Creating trust in Ridesharing networks Lorenza Parisi, Magdalena Pantazi

MAS.960_Signals, Truth and DesignInstructor_ Judith DonathFall 2007

Ridesharing: definition and history

‘The FTA (2006) defines the ridesharing as “the act of sharing a vehicle with one or more other people”.We use the expression ridesharing to talk about ridesharing with cars - also known as carpooling.

Ridesharing origin: • World War II (increase in gasoline prices encouraged the

conception of that service to save money).• Commercial ridesharing services since the '70s (massive use of

private cars, increasing concern for the environment and oil crisis)

‘’The average car occupancy in the UK is reported to be 1.59 person/car: 1.2 for commuters and 2.1 for holiday trips”.

increase in the number of

unoccupied seats

Last 30 years: the number of private vehicles has remarkably increased

tremendous unused transportation

capacity

reduces CO2 emissions

Ride sharingreduces the

number of cars on the road

positive effect on the economy and

on the environment

Observation

Possible Solution

How does the online ridesharing system work?

How do the sites work?•Many ridesharing online sites are applications of popular web sites (e.g.Craiglist, Facebook).

• Different platforms with different degrees of automation in matching.

•Private or public sponsors (offering free and preferred parking spaces, discounts and other financial incentives).

•Ridesharing experiences economies of scale: the larger the number of users in the system, the more likely it is to find a good match.

Online interface:

• Create a profile.• Provide travel schedule, preferences,

starting and final destinations.• Search for a ride (rider or driver).• Select between commuting or trip.

Advantages and Disadvantages

emerging technologies:• Internet• mobile phones• position-sensing devices (GPS)

Creation of TrustCreation of Dynamic ridesharing

Advantages of ridesharing

• Reduces the number of single driver cars on the road• Reduces smog, congestion and fuel consumption.• Saves fuel - positive effect on the whole economy • Increases social interaction• Creates opportunities for increasing social capital

Disadvantages of ridesharing

• problems with security and trust• lack of flexibility.• social discomfort with sharing• possible imbalance of costs and benefits among the users• loss of time

Support

Analyze Online Ridesharing sites using the Signaling Theory

How do Online Ridesharing Sites establish relations of trust among users?

Creating a system of reputation.

Construction of reputation requires identity, memory and communication. Identity: individuals are not anonymous; they have some consistent

form that is recognizable over time (Online User’s Profile). Memory: information persists over time; recognition is an aspect of

memory (Online history). Communication: information moves from one person to another

(Online Rating System or Social Network of friends).

In the paper we will examine two online Ridesharing sites:

the NuRide.com and the Carpool application on Facebook.

NuRide.com

Which are the characteristics of NuRide.com ?

Target group: people leaving in USA (23.065 members). Ride matches: mapping users profiles. Ride rewards people for sharing rides: the more a user travels, the more he/she gets incentives and discounts.

Which are the characteristics in terms of the Signaling Theory?

Identity: Provide basic information on the user’s profile and trip preferences. Define preferences for ride’s partners.

Reliability: Check users affiliation by requiring a corresponding email address.

Memory: The system keeps track of all the trips a user made. All feedback information concerning the ride is visible in the user's profile. No photo of the user is required.

Communication: Information about ride experiences is provided through a rating system in a range from 1 to 5 about responsibility of the driver, vehicle condition, time and considerate. Feedback information is public and is made visible in every user’s profile.

Carpool Application on Facebook

Which are the characteristics of Carpool Application ?

Created on April 2007, has 23.000 members.Target group: Facebook users.Ride matches: the user selects the ride between people within the same network. Sub communities exist within the application (e.g. MIT Ride Board, BOSTON MA) that help people to refer to a specific network.

Which are the characteristics in terms of the Signaling Theory?

Identity: Facebook user’s profile information.The user can add information concerning trip preferences.

Reliability: Social network of friends.

Memory: Photos or other identity signals - friends and interests - are visible in user’s profile.

Communication: Existence of a public “space” where all users - rider and driver - can post comments about the ride. Friends exchange information before and after the ride.

Costs for users in NuRide.com and Carpool Application

Costs of Deceptive signals:• Safety risks: violence, rape, kidnapping, murder.• Unpleasant ride. Mismatching of the driver-rider.• Loss of time (the driver does not leave the rider in

the promised destination or he isn't on time).

Costs for the user to participate in the site: • Time spend while filling the profile information.• Privacy implication.

In Nuride.com• The user has to be part of an organization

(company, university, corporation).

Benefits for the user:• Sharing the expenses of the trip.• Free parking, free tolls.• Preferred high lanes.• Satisfaction of practicing environmental friendly

behaviors

Comparison of the two online ridesharing sites

Trust and Reputation What motivates users to provide feedback?

What motivates users to be honest?

The two networks address the establishment of trust in different ways:

NuRide.com Reputation system

based on rating

Motivation forfeedback

Reciprocity

Rewards

Public duty

Carpool FacebookApplication

Reputation system based on

Social Network of friends

Feedback information circulate among friends

[Hypothesis: Social Network of friends may support the creation of Trust.]

Survey on the members of the ‘MIT Ride Board’ community on Facebook

Questions to identify: user's profile, average use, aims, characteristics of the commuting/trip, benefits and disadvantages of the system.

Focusing on trust: how does the social network influence social interaction?

Results and interpretations of the survey:

• Most members of the network (82.4%) are “would be user” of the service.

• People would prefer to use Carpool application (58.3%), because they feel safer in a trusted network of friends.

• Advantages of the system: Increase social interactions (75%).

• Disadvantages of the system: Safety risks (58.3%) and difficulty in matching schedules (58.3%).

Although the system seems trustful enough, members of the service do not use it. Why?New application, limited users, need of critical mass.Problems with trust and coordination schedules.

How can we improve Trust in online ridesharing networks?

Design proposals for the improvement of trust

How can we increase the level of trust between users in the online ridesharing networks?

1. Create smaller communities/sub networks inside the system (organization in terms of neighborhoods, working company, education).

2. Use emerging technology like cell phones and GPS position sensing devices to:

• verify the arrival at the destination promote ad-hoc schedules (dynamic

ridesharing)

Costs: implications for privacy of the users