DECENTRALIZED FOOD DELIVERY SERVICE - WHITEPAPER V0.92_EN APRIL 16, 2018 - Ufoodo
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DECENTRALIZED FOOD DELIVERY SERVICE WHITEPAPER V0.92_EN APRIL 16, 2018
DISCLAIMER
PLEASE READ THIS SECTION AND THE FOLLOWING SECTIONS ENTITLED “DISCLAIMER OF LIABILITY”, “NO
REPRESENTATIONS AND WARRANTIES”, “REPRESENTATIONS AND WARRANTIES BY YOU”, “CAUTIONARY
NOTE ON FORWARD-LOOKING STATEMENTS”, “MARKET AND INDUSTRY INFORMATION AND NO CONSENT
OF OTHER PERSONS”, “NO ADVICE”, “NO FURTHER INFORMATION OR UPDATE”, “RESTRICTIONS ON
DISTRIBUTION AND DISSEMINATION”, “NO OFFER OF SECURITIES OR REGISTRATION” AND “RISKS AND
UNCERTAINTIES” CAREFULLY. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU
SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISOR(S).
The UFT tokens are not intended to constitute securities in any jurisdiction. This Whitepaper does not
constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by the
distributor/vendor of the UFT tokens (the “Distributor”) to purchase any UFT tokens nor shall it or any part of
it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or
investment decision. The Distributor will be an affiliate of ufoodo GmbH. (“ufoodo”), and will deploy all
proceeds of sale of the UFT tokens to fund ufoodo’s cryptocurrency project, businesses and operations. No
person is bound to enter into any contract or binding legal commitment in relation to the sale and purchase
of the UFT tokens and no cryptocurrency or other form of payment is to be accepted on the basis of this
Whitepaper.
Any agreement as between the Distributor and you as a purchaser, and in relation to any sale and purchase,
of UFT tokens (as referred to in this Whitepaper) is to be governed by only a separate document setting out
the terms and conditions (the “T&Cs”) of such agreement. In the event of any inconsistencies between the
T&Cs and this Whitepaper, the former shall prevail.
You are not eligible and you are not to purchase any UFT tokens in ufoodo’s Initial Token Sale (as referred to
in this Whitepaper) if you are a citizen, resident (tax or otherwise) or green card holder of the United States
of America or a citizen or resident of the Republic of Singapore or a citizen or permanent resident of the
Hong Kong SAR, nor a citizen or permanent resident of the Peoples Republic of China. No regulatory authority
has examined or approved of any of the information set out in this Whitepaper. No such action has been or
will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution
or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules
have been complied with. There are risks and uncertainties associated with ufoodo and/or the Distributor
and their respective businesses and operations, the UFT tokens, the ufoodo Initial Token Sale. This
Whitepaper, any part thereof and any copy thereof must not be taken or transmitted to any country where
distribution or dissemination of this Whitepaper is prohibited or restricted. No part of this Whitepaper is to
be reproduced, distributed or disseminated without including this section and the sections entitled “Terms
and Conditions”, “EXHIBIT A: Risks” at the end of this whitepaper
FORWARD LOOKING STATEMENTS
NOTE ON FORWARD-LOOKING STATEMENTS All statements contained in this Whitepaper, statements
made in press releases or in any place accessible by the public and oral statements that may be made by
ufoodo and/or the Distributor or their respective directors, executive officers or employees acting on behalf
of ufoodo or the Distributor (as the case may be), that are not statements of historical fact, constitute
“forward looking statements”. Some of these statements can be identified by forward-looking terms such as
“aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”,
“probable”, “project”, “should”, “would”, “will” or other similar terms. However, these terms are not the
exclusive means of identifying forward-looking statements. All statements regarding ufoodo’s and/or the
Distributor’s financial position, business strategies, plans and prospects and the future prospects of the
industry which ufoodo and/or the Distributor is in are forward-looking statements. These forward-looking
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statements, including but not limited to statements as to ufoodo’s and/or the Distributor’s revenue and
profitability, prospects, future plans, other expected industry trends and other matters discussed in this
Whitepaper regarding ufoodo and/or the Distributor are matters that are not historic facts, but only
predictions.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that
may cause the actual future results, performance or achievements of ufoodo and/or the Distributor to be
materially different from any future results, performance or achievements expected, expressed or implied
by such forward-looking statements. These factors include, amongst others: (a) changes in political, social,
economic and stock or cryptocurrency market conditions, and the regulatory environment in the countries
in which ufoodo and/or the Distributor conducts its respective businesses and operations; (b) the risk that
ufoodo and/or the Distributor may be unable or execute or implement their respective business strategies
and future plans; (c) changes in interest rates and exchange rates of fiat currencies and cryptocurrencies (d)
changes in the anticipated growth strategies and expected internal growth of ufoodo and/or the
Distributor; (e) changes in the availability and fees payable to ufoodo and/or the Distributor in connection
with their respective businesses and operations; (f) changes in the availability and salaries of employees
who are required by ufoodo and/or the Distributor to operate their respective businesses and operations;
(g) changes in preferences of customers of ufoodo and/or the Distributor; (h) changes in competitive
conditions under which ufoodo and/or the Distributor operate, and the ability of ufoodo and/or the
Distributor to compete under such conditions; (i) changes in the future capital needs of ufoodo and/or the
Distributor and the availability of financing and capital to fund such needs; (j) war or acts of international or
domestic terrorism; (k) occurrences of catastrophic events, natural disasters and acts of God that affect the
businesses and/or operations of ufoodo and/or the Distributor; (l) other factors beyond the control of
ufoodo and/or the Distributor; and (m) any risk and uncertainties associated with ufoodo and/or the
Distributor and their businesses and operations, the UFT tokens, the ufoodo Initial Token Sale.
