EMBRACING THE SHARING ECONOMY

Transcription

1 EMBRACING THE SHARING ECONOMY Daniel T. Rockey, Esq. Partner, San Francisco 1 Background Trial and regulatory attorney with Bryan Cave, LLP San Francisco Clients: Lyft, Turo (Relay Rides), Mighway, Fuel Panda, Anchor, Leap Transit 1

2 What is the Sharing Economy? Sometimes called the gig economy The shared use of resources that might otherwise remain idle. Your car Your house Your tractor Your free time. Excitement over Sharing Economy Lots of excitement, hype Lots of $ flowing in Maturation in certain sectors 2

3 Emergence of Sharing Economy also creates headaches for regulators Emergence of companies in the sharing economy has created: Headaches for regulators Disruption to incumbent industries Valid concerns regarding safety and consumer protection New areas of potential liability/risk Emergence of Sharing Economy has created concern/headaches for regulators Perception of sharing economy as negative force has been exacerbated by a handful of bad actors: Uber Algorithm to evade regulators Tracking users after deleting app Anti-competitive tactics Bad behavior by drivers (and the CEO) 3

4 Emergence of Sharing Economy has created concern/headaches for regulators Threat greatly exaggerated Most companies are good corporate citizens amenable to appropriately crafted regulations Applying New Tech to Old Problems Many of these companies simply apply technology to an age-old phenomenon Zimride based on community transportation model in rural Africa Lyft: real-time ridesharing simply extension of casual car pool/slug lines AirBNB: better bed-n-breakfast (w/o the breakfast) Fuel Panda: mobile refueling 4

5 Applying New Tech to Old Problems But with added safety and convenience Taxi vs. Lyft Preregistration of driver and passenger Cashless exchange GPS tracking and record of every ride Two-way rating system 24-hour Critical Response Line Also, background checks, insurance, vehicle inspections Cooperation: Companies and Regulators A need for active engagement by regulators to rein in excesses but Cooperation between companies and regulators can offer tremendous benefits For consumers, shareholders and even regulators/cities and counties 5

6 Benefits of Cooperation Ex: REAL TIME RIDESHARING Addresses last mile problem of public transportation Increase in convenience and availability Reduces car ownership in cities On-demand economic opportunity (85% casual) Significantly reduces drunk driving/alcohol related deaths Benefits of Cooperation AirBNB Enhances affordability of housing Better, more affordable options for travelers Additional funding source for cities 6

7 Benefits of Cooperation Turo/Mighway Enhances affordability of: Vehicle ownership Travel Benefits of Cooperation Anchor ( Born out of drunk boating accident Safer boating esp. during periods of high activity Extra money for boat captains 7

8 Appropriately Addressing New Risks Key is to avoid square peg/round hole problems Regulators must look to what makes service unique and adapt regulations to fit Appropriately Addressing New Risks California PUC rulemaking model for nation MOU and initiated rulemaking Solved insurance problem Vehicle inspections Background checks 8

9 Appropriately Addressing New Risks Maryland Evidence-based regulation Comprehensive and accurate Appropriately Addressing New Risks Anchor Met with U.S. Coast Guard OUPV/Six-Pak Educate regarding benefits Approved alternative procedure (i.e., Six-Pak lite ) 9

10 Appropriately Addressing New Risks Fuel Panda: Worked with State Fire Marshal to adapt regulations to new model Containers compliant w/ Fed regs Automatic shut off No enclosed spaces Cautionary Tales Ask for Permission? Forgiveness? Leap Transit (snuffed out by regulation) Austin/Houston Non-evidence based regulation 10

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