Building reputation and incentives into marketplace products | Thinking Product

This is a “Thinking Product” post where I have more outstanding notes questions than concrete thoughts or a framework. I haven’t given the subject of reputation in marketplaces much thought. But, I thought about reputation this week as I took four Uber rides during a day of travel.

The driver side of the marketplace. I read an interesting post today titled “Give me my reputation back” in which Gavin Kelly lays out a case for portability of reputations. He writes –

The popular image of this segment of our economy is of free-wheeling, hyper-flexible freelancers who come and go as they please. Gig-workers can, after all, work through whichever platform they wish, for as long as they wish. The free-market distilled. 

Yet this is a partial account. It overlooks a barrier to mobility: the non-portability of their customer ratings and reviews. This is no side-show. You can’t, as Henry Ford said, “build a reputation on what you are going to do.” Ratings crystallise hard-won reputations; they are the passport to future earning power. Lose them and, regardless of experience or prior standing, you are pretty much starting from scratch.

This state of affairs is all the more odd given that, to avoid being treated as legal employers, platform-companies like Uber present themselves as mere online notice boards used by independent businesses to pick up trade. Strange, then, that these businesses can’t move these reviews with them.

I think this is a valid thought and one that is similar to the argument that we ought to be able to take our data on centralized platforms and move it. I don’t expect the gig economy companies to take action. But, our regulators need to pay more attention.

The rider side of the marketplace. Uber has been more upfront about the rider rating (i.e. the average rating you receive from drivers) and you now see it the moment you touch the options menu. I had a few thoughts here and questions here –

  • Rating manipulation: Uber says it doesn’t reflect individual changes to ratings, for example. But, it is pretty easy to tell. For example, I received three 5 star ratings and one 1 star rating on Wednesday. It was easy to tell because I saw an immediate change in my rating and the last change involved a large fall from 4.74 to 4.64. So, is it possible to manipulate your own rider rating? Here’s an example – what if I gave a 5 star rating and a generous tip to the driver right after I finish the ride? Wouldn’t the driver know immediately and reciprocate? Similarly, what if I “got back” at the driver who rated me one star by giving him a one star rating? Could Uber update ratings after a 24 hour period instead? (I did neither – but am curious)
  • Feedback for a one star rating: I was really curious about the reason for my one star ride. I was waiting for the driver, greeted him, stayed quiet until he needed directions within our apartment boundaries and got off. I wondered if the rating was a mistake and asked Uber support if there was a reason for this. But, Uber support just gave me a list of generic tips. What if the rating system persuaded both riders and drivers to give at least a line of feedback if they gave an extreme rating – e.g. one or two stars?
  • Introvert bias?: I would be really curious for studies on the correlation between introversion and Uber rider ratings. If I’m taking an Uber after a work event or a social occasion, the last thing I want to do is have a conversation with my Uber driver. But, an extrovert would be have differently and my hypothesis would be that extroverts have higher Uber ratings, on average.
  • Kids bias?: Another bias I’m more certain of is that against parents traveling with young kids – especially if the driver isn’t a parent himself/herself. How do you correct for such biases in these rating systems? Do you bother?

As we move toward a world with more marketplaces enabled by mobile phones, I wonder what the consequences of such rating and reputation systems will be. I’ve heard great things about an episode of Black Mirror where everyone is obsessed with their overall rating. What happens in a world where we feel constantly watched and judged?

While I was curious about ratings and reputations in marketplaces during my Uber day, I definitely felt judged when I got my one star rating. For some reason, I’ve had issues with the Lyft app on my phone over the past few months. But, the one star rating with no explanation pushed me to uninstall and reinstall the app so I could use Lyft next time.

I’ll be back with more notes and questions after using Lyft on my next travel day in the coming months. :-)