Trust Erosion and the Emergence of Meaningless Work in the Platform Economy: Evidence from Egyptian SMEs

Purpose This study investigates how managerial practices in the sharing economy (SE) ecosystem can create conditions leading to the erosion of trust and the emergence of meaningless work. Drawing on semi-structured interviews with SME owners, mediators, providers, customers, and government officials in Egypt, we identify three critical dimensions: the roots of discontent, counterproductive working conditions, and the lack of transparency in regulatory and policy enforcement. These mechanisms foster work alienation, psychological contract breaches, and job roles devoid of purpose, leading to workforce disengagement, and socio-economic stagnation. By exploring the intersection of managerial ineffectiveness and trust dynamics, this paper expands the debate on how platform-based labour can reproduce meaningless work. We highlight theoretical and practical implications for policy and organisational reform. Design/methodology/approach The study adopts a qualitative, multi-stakeholder case study design. 40 semi-structured interviews were conducted with mediators, providers, customers, and government officials engaged in Egypt’s platform economy. Data were coded and analysed using NVivo, generating first-order categories, second-order themes, and three aggregate dimensions of trust erosion. Triangulation across stakeholder groups strengthened the validity of insights, while iterative memo writing and reflexive analysis enhanced the depth and credibility of interpretation. Findings Trust erosion in Egypt’s platform economy unfolds across three dimensions: roots of discontent, counterproductive working conditions, and opacity in regulatory enforcement. Together, these factors foster alienation, disengagement, and perceptions of meaningless work. Workers face precarious, low-value roles, customers experience safety and accountability concerns, and mediators bypass local inefficiencies by relocating abroad. Ultimately, fragile institutions and exploitative practices entrench distrust and hinder inclusive economic development. Research limitations/implications This study focuses on Egypt, limiting generalisability to other contexts. Findings are derived from qualitative interviews without quantitative validation, though this aligns with the study’s exploratory aim. Future research should compare trust erosion across traditional versus platform-based markets and extend the analysis to multiple developing economies. Mixed-method and longitudinal studies are recommended to capture variations in trust over time and validate emergent theoretical patterns. Practical implications Managers in the platform economy must prioritise transparency, accountability, and worker protections to rebuild trust and ensure meaningful work. This includes adopting secure verification systems, fair compensation structures, and robust dispute-resolution mechanisms. Policymakers should streamline digital governance, enforce labour rights, and incentivise SMEs to operate formally. Addressing regulatory gaps can stabilise the ecosystem, attract investment, and strengthen entrepreneurial resilience. Social implications The findings reveal how fragile governance and exploitative practices perpetuate inequality, alienation, and distrust. Rebuilding trust requires coordinated reform across government, business, and civil society to safeguard vulnerable workers and consumers. Ensuring meaningful work strengthens social cohesion, enhances labour dignity, and fosters inclusive growth in digital economies. Without reforms, platform economies risk entrenching precarity and socio-economic stagnation. Originality/value This study is among the first to link trust erosion with the rise of meaningless work in platform-based SMEs within a fragile economy. By integrating perspectives from multiple stakeholders, it advances theoretical understanding of managerial dysfunction, institutional voids, and digital labour precarity. The findings enrich debates on the dark side of the platform economy and offer actionable pathways for reform to restore dignity and trust in work.