C1. Airbnb and Uber

Companies that use Internet technologies to change the structure of the industry in which they operate can create new legal questions, especially in businesses that are subject to governmental regulation. As you learned earlier in this chapter, Ride brokering services such as Lyft and Uber have created questions about the regulation of the vehicle-for-hire business. Laws in various jurisdictions require taxi and bus companies to hold specific types of licenses, to buy permits to operate in certain geographic areas, to carry specific types of insurance, and often to keep trip records. These laws can require specific standards for the companies employees who drive the vehicles and for the vehicles themselves and are intended to provide for a certain basic level of competence and safety for passengers. In large metropolitan areas, such as New York City, the number of vehicles for hire is carefully managed and there have been disputes between government regulators and these new businesses regarding allegations that they increase traffic congestion. The larger question of whether the ride brokers or the vehicle drivers/owners are subject to various specific laws and regulations remains unresolved in many jurisdictions around the world.

Airbnb has created similar issues in the lodging industry. An online room-booking service that does not own any hotels or other properties itself, Airbnb has found itself in the same kind of unclear regulatory zone as it tries to operate legally in multiple jurisdictions around the world. In many cases, local laws regulate the commercial provision of lodging. Hotel companies work with those laws and often make a substantial investment in learning how to comply with new laws whenever they open a property in a new location. In general, Airbnbs hosts bear the responsibility for complying with local laws related to lodging. For example, many jurisdictions impose lodging taxes that must be collected and remitted by those who rent overnight accommodations. These laws and taxes vary widely even within a single country or state.

Questions:

1. Using your favorite search engine, the resources of your library, and information available on the Airbnb Web site, identify and evaluate risks to which Airbnb hosts are exposed and the protections provided them by Airbnb. Summarize your findings.
2. Using your favorite search engine and the resources of your library, identify and evaluate risks to which Airbnb guests are exposed and the protections provided them by Airbnb. Summarize your findings.
3. Using your favorite search engine, the resources of your library, and information available on the Uber Web site, identify and evaluate the protections provided to riders who use the service. Summarize your findings.
4. New York City has engaged in negotiations with Uber and other online ride-for-hire brokers to find reasonable solutions to both safety and rider safety concerns in recent years. Using your favorite search engine and the resources of your library, identify and summarize the specific issues.
5. Conclude your report with a summary of any implications you see for other large cities as they face these issues.