But like any transformational change in our economy, the sharing economy creates losers as well as winners. Lingering disputes between airbnb and local governments over taxes are slowly being sorted out, and last week the company agreed to pay taxes in Washington state on behalf of those who rent their homes through the service. With Uber, the company’s aggressive expansion has put it head-to-head with regulated taxi services worldwide. Its defiance of local regulations has sparked violent protests by taxi drivers across Europe and legal pushback in France. Two Uber executives face the possibility of two-year jail terms in France for “deceptive commercial practices.”
But the list of losers could also include those who are fueling the growth of this huge new segment of the economy. Uber claims its drivers can make more than taxi drivers, but it offers no job security and leaves it to the contractor drivers to pay for gas and vehicle maintenance as well as a commission to the company said to be 20 percent.
Uber faces a pending federal class-action lawsuit in its home state of California filed by thousands of Uber drivers who want to be declared employees rather than contractors. Many analysts say a ruling favoring the drivers could undermine the foundations of the sharing economy.
All workers, whether contractors or employees, deserve protection against unscrupulous practices. Uber, skirting near or over the edge of legality in some of its practices, is a worthy target for legal efforts to strike a balance between worker protections and nourishing the exciting entrepreneurial zeal of the sharing economy.