All forward-looking statements made by or attributable to ufoodo and/or the Distributor or persons acting
on behalf of ufoodo and/or the Distributor are expressly qualified in their entirety by such factors. Given
that risks and uncertainties that may cause the actual future results, performance or achievements of
ufoodo and/or the Distributor to be materially different from that expected, expressed or implied by the
forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements.
These forward-looking statements are applicable only as of the date of this Whitepaper. Neither ufoodo,
the Distributor nor any other person represents, warrants and/or undertakes that the actual future results,
performance or achievements of ufoodo and/or the Distributor will be as discussed in those forward-
looking statements. The actual results, performance or achievements of ufoodo and/or the Distributor may
differ materially from those anticipated in these forward-looking statements. Nothing contained in this
Whitepaper is or may be relied upon as a promise, representation or undertaking as to the future
performance or policies of ufoodo and/or the Distributor. Further, ufoodo and/or the Distributor disclaim
any responsibility to update any of those forward-looking statements or publicly announce any revisions to
those forward-looking statements to reflect future developments, events or circumstances, even if new
information becomes available or other events occur in the future.
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Table of content
Disclaimer ................................................................................................................................................................................................. 2
Forward Looking Statements............................................................................................................................................................. 2
Our Mission .............................................................................................................................................................................................. 6
Introduction - Problems ...................................................................................................................................................................... 7
Why an on-demand delivery service? ....................................................................................................................................... 7
The concrete problems ................................................................................................................................................................... 7
The Solution ............................................................................................................................................................................................. 8
Decentralization ................................................................................................................................................................................. 8
The change in thinking.................................................................................................................................................................... 9
The technical implementation ....................................................................................................................................................... 10
Introduction – What is blockchain technology? ................................................................................................................. 10
System Design ................................................................................................................................................................................. 11
Why Ethereum? ............................................................................................................................................................................... 11
UFT Token.......................................................................................................................................................................................... 12
UCHAIN – Protocol ............................................................................................................................................................................. 12
uPayment ........................................................................................................................................................................................... 13
uPath ................................................................................................................................................................................................... 14
uShift ................................................................................................................................................................................................... 14
uSupport ............................................................................................................................................................................................ 14
UGovernance .................................................................................................................................................................................... 14
Ufoodo Ecosystem .............................................................................................................................................................................. 16
The operative Process ....................................................................................................................................................................... 17
Order process................................................................................................................................................................................... 17
Payment ............................................................................................................................................................................................. 17
Delivery process .............................................................................................................................................................................. 18
Interfaces - Wallets and POS .......................................................................................................................................................... 19
Restaurant-Wallet........................................................................................................................................................................... 19
Deliverer-Wallet .............................................................................................................................................................................. 19
Customer-Wallet............................................................................................................................................................................. 20
Outlook: Restaurant-Wallets integrated blockchain mining ......................................................................................... 20
Marketplace and competition ........................................................................................................................................................ 20
Cost factor: commercialism and competition ..................................................................................................................... 20
Optimized cost structure ............................................................................................................................................................. 21
Initial Token Sale ................................................................................................................................................................................. 23
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Seed-Sale Overview ....................................................................................................................................................................... 24
Token Sale Overview ..................................................................................................................................................................... 25
DAICO ................................................................................................................................................................................................. 25
Seed & Token Sale - Procedure and requirements ........................................................................................................... 26
Token Distribution ......................................................................................................................................................................... 27
The revenues of the crowd sale are used for what? .......................................................................................................... 28
Organization ......................................................................................................................................................................................... 29
Central vs. Decentral ..................................................................................................................................................................... 29
The Core Team ................................................................................................................................................................................ 29
Digital Decentral Franchise (DDF) ................................................................................................................................................. 30
Recruiting .......................................................................................................................................................................................... 30
Administrators ................................................................................................................................................................................. 31
Governance ....................................................................................................................................................................................... 31
Roadmap ................................................................................................................................................................................................ 32
Team ........................................................................................................................................................................................................ 33
Contact .................................................................................................................................................................................................... 33
References.............................................................................................................................................................................................. 34
Terms and conditions ........................................................................................................................................................................ 35
EXHIBIT A: Risks ................................................................................................................................................................................... 41
5OUR MISSION
In today’s world the technological development strides ahead very quickly. The trends of digitization
and automation are already in full swing. The development of the Blockchain technology has led to
a new trend– the trend of decentralization. There is not only one catchword to describe this process.
