What’s Yours
Is Mine: Against the Sharing Economy by Tom Slee review – the problem with
Airbnb and Uber
The most
significant examples of what used to be called the ‘sharing economy’ are giant
corporations pursuing monopoly power – what exactly is being shared?
Steven
Poole
Saturday 2
April 2016 07.30 BST Last modified on Wednesday 29 November 2017 10.48 GMT
‘Sharing”
is one of the most rhetorically abused virtues of the age. First we had the
euphemism “file-sharing”, for duplicating and uploading copies of albums or
films to the internet. Well, you can’t share what isn’t yours in the first
place. (If I pilfer money from a bank and give it to my friends, I might plead
that I was just “money-sharing”, but I am more likely to be convicted of
robbery.) And now we supposedly have a “sharing economy”, the most-often cited
two examples of which – Uber and Airbnb – are giant corporations pursuing
monopoly power and fighting governments the world over. What exactly is being
shared here, and in whose interest?
The first
“sharing economy” organisations allowed members to timeshare things such as
cars or power tools, rather than owning one each and leaving it idle most of
the time. In their purest form such groups were “peer-to-peer”:
self-organising, with no central authority. Once a for-profit company is set up
to handle the logistics – such as Zipcar – however, the notion of “sharing” is
arguably already out of the window. Still, there remained the kernel of a
communitarian idea in the origin of Airbnb, founded by two tech workers who rented
out airbeds in their spare rooms for a conference, and thought there might be a
market.
Airbnb’s
marketing still plays on the feelings of virtuous and adventurous sociability
in the idea of a “guest” staying in a spare room of the “host’s” home. Yet, as
Tom Slee’s superbly argued book points out, the vast majority of Airbnb’s
business is now “entire home” rentals: self-contained flats or villas.
Long-term renters in cities such as San Francisco are being forced out by
landlords who see more profit in short-term Airbnb stays. Slee performs some
very clever data research and finds out that the most expensive Airbnb
apartment in Rome is one of several European luxury pads rented out by an
American tech entrepreneur, who bought them with the proceeds of the sale of
his last software company. The idea of “sharing” is as meaningless here as it
is in Uber’s made-up concept of “ride-sharing”, which sounds as ecologically
minded as “car-sharing” but actually describes a taxi service. Nor is any
“sharing” going on with companies such as TaskRabbit, in which people bid to
perform other people’s odd jobs.
What is
explicitly not shared by any of the poster children of the “sharing economy” is
responsibility. When something goes horribly wrong with an Airbnb or Uber
transaction, the companies just say: “It wasn’t me.” (The mega-corporation is
purportedly neither buyer nor seller but innocent middleman.) Slee has a
brilliant chapter on how star-rating “reputation systems” between users simply
don’t work, because people feel bad about giving low ratings even when they are
amply deserved, so they all cluster between four and five. Instead, trust has
to be enforced by authoritarian surveillance and discipline imposed by the
company itself. Even so, the companies insist that they are not even providing
a service; the websites and apps are just a “communications platform” to link
buyers and sellers. (Even as they price-gouge the sellers, with Uber taking
increasingly large cuts of up to 30% of a fare.) Nor, notoriously, does Uber
consider its drivers to be employees to whom they would owe responsibilities:
they are instead “independent contractors”.
What all
these artificial constructions amount to for Uber, Airbnb and the like is an
attempt to bypass laws enacted over decades precisely in order to protect both
renters and landlords, taxi drivers and passengers. Impressed by their
popularity and financial clout, most lawmakers bend over backwards to
accommodate them. Helpfully, California passed a special law recognising Uber
and its competitors as “Transportation Network Companies”. In the face of
complaints by London’s black-cab drivers, the high court ruled last year that
an Uber driver’s smartphone is not a “taximeter” because the measurement of
mileage through GPS signals and the calculation of the fare are done over the
internet. This might strike some as a perversely creative refusal to
acknowledge the plain meaning of the relevant legislation. The full definition
of “taximeter” in the Private Hire Vehicles (London) Act of 1998 reads: “In
this section ‘taximeter’ means a device for calculating the fare to be charged
in respect of any journey by reference to the distance travelled or time
elapsed since the start of the journey (or a combination of both).”
None of
this is to say that profitable pseudo-“sharing” operations cannot be set up to
work in the best interests of everyone. The introduction of Paris’s cycle-hire
scheme Vélib’ in 2007 was a great boon for residents of the city, and it now
also has Autolib’, a very successful similar operation for electric cars. In
the meantime, lots of us will continue to use Uber, too. To criticise it is not
the sole preserve of people who are unqualified admirers of London cabbies’
high fares and habit of driving past in the rain. Slee points out, rightly,
that his arguments are not about whether he or his readers actually use these
services. In modern times we have been miseducated to believe that consumer
choice is all-powerful, but the idea that consumers exercising their sovereign
right to choose will always lead to the best outcomes is obviously in the
interest of corporations seeking to escape official regulation. So, Slee uses
Airbnb himself but backs the city authorities seeking to regulate it more
tightly; and there is no contradiction in taking an Uber home from a party
while wishing the company were better behaved. Only the law can force it
to be so.
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