Peer Reputation Systems

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Example

BuzzCar

Tim Rayner:

"The problem boiled down to a lack of trust. BuzzCar’s members’ insurance went a long way towards convincing members to trust the system. But BuzzCar also needed to convince its members to trust one another. Drivers required assurance that the cars that they rented online were everything that their owners claimed them to be. They also needed to know that they weren’t going to be mugged when they turned up at a stranger’s house and climbed into their car. How could they trust the people that they were dealing with when they’d never met them before? Chase realised that without a mechanism for building trust, there would be no deals at all.

To tackle this problem, Buzzcar developed a peer reputation system. The results were transformative. Not only did this system work to quantify good behaviour and identify the people deserving of trust, it inspired people to creatively engage with one another within the space of their transactions. It kindled a passion for peer innovation.

The first step involved in building a peer reputation system is to establish people’s identity. BuzzCar stipulated that its members provide a copy of their driver’s licence when signing up to the service. Drivers had to demonstrate that they were over 21 years old and had a clear driving record for the past 24 months, with no suspensions or criminal convictions. BuzzCar encouraged members to verify their email addresses using the French postal service, La Poste. Users who verified their identity had it signposted on their profile pages. Users could also provide links to their Facebook and LinkedIn pages to offer a rounded view of their character.

The second step involved in building a peer reputation system is to enable users to review one another. To achieve this, BuzzCar developed a two-way review system. At the end of each hire, after the driver had returned the car, the owner and the driver were encouraged to review of the transaction. How satisfied were they with the experience? Was the vehicle in good condition? Was the other person friendly and polite? These reviews appeared on the respective member’s profile pages, to serve as a reference for other members. Getting positive reviews was a big deal for car owners who wanted to drum up more business. Negative feedback could harm their reputation, reducing their earning capacity. If the car was filthy, and the owner drunk and surly, drivers would complain and the owner would find business dried up on them. Conversely, if drivers failed to fill the tank as agreed, damaged the car or left it in a mess, owners would post hostile reviews and the drivers could be fined or banned from using BuzzCar.

These two mechanisms comprised the backbone of BuzzCar’s peer reputation system. The system worked. Not only did it keep bad behaviour in check, it inspired people to add value to their encounters in creative ways. Thanks to the two-way review system, it was in car owner’s interests to create a positive experience for drivers, and it was in drivers’ interests to create a positive experience for owners. The system created a gifting dynamic between the two parties that encouraged them to add value to their mutual exchange. This worked to enhance people’s experience of using BuzzCar, and helped the company to build a positive brand image." (http://giftsforgreatness.com/2015/09/27/building-the-buzz-reputation-and-innovation-in-p2p-car-sharing/)