Indore (Madhya Pradesh): Ethical considerations play a decisive role in shaping consumer trust and participation in car-sharing platforms, according to Indian Institute of Management (IIM) Indore
The study conducted by IIM Indore faculty member Prof Bipul Kumar and co-authored by Prof Shweta Jha of IIM Ranchi highlights that consumers’ moral values - such as fairness, responsibility and concern for others - significantly influence their willingness to engage with car-sharing services.
While previous research on collaborative consumption has largely focused on economic efficiency, technological convenience and environmental benefits, this study, titled “Understanding collaborative consumption behaviour in the context of car-sharing.
An ethical perspective and empirical analysis,” shifts the spotlight to ethics as a central driver of consumer behaviour. The findings suggest that car-sharing is not merely a practical or cost-saving choice, but one that is deeply shaped by ethical evaluations and trust.
The researchers used survey-based empirical data from car-sharing users and conducted two cross-sectional studies - one before the COVID-19 pandemic and one after. Advanced analytical techniques, including partial least squares-based structural equation modelling (PLS-SEM), were employed to examine how ethical perceptions affect consumer attitudes and behavioural intentions.
The results show that consumers who perceive car-sharing platforms as ethically responsible, transparent, and socially beneficial are significantly more likely to develop favourable attitudes and continue using these services.
Notably, the post-COVID-19 analysis revealed a stronger role of ethical idealism, indicating that consumers now place greater emphasis on collective welfare alongside environmental concerns when engaging in collaborative consumption.
The study also found that ethical evaluations are as important — if not more — than commonly studied factors such as perceived usefulness and ease of use. According to the authors, this reflects a broader shift in consumer mindset, where trust and moral alignment have become essential for sustained participation in sharing-economy platforms.
For businesses operating in the sharing economy, the research carries important managerial implications. Ethical positioning, the study argues, is not a peripheral concern but a core component of long-term sustainability. Lack of transparency, perceived unfairness, or ethical lapses can directly erode consumer trust and reduce participation.
The authors recommend that car-sharing platforms integrate ethical considerations into platform design and operations through transparent pricing, fair dispute resolution, responsible data handling, and clear usage guidelines. Strengthening trust mechanisms—such as reliable rating systems and consistent rule enforcement - can further enhance accountability and platform credibility.
As competition in the car-sharing market intensifies, the study suggests that ethical branding supported by genuine practices can offer a significant competitive advantage. Platforms perceived as ethically superior are more likely to attract and retain users in an increasingly values-driven consumer environment.
Overall, the research underscores the growing importance of ethics in collaborative consumption. As consumers become more ethically aware, platforms that successfully combine operational efficiency with moral responsibility are better positioned to thrive in the evolving urban mobility landscape.
