HYDERABAD: How apps speak to users could decide whether they lose money or build trust, a new study from the city has found, pointing to a simple fix for a costly problem in the digital economy.
The research looks at “platform bypassing”, a common practice where users connect with service providers through apps such as ride‑hailing, home services or freelancing platforms, but later complete the transaction outside to avoid platform fees. While this may seem harmless, it leads to revenue loss and weakens safeguards such as verified payments, dispute resolution and accountability.
Published in the Journal of Retailing and Consumer Services, the study by BITS shows that the solution may not lie in stricter rules, but in better communication.
Based on three controlled experiments involving over 1,400 participants, including simulations of ride‑hailing platforms, the researchers found that “relationality framing” — messaging that stresses shared responsibility, trust and mutual benefit — greatly reduces bypassing.
“Instead of warning users about penalties or focusing on commissions, platforms that drive home the value of staying within a trusted system saw better compliance. Users respond better when they feel they are part of a shared ecosystem rather than just completing a transaction,” said Dr Muhammed Sajid from the Department of Economics and Finance at BITS Pilani Hyderabad Campus, who led the study. “When communication builds trust, people are more likely to follow platform norms.”
The study also explains why this works. “Such messaging activates what researchers call ‘communal relationship norms’, where users see their actions as contributing to a system that benefits everyone, including themselves,” Dr Sajid explained.
Dr Mukul Dev Surira from the School of Management Studies at Cochin University of Science and Technology, a co‑author, said the findings challenge common assumptions. “Platforms often rely on warnings or financial deterrents, but our results show that how you frame the relationship matters just as much as pricing or enforcement,” he told DC.
The research was conducted in collaboration with Dr Muhammad Vasil from the Indian Institute of Management Shillong.
The findings are relevant across sectors where digital platforms act as intermediaries. By changing how they communicate, platforms can reduce revenue leakage, strengthen trust systems and improve long‑term user behaviour, the authors said. In simple terms, the study shows that people are less likely to break the rules when they feel they are part of something they trust, rather than just trying to avoid a fee.
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