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A solution to the Uber and Airbnb problems that no one will like

nickgrossman.is

21–30 of 65 posts

Re: A solution to the Uber and Airbnb problems that no one will like

#21
post #17

Uber's problems are not Airbnb's problems, and I find this continued trend of always mentioning the two in the same breath when it comes to regulation quite baffling. Opposition to Uber is a clear case of regulatory capture. Every negative outcome that regulation is meant to mitigate (accountability, safety, reliability, discrimination, non-predatory pricing) is better served by Uber (and two-factor location tracking…

What's the current story with uber and liability insurance? A while back I understood it to be: 1) uber provided secondary liability insurance while a passenger is actually in the car, and 2) they nominally encouraged drivers to get effective (read commercial) insurance for all other times but didn't take any steps to make sure they actually did.

So you ended up with a bunch of drivers that were driving around with non-commercial policies that the insurance company could easily disclaim in the event of a serious accident, as commercial use would invalidate the entire policy.

Re: A solution to the Uber and Airbnb problems that no one will like

#22
post #17

Uber's problems are not Airbnb's problems, and I find this continued trend of always mentioning the two in the same breath when it comes to regulation quite baffling. Opposition to Uber is a clear case of regulatory capture. Every negative outcome that regulation is meant to mitigate (accountability, safety, reliability, discrimination, non-predatory pricing) is better served by Uber (and two-factor location tracking…

Sorry but there a bunch of reasons to dislike Uber, from how they use the information they gather of you and your location, to all price manipulation it does with surge pricing.

Surge pricing is so intransparent that Im 100% sure that has been gamed against the consumer and the drivers in favor of Uber. Not only that, Uber doesnt tell you how much it costs while its going which is also a huge disadvantage for the consumer. Who knows what happens between what you paid to Uber and what the driver received?

Re: A solution to the Uber and Airbnb problems that no one will like

#23

Polymet is about to get permission to open one of the first copper sulfide mines in Minnesota. This mine will be directly over the Superior Watershed, one of the largest fresh water aquifers in the world. We have plenty of data about how destructive copper sulfide mining is yet it looks like it will get rammed through. So the idea that "asking permission" is a thing, well, I'm not sure it really is anymore.

>So the idea that "asking permission" is a thing, well, I'm not sure it really is anymore.

Oh I'm sure it still is. You just have to ask very, very, very nicely (with campaign contributions).

Re: A solution to the Uber and Airbnb problems that no one will like

#24

Polymet is about to get permission to open one of the first copper sulfide mines in Minnesota. This mine will be directly over the Superior Watershed, one of the largest fresh water aquifers in the world. We have plenty of data about how destructive copper sulfide mining is yet it looks like it will get rammed through. So the idea that "asking permission" is a thing, well, I'm not sure it really is anymore.

[deleted]

Re: A solution to the Uber and Airbnb problems that no one will like

#25
> 2) In exchange for that freedom to operate, companies will need to share data with regulators — un-massaged, and in real time, just like their users do with them. AND, will need to accept that that data may result in forms of accountability. Just like user data informs accountability measures within their platforms:

The problem with this is it imagines a world where the regulators don't need to perform any kind of audit/inspection.

The reality is, companies cut corners which will cause bugs and "bugs" in the data transfer process. The only way for a regulator to discover these issues is....to do what they do now.

It also ignores the fact that companies like Amazon explicitly tell people who interact with the reporting portion of their MWS business that they cannot report information in real time. And I'm pretty sure that is due to costs. This regulatory model would likely increase compliance costs for businesses with delayed reporting mechanisms because they don't need to guarantee processing in real time. The same is true of numerous companies I deal with at #DayJob. There are numerous remote sites with low bandwidth connections including in other countries that regularly have replication delays for reporting purposes.

There are soooooo many holes that are going to require the "expensive" part of regulation (boots on the ground to inspect/examine) to continue to operate the "old" way anyway.

Re: A solution to the Uber and Airbnb problems that no one will like

#26

I don't see a clear idea in those graphics. What are they telling?

The graphics should have been split in half. The left half is the pre-approval process and the right half is the post-approval process. The two halves compare the relative differences in the compliance burden in the two models.

