The Sharing Economy Business Educators Australasia National Conference 2016

Transcription

1 The Sharing Economy Business Educators Australasia National Conference 2016 Chris Lock, Director, Economic Policy Department of Treasury and Finance 29 September 2016

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3 Key features of markets Sufficient potential sellers for buyers Sufficient potential buyers for sellers Access to the market or exchange is low cost Confidence: Buyers have sufficient confidence in the quality of the good or service for sale. Buyers are confident they will receive the goods or services Sellers are confident they will receive the money and face no unexpected supply costs or risks

4 In many markets there are risks to buyers 4

5 Yet there are risks to sellers too.. Landlords.. Taxi drivers. 5

6 Small markets are generally inferior 6

7 Small markets are generally inferior to larger markets 7

8 What is the Sharing Economy? Not strictly defined, but it s a particular type of market involving giving customers access to expensive items that may be used, at times, by the seller, in return for a fee: through an internet business platform often not a primary income source for the seller

9 Airbnb, Stayz Uber Eatwith Ebay, AirTasker, Luxe & other peer to peer businesses Host not necessarily present Expensive underutilised asset Possibly servicing unmet demand Significant asset being put to greater use Includes dedicated labour User avoids ownership and maintenance costs Requires premises to be provided by the host Provision of time, labour, food and drink Usually requires a critical mass for any event to be viable Internet versions of normal buy & sell markets for goods and services

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11 Airbnb

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13 Public passenger transport market Buses, coaches, trains and trams Taxis Luxury hire cars Other hire car services Taxis in Tasmania Hobart 24 taxi areas (a taxi can only operate in its own area), 429 perpetual licences owner operator licences wheelchair accessible taxis 50

14 Serious in-roads

15 Uber Uber provides point-to-point transport that is cashless Passengers get an estimate of the fare in advance, and are charged via credit card In Melbourne (as of 30 March 2016), standard price is: a minimum $6 fare base fare is $2 plus $0.32/min AND $1/km Uber may use surge pricing in times of high demand Uber has operated in Australia, unlawfully in some cases - but not Tasmania

16 and the role of Governments? Is competition fair?..or should some traditional businesses end up like the dinosaurs? Is compensation the answer? Do governments even have to regulate?

17 Can Governments take this approach?

18 Short stay accommodation: Policy responses Tasmania (proposed): regulation for more than 42 days use per year Victoria: permitted planned legislation to eliminate bad behaviour in short stays NSW: currently inconsistent regulation across councils Parliamentary inquiry underway SA: permitted if own home is leased Q: permitted new council powers to tackle behavioural issues WA: inconsistent regulation -fines up to $ in some municipalities ACT: could be breaching Crown lease conditions or building laws NT: appears to be permitted

19 Ride sourcing: Policy responses Tasmania: Ride sourcing will be regulated the same as luxury hire cars No compensation to taxi owners but no new taxi licences for 3 years Passenger transport framework under review Victoria (proposed): Complete revamp of commercial passenger industry with driver accreditation (to include ride sourcing businesses) but all taxi and hire car licences to be abolished Compensation to existing taxi and hire car licence holders ($ 378 million) Also a $50 million Fairness Fund for those facing hardship Funded by a $2 per trip levy for all commercial passenger vehicles NSW: Ride sourcing allowed to operate, alongside licensed taxis with more flexibility in taxi fares No new taxi licences in Sydney for 4 years Compensation to taxi licence holders ($250 million) Funded by a $1 per trip levy for all commercial passenger vehicles

20 Ride sourcing: Policy responses (cont ) Queensland: Ride sourcing operating lawfully from early September 2016 Compensation to taxi owners and some fees and charges waived. Also a $26.7 million Hardship Fund No new taxi licences likely before 2018 South Australia Ride sourcing operating lawfully from July 2016 Compensation to taxi owners funded by a $1 levy per ride General taxi fare increase, and increased taxi fares for Friday and Saturday night (up 20%) Western Australia Legislation in Parliament to make ride sourcing lawful Compensation to taxi owners and $6 million hardship fund the cap on owned taxi plates (5) will be lifted $800 per year costs for ride sourcing drivers

21 Ride sourcing: Policy responses (cont ) ACT The first jurisdiction to allow ride sourcing to operating lawfully (October 2015) No compensation to taxi owners: taxi licence fees down from $ to $5 000 Lower fees for hire cars - from $4,600 to $100 a year Some regulatory requirements on taxis removed Northern Territory Ride sourcing is not lawful now but may be permitted under the new government

22 Concluding thoughts Technology can bring about major changes in markets and very quickly The benefits encouraged operators to act unlawfully... which accelerated a response from governments including some major changes in the regulation of the industry The more heavily regulated an industry, the greater the prospects for compensation.. funded in large part (for a time) by consumers

23 Department of Treasury and Finance Any questions?