Need a lift? Uber offering free rides to the polls on Election Day
The 2018 midterm elections are just around the corner and if you need a ride to the polls on Nov. 6? Ride-sharing app Uber has you covered. The company is planning to offer free rides on Election Day as part of a larger effort to “drive the vote” by going the extra mile to support the democratic process. To help the millions of Americans who cite transportation barriers as the reason they don’t vote, Uber will be partnering with #VoteTogether and Democracy Works to provide free rides to the polls. Uber’s decisions follows that of its primary competitor, Lyft‘s August announcement that the company will offer riders half-off rides booked anywhere in the U.S. on Nov. 6 in conjunction with Vote.org and TurboVote who will help distribute the nationwide 50 percent off code that can be used within the Lyft app. According to Fortune, Lyft is working with groups such as Voto Latino to help get underserved communities to their polling stations.
Alabama to get share of $148M Uber settlement over massive data breach
Alabama will get about $2 million of the $148 million Uber is paying to settle a data breach that the ridesharing company attempted to keep hidden, officials said. Attorney General Steve Marshall on Friday announced Alabama participated in a nationwide settlement with Uber that compels the company to comply with data breach notification laws and to make substantial improvements to its data security measures. All 50 states and the District of Columbia joined the settlement with the California-based ride-sharing company, Uber Technologies Inc., to resolve issues arising from a 2016 data breach involving personal information of Uber drivers that the company failed to report for one year. Because Alabama did not have a data breach notification law in effect at the time of the violations, the State’s participation in this case was based upon the fact that Uber’s conduct violated Alabama’s Deceptive Trade Practices Act. “This situation underscores how important Alabama’s new data breach notification law is for our consumers,” said Marshall. “People have the right to know if their personal information is stolen or compromised in a data breach so that they may exercise vigilance and take any actions possible to protect themselves. Until this year, Alabama was one of only two states without a data breach notification law, and I am pleased we were successful in passing legislation to correct that omission.” Uber learned in November 2016 that hackers had gained access to some personal information that Uber maintains about its drivers, including driver’s license information pertaining to approximately 600,000 drivers nationwide. Uber tracked down the hackers and obtained assurances that the hackers deleted the information even though some of that information, namely the driver’s license numbers for Uber drivers, triggered many state laws requiring them to notify those affected, Uber failed to report the breach in a timely manner, waiting until November 2017 to report it. In addition to the financial payment to the states, the settlement requires Uber to strengthen its corporate governance and data security practices to help prevent a similar occurrence in the future. The settlement — the nation’s the largest data breach settlement to date — requires Uber to: Comply with all state data breach and consumer protection laws regarding the protection of consumers’ personal information and notifying them in the event of a data breach concerning that information; Take precautions to protect any user data Uber stores on third-party platforms outside of Uber; Use strong password policies for its employees to gain access to the Uber network; Develop and implement a strong overall data security policy for all data that Uber collects about its users, including assessing potential risks to the security of the data and implementing any additional security measures beyond what Uber is doing to protect the data; Hire an outside qualified party to assess Uber’s data security efforts on a regular basis and draft a report with any recommended security improvements, which Uber will then implement; and Develop and implement a corporate integrity program to ensure that Uber employees can bring any ethics concerns they have about any other Uber employees to the company, and that it will be heard.
