Homeaways lawsuit against airbnb and the uber subprime auto loan controversy highlight an uncomfortable fact of the emerging digital sharing economy. The success of sharing economy companies such as uber or airbnb8 depends. Indeed, the predatory aspect of such economy has already seen its. The sharing economy and its sister termscollaborative, platform, or gig economyrefer to a set of techniques and practices that facilitate trusted transactions between strangers on a digital platform. Ubers business model is premised on social interaction, with the focus being on consumers. Uber, the ridesharing giant, continues to dominate the marketplace by taking advantage of their drivers and piggybacking off of the promise of partaking in the sharing economy. Akin to uber, telehealth platforms are connection services platforms that have the potential to disrupt existing, regulated, licensed service providers. Instead of working for a taxi company, drivers can now turn on their cell phones and offer rides to people on the street through mobile apps like uber, lyft, or sidecar as independent.
How uber and the sharing economy can win over regulators hbr. The sharing economy offers opportunities for people across the demographic spectrum uber example in table 1 to generate an income uber example in table 2, either full time or parttime uber example in table 3, andor as a complement to other employment, being a parent at home. Through telehealth platforms, the sharing economy has entered the market for medical care delivery and begun to both challenge and complement traditional modes of delivery. In this paper, we focus on uber, a ridesharing platform that is one of the fastest growing startups worldwide. The current and future state of the sharing economy. While dominant firms in the sharing economy such as uber and airbnb have received a lot of attention in both public discourse and extant literature about the sharing economy e. The rise of the socalled sharing economy has created new competition across a number of industries, most notably hotels, through airbnb, and taxis, through ridesharing services like uber, lyft, and sidecar. Associate professor of corporate law, university of salerno, school of economics. Uber and airbnb show the sharing economy is on its way like it or not britons seem reluctant to embrace the likes of uber, airbnb and zipcar, but mobile technology is sure to revolutionise. Jun 15, 2014 uber and airbnb show the sharing economy is on its way like it or not britons seem reluctant to embrace the likes of uber, airbnb and zipcar, but mobile technology is sure to revolutionise.
The sharing economy is disrupting this old model by directly connecting producers with consumers, eliminating the need for much of what stands in the middle. While uber promotes itself as a way for drivers to earn extra money to fund their dreams, in truth, most drivers in new york city work full time. How uber and the sharing economy can win over regulators. Global market expansion and reception alexander cooper,i head of asia.
Homeaways lawsuit against airbnb and the uber subprime auto loan controversy highlight an uncomfortable fact of the emerging digitalsharing economy. Section 2 explores the economics of the sharing economy. The sharing economy will go on trial in 2016, with tens of billions of dollars, hundreds of thousands of jobs, and maybe even the future of labor at stake. The case of uber viii abstract this paper provides an overview and a critical analysis of the sharing economy, which is a new consumption paradigm driven by technological innovations and executed primarily through online platforms. The rise of the socalled sharing economy has created new competition across a number of industries, most notably hotels, through airbnb, and taxis, through ridesharing services like uber. The sharing economy is a fastgrowing innovation opportunity. Each time you hail a ride with uber or book a room through airbnb, you are participating in the socalled sharing economy. Oct, 2014 sharing economy firms are disrupting traditional industries across the globe.
Airbnb, uber and problems with the digitalsharing economy. Sharing economy is an economy system in which assets or services are shared between private individuals, either for free or for a fee, typically by means of the internet. The sharing economy goes by many names such as the gig economy, the 1099 economy, and the ondemand economy, all of which describe the economic system that uses online platforms to connect workers and sellers with clients and consumers, primarily through smartphone applications. The rapidly growing valuation of uber and airbnb, two of the leading firms in the sharing economy, is an indicator of the potential of this sector. Uber and the economic impact of sharing economy platforms consumers enjoy the cheaper taxi services provided by uber, but the company has proven divisive among taxi drivers. Jan 08, 2019 interestingly, the sharing economy is a field of activity where the much maligned african tribal system comes into its own, creating international, decentralised networks of trust that facilitate. How africa can inspire the future of the sharing economy. Some cautionary tales from uber volume 22 issue 6 patricia leighton skip to main content we use cookies to distinguish you from other users and to provide you with a better experience on our websites. May 27, 2018 can uber, airbnb and sharing platforms selfregulate. Request pdf analyzing ubers ridesharing economy uber is a popular ride sharing application that matches people who need a ride or riders with drivers. Collectively, this data gave us a holistic view of whats unfolding across both business and consumer landscapes.
The sharing that mamabake promotes creates a new political economy, in which the sharing creates not only social ties but also physical products in the form of homecooked meals. However, in 2014, uber faced many challenges and questions as an industry incumbent. Pdf alessio di amato uber and the sharing economy the. The common theme within this conceptual space is that cities make the sharing economy work. For this analysis, the taxi category includes all taxi, limousine and airport shuttle rides. Uber, airbnb and consequences of the sharing economy. Regardless, consumers, investors, and the media alike have dubbed uber. Professional selfemployment, new power and the sharing economy.
