Trust Challenge For Online Sharing Services

The Global Trust Survey from service provider Jumio has revealed that a quarter of adults feel unsafe using online sharing services.

What Are Online Sharing Services?

Online sharing services refers to companies like Uber and Airbnb where multiple users can use technology to book and consume a shared offering (car and room sharing), and where those offering the service can increase the utilisation of an asset – both parties get value from the exchange. The so-called “sharing economy” also includes services such as crowdfunding, personal services, and video and audio streaming.

The Sharing Economy

The sharing economy is expected to grow to a massive $335 billion by 2020. For example, in just 11 years, Airbnb has grown from nothing to becoming a $30bn firm listing more than six million rooms, flats and houses in more than 81,000 cities across the globe. Figures show that, on average, two million people use an Airbnb property each night.

Trust Challenge Revealed

Jumio’s Global Trust Survey showed that even though online sharing services are growing, and have been with us for some time now, in the 30 days prior to the survey taking place, over 80% of UK adults said that they hadn’t used an online sharing service, and 25% of UK adults said that they felt “somewhat unsafe” or “not at all safe” when using online sharing services.

A key element in making shared services successful is trust, and recent global from PwC confirmed this where 89% of consumers agreed that the sharing economy marketplace is based on trust between providers and users.

Identity Verification Vital

One area uncovered by the Global Trust and Safety Survey which appears to be a challenge for shared services is proving and verifying identity.  For example, the survey found that 60% of users believe it is either ‘somewhat important’ or ‘very important’ for new users to undergo an identity check to prove that they are who they claim to be.

This is the reason why companies such as Lyft are rolling out continuous background checks and enhanced identity verification, and why Uber is updating its app to give an alert to riders to check the license plate, make, and model of the vehicle, and to confirm the name and picture of the driver.

What Does This Mean For Your Business?

Trust is something that takes a long time for a business to build, and it is a vital element in the success of shared services such as those where considerable risk (financial and, critically, personal risk) is involved. Trust is also something that can be very easily lost, sometimes in an instant or through one high profile incident involving that service e.g. the recent murder in the US of a student by a man posing as an Uber driver.

The results of the Global Trust Survey help to remind businesses that offer shared services that consumers need and want a layer of safety to help them feel comfortable in trying and using those services.  Companies can, therefore, help create an ecosystem of trust through the process of identity verification.

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