Rapes, riots and monopolies
A rape victim sued Uber, arguing that the company had not properly checked the background of its drivers. A French court fined the company, having ruled moreover that Uber was conducting an illegal car hire service. Prior to the verdict there had been protests by taxi drivers working for traditional companies.
There are many issues involved here: safety, regulation, labour rights or tax matters, according to an article on the INSEAD business school website.
Sins of the sharing economy
Tech-based sharing companies (Airbnb, or BlaBlaCar), which utilise the trust of online communities, insist they are merely online platforms that connect people with service providers. In other words, in the case of Uber, the drivers themselves bear responsibility.
These companies combine trust with seamlessly flowing data. This enables people to offer the use of any under-utilised items to others, which is fine but:
- Some people claim Uber encourages its drivers intentionally to jam up the services of their competitors by making fake calls.
- Airbnb, which provides people with the opportunity to offer or find cheap accommodation, has been accused of promoting unlawful rentals. There are also problems with excessively noisy short-term tenants.
- A competitive advantage over traditional players is also gained by evading various regulations, taxes and fees.
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