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Sharing Economy

Gov. Newsom’s ‘petitions’ + Prop. 22 backers reunite to lobby + CalChamber’s vaccine campaign

COALITION REFORMS ‘TO PROTECT APP-BASED DRIVERS’

Last year, gig economy giants like Uber and Lyft built a coalition of organizations to help them pass Proposition 22, the initiative that generally exempted them from the new California law that requires businesses to give employment benefits to more workers. 

Now, the Protect App-Based Drivers and Services Coalition is uniting again to lobby for “access to independent, app-based work, and preserve the availability, affordability, and reliability of on-demand app-based rideshare and delivery services that are essential to California’s economy,” according to a group statement.

Its first target is Assembly Bill 286, which caps charges for a food facility’s use of a platform such as DoorDash to 15% of an online order’s purchase price. The bill is authored by Assemblywoman Lorena Gonzalez, D-San Diego. Gonzalez wrote also wrote Assembly Bill 5, the employment law that was weakened by Prop. 22 last fall.

“As an immediate priority, the coalition is actively working to oppose legislation that would restrict access to app-based work and services such as Assembly Bill 286, which would impose unworkable new regulations on app-based delivery services that would raise consumer prices, decrease customers for restaurants, and reduce earning opportunities for drivers,” the group said in a statement.

Members of the coalition include the Congress on Racial Equality, the National Taxpayers Union, the California Narcotics Officers Association, the Consumer Choice Center, Uber, Lyft, DoorDash and Instacart.

Originally published here.

Platform work needs flexibility

The European Commission needs to respect the flexible status of platform work…

In a recent call for consultations, the European Commission is asking to get feedback on a potential new directive on regulating platform work. The sharing economy services like Uber, Bolt, Heetch, etc. are being targeted by a number of member states for hiring freelancers.

In a way, the European Commission has provided an extensive overview of the issue and has contextualised the challenges associated with the issue. The quotes from the consultation document underline this fact. 

“At the macro-level, not addressing the issues faced by people working through plat-forms in the EU may have repercussions for European labour markets and societies aggravating labour market segmentation and inequalities and potentially leading to a diminished fiscal base for EU governments and thus reducing the effectiveness of social security systems.”

and

“Overly restrictive regulation could have a stifling effect on innovation and job creation potential, especially for smaller-scale European scale-ups and start-ups and self-employed persons, depending on its scope.”

This displays a differentiated view on the issue of platform work and the implications of incoming regulation. However, the Commission has underestimated the consumer perspective in its analysis. All actors, including platform workers themselves, are benefactors of the sharing economy — through its potential for reducing cost and efficiency, as well as thorough environmental benefits.

Ride-sharing platforms have given the opportunity to reduce costs for all consumers in major cities, allowing market entry to a new set of consumers, i.e. those consumers who were previously unable to afford a ride in the traditional taxi market.

This does not only apply to short rides with platforms such as Uber, Bolt, or Heetch, but also to long-distance travel through carpooling sites such as BlaBlaCar. These services have enabled a more social experience, all while being more environmentally-friendly due to the optimisation of resources.

Other sharing economy services have provided more flexibility and work-life balance to all consumers and those who use the services, for instance through co-working spaces. Adding to that, businesses have found new opportunities, such as through the connection of smart delivery services. The European Commission should account for the added value of platform work for consumers.

In one of its questions, the Commission asks: “Do you consider that EU action is needed to effectively address the identified issues and achieve the objectives presented?” EU action can help facilitate coordination between member states, particularly when a service crosses borders. For instance, an Uber crossing from one country to another. That said, there is no legitimate need for EU action on this topic, due to the diverse nature of sharing economy services. Member states face different challenges in the area of housing, mobility, and other consumer products and services, and therefore a blanket legislative approach would not be appropriate. Each member state should make the necessary regulatory decisions.

This does not only apply to the question of consumer policy but also in the realm of labour regulations. Knowing that there are different social security requirements in all member states, a regulatory alignment in one sector could excessively complicate the interior rules system of each country. Adding to that, this approach does not allow for regional specificities. For instance, the mobility sector might be burdened with a restrictive licensing system, which can only be alleviated with the introduction of a ride-sharing platform. Making it more difficult for the latter to be introduced would hurt consumers.

If we are to follow the principles of the single market, the European Commission should uphold the legality of ride-sharing services throughout the bloc.

