The sharing economy – where businesses leverage the use of available resources optimally through technology and by reducing wastage of resources, has been evolving constantly. These not-as-usual-businesses include, taxi-sharing startups like Uber, home/room rental companies like Airbnb as well as the many e-commerce marketplaces and crowdsourcing platforms available.
In a recent post I’d come across, it became clear that the ‘Trust economy’ is where we are headed to. Trust economy as defined by the article:
Allows individuals to provide a service, often at a cheaper rate than the standard market price, which is accessible to a large network of users through a branded platform, which acts as a vehicle for collective trust and accountability.
All models depends on trusting a virtual stranger to do what they promise, hence why it has been called the ‘trust economy’.
Startups fitting such a criteria have been disruptive, especially of the traditional players, and in effect have given consumers more value. Here’s what consumers have gained from this trust economy:
- More cost-effective solutions due to service-offerings being on-demand
- A sense of belonging as consumers too can become providers of such services
- Technology here has enabled direct engagement with the end service provider
- Digital profiles and reviews have facilitated easy validations of service providers
- More personalised experiences, with service providers turning disruptive players
Another major deliverable of the ‘Trust Economy’ that the technology-led ecosystem has enabled one to become more ‘creative’ in their businesses and solution-finding general. All one needs to do is increase their ‘reputation capital’.
Personally, I see the growth of the ‘Trust Economy’ essential to a community’s success – as it has the ability to transform mindsets and provides more room for innovative solutions to meet challenges.