In Trust We Thrive: What Drives the Sharing Economy?

Abstract

Rapid growth of sharing economy in the last two decades may signal a paradigm shift in global capitalism and societal values. Digital platforms have brought together strangers with under-utilized capacities and assets with those who need them without looking for ownership. The radius of trust which was initially confined to family, friends and local communities; now encompasses strangers who speak no common language and who live oceans apart. Trust driven by Digital Identity (DI) and Trust and Reputation Information (TRI) have enabled what was considered as improbable or even impossible some years ago. Further expansion and deepening of trust, based on new technologies combined with international legal framework, has the potential to rewrite the apparatus of modern capitalism and societal values. Civil society and governments need to engage on this issue to guide them to a direction most beneficial for the society. However, the current extraordinary situation due to the Corona Virus pandemic, coupled with foreseeable tendencies for complete digital control, is likely to have far-reaching impact on the future development of sharing economy.