Originally published here.

For young consumers, sharing is caring

Services such as Uber and Airbnb represent immense opportunities for employment and innovate consumer services.

The current COVID-19 pandemic has shown both how much the sharing economy has helped consumers access essential goods and services, while at the same time revealing the restrictions and regulations that undermine them. For instance, sharing economy services have made it possible for many consumers to access food delivery services during COVID-19 lockdowns. 

The Consumer Choice Center’s Sharing Economy Index 2020 looks at 54 world’s most dynamic cities to see which ones are the most sharing economy-friendly. According to the findings, excessive regulation of taxicabs has caused a lot of harm, and with various ride-hailing services entering the scene, the issue has become particularly apparent. The fear of competition has taken taxicab drivers to the streets and, in the end, resulted in even tighter regulation of ride-hailing services. In order to reduce the disparity between traditional taxi cabs and ride-hailing services, most cities introduced a taxi drivers licence requirement for ride-hailing service drivers. In all cities, except Kyiv (Ukraine), it is necessary to obtain a taxi driver’s licence to become a taxi driver. Although the requirements differ from city to city, becoming a rideshare driver isn’t significantly easier: out of 52 cities analysed, only ten do not have a similar taxi licence requirement. 

A smarter way forward would be less regulation of both taxicab services and ride-hailing, not more. Instead of picking losers and winners in the marketplace, institutions and regulatory bodies should create and sustain the conditions under which both traditional services and platform businesses can compete on equal and fair terms. It should be only up to the consumer what service to use.

Young consumers have been early adopters of sharing-economy innovations. In essence, this phenomenon sheds lights on a new perspective on the efficient use of scarce resources. This works for the known application of sharing economy services such as houses, flats, cars, bicycles, or gyms. But the pay-per-use system also works for services such as gyms or office space, or even for household items — for instance, why buy a hammer you’ll only need a few times when you could order a hammer for a single-use occasion, paid for the time you needed it. This would create more resourceful communities, more accurately producing what is needed for each household. 

As digital natives, young adults are easy to convince of such services, but companies such as Uber and Airbnb have quickly shown that even those who did not grow up with computers become tech-savvy when it comes to saving money on better services, or utilising their resources efficiently. On top of that, the review system of these companies allows for more security and oversight. With Uber, parents can more comfortably let their teenagers be picked up by drivers that are identified and known by the company that relays the service. On Airbnb, the community roots out bad actors through reviews and complaints.

The sharing economy also provides employment opportunities that previously did not exist for some people. A comment by Benjamin Bell (former Head of Public Policy at Uber), who appeared on LinkedIn, clearly shows this: “I was driven home by a man with a hearing impairment, very well rated in the application by Uber passengers, but not in the traditional labour market.” He added: “Technology lowers barriers and raises aspirations.”

It is not in the interest of any country or consumers to regulate the sharing economy to safeguard industries and corporations that have been regulated by the state for decades. If hotels and taxis want to compete with new technologies, they will have to adapt, rather than clinging to government protection. The sharing economy is a necessary technological disruption that benefits everyone.

Originally published here.

Такой тотальный шеринг: прокатные услуги набирают обороты

В Петербурге растёт спрос на аренду различных вещей и техники, чаще всего это платья для торжеств, декор, реквизит и спортивный инвентарь

Шеринг (или, иначе говоря, прокат) вещей набирает популярность в России. Уже не первый год граждане арендуют на короткое время автомобили, самокаты, яхты, квартиры. Двигателями экономики совместного потребления в нашей стране являются представители поколений Y и Z, которые предпочитают брать что–то дорогостоящее в аренду, а не привязываться к вещам. Топ–5 секторов экономики совместного пользования в России — это c2c–продажи, p2p–услуги, каршеринг (поминутная аренда автомобилей), карпулинг (совместные поездки на частном автомобиле) и краткосрочная аренда недвижимости.

Аренда вещей — достаточно новое направление шеринга, пока оно не так сильно распространено в стране. Первые сервисы, которые стали предлагать в аренду абсолютно любые товары, появились на российском рынке примерно 5 лет назад. По итогам 2019 года объём транзакций в этом секторе составил всего 220 млн рублей. Но рост рынка аренды вещей, по данным исследования Sharing Economy 2019, в прошлом году оценивался в 22%, причём наблюдается смещение спроса в сторону шеринга более дорогих товаров. Эксперты отмечают, что сейчас в аренду берут дорогие платья, аксессуары, специализированную технику и гаджеты. А вот модели, по которым может работать бизнес в данной сфере, две — предлагать вещи в аренду от частных лиц или же собственные.

