<div dir="ltr"><br><div class="gmail_quote">---------- Forwarded message ----------<br>From: <b class="gmail_sendername">Orsan Senalp</b> <span dir="ltr"><<a href="mailto:orsan1234@gmail.com">orsan1234@gmail.com</a>></span><br>Date: Thu, Apr 9, 2015 at 3:21 AM<br>Subject: [NetworkedLabour] Fwd: Other News - The Sharing Economy Needs a Public Option<br>To: "<<a href="mailto:networkedlabour@lists.contrast.org">networkedlabour@lists.contrast.org</a>>" <<a href="mailto:networkedlabour@lists.contrast.org">networkedlabour@lists.contrast.org</a>><br><br><br><div dir="auto"><div><br></div><div><br>Begin forwarded message:<br><br></div><blockquote type="cite"><div><b>From:</b> <a href="mailto:english@other-news.info" target="_blank">english@other-news.info</a><br><b>Date:</b> 8 Apr 2015 21:55:41 GMT+2<br><b>To:</b> "english" <<a href="mailto:english@other-news.info" target="_blank">english@other-news.info</a>><br><b>Subject:</b> <b>Other News - The Sharing Economy Needs a Public Option</b><br><br></div></blockquote><blockquote type="cite"><div>
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<div><strong>The Sharing Economy Needs a Public Option</strong></div>
<div><strong></strong> </div>
<div><strong><em><font>Dean Baker*</font></em></strong></div>
<div> </div>
<div>So-called "sharing economy" companies such as Uber, Airbnb and Task Rabbit
are posing policy headaches for governments around the world. Their argument
that they should be exempt from existing regulations because their services are
ordered over the web does not make much sense, but it provides an adequate fig
leaf for politicians seeking campaign contributions from these highly
capitalized newcomers.</div>
<div> </div>
<div>For those who have missed the hype, "sharing economy" refers to a wide
variety of companies that use the web to connect consumers and providers. While
there is not reliable data on its size, in part because it is not well-defined,
Airbnb now boasts far more room listings than Hilton or Marriott, and Uber has
quickly grown to be the largest taxi service in the world.</div>
<div> </div>
<div>Part of the response to the innovations associated with these sharing
economy companies should be to modernize regulations. It is reasonable to
regulate taxi services in ways that ensure that cars are safe and drivers are
competent and responsible. It is also reasonable to regulate rented rooms to
ensure they are not fire traps. Similarly, both should be regulated in ways that
ensure access to the handicapped and prevents discrimination. In addition,
employees in these companies should be covered by workers compensation and
protected by minimum wage and overtime rules.</div>
<div> </div>
<div>These efforts will require a rewriting of existing regulations, many of
which were put in place to protect the existing companies in the industry rather
than serve a legitimate public purpose. This sort of modernization is clearly a
doable task from a technical standpoint, although sharing economy companies will
undoubtedly use their money to try to block the imposition of rules that put
them on an equal footing with their old-fashioned competitors.</div>
<div> </div>
<div>In addition to a level-the-playing-field approach, we can also treat the
sharing economy companies to some new competition: a public option. The idea is
that governments can set up public sites that would provide the same services as
the sharing economy companies. The difference would be that the public sites
would cut out the middle man. They would be set up to benefit customers and
service providers with the government only charging the fees necessary to cover
costs.</div>
<div> </div>
<div>For example, a taxi service could allow for drivers to register in the same
way as they do for Uber and Lyft. Customers could use an app to order their
services just as they do with Uber and Lyft. The difference would be that the
public service would likely take out a lower share of the fare than its
for-profit competitors. If its design was effective, only drivers who felt like
being ripped off would work for Uber and Lyft.</div>
<div> </div>
<div>In addition, a public service could directly apply standards to providers
as a condition of participating. Cab drivers would have to meet licensing
standards and their cars would have to pass inspection. And they would have to
arrange insurance for both car and driver. A public version of Airbnb could
require that potential renters had their rooms inspected for fire safety and
also provide copies of leases or condo agreements to ensure that these were not
being violated by renting out rooms or whole units.</div>
<div> </div>
<div>A non-profit in England (with the unfortunate name Beyond Jobs [<a>http://beyondjobs.com/])</a> has
established an open-source program for many of these purposes. This system may
not be fully up to the job, but it should provide a basis from which to
work.</div>
<div> </div>
<div>In addition to cutting out the middle man and ensuring that necessary
standards are met, a public service could provide other important benefits. Most
notably it could ensure that customer reviews are the property of the service
provider. As it stands now, the reviews are typically the property of the
company.</div>
<div> </div>
<div>This means if an Uber driver has established himself as a safe and reliable
driver, he can't use his recommendations with another service. The same would be
the case with someone renting out a room or apartment through Airbnb. This issue
is perhaps most important with labor-service providers such as Task Rabbit. If a
worker has established herself as a reliable electrician, plumber or child-care
provider, she should be able to carry this record with her. While Task Rabbit
and comparable services may not allow such transfers, a public system could
assure workers of transferable recommendations.</div>
<div> </div>
<div>Another great feature to the public option route is that it can be
implemented at the local level. There is no need to worry about an intransigent
Congress or even hostile state legislators. Any city with a substantial
progressive base should be able to take the initiative to set up its own
public-sharing economy system. Such systems can also be linked between cities,
which could be especially helpful in the case of competing with Airbnb.</div>
<div> </div>
<div>Naturally, there will be problems in setting up such systems, as is always
the case in establishing something new. But there is no reason that a public
system cannot be at least as efficient as the private networks now operating.
After all, the administrative costs of the public Social Security system are
less than one tenth as high as the costs of private retirement accounts.</div>
<div> </div>
<div>Rather than trying to squash sharing economy companies, which would almost
certainly not be possible in any case, a far better strategy for progressives is
to take advantage of the innovations they offer and restructure them in ways
that ensure the public and service providers both benefit. This can be done, if
we are prepared to try some new tactics.</div>
<div> </div>
<div><strong><em><font size="1">* Dean Baker is co-director of the Center for
Economic and Policy Research in Washington, DC. He has a blog, "Beat the Press
[</font></em></strong><a><strong><em><font size="1">http://www.cepr.net/index.php/blogs/beat-the-press/],"</font></em></strong></a><strong><em><font size="1"> where he discusses the media's coverage of economic issues. Source:
</font></em></strong><a><strong><em><font size="1">http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/the-sharing-economy-needs-a-public-option</font></em></strong></a><strong><em><font size="1">. (Publicado por Al Jazeera : </font></em></strong><a><strong><em><font size="1">http://america.aljazeera.com/opinions/2015/3/the-sharing-economy-needs-a...)</font></em></strong></a><strong><em><font size="1"> <font>. <em>América Latina en
movimiento</em> –ALAI</font></font></em></strong></div>
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