Regulations / Legislation

Every major industry and service in the world is regulated.  In a shared economy, technology platforms or APPs are offering the same products and services as traditional industries, but flying literally under the radar of traditional regulations, taxes and permit obligations.  In addition, these companies have no assets, as they simply take advantage of additional inventory already built into the marketplace, be it an extra bedroom, down time for a driver or hours not used by someone’s car.

The result is companies selling the same product or service, only one is regulated and one is not.  One might be paying permit and licensing fees to a local government, the other is not.  In the case of a rental car company or parking company near an airport or port, one is paying concession fees and the other is not.  Local governments that depend on fees to fund regulators find themselves in a budgetary and regulatory quandary.  Airports, ports and convention centers who rely on concession and user fees to fund construction and operation of their facilities begin to see the value of their concessions under attack by app companies circumventing their RFP and concession contracts.

The CPSE will compile and compare examples of the shared economy marketplace.  CPSE will analyze existing regulations and the genesis for their existence.  The center will attempt, through input from experts, to highlight those regulations that work and those that are outdated or better achieved through technology.  We will also seek to balance the capabilities of technology and the rate at which they are emerging with the need for safety, fairness and thoughtful regulation in the marketplace.

Samples of model legislation from Baton Rouge, LA., an Minneapolis, MN., can be found here. These ordinances attempt to balance the growth of peer-to-peer taxicab services with those of traditional transportation networks.


Recent Articles

New Report: Sharing Economy Must be Shaped by City Governments to Deliver Public Benefits


As the sharing economy explodes in growth, with new startups emerging regularly, many city officials are left scratching their heads wondering how to deal with this industry. From Uber and Airbnb, which have become what Shareable co-founder Neal Gorenflo describes as “death star platforms,” to local sharing projects, much of the sharing economy remains in grey areas.

Read original article HERE.

Workers comp, benefits suits won’t stop ride-sharing services,


California lawsuits accusing ride-sharing services and of employee misclassification may reach the U.S. Supreme Court, but requiring such companies to provide workers compensation insurance and other employee benefits likely would not stop their growth, a legal expert says.

Read original article HERE.

As it fights fingerprints, Uber rolls out more virtual lobbying with new ads


Uber Technologies Inc. is ramping up the pressure on Austin’s city leaders as a proposal to mandate fingerprint background checks for its drivers inches its way through City Hall. The app-based ride-hailing company is airing new TV and radio ads featuring testimonials from area residents who talk up how the company’s taxi-like transportation service is making their lives safer and more convenient. It follows a similar campaign that debuted last week that said imposing the regulations would take Austin transit back to the horse and buggy days.

Read original article HERE.

Uber, Lyft reach agreements to serve Indianapolis Airport


App-based car services Uber and Lyft have will be serving the Indianapolis International Airport when thousands of travelers land this week for the NCAA Final Four. The airport reached an agreement with the ride-sharing companies that will generate $2.50 per pickup for the airport, a deal tourism officials hailed as a welcome convenience for travelers.

Read original article HERE.