Uber and Lyft drivers are more inclined to sell their vehicles sooner due to a perceived loss of psychological ownership, according to new research from UCD Michael Smurfit Graduate Business School.

Professor Anshu Suri from UCD Smurfit School, working alongside academics from Nottingham University Business School China and HEC Montréal, explored how collaborative consumption affects peer service providers—those who share assets such as vehicles or homes with consumers. The study found that when individuals share their cars through ride-hailing platforms, they feel a diminished sense of ownership, prompting them to want to dispose of the asset more quickly.

Participants were surveyed on how they used their vehicles and when they planned to sell them. The research showed that drivers who shared their vehicles—particularly with strangers—were more likely to want to sell them earlier than those who did not.

The effect, however, was not observed when participants shared their car with in-group members, such as people who shared their political beliefs. In one study, participants who rented their cars to others with similar political affiliations intended to keep their vehicles for just as long as those who didn’t rent them out. But when the cars were shared with someone from a different political group, the owners indicated a stronger desire to sell sooner.

A further experiment asked participants to imagine sharing a personalised vehicle, such as one that had been named or customised. Those with a personalised car reported a higher sense of psychological ownership and said they would want to keep 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,” said Professor Suri. “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.”

The study also found that sharing with individuals seen as ‘out-group’ members reduces the perceived ownership period. To mitigate this, Suri suggests platforms could highlight shared characteristics between users or minimise the amount of background information exchanged to what is essential for safety.