The trend is rather a whole philosophy and mindset what shows the importance of cryptocurrencies.
Pioneering projects like Ethereum, the DAO, Dash and many more show how decentralization can be
defined in a new way with innovative business models, business processes, applications and other
services. These projects are not only decentral in their technological architecture and partly in their
political organization. They also give cryptocurrency’s owner the chance to be involved in the success.
In these cases, the cryptocurrencies are both a means of payment and a profit sharing.
The success of most cryptocurrencies is based on the clear disruptive potential. The cryptocurrencies
have not reached their limits yet. They mainly function as investments or rather as a speculation
medium and only for a few people as a means of payment. The adaption of the wide mass is essential
if we want to push the decentralization with its advantages, visions and mindset to its limits. The full
potential and the price stability show up when cryptocurrencies are used as a method to pay on daily
basis.
Our mission is to establish cryptocurrencies in millions of people’s everyday life’s
This is the goal we want to achieve with ufoodo. The first step is to tokenize an on-demand delivery
service for food. The idea behind is to create a usage with daily transactions. The application breaks
classic structures because it is developed and expanded by the community (couriers, clients,
restaurants and uninvolved ones) and not by a management that wants to make millions in profit.
We care about communities’ needs and wishes.
The vision is a decentral structure with a design that will be developed gradually. The aim is to
create a common consensus that is on one hand competitive and allows a strategic goal-
oriented procedure on the other hand. Furthermore, it increases the welfare of all participants
in the system.
6INTRODUCTION - PROBLEMS
Why an on-demand delivery service?
The food industry services basic needs
We spend more than one hour per day eating– in total this number sums up to 30.000 hours looking
at a whole life and $100.000 (14% of our household income). As the food intake is a human basic
need and will always be, the food industry is one of the oldest sectors in world’s history. The food
industry’s annual sales in the European Union is more than 1.2 trillion. Therefore, it represents the
biggest manufacturing industry in the EU (2016).
On-demand delivery services – a sector with hypergrowth
The delivery services sector is in change. In the past 15 years the so-called aggregators (software-
only) dominated the delivery services – but in 2013 “new delivery services” arise and became the new
stars. Those new delivery services undertake the task of delivering food from restaurants to people’s
homes (on-demand) with an own fleet business. The advantages for restaurants are high flexibility
as well as no fix staff costs.
Thus, these concepts fit for high quality and unique restaurants and not only for typical fast food
restaurants. Foodora (2014) and Deliveroo (2013) were rated over one billion dollars in the past three
to four years. They both are located in over 80 cities and collaborate with more than 8000 restaurants.
But still, only 10% of the food deliveries are being processed by on-demand delivery services today.
The concrete problems
Despite the boom of new delivery services, they are in public critique. A lot of restaurants fight with
high commissions (approx. 20-30%) and the couriers complain about exploitative working conditions
and bad salaries. At the same time the known delivery services are losing sums over ten million dollar
every year
High commissions, low wages and still no profit
The business model is highly rated because of its high range and the fast growth, but it still does not
make any profits. The fast growth implicates the need of more personnel. Not only couriers are
necessary but also staff for administration, sales, acquisition of couriers and staff planning. In
addition, even more staff is necessary in the administration. It is common that those companies spend
a lot of money for marketing campaigns like coupons, numerous giveaways, fancy poster
advertisements and for opening up new delivery districts.
Competition and commercialization against customer benefits – an expensive agent
These high operating expenditures are necessary in the delivery service’s strategy.
Important key terms are ‘round of financing’ and ‘flotation’ to ensure the financial survival of the
business model as well as the growth. The company has to show a good performance in the contest,
which is very expensive, to be attractive for investors. Therefore, it is no surprise that the restaurants
and couriers are of secondary importance in this vicious circle.
7THE SOLUTION
Decentralization
Ufoodo – we develop a service which is architectural and political usefully decentralized and possess
all significant elements of an on-demand delivery service.
Operative process Expansion
The process design, connected to the uPay- Digital Decentral Franchise: Users can
(Off-Chain) protocol, ensures automated develop new delivery areas on their own;
decentralized processes. In the order and with the help of recruiting restaurants and
delivery process a direct peer-to-peer couriers and take part in administrative
connection of all participated instances will roles. The recruiters will be paid with regular
be established with a safe payment payments. A global decentralized growth
transaction and delivery handout. The part can be enabled with minimal effort.
of expensive agents is not necessary. The
participants in the process (restaurants,
couriers and clients) are our focus. They are
value creators and earning contributors.
UFT-TOKEN
Governance Development
Every user, courier and restaurant owner In a project oriented Open Source
can participate in the global board and in Development user can push new
the delivery area specific local Board. In the developments and can hand in new global
boards user policy decisions and financing and local concepts. The respective board
projects can be discussed and elected. The can vote for marketing campaigns, new
local boards are automatically connected to features, etc. and can allocate a
the profit of the local delivery area and
corresponding budget.
possess a profit independent budget.
