In trust we thrive: What drives the sharing economy?

Abstract

The rapid growth of the 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 but who are not 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 may live oceans apart. Trust, driven by Digital Identity (DI) and Trust and Reputation Information (TRI), has enabled what was considered improbable or even impossible some years ago. The further expansion and deepening of trust, based on new technologies combined with the 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 in a direction that is most beneficial to society. However, the current extraordinary situation due to the Coronavirus pandemic, coupled with the foreseeable tendency to complete digital control, is likely to have far-reaching impact on the future development of the sharing economy.