Uber prepares statewide launch ahead of July 4th
After years of pushback, ridesharing finally became a statewide reality in March when Gov. Kay Ivey signed a bill making Alabama the 45th state in the nation to welcome comprehensive ridesharing. Now, just a few months later, the law is about to go into effect and the global ridesharing juggernaut Uber is expanding to every county in the Yellowhammer State on Sunday, July 1 allowing access to rides at the tap of a button to new communities ahead of July 4th celebrations. Uber + MADD In anticipation of the upcoming holiday, Uber is joining forces with Mothers Against Drunk Driving (MADD) to help raise awareness about the dangers of impaired driving and remind those drinking over the holiday to make safe choices. While many enjoy cookouts and family vacations, the summer holiday is among the ‘100 deadliest days on the road,’ which fall between Memorial Day and Labor Day weekends. According to the National Highway Traffic Safety Administration, “drinking and driving continues to be the leading cause of death on our roads, with more than 10,000 lives lost across the country each year and nearly 300 alcohol-impaired driving fatalities in Alabama in 2016.” Which is why Uber and MADD are speaking up ahead of the summer holiady. “Uber is committed to helping make drinking and driving a thing of the past by connecting people to reliable rides at the push of a button – and now those rides won’t stop at city limits,” said Uber Southeast General Manager Kasra Moshkani. “As Uber launches throughout Alabama and brings service to new communities, we are proud to partner with MADD to encourage those celebrating during the July 4th holiday to make smart choices. We thank Governor Kay Ivey for her leadership paving the way for residents and visitors across Alabama to have the access to convenient rides and flexible work opportunities they deserve.” “There is never an excuse to drink and drive, and Uber’s expansion throughout Alabama will make it easier than ever to get a safe ride home,” added Pamela Morton, MADD Alabama State Director. “We are proud to team up with Uber to make progress on our goal of getting to zero – zero deaths, zero injuries, zero families impacted by impaired driving. Whether it’s with a designated driver, a bus, or an Uber trip, if you’re drinking this July 4th, leave your keys at home and take a ride on the safe side.” Uber is hiring Uber also offers people new opportunities to work—on their own terms. With this expansion, Uber will connect drivers in all areas of Alabama who are looking to serve their communities with new opportunities. Individuals interested in driving on the Uber platform can sign up on the Uber website.
Ridesharing gets the green light in Alabama
Ridesharing companies like Uber and Lyft got a final green light to operate statewide from the Alabama Senate on Tuesday. The body passed the House-originated version of the ridesharing bill by a vote of 27-0, which will send the legislation to Gov. Kay Ivey‘s desk to sign it into law. The legislation would create a consistent regulatory framework for ridesharing companies across the state and eliminate the haphazard, confusing patchwork of differing municipal laws and regulations. Instead, ridesharing companies would be placed under the control of the Alabama Public Service Commission (PSC), and single permit issued by the PSC would then allow the companies to operate statewide. Ivey announced her support of the legislation last month. “To embrace the future, Alabama must accommodate modern transportation demands. The ability to request an on-demand ride is no longer considered a perk of being in a big city, it is an expectation no matter where one lives or work,” Ivey said at a press conference. “Having consistent rules statewide for ridesharing is the sensible way to give Alabamians access to safe, consistent and efficient transportation options.” Following its passage, Uber spokeswoman Evangeline George issued a statement thanking Ivey and the bill’s sponsors for their leadership in helping pass the legislation. “In passing one clear set of rules for ridesharing, the Alabama Legislature stood with students who need safe rides home late at night, seniors who need rides to their doctors, and commuters who need rides to work,” George said. “We thank Governor Ivey, Representative Faulkner, and Senator Singleton for their leadership and look forward to expanding access to Uber’s safe rides and flexible work opportunities throughout the state.” Lyft spokesman Scott Coriell issued a statement of support as well. “Ridesharing services like Lyft are providing tens of thousands of Alabamians earning opportunities and transportation options that did not exist a few short years ago,” said Coriell. “We’re excited that the legislature has acted to expand these benefits to more individuals around the state, and we look forward to working with the Governor to get this bill over the finish line.” Alabama is one of only six states that lacks statewide ridesharing regulations. Once signed by Ivey, the legislation will allow Alabamians from not only the larger cities, but also suburban and rural communities across the state to take advantage of all benefits the ridesharing industry produces.