Regarding the interest of all lobbies, area
specific delivery costs, courier wages and
marketing costs can be decided.
8The change in thinking
Value-based and common interest of all participants
Together, the four areas create an ecosystem around the central UFT-Token (Further information in
chapter: UFT-Token). Its value is the common anchor that focuses on the different interests of all
participants to reach a common goal. Couriers, restaurants and clients are required to find a balance
between personal interests (higher wages, higher profit, lower costs) and the common interest to
increase the value of the company. Based on the assumption of a rational and profit-oriented
behavior of every participant an association results, which is driven by the participant’s motifs and
the idea to create reasonable compromises for a strategic value-based consensus.
Word-of-mouth advertising and unlimited expansion achieved by support from the
community
It is now possible to consider this project under new economical perspectives because the physical
operating company with the token as its value is decentralized and the dominant contest can be
neglected. Ufoodo is able to compete with its efficient structure and its more social principles. The
acquisition and expansion is independent and can be executed by the community – they
communicate on a viral level and are able to reach a high and precise marketing. In addition, those
delivery areas can be opened that other delivery services did not care about.
The digital decentral franchise does not have to focus on large cities because there is no need for
profit / effort prioritization. In the future it is possible to cover more areas outside a large city.
A bigger offer to reach customers
With our efficient and not profit oriented design restaurants which are not able to participate
in business models of our competitors are now able to be acquired. In addition, existing
clients of competitors can be acquired due to beneficial conditions. Anyway, a lot of
restaurants are clients of different delivery services. If profit comes into play because of the
advantageous ufoodo service, a migratory pressure on restaurants is given. The competitor
delivery services have already done the communicative preparatory work and thereby they
distributed the business model with its advantages.
Due to satisfied restaurants and couriers the offer can be expanded and the clients can be
successfully convinced in future.
9THE TECHNICAL IMPLEMENTATION
Introduction – What is blockchain technology?
(This section gives a short overview on the Blockchain technology in a simplified presentation. There
is no previous knowledge needed. For further information we advise you to search for deeper
information about cryptocurrencies by yourself. If you are already familiar with the topic Blockchain
and cryptocurrencies you can skip this part and start reading the next chapter)
‘Blockchain-technologies possess the potential to define the method of how we economize
in a new way. Bitcoin is only a first representative.’
– XING, Blockchain Germany
But what exactly is the Blockchain? You may probably know the term Blockchain if you think
about Bitcoin. The easiest way of description is the comparison with a digital cash book.
Network’s participants execute transactions with associated protocols. The so called ‘miners’
register these transactions. The miners verify transactions, combine them to new blocks and
extend the Blockchain with the combined blocks. Sender and receiver get a transparent
overview of how many coins/tokens have been transferred (in this case the Bitcoin-
Blockchain ‘Bitcoins’) with this method. It is an anonymous method because senders and
receivers are only listed with their ‘public key’ in the network.
The miners always have a local image installed and they do not need to check it on a central
server. Another advantage is the complex encryption which makes the Blockchain tamper-
proof. Hackers who want to manipulate the cash book must control 51% of the mining
network (network transactions). To gain this computing power, various large companies are
insufficient. In addition, this theoretical approach is not a guarantee for a successful attack
of the network. In practice, the older the logging of a transaction in the Blockchain, the more
difficult is the manipulation. Therefore, the Blockchain is safer, the more miners take part in
the network. The miner is being rewarded for the verification and the expansion of the
Blockchain due to the designed protocol.
Everyone can own Bitcoins, transfer them and take part as a miner in the mining-process. If
we take a closer look on Bitcoin and its rising value we will see that a lot of mining-farms
have been established in Asia to collaborate as a mining-pool.
With this technology digital units (coins/tokens) are created and called cryptocurrency.
Unlikely to common FIAT currencies (Dollar, Euro, etc.) there is no trust in a state or bank
needed. The security is given by the Blockchain itself.
A Blockchain-protocol is being programmed and released. Therefore, it does not have a
possessor in its decentralized environment. If the protocol should be changed, the majority
of the miners have to be convinced. The technology cannot be used as a cash book only but
is also able to function as a data base for random information.
The significant advantage is first that no central authority which provides servers is needed
and second that this instance is not responsible for the security and validity of the
transactions. The technology is seen as disruptive because this function is the common
business model of a lot of service providers like banks, insurances, notaries, etc.)
10System Design
Image 1: system architecture (Own presentation)
Why Ethereum?
We feel confident with using the Ethereum-Blockchain as the perfect platform for ufoodo. Not only
because of the large community but also because of the powerful programming language for
developing smart contracts. Ethereum offers a various number of possibilities due to its
programming language (Solidity) as well as the power to create new processes in different levels and
to automatize them independently.
Furthermore, the Ethereum core team will advance the platform’s development with new functions
and more stability. In addition, a solution will be offered for scalability issues for example by using
the sharding proposal or furthermore the plasma framework.
