Uber drivers want to sell their cars sooner due to a loss of perceived psychological ownership, finds new research from UCD Michael Smurfit Graduate Business School.

Prof Anshu Suri from UCD Smurfit School, alongside colleagues from Nottingham University Business School China and HEC Montréal, investigated the impact of collaborative consumption on peer service providers who share resources and assets with consumers such as Uber and Lyft drivers or Airbnb hosts.

Participants were surveyed on how they use their cars and when they intend to sell. Those sharing their car, for example, Uber drivers, experienced a greater perceived loss of psychological ownership, leading to a desire to get rid of their car sooner.

This effect disappears when sharing assets with in-group members rather than out-group members. In another study, participants who rented their car to those of the same political affiliation wanted to keep their vehicle for just as long as those not renting theirs out, whereas those renting to individuals with a different political affiliation wanted to sell sooner.

In a final study, participants imagined sharing their car through Uber with some having personalised cars. There was an increased sense of psychological ownership for a personalised car, leading to participants wanting to own the car for longer.

“Firms in the sharing economy can use our results to increase psychological ownership of shared assets and promote a longer consumption cycle for peer service providers. Ride-sharing platforms like Uber and Lyft can encourage drivers to add a personal touch to their vehicles, such as modifying the exterior and interior design of the car to reflect personal preferences and interests. Likewise, an Airbnb house can promote personalisation by its hosts in styling their listings,” says Prof Suri.

As sharing with out-group consumers reduces the ownership period of the shared asset, highlighting similarities between the consumer and provider or limiting consumer background information to what is necessary for safe sharing could mitigate this effect.