Read more here

Ο Δρανδάκης, η Beat και η ειρηνική επανάσταση στην καθημερινότητα

«Oι ιδρυτές των πετυχημένων startups, και πολλά στελέχη τους, πολύ συχνά φεύγουν από την αρχική εταιρεία λίγα χρόνια μετά την εξαγορά. Έχουν αποκτήσει περιουσία, εμπειρία και αυτοπεποίθηση, και είναι ακόμα νέοι. Ξεκινούν νέα επιχείρηση, δική τους, και είναι πάλι αφεντικά. Προσλαμβάνουν συνεργάτες, που μπορεί να προέρχονται κι αυτοί από startups που πέτυχαν ή απέτυχαν. Έτσι μεγαλώνει και ωριμάζει το οικοσύστημα. Με εταιρείες εγχώριες, και με θυγατρικές πολυεθνικών. Με επενδυτές που θα επενδύσουν ξανά τα κέρδη. Με μεγαλύτερους και μικρότερους παίκτες.

Ένα κοινό στοιχείο έχουν όλοι αυτοί: ότι ζουν στον κόσμο της τεχνολογίας, που δεν περιορίζεται από εθνικά σύνορα. Ο Δρανδάκης και οι συνεργάτες του έδειξαν ότι μπορούν ομάδες Ελλήνων να χτίσουν καινοτόμες επιχειρήσεις με διεθνή εμβέλεια και να κερδίσουν».

Το απόσπασμα αυτό ανήκει σε ένα παλαιότερο άρθρο του Αρίστου Δοξιάδη (υπό τον τίτλο «Είναι καλό που πουλήθηκε η Taxibeat;», δημοσιεύθηκε στην εφημερίδα Η Καθημερινή στις 19.02.2017).  Ο Δοξιάδης, αντιπρόεδρος του Εθνικού Συμβουλίου Έρευνας, Τεχνολογίας και Καινοτομίας (ΕΣΕΤΕΚ) και partner στην εταιρεία Big Pi Ventures, ήταν από τους ιδρυτές του Openfund που ήταν από τους αρχικούς χρηματοδότες του Taxibeat.

Θυμήθηκα το άρθρο διαβάζοντας την είδηση για την «έξοδο» του ιδρυτή Νίκου Δρανδάκη από την εταιρεία που ο ίδιος ίδρυσε και ανέπτυξε με τους συνεργάτες του. Στην επίσημη ανακοίνωση της Beat στα media διαβάζω μεταξύ άλλων τα εξής: «Ο Νίκος Δρανδάκης, Διευθύνων Σύμβουλος της Beat και η διοίκηση του ομίλου FREE NOW, μητρικής εταιρείας της Beat, αποφάσισαν να ολοκληρώσουν την επιτυχημένη συνεργασία τους. Ο Νίκος Δρανδάκης αποχωρεί από τη θέση του στο τέλος Αυγούστου. “Ο Νίκος έχει διαδραματίσει ζωτικό ρόλο δημιουργώντας και κάνοντας το Beat  αυτό που είναι σήμερα. Είμαστε ευγνώμονες για την προσήλωσή του στην ανάπτυξη της εταιρείας όλα τα τελευταία χρόνια και του ευχόμαστε κάθε επιτυχία στα μελλοντικά του σχέδια”,  δήλωσε ο Marc Berg, Διευθύνων Σύμβουλος της FREE NOW».

Το Beat – που ενσωματώνει τη κληρονομιά που αφήνει πίσω του ο Νίκος Δρανδάκης- ήταν και συνεχίζει να είναι μια μικρή ειρηνική επανάσταση στο επίπεδο της καθημερινής ζωής των πολιτών αλλά και στη καθημερινή λειτουργία της πόλης. Όπως επισημαίνουν οι εκπρόσωποι της εταιρείας «είναι μια δωρεάν εφαρμογή για έξυπνα κινητά τηλέφωνα και δημιουργεί μια νέα εμπειρία μετακίνησης, συνδέοντας χιλιάδες επιβάτες με διαθέσιμους επαγγελματίες οδηγούς», αλλά «δεν είναι απλά μια εφαρμογή που σε πάει από το ένα μέρος στο άλλο». Αποστολή του Beat, σύμφωνα πάντα με τις επισημάνσεις των στελεχών του, βρίσκεται εδώ για «να γίνει κομμάτι της ζωής των ανθρώπων, κάνοντας τις καθημερινές τους μετακινήσεις μέσα στην πόλη πιο προσιτές, ασφαλείς και γρήγορες». 