Ala. Senate gives ridesharing companies a green light to operate statewide
Ridesharing companies like Uber and Lyft got a green light to operate statewide from the Alabama Senate on Thursday. The body passed SB143, which would create a consistent regulatory framework for ridesharing companies across the state and eliminate the haphazard, confusing patchwork of differing municipal laws and regulations. Instead, ridesharing companies would be placed under the control of the Alabama Public Service Commission (PSC), and single permit issued by the PSC would then allow the companies to operate statewide. The bill, sponsored by Greensboro-Democrat state Senator Bobby Singleton received bipartisan support and passed the chamber unanimously. Alabama is one of only six states that lacks statewide ridesharing regulations. If passed, the bill would allow Alabamians from not only the larger cities, but also suburban and rural communities across the state to take advantage of all benefits the ridesharing industry produces.rural communities across the state. “This is a perfect example of a bipartisan bill that works for all Alabamians,” Senate Majority Leader Greg Reed said. “Installing this regulatory framework is going to provide folks all over the state another choice in transportation, ensure safe operation for both drivers and riders, and pave the way for more jobs in the state.” Because of a lack of statewide regulations, ridesharing companies like Uber and Lyft operate in only fifteen of the larger cities in Alabama: Auburn, Birmingham, Daphne, Gardendale, Gulf Shores, Homewood, Hoover, Huntsville, Mobile, Montgomery, Mountain Brook, Pelham, Tuscaloosa, Trussville and Vestavia Hills. “This is important to the state of Alabama because ride-sharing is the new trend across the United States. If we pass this legislation, we will be the 45th state in the U.S.,” Singleton remarked. “It’s important for us as a state to keep up with trends. This will allow citizens in the state of Alabama to be employed and it will allow people who don’t have transportation to be able to move around in their cities.” Uber’s public affairs manager Nick Juliano praised Alabama lawmakers for passing the bill. “The Alabama Senate took the first major step today in making sure that people in every corner of our state have access to reliable, affordable transportation,” Juliano said. “By expanding ridesharing services to all of Alabama, this legislation will create thousands of new jobs. We are grateful to members of the Senate for their support of this pro-growth initiative that will make Alabama the 45th state in the nation to adopt a statewide ridesharing law.” SB143 now moves to the House of Representatives for consideration.
Ridesharing bill on the move in the state Senate
Ridesharing services like Lyft and Uber took a step toward to becoming legal in Alabama, as the Senate Tourism and Marketing Committee approved a bill on Thursday that will now head to the full Senate for further consideration. The would create a ridesharing network across the state for companies and place it under the control of the Alabama Public Service Commission (PSC). A single permit issued by the PSC would then allow the companies to operate statewide under uniform regulations rather than requiring each municipality to file for their own permits and regulations. Alabama is one of only six states that lacks statewide ridesharing regulations. If passed, the bill would allow Alabamians from not only the larger cities, but also suburban and rural communities across the state to take advantage of all benefits the ridesharing industry produces. Currently, ridesharing companies like Uber and Lyft operate in only 15 of the larger cities across the state —Auburn, Birmingham, Daphne, Gardendale, Gulf Shores, Homewood, Hoover, Huntsville, Mobile, Montgomery, Mountain Brook, Pelham, Tuscaloosa, Trussville and Vestavia Hills — but due to a lack of comprehensive, statewide regulations aren’t able to operate in all parts of the state. On Jan. 11, Mountain Brook-Republican State Rep. David Faulkner introduced the House companion bill, HB 190.