Through user data from their cloudbased expense management system, certify has analyzed how the share of total paid car rides for business people is shi. The sharing economy, popularized by the likes of airbnb and uber, has enjoyed remarkably rapid growth over the last five years and looks set to scale new heights over the next decade. Antitrust, sharing economy, gig economy, peertopeer, sherman act, section one, rule of reason, quick look, uber, airbnb, taskrabbit, lyft, cartel, single firm. Mobility industry car clubs car sharing, realtime vehicle sharing ride sharing, parking space rental, ondemand car and bicycle rental, communitybased traf. Part iv argues that experimental safety regulations, including. Explore our global technology solutions for your employees, guests, and customers. Uber and the economic impact of sharing economy platforms. Cities play a central role in deciding which sharing economy practices are adopted and which are rejected.
Sharing economy firms are disrupting traditional industries across the globe. Part iii presents and analyzes the challenges uber faces and, more generally, the challenges inherent in regulating innovation and technology. Can uber, airbnb and sharing platforms selfregulate. An analysis of the entrepreneurial aspects of ubers driver. Regulators should allow uber to operate, but under stricter regulations, to ensure that consumers reap the benefits, and drivers operate on a level playing field. Pdf the competitive effects of the sharing economy. Aug 09, 2018 uber and the false hopes of the sharing economy. Uber, the ride sharing giant, continues to dominate the marketplace by taking advantage of their drivers and piggybacking off of the promise of partaking in the sharing economy. How uber and the sharing economy can win over regulators by sarah cannon and lawrence h. Uber, lyft, and regulating the sharing economy by brett harris. Uber, lyft, and regulating the sharing economy brett harris the sharing economy goes by many names such as the gig economy, the 1099 economy, and the ondemand economy,1 all of which describe the economic system th at uses online platforms to connect workers and sellers with clients and consumers, primarily through. Qingxu jin bill, carl spevacek, nasreddine eldehaibi, and whitney johnson.
The rise of the socalled sharing economy has created new competition across a number of industries, most notably hotels, through airbnb, and taxis, through ride sharing services like uber. Uber was a technology company that relied on its mobile app and wordofmouth advertising to reach customers interested in its transportation services. The clash between traditional and sharing economies has sparked a polarizing debate about the social cost of the introduction of new sharing economy services 20 and about the need for additional policies to. Uber and the false hopes of the sharing economy the new. Professional selfemployment, new power and the sharing. Digital disruption beyond uber and airbnbtracking the long. September 2018 the rise of the sharing economy 59 in the consumertoconsumer business model, known as c2c or p2p for peertopeer, demand and supply are matched via a digital platform developed and operated by a third entity who usually takes. Apr 20, 2017 the success of uber, airbnb, and other sharing economy firms, and the consumer benefits those firms promise, show both how difficult and how important that reenvisioning can be. Harvard business case studies solutions assignment help. Timothy f bresnahan and robert j gordon, the economics of new goods. Sharing economy is an economy system in which assets or services are. To quote an old adage, the only certainty is uncertainty.
Regardless, consumers, investors, and the media alike have dubbed uber the posterchild of the nascent and growing. How the sharing economy can make its case mckinsey. Pdf the popular ride sharing service uber has undoubtedly a. Jun 03, 2016 although uber, airbnb, and other online platforms have democratized the access to a number of services and facilities, multiple concerns have been raised as to the public safety, health and limited liability of these sharing economy practices. Driver revenue, expenses and taxes stephen zoepf stella chen paa adu gonzalo pozoy 212018 abstract we perform a detailed analysis of uber and lyft ridehailing driver economics by pairing results from a survey of over 1100 drivers with detailed vehicle cost information. Although uber, airbnb, and other online platforms have democratized the access to a number of services and facilities, multiple concerns have been raised as to the public safety, health and limited liability of these sharing economy practices. The success of uber, airbnb, and other sharing economy firms, and the consumer benefits those firms promise, show both how difficult and how important that reenvisioning can be. Abstract modern technologies, including mobile applications and internetbased platforms, continuously foster the rise of the sharing economy. Delight customers by offering trip credits with uber vouchers. Interestingly, the sharing economy is a field of activity where the much maligned african tribal system comes into its own, creating international, decentralised networks of trust that facilitate. The implications of trust in the sharing economy an. It prided itself on being an ontime, stylish, unique, and modern transportation option. Responses illustrate how participants trade their time and effort during the process of organizing and cooking a large meal.
Community libraries emerged in the 18th century, allowing people to lend and borrow books to and. Most of the critics denounce the sharing economy for being about economic selfinterest rather than sharing, and for being predatory and exploitative. Arrange doortodoor rides for your customers, clients, and. In order to become a driver for either company, you must do the following. Many of the sharing economy companies are also called the tech disruptors.
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