BMW is testing Blockchain to track the mileage of rental cars

The German automaker BMW is testing a new blockchain project. DOVU is intended to track the running distance of leased and lent vehicles. DOVU is one of five start-ups that have been field tested in the BMW Innovation Program since February.

The idea behind the DOVU system is to encourage drivers of rental cars to record their routes. The records are provided by the BMW start-up, with drivers receiving DOV tokens. For the project, the start-up collaborates with Alphabet, the fleet manager of BMW. The recorded data is intended to help BMW understand how the vehicles are used and the effects of their use.

DOVU product manager Alex Morris explains to CoinDesk:

"What we do is essentially that we are trying to build a circular economy on the DOVU platform. [Drivers] can earn tokens that they can later spend on services - for example, they can get spare tires or the like by using the DOVU system. The partner, in this case BMW, has defined the pay scale and this is enshrined in a smart contract. As long as the conditions of the smart contract are met, the tokens will be paid out. "

DOVU test at BWM

According to Morris, current automatic tracking systems are unreliable and do not provide the information they need. Therefore, in the pilot program, drivers of rented and borrowed vehicles record their journeys. These are stored weekly on the DOVU Blockchain. These data are important because the distance covered is the most important factor in the resale value of vehicles.

DOVU's community manager Max Lomuscio announces that the first phase of the partnership with BMW has already been completed. Following the successful proof-of-oncept is the second phase, the practical test with real drivers. This phase will take another six to eight weeks.

DOVU's plans are ambitious: "The plan is to become a ubiquitous reward system that works across multiple vehicles, to develop a unified token rewards wallet that you can use in your BMW, then perhaps jump into the second vehicle and to earn more tokens to spend in the ecosystem, "says Morris. In addition, the start-up wants to be used in Smart Citys. In addition, DOVU is already in talks with some cities to explore earnings and payment options, for example in public transport.

Both BMW and DOVU belong to the MOBI consortium. Blockchain wants to make the breakthrough in the mobility industry by bringing together large parts of the automotive industry.