Blake Dowling: Disruption and artificial intelligence
Uber, Netflix, Amazon Go, Legal Robot, Watson, Einstein, Starship … all examples of disruption and the artificial intelligence that is changing the legal, medical and business world every day. Maybe you have heard of some (or all) of them; they all have an interesting story. Whether it’s a smart grocery store, robot doctor or automated delivery service, these entities — along with many other — bring to the table constant innovation, as well as disruption. I will focus on two, so I will not bore you with a novel. No. 1 on the list is Einstein. Do you run staff meetings? Work with campaign volunteers, lobbyists, sales people or agency directors? Regardless of which world you find yourself in, some of those around you may be too grim, too optimistic, or will just tell you what you want to hear. Each week, Salesforce CEO Marc Benioff holds a Monday morning staff meeting with his top execs. After hearing reports, Benioff turns to his advisers and asks them what they think. This is pretty normal behavior, except that adviser is a robot named Einstein. “For a CEO, typically the way it works is, of course, you have various people, mostly politicians and bureaucrats, in your staff meeting who are telling you what they want to tell you to kind of get you to believe what they want you to believe. Einstein comes without bias. So, because it’s just based on the data, it’s a very exciting next-generation tool” Benioff says (quoted in Business Insider). Does this mean the days of assistants is gone? Political Advisers? Police? Would you rather have an unbiased fact machine or a human who might be biased, racist, drunk, call in sick, moan and groan, take vacations and embellish. Or an automated 24/7 powerhouse of truth, which sees all as-is? Let the debate begin. Moving on to the grocery store. No long ago, I wrote about the Amazon Go concept store, where the grocery game will soon change again thanks to Simbre, an outfit out of Cali with a product called Tally. Tally is a supply chain efficiency guru, roaming the aisles, stocking items, confirming prices, yanking out-of-stock items; tasks that a human does now. Is this a concept you may be thinking? Negative, it is a reality. A small chain in the Midwest called Schnuks Groceries is right now rolling out a six-week demo right now. Results of this demo could have a profound effect on the entire industry, with cost savings plus a surge in efficiency that will put Schnuks on the worldwide map in a big way. Publix and Kroger execs will be baffled by the beat down by these innovative upstarts. Or they will claim they came up with the idea. Hopefully, Schnuks doesn’t get snookered. As Picasso once said: “Good artists copy, great artists steal.” That’s it for today, campers. I hope all this talk of disruption and innovation hasn’t spooked you too much. If you happen to be in St. Louis, go to 6600 Clayton Road in Richmond Heights and check out Tally cruising the aisles. I wonder if you can hack Tally? Sounds like a column for next time; I can see the headline now: “Robot destroys Twinkies and stores reputation.” Clean up on aisle 4, indeed. ___ Blake Dowling is CEO of Aegis Business Technologies and can be reached at dowlingb@aegisbiztech.com. Dowling is a firm supporter of Showtime broadcasting college football games with comedians Adam Sandler and Katt Williams providing commentary. The end.
Uber to Alabama lawmakers: don’t adjourn without one set of ridesharing rules
With no ridesharing-friendly bills signed into law this year and just days left in the legislative session, Uber is making a final plea to state lawmakers to pass one clear set of rules that will bring ridesharing to the entire Yellowhammer State. In a blog post on Tuesday, Uber Alabama General Manager Luke Marklin urged Alabama lawmakers to follow in the footsteps of more than 40 other states across the country, and pass a statewide framework for ridesharing before adjourning this legislative session. “Alabama’s lawmakers should not leave town this week without sending a bill to Governor Ivey that brings Uber’s reliable rides and flexible work opportunities to everyone in the state with one clear set of rules,” said Marklin. “Forty-two states—and counting—have passed statewide ridesharing frameworks, and letting this session end without a law in Alabama will leave Alabama’s residents and tourists behind. If cities continue to have varying rules for ridesharing, it will hurt thousands of drivers’ ability to earn money and prevent people from a getting a ride when they