Why the Sharing Economy is Good Presidential Politics
By Gary Shapiro
The sharing economy is a key engine for economic growth in the 21st century. Uber is adding 20,000 new drivers each month. Roughly half of Airbnb hosts say hosting travelers in their homes helps them cover their monthly household expenses. And more than 90 million local reviews have been posted on Yelp, enabling us to share information and support local businesses. The same is true of Trip Advisor, whose 290 million reviews from travelers around the world have replaced traditional travel guidebooks, thanks to its innovative platform, which includes reviews of local attractions.
The Wall Street Journal calls the sharing economy “a green shoot in a postindustrial age” — a perfect platform for 2016 presidential candidates to support jobs, entrepreneurship, affordable services and new opportunities for underserved populations.
At tomorrow night’s Democratic debate in New Hampshire, the candidates for president have an opportunity to stand up for the sharing economy and declare their support for this incredible economic engine empowering the middle class.
Republicans running for president embrace to varying degrees the economic innovation represented by the sharing economy. But the three Democratic presidential hopefuls have yet to voice their support. Front-runner Hillary Clinton said the sharing economy “[raises] hard questions about workplace protections and what a good job will look like in the future.” Sen. Bernie Sanders of Vermont has said he has “serious problems” with these smartphone-enabled services. And former Maryland Governor Martin O’Malley seems more interested in regulating sharing-economy services than promoting their growth.
Thanks to services such as Airbnb, HomeAway and VRBO, the sharing economy has made it easier than ever to connect visitors with homeowners who have rooms or even entire homes to spare, often at less than the cost of a hotel room. And these rentals, in turn, offer hosts new sources of income. In fact, 52 percent of Airbnb hosts are low or moderate income, and 53 percent say rentals have helped them to stay in their home. If it weren’t for Airbnb, my family this year wouldn’t have enjoyed great vacations in New York and Florida.
Fewer than one-quarter of drivers say Uber is their only source of income. Every Uber driver I have ever had uses it to supplement their primary job, often aiming at a specific purchase, reducing debt, affording a special gift, keeping a startup afloat, meeting people or even, in one instance, starting a charity. Furthermore, nearly 90 percent of drivers say that “being their own boss” is the main reason they work for Uber. Three out of four drivers say that given the choice between a traditional 9-to-5 schedule and more independent work, they’d opt for the independence.
But sharing-economy services aren’t just about making money. Many of these services also help maximize our use of resources, bettering our planet.
Ride-hailing services are often a substitute for car ownership, reducing the need for parking and saving fuel by pooling rides. Bike-sharing programs offer locals and tourists alike wheels when they need them — an energy-efficient alternative to taxis. Meanwhile, a 2014 study found that Airbnb guests in North America use 63 percent less energy than hotel guests — enough energy to power 19,000 homes for a year.
Given the immense importance of tech as a driving economic force, and with the right prompting from debate moderators, the Democratic candidates have an opportunity on Saturday night to take a public stand on the value of the sharing economy.
Putting new burdens on these citizen-to-citizen services is a losing message, encouraging voter rebellion. This is the Democrats’ moment to side with entrepreneurs and everyday Americans offering and using these services and helping drive our new economy.
Gary Shapiro is president and CEO of the Consumer Technology Association (CTA)TM — formerly the Consumer Electronics Association (CEA)® — the U.S. trade association representing more than 2,200 consumer technology companies, and author of the New York Times best-selling books, Ninja Innovation: The Ten Killer Strategies of the World’s Most Successful Businesses and The Comeback: How Innovation Will Restore the American Dream. His views are his own. Connect with him on Twitter: @GaryShapiro