11UFT Token
The fundamental transaction medium is the ERC-20 conformal UFT token. UFT will initially be
programmed and implemented as an ERC-20 on the Ethereum-Blockchain.
Functions:
• Secured transactions of payments
• Data privacy
• Usage of services and to interact in the system
• Voting rights
• Project financing and budgeting
• Rewards and salaries
• Trading
UCHAIN – PROTOCOL
In a network used by millions of people every day there are also millions of data terabytes that come
up for the ufoodo-network to handle daily. The transaction volume is pushing the limits with today’s
Blockchain-technology. A complete processing and logging of every single transaction onto the
Ethereum-Blockchain is not suitable. Appropriate off-chain solutions for the scalability issues like the
Lightning Network and Raiden are insufficient for ufoodo’s technical requirements. They are only
aimed to be used for payment transactions and do not scale complex operations (smart contracts).
The announced Plasma Framework looks promising to reveal an exciting concept. If this concept fits
to our needs, it will be implemented into the ufoodo-protocol. However, an own solution is seeming
reasonable at this stage to create a decentralized physical operative business in the future with its
complex requirements. Therefore, we at ufoodo work on the uChain-Protocol. It is a protocol inspired
by the Plasma-Framework. It uses a private Blockchain (sub chain), where larger volumes of data and
Smart Contracts are proceeded, and in combination with Off-Chain elements they interact on the
Ethereum Blockchain. In this system only “critical operations” are stored and broadcast to main
Ethereum Blockchain, in order to ensure protection against fraudulent activities and at the same time
minimize processing of data on the mainchain. So, to minimize the transaction costs and guarantee
a fast transaction processing the majority of transactions will be performed within the uChain-
Protocol (sub chains). At the same time only, a mere fraction of the transactions has to be protocolled
on the Ethereum Blockchain to secure the system from hackers and update Token movements in
sequenced time frames.
More specific: The so-called sub chain with its function root hash is related to the Ethereum
mainchain. This hash function can thus refer to the State Channels in the subchain. All important
functions and required data will be saved unchangeable per hash tree on the Child Chain. This hash
tree connections will be imaged with IPFS to guarantee a fast and steady data access. The completed
transactions are not updated continually but periodically for example every 100 blocks. That is why
the scalability of the protocol should be guaranteed. The advantage of the uChain is the connection
with the Plasma introduced Child Chain method and the signature related Multi-Sig network
structure of the Lightning Network. The physical real Supply Chain is particularly suitable for this
concept. The physical exchange of goods enables a physical exchange of signatures simultaneously.
This makes the network construction easier. The ufoodo-protocol uses smart contracts to firstly
identify the parties involved and secondly secure the payment and the provided information of the
transactions from unauthorized access. Furthermore, ufoodo is looking for other, more efficient
consensus possibilities to lower the costs and to optimize the system, in that order we are considering
launching or separate ufoodo’s own blockchain in later stage, where each Restaurants act as miner.
(see also “outlook: Restaurant-Wallets integrated blockchain mining” in “Interfaces – Wallets and POS
systems”)
12The uChain-protocol is the framework for subordinated protocols:
• uPayment
• uShift
• uGovernance
• uPath
• uSupport
These are the fields of the predefined smart contracts which are based on different Child-Chain Levels
and operate with the root chain. Together they handle the processes and cover the ufoodo
ecosystem.
The following displayed protocols are concepts for the future and they should allow an ecosystem in
line. At the moment they are in development phase and cannot be seen as a component of ufoodo
so far. Moreover, a public development of the uChain-protocol’s basic elements by university
research is possible. In addition, implementing new technologies if plausible is taken into
consideration. Therefore, we constantly observe the technological development on the market and
check if they can be adapted for ufoodo. The operative going-live will not be affected by the
complete finalization of the protocols and subprotocols. To enable a prompt market entry, we aim a
successive process which changes from a central to a decentral political and technical structure if the
development is finished and tested.
uPayment
The uPayment-subprotocol is responsible for the payments and the information transfer of the order
process. A Payment is released when an order is made and ends with the order checkout. Immediately
after the order’s completion, the order details of the client are transferred to the relevant restaurant.
At the same time the order will be allocated to a courier by the uAlgorithm. For identification
purposes, the allocation of all participants and secondary actors (that means the allocation of the
delivery area and the recruiters who are entitled to get commissions from the restaurants and
couriers) the public keys of the participants are captured with msg.sender. They are checked and
equipped with a clear ID. Furthermore, uPaySment transfers and spreads the payments (with smart
contract based breakdowns) of the processing restaurant, the courier and it is a pool for secondary
actors as long as the service provision of the restaurants and couriers have been confirmed. The
routing within this network is performed by distributed hash spreadsheets, which are routed and
created via Kademlia to establish a peer-to-peer connection between the participants.