need it most.” Currently ridesharing companies like Uber and Lyft can only operate in select cities throughout the state, and are governed by agreements with each individual city. Which is why, earlier this month, the state House of Representatives passed HB283, which endeavors to provide uniformity of laws governing transportation network companies by ensuring companies, drivers, and insurance requirements are governed solely by Alabama State Law. However, a last minute amendment that was added to the bill, is complicating its future. Instead of allowing the law to apply statewide, HB283 would now only apply to cities and unincorporated areas of the county that do not currently have ridesharing services, should it be signed into law. “A last-minute provision added to the legislation will continue Alabama’s patchwork of conflicting regulations and create more confusion for riders and drivers,” said Uber spokesperson Evangeline George. On Wednesday, the state Senate is expected to consider an alternative bill, which has the full support of Uber. SB271 creates one single set of rules for ridesharing that Uber believes “Alabama needs.” According to Uber, nearly 2,000 Uber riders and driver-partners in Alabama have written their representatives and senators about why Uber is important to them and should be available throughout the state. “I am an Uber driver with over 2,000 rides under my belt, and I can tell you that the majority of my riders state how much they love Uber,” said Tonja, an Uber drive-partner from Mobile. “The convenience of being there to pick them up within minutes, the cost of a ride, and friendly drivers are a godsend to them. Uber has lowered the number of DUI arrests in this country and abroad. It has given drivers the freedom to work on a schedule that best suits their lifestyle, which has opened up an entrepreneurship that helps families and individuals everywhere.” Leaders from across the state are echoing Ubers pleas to legislators, urging them to pass a statewide framework for ridesharing in Alabama this session: Dr. John R. Drew, Senior Vice Chancellor, Troy University: “While Alabama’s large cities have passed ridesharing regulations, it will be impossible for the service to come to small cities like Troy without a statewide law. Continuing Alabama’s patchwork of conflicting regulations will only foster confusion and hamper our ability to get the rides we deserve. We need one set of ridesharing rules to ensure Troy University students can count on Uber for rides to and from Montgomery, Auburn, and anywhere else in the state they choose to visit.” Eufaula Mayor Jack B. Tibbs Jr.: “In Eufaula, providing for the safety and security of the citizens of our community is a top priority. Ridesharing has proven to have a significant impact on public safety in communities across our country, which is why I urge you to pass one clear set of rules for ridesharing in Alabama that would allow companies like Uber to operate statewide.” William J. Canary, President and CEO, Business Council of Alabama: “Alabama is building a reputation around the globe for being open and welcoming to technological innovation and entrepreneurialism exampled by the influx of high-tech jobs to regions across our state. HB 283 will help Alabama to continue moving in this direction and is a commonsense approach that benefits consumers, businesses, the entrepreneurs who work with TNCs, and local governments.” J.T. Griffin, Chief Government Affairs Officers at Mothers Against Drunk Driving: “MADD knows that Alabama is currently considering legislation, HB 283, which would provide for a consistent, clear regulatory mechanism that would allow rideshare companies to operate statewide. Rideshare has the ability to help provide new alternatives to take drunk drivers off the road and help protect our communities. MADD would urge you to consider the lifesaving potential of rideshare technology as you consider this legislation.” Joy Harris, President of the National Federation of the Blind’s Alabama Chapter: “As President of the National Federation of the Blind of Alabama, I support the passage of HB 283, which would permit ridesharing services to operate throughout the state with appropriate regulation. We strongly support the expansion of these services throughout the state. Provision of ridesharing in underserved areas would explode the number of transportation options available to blind residents. It would allow the blind to independently order their own transportation and free anyone who was reluctant to provide it from that task.”
