Thursday, February 16, 2017

Tragedy of commons

Platforms thrive on positive externalities. Positive, abiding behaviors of the participants help create ecosystems that scale and expand their reach and capabilities. Interdependence is the dominant reason for participants to flock on platforms. As long as the need is fulfilled, the connections and ties are strengthened by the platform governance mechanisms and the social protection mechanisms.

What happens when the participants resort to unethical behaviors? Here is an instance that happened as narrated by a driver on an Uber ride at Hyderabad, India. I happened to be his last rider for the day. It was a rainy day, and soon after I started to leave for an evening appointment, was held in the evening traffic. I just happened to comment to the driver that if only the driver could take me faster to the destination by finding alternative routes, I would keep the appointment time. The driver patiently replied that he too wishes the same, and that it so happens that it is impossible to find an alternate route around that time in Hyderabad. He also said the he wishes for many other privileges for drivers like him. I said, I understand the drivers’ issues on busy streets such as the one we were stuck for the evening. I quickly added that I was sorry to make a quick comment on traffic conditions and drivers. He added that I would be surprised to know that I was just the most polite rider he had for the day as he had to deal with a rude rider as the day started.

“I am not just a driver, I own this car as well as I own a store for provisions in this city, registering with Uber makes it convenient for me to make a few extra rupees in my spare time. In short I am an Uberpreneur. Being ethical lands me in trouble with riders some times” – this is the way the driver introduced himself with the pride of entrepreneurship.

The proud driver was eager to get to the rude rider’s story. He started narrating the day’s experience in quite a calm tone for the frustrating traffic conditions for anyone who has been at Ameerpet, Hyderabad during the evening hours.  

The ride is from the airport to an address specified by the rider in the morning hours.  The driver notes the details of the address which seemed to be a business address. The rider notices midway that the address she specified has possibility of reaching two different locations. She decides to get down in the middle, finding a convenient stop. She complains that her address was misinterpreted by the driver and does not pay  – not even to the point she intends to get down. The driver insists that he was taking her to the location as per her instructions. The driver decides to take this on himself, finds a nearest police station and takes the rider to the police. The police sees the gravity of the situation, ask the rider to compromise and pay the driver until the point she has utilized the service. The driver would have been happy by solving the problem for the day. As far as driver was concerned, that was the best option for him as he finds that complaining to Uber would have resulted in delay as well as lose his ratings.
However, the saga of the driver and the rider does not end here. The lady in hurry, forgot her handbag while arguing with the driver and landing herself with the police. The ethical driver, goes back to the police station to hand over the rider’s handbag to the police hoping the lady would visit that police station as that is the only connection the driver and the rider formed during their short encounter. He also re-visits the police station during the short interval he gets to take a break from his driving assignments. To his pleasant surprise, the lady too re-visits the police station to inquire about her forgotten handbag and trace the whereabouts of the driver. The driver and the rider exchange greetings and find themselves relieved. The day ends well for both the rider and the driver with prime time wasted for the ethical driver and a lesson of a life time on ethics for the rude lady rider.

Questions to ponder:
If the driver complained to the platform owner Uber, would this problem be solved more efficiently?
How does the driver’s rating be affected when he has to confront such challenges?