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I often have to remind myself that as a San Francisco-based-CouchSurfer working in sustainability, I live in a bubble full of tree huggers and innovative tech professionals. I’m now realizing more and more that my enthusiasm for the sharing economy is not shared by all, especially not the California Public Utilities Commission (CPUC).
Earlier this month, CPUC issued cease and desist letters to ride-sharing start-ups Lyft, Sidecar, and Tickengo for not having charter-party carrier permits. (According to these companies, they are not technically charter-party carriers because they operate on voluntary payment systems, which is why they are petitioning against the CPUC’s action.) In a similar vein, the treasurer of San Francisco has declared that Airbnb owes hotel taxes.
Recently, there have been many calls to policy makers to update regulations that favor established enterprises and do not reflect the current needs of the community, economy, and environment. I am hopeful that these conversations with the government are productive, but before policy makers are convinced I think citizens need to understand – and be convinced of – the benefits of building a sharing economy. So I thought I would share the criticisms that I hear most often in conversations about sharing services and my responses.
“Car owners and apartment tenants are not licensed commercial professionals. Sharing is not safe.”
Most sharing services require their users to create detailed profiles with photos, verified phone numbers and emails and review sections that are filled out after every interaction. Companies such as Airbnb, TaskRabbit, RelayRides, GetAround, Sidecar, Lyft all do this. The online reputations put in place a system of trust and transparency that traditional companies lack. Ride-sharing companies and TaskRabbit, for example, also have comprehensive interviews and background checks for their drivers and task rabbits and turn down most applicants.
“It’s too risky, what if something happens?”
This concern is no doubt the greatest challenge for shared economy companies. Although Airbnb had to learn the hard way, they offer all their hosts a guarantee to cover up to $1 million worth of damages. Ride-sharing companies Lyft and Sidecar have followed suit by providing drivers with excess liability insurance of $1 million. This is the same amount of coverage that San Francisco taxis carry. Peer-to-peer car-sharing start-ups RelayRides and GetAround also provide liability insurance to their renters and car owners. With more funding and success, I can see these start-ups increasing the coverage amount to demonstrate a greater commitment to safety.
“I don’t even know these people; I’m not comfortable with strangers.”
When will we ever stop fearing and distrusting the unknown? Believe it or not, there are other warmhearted, intelligent, fascinating people out there other than your friends and family. I’m an introvert (ask anyone) and even I love the excitement of meeting new people, especially when there’s an immediate bond from being part of a community that is redefining the way we think about ownership, access, and resources. Lyft strives to promote the camaraderie further with their distinguishing pink mustaches in front of each car and rigorous interview process to ensure that their drivers have fun, down to earth demeanors. They want you to feel like you are getting a ride from a friend, not from a jaded grumpy taxi driver who wants nothing to do with you.
“What’s the big deal? Why does the sharing economy matter?”
Consider a few facts. Living in cities, especially San Francisco, is excessively expensive. If you own a car or take a vacation you can supplement your high living costs by renting out your car or home. If you’re car-less like me and cringe at the thought of battling it out on the streets to wave down a taxi, the sharing economy relieves the pressure to own and saves time by providing affordable, convenient access to things you need. The sharing economy brings about significant economic and environmental benefits and it helps to strengthen our community.
It’s a win, win, win and it’s time for the next round of adopters to jump on board.