Image 2: uPayment (Own presentation)
13uPath
UPath is a script that is responsible for the courier’s allocation and optimal guidance. Based on active
couriers (see uShift) and a map service interface uPath detects the perfect available courier in the
surrounding area. A special weighting and distribution function prepares a secured supply capability
within the chosen tolerance time as well as it allows a stable operative delivery system influenced by
various variables and constants. Ongoing and initiating deliveries will be processed in real time and
serve as utilization forecasts. They also serve as optimization data and courier allocation.
The map service interface is responsible for guiding the courier to the restaurant.
The optimization of uPath is a step-by-step process and presents the significant work of the
development team. The registration of experience data and influencing variables like weather,
weekdays, holiday season, public holidays, etc. will optimize the algorithm with statistical approaches
in future.
uShift
The shift planning is covered by uShift which is a supportive process of the delivery and order process.
The courier’s willingness to work is anti-proportional to the delivery arise.
In winter, at weekends and in bad weather, the order volume is higher than usual. At the same time
the willingness to work is lower. The commission per order is a variable unit, which is determined in
a local elected range to guarantee a fair shift planning. The exact commission per order within the
elected range is determined by supply and order data and by the courier’s willingness to work. They
can negotiate the preferred shift with a certain commission. UShift is the automated vote against and
lowers or increases the remuneration until a market balance comes up with forecasted supplier
needs. Shifts are confirmed by the supplier with the transfer of two order compensations. If they are
not activated by the supplier, these two order compensations are a stimulus for a replacement driver
or will be spread among the left couriers as a balance for higher capacity.
uSupport
Due to the fact that mistakes by humans along the value chain are unavoidable, the core team is
responsible for optimization the decentral uChain-Protocol and avoiding data processing mistakes.
The uSupport-protocol is responsible for any other human mistakes. It is both, a protocol and a tool
that is down-streamed the operative process and should guide the client through the complaint
process and identify the cause. The Child-Chains provide protocol information like signatures,
timestamps and courier’s GPS data. It also supports the restaurant with a central data base. Based on
the complaint’s reason an apportionment of blame is released to the restaurant or courier. The
complaint is reported to the restaurant and a time slot for reactions is created. With the help of
standardized options like refund, partial refund, coupon or new delivery the complaint can be closed,
if the client agrees. In general, a customer-friendly reaction is expected. If a complaint cannot be
closed by agreement, a higher human instance has to be called. Simultaneously, the second instance
investigates if a mistake in the ufoodo order network appeared. If there is still no solution found, an
ufoodo staff member will be involved.
UGovernance
The uGovernance is the collection of all technical interactions and potential influences of users,
restaurants and couriers on a local and global level. The main task is the distribution of the pool
revenue (see uPayment). To minimize the transaction volume the pool will be distributed to the
entitled persons every month. Smart contracts will distribute the earnings with the help of the by
uPayment collected data. In this way the sales shares of every delivery area and recruiter can be
determined. UGovernance also includes a voting system which allows to make decisions in various
fields on both levels. Inspired by the Dash-System the users can hand in concepts for technical
development, marketing plans, etc. The community can vote for these concepts.
14The concepts are ranked based on their votes and they are classified in a list with information about
the duration and the needed budget for the following month. If the pool revenue is shared, the
concepts get the budget based on the ranking. The projects can be supported with the budget as
long as it is used up. To make sure that concepts are supported for a long time, the persons in charge
have to ensure that their projects will be voted by the community steadily. For this purpose, results,
presence and progress reports are necessary. The ufoodo Token does not immediately entitle the
participation in the Governance Boards. For legal reasons we reserve the right, if necessary, to create
a new token to take part in the Governance Boards which can be purchased and sold with ufoodo
tokens.
15UFOODO ECOSYSTEM
16THE OPERATIVE PROCESS
Order process
Image 3: order process
Following the illustration above the already logged-in client starts the delivery process. At first the
customer must enter the zip code on the website or in the App to limit the delivery area. The system
is now able to show the available restaurants in the customer’s area. Simultaneously, uPath
determines the predicted time of delivery range for each restaurant considering order volumes,
distance and supplier availability. If the customer has selected a restaurant, the shopping cart can be
put together checked again and a method to pay can be chosen. Then the delivery details, the
shopping cart and the price included transaction fees (depends on the payment method) are
displayed. After a final check the transaction can be performed. The customer gets the confirmation
of transaction and the delivery process starts to show up.
Payment
To create a customer friendly experience also Fiat currencies (PayPal and credit cards) are accepted
besides the ufoodo-Token due to an external interface. In addition, common crypto currencies should
be available. For customers who are not familiar with crypto currencies, we want to provide the
opportunity of using the ufoodo platform as simple as possible in sense of mass adaption.
Image 4: Exchange
17Nevertheless, the whole protocol is bound to the ufoodo-Token. Thus, a direct exchange is
mandatory. Therefore, an exchange service is implemented. Ideally, some of the planned decentral
exchange solutions are fully developed and available as a service at that time. The user’s advantage
to use the ufoodo-Token is that the transaction fees will not be charged to the customer like with all
the other payment methods. Furthermore, the usage of the ufoodo-Token should be rewarded with
coupons in the launch phase depending on the budget available.
