be challenging.

Furthermore, the fair market value of a car is often difficult to evaluate as records are spread across disparate systems. The result is a lack of transparency and trust. There is no good model to entice, engage, and incentivize customers.

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Solution

Dealerships can transform paper contracts into digitized smart contracts, connect to vehicles for proactive maintenance suggestions, alert users when their warranty is ending, as well as engage and reward customers using digital tokens to build loyalty to the brands they sell and the services they perform. When a customer purchases a vehicle, staff at the dealership scan the VIN and enter basic owner information. Following this, an AutOn utility token is issued to the customer and delivered directly to their personal wallet, which they can use for services or vehicle and parts purchases at the dealership.

Dealers can issue additional tokens to customer accounts when they make additional purchases, schedule a service, respond to promotions, and other event triggers. Once redeemed, customer accounts would automatically be debited. This incentive model allows customers to retain tokens for future services at the facility or even transfer them to the new owner.

Customers can scan service records to maintain the integrity of their service history. If they visit any of the service centers on the SHIFTMobility Network, these records are automatically available on the blockchain for easy access. Upon transfer of ownership, the new owner gains the complete service history from the previous owner.

AutOn empowers businesses and customers to engage with one another in a transparent and trustworthy manner from the time of vehicle purchase through its maintenance lifecycle.

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Services on Demand

It is not uncommon for vehicles to unexpectedly need emergency repairs or roadside assistance. At present, servicing is done on ad hoc basis. Customers must take their vehicles to repair centers where an inspection is performed and they are advised on which repairs are necessary, an estimate is provided, and once complete, they are then handed a piece of paper or sent an email listing the work performed.

Customers often dismiss these repair invoices, leading to confusion regarding services completed over the lifetime of the vehicle. If a part should fail in service, it is a challenge to determine if it is under warranty. Similarly, the process of ordering replacement parts is mostly done over the phone or via searches performed across a wide range of distributor websites. On average, it takes thirty to sixty minutes to get the parts ordered. An incorrect order can result in longer wait times and unexpected delays.

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Solution A customer downloads the Spark application, wirelessly connects it to their vehicle, and lets the app guide them regarding specific services. With Spark, owners gain instant access to everything from repair estimates and service appointments to emergency roadside assistance, DMV and Insurance paperwork, plus a detailed list of all the work previously performed and parts (OEM and Aftermarket) specific to their vehicle. Furthermore, when a vehicle service is performed, the records are made instantly available within the app glovebox. Spark even includes parts and services that were previously deferred so that the customer can arrange for their completion during a future service visit. The inclusion of detailed service history also aids in more accurately determining vehicle resale and fair market value.

Decentralized Automotive Marketplace (DAO)

The supply and distribution of automotive parts today is online and mostly centralized. Demand forecasts feed into requirements planning and manufacturing of products at global OEM plants. Parts are then shipped to distribution channels across the US. These distributors often rely on order histories and vehicles in operation databases to stock parts for sale. Higher inventory levels or out of stock situations are common across traditional warehouse systems. When vehicle demographics shift, this type of organization makes it difficult for suppliers to respond to market fluctuations in time, resulting in missed opportunities and loss of revenue.

As vehicles become increasingly interconnected, future demand will be generated by the IOT devices living within the vehicles themselves. This transformation from a push to pull system fundamentally alters the supply, distribution, and availability of goods. The current online retail models of eBay and Amazon are unsuited to adequately address the future needs of the automotive industry.

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Solution

Our blockchain platform allows for the creation of fully automated systems and applications that leverage Distributed Ledger Technology (DLT) and Smart Peer-to-peer Networks. With the creation of a DAO based parts marketplace, vehicle demand is made transparent to an automotive network comprised of manufacturers, distributors and r e p a i r c e n t e r s - p r o v i d i n g tremendous efficiencies and cost savings for the automotive supply chain. These savings can then be passed on to the consumer, resulting in lower cost of vehicle services and repairs. In a similar vein, insurance providers will be better able to assess claim data and insurance requirements, all while delivering increasingly personalized services to individuals and fleet owners. Unlike today, distributors gain the means to stock the right products and plan logistics for instant availability at the nearest point of service. Manufacturers gain insight into fast-moving parts and can plan production schedules appropriately. Should there be any premature failures, those products can be instantly recalled, thus min im iz ing war ran ty c la ims . Consumers also gain greater transparency and choices for OEM and Aftermarket parts.

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Rewards for every mile

The rewards systems in use today is broken; difficult to manage, maintain, and evaluate. For all the coupons printed and traditional promotions run, in the end consumers are left with nothing but a discount while marketing teams struggle to measure effectiveness. Rewards systems should make the consumer feel as if they are an integral part of the system itself, because they are.

SolutionAutOns are the next generation in consumer reward programs and can be used for purchasing products within the network, saved as a store-of-value, even gifted or exchanged. With AutOns, consumers will be rewarded by an ecosystem of car and parts manufacturers, insurance companies, distributors, and repair centers. Customers gain control over their data while being rewarded for vehicle maintenance and upkeep; becoming just as important as the blockchains themselves. They will also act as record keepers, leading to a fundamental shift in the way consumer reward systems work and the way businesses interact with them. If they visit any of the service centers on the SHIFTMobility Network, these records are automatically available on the blockchain for easy access. Upon transfer of ownership, the new owner gains the complete service history from the previous owner. 

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Automotive Blockchain-as-a-Service

The automotive vertical has a unique set of needs, from accurate vehicle identification to parts catalogs in compliance with existing standards. However, not every organization has the means to create and maintain blockchain technology or reinvent the wheel every time they build an application. Blockchain-as-a-service enables any organization to leverage cutting-edge technology for use in the development of novel automotive applications.

Whether businesses are seeking to create a fleet-specific application, one geared for commerce, or anything in between, SHIFTMobility can make it happen in a private blockchain environment. Businesses can create value-added programs to not only provide their customers with instant access to their nearby dealers and service centers, but also issue faster recalls and replacements when parts fail unexpectedly in service and leverage predictive intelligence for inventory stocking across distribution channels. Blockchain-as-a-service includes standardized blueprints that makes transitioning to the blockchain quick and straightforward.

“By simplifying the entry point to blockchain adoption within the automotive industry, SHIFTMobility actualizes the benefits of a global mobility ecosystem and ushers in a profound technological transformation that promises to increase transparency, speed, and cost savings to all stakeholders, especially consumers who can now make increasingly informed decisions concerning their vehicles.” Amit Jain, CEO, AMP Motors

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The Next (r)Evolution

By connecting drivers to vehicles, services, and everything else, SHIFTMobility satiates high consumer expectations while simultaneously liberating previously siloed data for proper use and meaningful intelligence. Our technology eliminates any remaining information barriers, security risk, and costly IT infrastructure to handle the massive transaction volumes generated by vehicles.

Not only does the platform streamline everything from the manufacturing and sourcing of parts to repairs and payment, it provides consumers with a consistent experience regardless of where the road takes them. The security, scalability, and costless verification offered by the SHIFTMobility Automotive Blockchain Platform is the engine that will power the automotive industry for this mile and next.

Learn more at shiftmobility.com

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