The Effect of Quality Cues on Travelers’ Demand for Peer-to-Peer Ridesharing: A Neglected Area of the Sharing Economy

The emergence of the sharing economy has had a tremendous impact on the tourism industry; however, few quality management mechanisms exist for shared tourism services. Based on unique data of 52,248 transactions collected from BlaBlaCar, the world’s leading ridesharing platform, this study examines the independent and combined effects of quality cues on travelers’ demand for peer-to-peer ridesharing services. The findings suggest that intrinsic cues (product reputation and seller reputation) and extrinsic cues (relative price and offer duration) are decisive in increasing demand, and their combined effects can be positive or negative. In addition, analyses of the heterogeneous effects of intrinsic and extrinsic cues across seller segments clarify how consumers evaluate product quality using information from multiple cues. These findings contribute to the literature on tourism and marketing by providing new insights into the design of competitive product offers in the sharing economy.

Collective Reputation and Quality in Online Platforms

This article provides a conceptual framework to understand benefits and costs of private minimum quality standards, increasing seller reputation or warranties when there is a collective reputation for online platforms. Our framework uses a dual reputation model where consumers have a quality expectation based on the reputation of the platform and the reputation of the seller. We also analyze the benefits and costs of various types of fees associated with online platforms and find that the optimal fee structure depends on whether quality concerns or market power concerns are greater. Fees that are fixed, or only depend on quantity, increase market power, but do not hurt product quality. Therefore, they should be used if collective reputation is the main concern. Fees that depend on prices exacerbate bad quality incentives for firms, so they should only be considered if quality is not a concern for consumers. The optimal quality standard depends on the fee structure, as well as the level of compliance to that standard.

Reputation Effects in Socially Driven Sharing Economy Transactions

Reputation has often been proposed as the central mechanism that creates trust in the sharing economy. However, some sharing platforms that focus primarily on social rather than economically driven exchanges have managed to facilitate exchanges between users without the use of a reputation system. This could indicate that socially driven exchanges are in less need of reputation systems and that having sufficient trust is less problematic. We examine the effect of seller reputation on sales and price as proxies for trust, using a large dataset from a Dutch meal-sharing platform. This platform aims to stimulate social interactions between people via meal sharing. Multilevel regression analyses were used to test the association of reputation with trust. Our main empirical results are that reputation affects both sales and price positively, consistent with the existing reputation literature. We also found evidence of the presence of an information effect, i.e., the influence of reputation on sharing decreases when additional profile information is provided (e.g., a profile photo, a product description). Our results thus confirm the effectiveness of reputation in more socially driven exchanges also. Consequently, platform owners are advised to use reputation on their platform to increase sharing between its users.