Daniel Sutter: Technology, sharing and regulation
The ride sharing company Uber has used technology to evade law enforcement in cities where its service was not approved. The case raises several interesting questions, perhaps most importantly involving the future of the sharing economy. Uber has battled entrenched and regulated taxi companies. Hopefully these battles will not distract or stall the unleashing of the enormous potential of sharing to improve our lives. Uber connects people willing to pay for rides with people willing to provide them using their own vehicles via a smart phone app. The company performs background checks on drivers, sets prices, but does not own vehicles. Driving strangers for a fee sounds like taxi service, which is why Uber has run afoul of taxi regulations. Police in cities where Uber is illegal have tried sting operations to catch drivers, but have been frequently “greyballed,” as reported by the New York Times. Uber’s technology does not just suspend the account of a questionable rider. Instead, it lets the rider line up a ride, but then cancels the ride. The same thing happens again if the rider puts in another request. The technology has been adept at identifying law enforcement accounts Greyballing has helped Uber enter new markets without permission and build up loyal riders, who then push for legalization. The company has admitted to and agreed to stop using greyballing to evade law enforcement where its service is not legal. Before condemning the technology, Uber has good reasons to block certain people from hailing rides. Consider a rider banned from the service for abusing drivers. The banned rider can always create a new account, so Uber cannot actually “blackball” a rider. If the new account is canceled, the rider could create yet another account, which might slip through. Letting a banned rider wait for rides which never arrive can better prevent misbehavior. How one evaluates Uber’s evasion likely depends on one’s assessment of taxi regulation. Economists have publicized the costs of taxi regulation for decades. Taxi regulation uses medallions for legal cabs. Cities limit the number of medallions, allowing taxi companies to charge higher fares than under competition. Regulation also sets maximum fares, but rates generally allow taxis to earn significant profits. The price of medallions on the market shows the profitability of regulated taxis. The medallion is just a legal authority and does not help provide rides, and thus differs from the cars, gasoline, tires, maintenance, drivers, insurance, and dispatchers that provide transportation. The value is due to profit, and medallions in New York City sold for $1.2 million prior to Uber’s emergence. Cities have enabled taxi cartels that charge customers more than necessary. If you believe that taxi regulation rips off consumers to enrich cab companies, you might agree with libertarian Jeffrey Tucker’s characterization of greyballing as a “public service.” Indeed, Uber’s app has eliminated the economic rationale for taxi regulation. Before the internet and smart phones, travelers had difficulty accessing information about reliable cab service in unfamiliar cities. The greater potential for passengers to get ripped provided more justification for government regulation. The market no longer needs government assistance. Using technology to bring down taxi cartels that have proved impervious to reform is attractive. But I often emphasize respect for the law, and thus am conflicted about undermining laws which we have been unable to change through the political process. I think that peoples’ obligation to obey the law places a duty on politicians to only enact or maintain laws that serve the public interest. We should expect respect for the law to decay when politicians pass laws enriching some citizens at the expense of others. Reasonable people may disagree about whether Uber is on the side of the angels in battling taxi cartels. But this ultimately is a separate issue from capturing the economic value in cars, homes, jet skis, power tools, and clothes which do not get used frequently. I just hope that Uber’s fight against taxi regulation, which might end badly for the company, does not sidetrack the sharing economy. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Uber announces support for ‘unified framework’ for Alabama ride-sharing
Uber announced Thursday it is supporting a bill moving through the Alabama Legislature that would create a statewide framework for ride-sharing. “Every day in Alabama, thousands of people depend on Uber for affordable transportation options and flexible work opportunities,” said Uber Alabama General Manager Luke Marklin. “With a statewide framework, even more Alabamians will benefit from a convenient ride at the tap of a button — and current riders and drivers will count on an even more reliable experience.” HB 283, sponsored by Rep. David Faulkner, would require ride-sharing company drivers to go through a thorough background check before they can start working and would legislate some consumer protection provisions, such as requiring estimated fares to be disclosed before a ride and requiring detailed receipts be sent electronically, two practices Uber already employs. The bill would also allow Alabama municipalities to opt out of having ride-sharing companies operate within their jurisdiction. “It’s time for Alabama to bring certainty to consumers with a statewide ride-sharing framework,” Faulkner said. “Access to new technologies and affordable rides should not be limited to those who live in the biggest cities, and this bill will give all of our residents the transportation options they deserve. The current patchwork of inconsistent regulations is unsustainable, which is why Alabama should not go another year without passing uniform ride-sharing laws.” The bill also has the support of Mothers Against Drunk Driving, with the group’s Chief Government Affairs Officer J.T. Griffin telling Alabama Lawmakers in a letter that services such as Uber have “the ability to help provide new alternatives to take drunk drivers off the road and help protect our communities.” HB 283 was filed by the Jefferson County Republican Feb. 21 and has been referred to the House Committee on Commerce and Small Business.