Delivery process
Image 5: Delivery process
After the order- and payment process has been completed, the delivery process begins. The essential
technical background processes are the subprotocols uPayment and uPath. UPayment transmits the
order information to the restaurant whereas uPath determines the courier. The deliverer gets the
order confirmation while the restaurant prepares the order. The both protocols interact insofar as the
18pickup time of the dish can be predicted. In the meantime, the courier can drive to the restaurant
and use the displayed route. After the courier has reached the restaurant a quantity visual inspection
takes place. The courier validates whether the ordered number of dishes and drinks is correct. There
is no need for the courier to check for absolute correctness because this is the restaurant’s
responsibility and would make an efficient process impossible. After completing the visual inspection,
the courier signs the goods’ acceptance. Then the courier will be led to the customer with the help
of uPath or rather with the external map service. If the courier has reached the destination, the
delivery takes place. The customer checks whether the order is quantitatively complete and signs the
goods’ acceptance to finish the delivery process. Thereupon, uPayment transfers the commissions
for the courier, the collectable amount for the local and global board as for the recruiter and the core
team. The payment for the restaurant is blocked for approximately two hours via time lock. During
that time slot the customer has the chance to open an additional claim, which in turn activates the
uSupport protocol. If no customer reaction happens, the money will be transferred to the restaurant
after the time lock has been expired. Signatures are being processed with code keys or QR codes.
Both will be generated randomly, cryptographically and locally. They are stored on smartphone or
other devices. If one of the signatures is absence the transaction cannot be fulfilled completely.
INTERFACES - WALLETS AND POS
As interface for the different user groups (restaurants, couriers, clients, community) specialized
Wallets will help. They should be seen as digital wallets – by reading the data base of the private
Sidechain (uChain protocols) and the Ethereum Blockchain the distribution of the UFT Token and the
owned Token are displayed. Depending on the wallet type the relevant Smart Contracts will be read
out, to present the user- and evaluation information user friendly. The planned wallet types with their
planned functions are listed below.
Restaurant-Wallet
The restaurant wallet is the most complex wallet type. In this Application designed for tablets, the
ground function is to collect incoming orders. With a WIFI connected voucher printer the incoming
order will be printed out as kitchen voucher and invoice. It should be integrated as an independent
Cash Register System. Due to the different legal requirements in each country, an universal Wallet-
App will be designed at first but can be customized to the country specific needs. Within the open-
source development principles (see Digital Decentral Franchise) a project to professional adapt the
App through the community would be thinkable. Furthermore, we as the developer team grasp at a
partnership with established cash register system manufacturer.
Deliverer-Wallet
The courier wallet is also planned as an Application. Couriers can work with different tabs:
• apply for a shift or rather agree to do the shift
• during the shift:
• incoming delivery orders are displayed
• navigation
• collect the signature of the client
• the income is displayed
• payout options
In addition, the courier wallet should automatically create an invoice (country specific requirements)
for each restaurant a delivery took place and should be sent by clicking a confirmation button.
19Customer-Wallet
The customer-wallet will be integrated into the ufoodo order App. The customer can see his UFT
Token balance and his transaction process in a sub menu.
Outlook: Restaurant-Wallets integrated blockchain mining
Especially the steady restaurant-wallets offer a good opportunity to create a widespread mining
network. With the help of an integrated mining function in the Restaurant-Wallets the Sub-Chain or
in perspective an own Blockchain should be mined free and the monthly revenues can be secured
with the proof of stack method.
MARKETPLACE AND COMPETITION
The delivery market for food implemented a profit of €83 billion in 2016 worldwide. That makes only
4% of sold dishes in restaurants or fast-food restaurants. We can divide the delivery service systems
into two parts: the classical delivery service (aggregator) and the new on-demand delivery services.
The so-called aggregator (Pizza.de, Lieferheld, etc.) only provides the software and covers the
technical part of the ordering process. Participating restaurants need their own couriers and therefore
they have staff responsibilities. The new on-demand deliverers (Foodora, Deliveroo, Ubereats, etc.)
enable the outsourcing of staff responsibilities. They provide the technical connection and a delivery
fleet, which performs every delivery in a chaotic logistics system, individually.
Key players Market Fondation Life-cycle stage classic new delivery
valuation, in delivery (on-demand)
million € (aggregator)
Just Eat 4,900 2001 IPO (2014) x
GrubHub 5,000 2004 IPO (2014) x
Delivery Hero 4,400 2011 IPO (2017) x x
Deliveroo 1,800 2013 Series F (2017) x
Takeaway.com 2,000 2000 IPO (2016) x x
Indeed, these phenomena occur in the last three to five years. Nevertheless, the providers could
expand and communicate worldwide. Every two months they could redouble and reach a 25% growth
every month. The boom is not surprising. The new delivery services allow a more extensive and
qualitative food range. As the restaurants do not need any additional delivery staff, the on-demand
deliverers recruit qualitative restaurants instead of common pizza restaurants and fast-food
restaurants. Therefore, they diversify the offer. Still 10% of all deliveries are processed by the new
delivery service providers. McKinsey prognosticates that the on-demand delivery marketplace will
increase the profit up to 20 billion € until 2025, because of strong growth and high migration rate in
the past years
Cost factor: commercialism and competition
(In the following statements the two competitors Deliveroo and Foodora are representative for the
on-demand delivery services. Based on the similar business structures and concepts the data of both
enterprises are generalized.)
