ICO Analysis: DOVU

DOVU is creating a mobility ecosystem, where owners of the data (eg. car owners) will have ownership over the data that their car generates. Consumers of this type of data like car manufacturers, insurance companies will pay the owners to get access to the data that their vehicles generate. The data owners can use the received tokens for fuel, car maintenance and other value added services.

Data Is The New Oil

Corporations like Facebook, Alphabet have commodified data and have taken over their respective sectors. For eg. Google holds 81% share of the global search, which has helped it to become the largest advertising company in the world. Having access and control over the user data provides a strong moat and competitive advantage to these businesses. It also enables them to spot trends early and move on them, which sometimes involves buying up a smaller company before it can become a competitive threat.

The Connected Car

Connectivity is not just limited to our smartphones and IOT devices. The data from connected cars have immense potential in terms of improving driving experience and addition of new features. Car data can be used for a wide range of applications like traffic management, usage based insurance, enhanced safety, autonomous driving and many others. Connected car services market is expected to reach 40 Billion USD by 2020.

Car manufactures and service providers like Uber consume and require large amount of driving data to improve and work upon their services. One single self driving car alone uses 4000GB data per day!! However the centralized nature of the mobility data gives them access to only the data which is produced by their customers. Ford cannot access the data that a Toyota or a Tesla owner generates. This puts several limitations towards development of data driven mobility system. A car owner does not have any control over the data that his car generates, nor do he get anything in return for providing it to the car manufacturers.

DOVU Usecase

Imagine your car paying you to drive it. Imagine being rewarded for all the data you create and share. Imagine being able to use those rewards for travel, services, and transport globally. Imagine this data being used to further improve mobility services, working towards fluid movement of goods and people in our cities. Applying this technology will transform our thinking about data and mobility. For example, when hailing an autonomous car, insurance considerations are recorded in a Smart Contract, micropayments are usage-based, and the DOVU ledger allows you to be rewarded for the data you share.

The DOVU protocol will empower data owners to control access over their mobility data, while enabling them to get returns for sharing the data. The protocol will also facilitate creation of many mobility related dApps each having different usecases and attributes regarding the sharing of data.

Dovu App

The tricky part of the business is that DOVU will have to work closely with car manufacturers and convince them about the advantages of the shared economy.
A good thing going on for DOVU is that they have received seed funding from InMotion Ventures, Jaguar Land Rover’s investment arm ,who will work closely with DOVU to help them establish industry wide relations.

IOTA is working on some similar ideas, but it would be difficult for them to penetrate the automotive use case without partnerships with OEMs.

The Token

The DOV token is the only unit of value used across DOVU platform. Every purchase, sale, exchange or any other transaction on the platform will require the use of DOV tokens.

Customers like car manufacturers will pay the data owners in the form of DOVU tokens. Data/car owners can use the tokens for mobility related transactions like offsetting the cost of car, fuel or while using other forms of transportation.

Distribution

A total of 1.2 billion tokens will be issued. Of these 1.2 billion tokens, 25% will be made available for the token sale. There will be a lock-in period of 2 years for any unsold tokens.
The hardcap for the token distribution is set at 85362 ETH, while 1 DOV = 0.00032001 ETH.

DOVU Team

There are 6 core members in the DOVU team each of them having a strong background and experience in working with technology companies of similar complexity.
CEO Irfon Watkins is a serial entrepreneur and has a strong background in starting and growing businesses at a global stage. Before founding DOVU he was founder and CEO of Coull, a programmatic video advertising company processing over 15 billion requests a month from over 118 countries.

Cofounder Arwen Smit is the Jaguar Land Rover connector to DOVU as she worked as entrepreneur-in-residence at InMotion, the accelerator of Jaguar Land Rover. The team also has good relations with the UK Government as DOVU has been seed funded by Creative England – a Government backed fund. DOVU also has got a high profile advisory board with advisors like Lars Klawitter(General Manager Rolls Royce Bespoke and former Board of Directors Ethereum), Rob Jones (Co-founder Fanduel) among others.

The Verdict

One line from the whitepaper has truly caught our fancy “Imagine your car paying you to drive it”. Blockchain is a true enabler of the shared economy. Without blockchain a system like DOVU is difficult to fathom. DOVU is not just a traditional business being implemented on the blockchain, the idea is truly innovative and makes full use of the distributed ledger. Car owners will definitely find value in adopting DOVU. A major part of the business implementation depends on automobile OEMs working together and closely with DOVU, something which we are concerned about.

Risks:

  • As mentioned above, the success of the idea depends on the cooperation and approval by many 3rd party players. -4

Growth Potential:

  • The idea is truly innovative and has the potential to disrupt the way data is handled in the mobility industry. +3
  • Car owners might insist the manufacturers of their cars to adopt DOVU. +2
  • Regulations like the GDPR (General Data Protection Regulation) will work in favour of DOVU. +2
  • The partnership with Jaguar Land Rover adds huge credibility to the project. +3
  • DOVU has also partnered with KPMG for good corporate governance in the light of concerns around regulatory crackdown on ICOs. +0.5

Disposition

We arrive at a 6.5 for DOVU. We think this is probably one worth getting on board despite some implementation level concerns.

Investment Details

The crowdsale opens on 3rd October 2017. The first bonus tier runs for 24 hours (Oct 3, 17.00 UTC – Oct 4, 17.00 UTC) and is 15%. Information on the crowdsale is available on https://dovu.io

Author:
Aakash Kawale is a financial analyst based out of Mumbai, India. He is the lead analyst at a Singapore based organization and has extensive experience of analyzing US and Indian equities. Aakash is a strong advocate of the Blockchain technology and has been analyzing cryptocurrencies since 2015.