The Sharing Economy I: Regulation

The sharing economy grew rapidly with companies such as Airbnb and Uber, changing an older model of individuals providing goods and services directly. Traditional sharing included informal arrangements like paying a neighborhood kid to mow lawns or babysitting, or paying a friend’s gas money for an airport ride. The newer model is organized by companies, often using apps to match customers with providers. In the newer system, companies typically take a cut of the proceeds, which can be justified as payment for coordination services. The gig economy has been praised for enabling people to earn extra money during difficult economic times, but it has also faced harsh criticism, including conflicts with regulated industries and concerns about regulation and loopholes.

"The idea grounding the sharing economy is an old one: people provide goods and services as individuals rather than as employees or businesses. A classic example is paying a neighborhood kid to mow lawns or babysit. Another is paying a friend's gas money for a ride to the airport. The new version of sharing changes the traditional model, probably in ways that make it sharing in name only."

"One difference is that the old sharing economy was usually an informal system while the new sharing economy is organized by companies. As an example of the old sharing economy, your neighbor might tell you about the teenager she hired to babysit her kids or mow her lawn. As an example of the new sharing economy, you might use the Uber app to pay a soccer mom to give you a ride to the airport in her mini van."

"Unlike the old sharing economy in which your neighbor (probably) did not take a cut for connecting you to a sitter or mower, these companies get a cut of the proceeds-which could be justified by the services they provide. The new sharing economy has been praised and defended based on the claim that it makes it easier for people to make money in challenging economic times."

"One point of concern is regulation. In most (if not all) cases, the sharing economy exploits loopholes in the informal economy, which is re"

Read at A Philosopher's Blog