MIST MID TERM REPORT

Customers risks in peer-to-peer sharing platforms

Group No: 4
Peer-to-peer sharing platforms: User’s perspective

Introduction:

The concept of peer-to-peer sharing has existed even before the age of the Internet. However, the
Internet and other associated technological advances have made the new age peer-to-peer sharing a
more prospective business. Today, peer-to-peer sharing is identified under the umbrella of sharing
economy and is one of the fastest-growing business models of the millennium, leading to ‘creative
destruction’ in the industries it operates.

Peer-to-peer sharing platforms identify themselves with the socio-economic phenomenon, where
individuals can share products/services they own with others for a fee which leads to value
maximisation. Here platforms are acting as intermediaries to connect customers for a percentage in
transaction value. Most notable of these are QuickRide, BlaBlaCar, Airbnb etc, other categories
include P2P lending, pet sitting, bike-sharing etc. giving flexibility, financial independence, non-
traditional employment, low prices etc.

While customers are readily embracing such peer-to-peer platforms for the benefits of getting
quality services at affordable prices, capitalizing underused assets, decreasing environmental effects
etc., there are still some issues that need to be addressed from a customers’ perspective. In the
paper, we will be discovering, analysing these issues and address how technology can provide viable
solutions to them.

Data sources:

We will be surveying people who have used P2P platforms such as Airbnb, Quickride, OLX to
understand the risks and problems faced from both the seller/buyer or owner/rider perspectives.
Other than the organisations mentioned above we will be relying on secondary data sources to
understand user perspective for rPool, BlaBla car.

Problems/risks faced by customers:

1. Trust issues:

Both the providers and consumers face trust issues when it comes to verifying the identity of the
person. Currently, the platforms are trying to mitigate this issue with reviews and ratings of the
people. Even then, there is hesitation to take the service for the fear of safety since the person is
physically involved in the process.
Another trust issue is about the confirmation on availability of the service till the time of availing.
Ex: Car owners on Quickride cancel the ride in the last moment. This makes the service
unreliable.

2. Regulatory challenges:

Regulations by the government like, only yellow board vehicles are permitted for commercial
use pose a threat to the ride-sharing platforms. Lack of standard rules on the evolving industry.

3. Privacy concerns:

Few platforms require the users to upload ID proofs like the Aadhar card and driving license (KYC
process), phone number etc. which is made visible to the other users they are sharing the
service/product with. This poses privacy concerns to people who do not want to share their
details with others.

4. Conflict resolution:

One of the primary risks associated with using the P2P platform is the ownership of the
resources when in usage and also a method to capture or report the status of the resources
before receiving it.