The Platform
Analog Platforms
Sharing economy organizations can use analog or digital platforms to facilitate peer-to-peer (P2P) sharing. Examples of analog platforms include tool libraries, tiny libraries, and projects like Pumpipumpe. Tool Libraries function similarly to typical libraries, except they loan out tools instead of books. Tiny libraries are small structures where people can leave books they no longer want, and pick up any books that seem interesting. Pumpipumpe is a German and Swiss association that aims to promote sharing of goods through the use of stickers that you put on your mailbox. The stickers denote what items you are willing to share, such as a tent, drill, lawnmower, or cake pan. These are some of countless examples of analog sharing platforms.
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Digital Platforms |
As PThe sharing economy owes its recent explosion of success to the advancement of technology. As WiFi continues to become more pervasive and smartphones have become commonplace, digital platforms have become viable options to facilitate sharing. In Baring the Sharing Economy (2017), Proserpio and Tellis two main types of digital platforms used by sharing economy companies; centralized and decentralized P2P platforms. In a centralized platform, the "buyer" is matched up with the "seller" by the platform's algorithm. Uber and Lyft are examples of centralized platforms. In decentralized platforms, the "buyer" looks through a list of services or products offered and then chooses which "seller" interact with. Airbnb and TaskRabbit are examples of decentralized P2P platforms.
Sharing economy marketplaces are relatively new, with that novelty comes hesitation from users. As Proserpio and Tellis explain, users are often slow to trust the platform and need information before they can trust their provider (Uber driver or Airbnb host.) Sharing economy companies address this hesitation by employing reputation systems. Ratings and reviews are the most commonly use reputation systems. Typically, centralized platforms will use ratings only, because they trust the platform will match them with the best provider, while decentralized platforms use reviews because the users must be informed before choosing a provider. A unique thing about sharing economy reputation systems is that both the providers and the users can earn reputation. For example, in Airbnb, the users will review and rate their hosts, while at the same time the hosts will review and rate the users. This can help improve behavior, as poor behavior can be reflected in the reviews and ratings. |
What defines a sharing platform?
Upon considering the definition of a sharing platform, it becomes clear that there are not hard lines marking the boundaries. When companies like Uber are put in the same category as projects like Pumpipumpe, it is hard to see how they are related to another other. I think the string bringing these services together is that they all increase access to resources through enabling more efficient communication. Under this definition, Uber fits because it increases access to jobs by creating a platform that enables drivers to communicate with riders. Pumpipumpe also works under this definition because it enables community members to communicate through the use of stickers, increasing access to a plethora of resources. While they may share some qualities, not all parts of the sharing economy are equal, some are multinational profit-driven corporations, while others are grassroots organizations with purely pro-social intentions.