Daniel Sutter: The new power of sharing
Economic growth often involves new factories manufacturing more goods for us. But new forms of economic activity also contribute to prosperity. Ongoing innovations in the sharing economy can increase our standard of living without providing more goods. The best known firms in this new sector are ride- and home-sharing services Uber, Lyft, Airbnb and Home Away. These companies enable people to provide rides or lodging using their own cars or residences in exchange for payment. The use of existing cars and homes is the element of sharing. Many successful businesses have long facilitated sharing. The Uber and Airbnb examples show us that taxis, car rentals, and hotels all represent businesses built around sharing. Lawn services, bowling alleys and libraries also involve sharing. A lawn service uses its mowers to mow one lawn after another. By contrast, the mower you own and use sits in the garage most of the time. The new forms of sharing typically employ new technology, including the internet, smart phones, and social media. Technology is reducing transaction costs, which are the costs of carrying out buying, selling, and trading. Transaction costs often go unnoticed in the retail sector, but only because many innovations have routinized shopping at grocery or department stores, or now shopping online. Commerce-facilitating innovations include department stores, brand names, advertising, and credit cards. Many economists overlook transaction costs. But economists Douglas North and Oliver Williamson won Nobel Prizes for studying transaction costs. Some economic historians now view transaction cost reducing institutions as the fundamental source of modern prosperity. The market for used books illustrates how lower transaction costs make new trades profitable. The great challenge for exchange here is for sellers to find buyers interested in their books. Used bookstores offered a place for buyers to go to find a decent selection of titles. The excitement of discovering books you really wanted, however, really highlighted the limits of the process. Today anyone can buy or sell almost any book on Amazon Marketplace or eBay. Many new forms of sharing take the rental model. Social media allows the borrowing of tools, cookware, and trucks among a wider circle of friends. Extending borrowing circles is crucial in allowing people to find needed items. Sharing economy businesses are facilitating trading. And different modes of sharing exist. Uber offers rides by others, while Zipcar and Car2go rent cars owned by these companies for people to drive. Zipcar used technology to automate the rental process, allowing cars to be parked near where customers live. Most sharing economy businesses are really marketing innovations that reduce transaction costs. Airbnb’s background checks and rating systems, for example, increase the number of people willing to rent their homes, or pay to stay in a stranger’s home. Wise sharing will allow Americans to own less stuff, and the self-storage industry illustrates how valuable this might be. Today over 55,000 facilities nationwide have 2.5 billion square feet of space and earn annual revenues of $27 billion. About 10% of households rent a unit, and 65% and 47% of customers already have a garage or an attic – and still pay for more room. Sharing will let people tie up less of their wealth owning things that they rarely use. A University of California study found that each Car2go vehicle reduced the number of cars operated by residents of a city by 7 to 11. Essentially this means that one shared car can replace up to ten. Sharing allows people to avoid car payments, insurance, and parking, instead renting only when needed. A University of Massachusetts study estimates that many households could benefit $275 per year, which could rise to $1,000 with really extensive sharing. These savings will increase our prosperity, primarily by allowing peoples’ incomes to go further. We will instead have new and less expensive ways to access things we want to use. Innovative uses of technology constantly improve our lives, often by reducing transactions costs. The sharing economy is doing this today, providing an example where less is more. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Uber, Google develop app for Election Day rides
Election Day is only days away, and Uber and Google have teamed up to help voters cast ballots. As part of its ongoing campaign to boost the turnout among Uber users, the San Francisco-based ride-sharing service has worked with Google a special in-app feature available Nov. 8 that will help locate polling locations – and quickly request a ride with a simple tap on the smartphone. On Election Day, Uber users will see a reminder to get out and vote; the unique feature will let them enter the address where they are registered, helping to locate the appropriate polling sites by hitting the “Find Your Polling Place” before requesting a ride. New Uber users riding for the first time can enter the code VOTETODAY for $20 off. Unlike other Uber promotions, trips will be subject to standard charges, with no free or discounted rides for existing users on Election Day. According to the Uber blog: “Given the important decision people around the country will make on Nov. 8, we wanted to make getting to and from your polling place easier than ever.”
