Regulation of On-Demand

Economies (Uber/Airbnb)
Misael Aguilar, Daniel Diaz, Marcus Dixon, Jared Fox

Problem Statement
On-Demand economies such as Uber and Airbnb have
disrupted traditional services. They have created opportunities
for the average Joe to earn money through the bypassing of
traditional regulations.

History/Legal (Uber)

Founded 2009
300 cities
2011 D.C. - 1st regulatory challenges
Airport bans
California TNCs
Summer of 15 - 25 drivers with criminal records.
CA regulation prevents local TNC laws
Long term strategies (autonomous vehicles)

History/Legal (Airbnb)

Founded in 2008
1 million listings, 30000 cities
2011, first claim of robbery
Airbnb illegal in SF
Host registration, insurance and pay 14%
2011-2012, 1.9 million to city and yet to do
New York Post on Airbnb

Stakeholders

Digital sharing economy companies such as Uber and Airbnb

Employees of each company
Competitors of each company such as Taxi and Hotel companies
Governments
ADA (Americans with Disabilities Act)

Economical problems
Uber and Airbnb - Not taxed
Taxi and Hotel services - Taxed
Unfair, and takes money away from the city.

Technological Problems
The Uber app service has proven problematic on numerous occasions, for both the
driver and the customer.
-The app has broken down on numerous occasions, preventing the driver from
getting to the end location
-The app has undercharged and overcharged a customer
Taxi drivers are required to know by heart the best routes/streets to take to provide
the best service and ride for the customer.

The Issues of Privacy

Due to poor management of its internet security, Uber accidentally leaked the
personal information of 674 of its drivers. Information included Social Security
Numbers, Drivers Licenses, and W-9 forms.
-A danger for its own drivers
Uber has also developed a God-view tool for their app, allowing them to know the
locations of all their drivers and users. This also enables them to even stop one of
their drivers with a push of a button.

Privacy continued. . .
Uber has also had several instances with Uber drivers stalking and harassing their
customers.
Drivers complain that they dont feel safe; their Uber driver in some cases knows
where the customers live. (Driving them to their house)

Competitive Analysis
Taxi services require extensive training, background checks, and entry fees to take
the training course.
-Ideally ensures the best service and safety to the customers, and provides
good training to its drivers.
Uber only provides a general background check, that on several occasions has
proven ineffective at preventing people with violent histories to drive for Uber.
Also there is no training, nor do the new drivers pay any sort of entry fee.
-Doesnt ensure safety or the best service. Nor does it meet the same
requirements as taxi drivers

Competitive Analysis
Taxi cab drivers must:

Drive 4+ hours per day

Pay application fee
Pass extensive background check for any
criminal conviction
Attend a taxi training school
Obtain a clean 10 year driven record
Attend a class and pass an exam from taxi
cab company

Uber drivers must:

Pass background check

Have car inspected

Recommendations
New technology advances faster than regulations can be made

Decreased regulation for traditional service providers

A more defined and if possible, federal regulation of on demand companies

Pros
Universal, and federal regulation of on-demand providers gives consistent
protection of various stakeholders regardless of location
More lenient rules and regulations against traditional service providers brews
healthy competition without giving an unfair advantage to any party
Increased number of skilled workers
Wage stability

Cons
Universal regulation may mean a higher cost payed by the customer.
Stiffer competition may cost these on demand companies resources that could
be put towards further innovating solutions to their market.
Growth of outsourcing opportunities
Can cause a loss in government revenues
Can lead to fraud and scams

Thank you!