Re: A solution to the Uber and Airbnb problems that no one will like

#27
post #17

Uber's problems are not Airbnb's problems, and I find this continued trend of always mentioning the two in the same breath when it comes to regulation quite baffling. Opposition to Uber is a clear case of regulatory capture. Every negative outcome that regulation is meant to mitigate (accountability, safety, reliability, discrimination, non-predatory pricing) is better served by Uber (and two-factor location tracking…

> Opposition to Uber is a clear case of regulatory capture. Every negative outcome that regulation is meant to mitigate (accountability, safety, reliability, discrimination, non-predatory pricing) is better served by Uber (and two-factor location tracking) than traditional cabs. I have not heard anybody raise compelling objections to Uber's model based on objective harm to consumers or market non-participants (negative externalities).

You are aware Uber skimps on background checks that result in real harm to real people [among other problems] right? They also actively fight taxi-equivalent background check requirements?

I think the problem is people really do not understand why the vast majority of these regulations exist in the first place. The vast majority are not instances of "regulatory capture" but basic safety like "Hey, don't hire ex-cons in a line of work where they can trap you in a car" and those are what Uber focuses on repealing/fighting.

http://www.nytimes.com/2014/12/10/technology/ubers-system-fo...

> And in California, Uber and other companies like it helped kill a law that would have required drivers to undergo a background check by the state’s Justice Department, as is required of taxi drivers.

> Uber champions its “industry-leading standards” for vetting its drivers. On its website, it describes its background checks as “often more rigorous” than those in the traditional taxi industry.

> But in statehouses across the country, Uber has fought against legislation requiring background checks as strong as those demanded of traditional taxis. Other ride-sharing companies like Lyft and Sidecar, Uber’s chief rivals, have also pushed against the laws, but supporters of stronger background checks say Uber has been by far the most aggressive.

http://www.cnet.com/news/ubers-background-checks-dont-catch-...

> The driver, Duncan Eric Burton, 57, is an ex-con. He'd spent 14 years in federal prison on drug charges and was released in 2012, according to the Houston Chronicle. And he had cleared Uber's background check.

> How does that happen? The city of Houston believes Uber's background checks aren't thorough enough. That's why Houston is among the few cities to require every Uber driver to be licensed by the city and undergo FBI fingerprint checks. But while the city requires it, Uber doesn't -- allowing people to still drive for the ride-hailing service as long as the authorities don't catch them.

> Case in point: one applicant who cleared Uber's background checks had 24 alias names, five listed birth dates, 10 listed Social Security numbers and an active warrant for arrest, according to a report released last week by Houston's Administration and Regulatory Affairs Department.

https://pando.com/2014/01/06/exclusive-uber-driver-accused-o...

> However, Pando has since learned that the driver -- 28-year-old San Francisco resident Daveea Whitmire -- has a criminal record, including felony and misdemeanor charges, and at least one felony conviction involving prison time. How, or why, Uber missed -- or ignored -- this criminal history is unclear.

Re: A solution to the Uber and Airbnb problems that no one will like

#28

I can see why no one would like this sort of regulatory scheme as it would put everyone's relevant data in the open. Everyone would be able to look at it whether you're the affected company or not. Effectively, it gives more data to competitors to figure out where a market is being underserved or underdeveloped which would mean existing firms would have to deal with potential losses of economic profit. Honestly, I pr…

Seems like this would quickly drive profits to zero.

Re: A solution to the Uber and Airbnb problems that no one will like

#29
post #8
post #2

I'm a little confused here. The article says Uber and Airbnb are quite effectively regulating themselves, and never bothers explaining why they're a problem.

I think he means they're good at regulating problems that affect them directly but they're bad at/don't care about regulating externalities. There are laws in place to protect people who stay in hotels and AirBNB does a good job of emulating those, but there are also laws to prevent hotels from messing up society as a whole (e.g. zoning laws) that AirBNB doesn't emulate well or at all.

Right, the regulations are meant to protect both the parties to the economic activity and people who aren't parties. The Uber equivalent, I guess, would be that their system can eliminate drivers passengers don't like, and passengers drivers don't like, but they have no incentive (except bad PR) to make sure, for example, that drivers not carrying customers are properly insured should they hit pedestrians. The self-regulatory mechanisms don't give the pedestrians or other non-parties a lever to advocate on their own behalf.
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