Commentary

My 2-Year-Old's Take On The Sharing Economy

My two year old is learning how to share. She knows if she does not share her toys, then word will spread around the neighborhood and nobody else will want to play with her. Or at least that’s what we tell her to encourage a more open mind about parting with her toys. Sharing economy sites like Uber and Airbnb also recognize good sharers. They highlight positive reviews which in turn steers more demand toward the better Uber drivers and Airbnb hosts. Uber and Airbnb can also pinpoint precisely which drivers and hosts need help with customer service as poor service reflects negatively not just on the individual but on the brand. 

Maybe poor service in the taxi industry is one reason that Uber and Lyft have soared to ridiculous heights so quickly. Taxis had no competition for so long that they forgot they were even in the hospitality business. I cannot recall the last time I took a taxi and the driver did not make a face, argue or complain when I did any of the following things:

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1. Asked to turn on the air conditioning in the middle of the summer in New York

2. Asked to pay with a credit card

3. Asked to go on a short ride compared to an airport run

Taxi drivers hate when you get in and get out yet they still earn their minimum and are free to get another fare immediately. Yes, there are plenty of good taxi drivers but there seems to be too many taxi drivers that are not focused on customer service. Uber and Lyft drivers, on the other hand, are super cool, friendly, helpful and just pleasant. One of my drivers offered me a bottle of water!

Service can also explain part of the rapid rise for Airbnb. The people who rent their homes on Airbnb take a lot of pride in doing so and go out of their way to make you feel welcome in their home. I have received gift cards, bottles of wine, water bottles and snacks upon check-in plus, of course, free parking and wifi. Many hotels still charge $10 per day for wifi and another $40 per night for parking while others think it’s cool to charge a $45 resort fee. When you add all these little extras up, the hotel room stay starts to offer a much lower overall value. 

Since renters review their experience with each property they stay at, everyone involved is very aware of how critical it is to get a positive review. Hosts act as guides and are happy to answer questions much like a hotel concierge. Hosts also are very responsive when anything needs attention. Over time, as reviews pile up, the better hosts bubble up to the top along with the better properties. Travelers are then more inclined to feel comfortable staying at a strange house if they know many others before them have enjoyed their stay with a particular host and/or property.

Destinations have an opportunity to improve their overall service levels by including Uber and Airbnb in their tourism products. If all parties can work out the political and tax issues, then the benefits should outweigh any negatives. Anyone striving to get good reviews and taking pride in customer service seems like a great person to make a positive impact on travelers.

The review and the constant striving for a great review keeps the entire eco-system of a sharing economy in line. Uber drivers and Airbnb hosts want to get good reviews so that future travelers will use them. Taxi drivers are anonymous as you jump in any cab that comes your way. Taxis do not yet see direct consequences for being rude or not going the extra mile with customer service. Over the next couple of years, this is bound to catch up with taxis.

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