Despite the increasing sales (three-digit millions) and an enterprise value above the billion marks,
the on-demand delivery services are not in the black. A typical situation in the fintech sector. As
20already mentioned, it is reduced to the fights for market shares. The delivery services try to
compensate this fight with aggressive expansion strategies, that are in turn very expensive. The
development of new delivery areas walks along with opening a local branch office and intensive
marketing (i.e. coupons for the residents of this area and outdoor advertising). Furthermore, a high
effort for recruiting and staff training is needed. Even the acquisition of new restaurants cannot be
disregarded. For 100 registered restaurants approximately 100-200 couriers are needed. According
to this, the couriers need appropriate equipment. In addition, the customary prestige needs jack the
investment cost up. Therefore, Deliveroo invested in a 5.000sm large central office in London, where
900 staff members can work. For this reason, the increasing costs from €32.2 million to €159 million
(in 2016/2017) are transparent.
Optimized cost structure
Marketing & Expansion
Subsidiaries (City Offices)
Digital Decentral Franchise
Employer recruiting
+Local Boards
Acquisition of Restaurants
Staff training
Workforce planning uMarket
Administration (>500 employers)
uGovernance Core Team
Management (decision making)
Support uSupport
Equipment Sponsoring Funding’s
Image 6: Cost drivers (Own presentation)
We at ufoodo follow another approach and dissociate from the aggressive competition. Our aim is
to minimize the administrative costs in favor of couriers and restaurants. Ufoodo is not a service that
aims to establish an empire and has to spend high investments for self-marketing. Ufoodo is more a
public accessible protocol which provides the automated and decentralized on-demand delivery
service system. The official administration is limited to the core team, what provides system stability,
develops legal bases and compiles (related to the financial volume) new developments. The
expansion will be reached together with the community and the help of the decentral franchise
concept. The original valuable process of the service will be automated and decentralized by the
Blockchain and the uChain-Protocol.
21The structure simplifies and minimizes the operating costs. The uPayment subprotocol and the
uGovernance subprotocol take care for an automated distribution of the turnover of each order.
• Courier (uPayment) cashflow per order, market price dependent payment per drive, local
determined range, (minimal payment – maximal payment)
• Global board: (uGovernance) smart contract releases 1% remuneration every month
• Local board: (uGovernance) smart contract releases 1% remuneration every month
• Digital Decentral Franchise: 1.5%-2.5% depends on administrative position in a delivery area and
commission agreement,
o Recruiter: distribution depending on sales per enlisted restaurant
o Administrative roles: payment determined by the local community
Hereinafter, an exemplary distribution of sales is displayed:
Restaurant 85%
Wages and delivery fees may 10%
Deliverer differ for each area + delivery fee
Core Team
process adminitration
strategic development 1%
Global
guidelines compliance
R&D
legal aspects
Global Community Board
global projects 1%
Decentral Franchise
recruiting
Acquisition R 2%
Recruiting D
local administration
Local
Local Community Board
decision making
budgeting 1%
marketing
projects
R&D - Projects
Image 7: comission summary
22INITIAL TOKEN SALE
At the initial token sale, the ufoodo-Token will be offered in a public crowd sale. In this context the
ERC20 based as crypto currency, the terminus “Token” is correct. The term “Initial Coin Offering”
(short ICO) has been established within the public sale of Coins or Tokens, which is equate to the
term Token Sale .
Token
Token Name ufoodo Token (UFT)
Token Supply 500,000,000 UFT
Seed-Sale
Seed-ICO start date 01.04.2018 (14:00 UTC)
Seed-ICO end date 30.05.2018 (14:00 UTC)
Seed-Sale Soft Cap 200 ETH
Seed-Sale Hard Cap 3,550 ETH
Seed-Sale Token Cap 100,000,000 UFT
Seed-Sale Bonus 40 % - 0 %
Token Sale (Detailed information’s
will be announced)
ICO start date Q4 2018 (to be announced)
ICO end date Q4 2018 (to be announced)
Token Supply 400,000,000 UFT
For medium Purchaser >20 ETH Q4 2018 (to be announced)
For big Purchaser >100 ETH Q4 2018 (to be announced)
ufoodo Tokens are sold for ETH.
There is no payout of ufoodo-Token for residents of the USA, the republic of China (incl. Hong Kong)
and Singapore.
The displayed prices are connected to an ETH rate of $750/ETH. Furthermore, we reserve the rights
to change the statement due to various reasons and unpredictable events.
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