In recent years, much controversy has arisen over companies such as Airbnb and Uber. Airbnb and Uber are the poster boys of the “sharing economy”–a technological revolution that has allowed millions to become successful entrepreneurs. That revolution has been successful because it enables individuals to circumvent the regulatory cronyism that dominates many industries, such as lodging and taxis.
While the details about these companies and their industries differ, the critics of both industries are raising the same fundamental objection—these businesses aren’t playing fair. Airbnb and Uber enable individuals to make money easily and conveniently by using assets that they already own—a home or vehicle. Hotels and taxi companies claim that sharing companies aren’t being subjected to the same regulations as they are, and this isn’t fair.
Critics of these companies want governments to force individuals to comply with the same regulations as hotels and taxis. They want to dictate how Airbnb and Uber (and the millions who operate under their umbrella) operate. According to the critics of the “sharing economy,” business owners should not be permitted to operate as they choose, but rather, as government demands.
Click here to download the full policy brief.