Η εταιρεία Beat (πρώην Taxibeat) ιδρύθηκε το 2011 και είναι μέρος του FREE NOW Group, της κοινοπραξίας των BMW Group και Daimler για τις αστικές μεταφορές. Εκτός από την Ελλάδα, η Βeat εφαρμογή είναι διαθέσιμη σε Περού, Χιλή, Κολομβία, Μεξικό, Αργεντινή και στόχος της εταιρείας είναι η άμεση επέκτασή της σε περισσότερα σημεία της Λατινικής Αμερικής. Η εταιρεία απασχολεί σήμερα 800 εργαζομένους κι εξυπηρετεί πάνω από 15 εκατομμύρια επιβάτες στις χώρες όπου λειτουργεί.

Η επιτυχία

Χτες Δευτέρα 31 Αυγούστου 2020 διάβασα μια ανάρτηση του φίλου Νίκου Λυσιγάκη, Public Affairs Manager στη Beat, την οποία προσυπογράφω.

Το περιεχόμενο της ανάρτησης: «Ο Ν. Δρανδάκης είναι από εκείνους που με μια χούφτα μερικούς ακόμα ανέδειξαν το ελληνικό οικοσύστημα καινοτομίας, έπεισε ανθρώπους να τον εμπιστευθούν και έβαλε skin in the game.

Δημιούργησε τη Beat. Συγκρούστηκε και νίκησε καθεστώτα με τα οποία δειλιάζουν ακόμα Κυβερνήσεις να τα βάλουν.

Έπεισε ένα γερμανικό κολοσσό να αγοράσει το δημιούργημα του και να τον κρατήσει στο τιμόνι της επιχείρησης.

Ως CEO από την εξαγορά και μετά, έκανε τη Beat την ταχύτερα αναπτυσσόμενη εφαρμογή ride hailing στη Λατινική Αμερική. Κι’ όλα αυτά, αναπτύσσοντας τεχνολογία από το Κέντρο της Αθήνας, η οποία γνωρίζει επιτυχία στην άλλη άκρη του κόσμου. Άσχετα που οι Έλληνες δε μπορούν να την απολαύσουν, λόγω ατολμίας κ έλλειψης νομοθετικού πλαισίου.

Αποχωρεί από το τιμόνι της επιχείρησης που ο ίδιος δημιούργησε μετά από 9+ χρόνια, αφήνοντας παρακαταθήκη όχι μόνο 300 εργαζομένους στην Αθήνα, αλλά ένα συνολικό disruption στη αντίληψη για τις αστικές μετακινήσεις στην χώρα. Πέτυχε μάλιστα απτά αποτελέσματα, μειώνοντας το κόστος προς όφελος των καταναλωτών.

Πριν τη Beat για παράδειγμα, το κόστος κλήσης ραδιοταξί ήταν 2 ευρώ στην Αθήνα. Με την επιτυχία της Beat, το κόστος αυτό εξαλήφθηκε κ συνεχίζει να ισχύει σήμερα μόνο στις πόλεις που δεν επιχειρεί η πλατφόρμα.

Η σημερινή αποχώρηση του ανοίγει ένα νέο κύκλο, σε ένα τομέα που η Ελλάδα πρωταγωνιστεί διεθνώς, αλλά η ίδια αρνείται πεισματικά να εξελίξει την αντίληψη της για το μέλλον των μετακινήσεων εντός των συνόρων της».

Αλλά, για να θυμηθούμε μαζί ορισμένες στιγμές της παρουσίας του Νίκου Δρανδάκη όπου χρειαζόταν θάρρος και επιμονή για να κερδηθούν μάχες.

  • To Νοέμβριο του 2018, η προσπάθεια του πρώην Υπουργού Μεταφορών Χρ.Σπίρτζη να αλιεύσει τις ψήφους των ιδιοκτητών ταξί με αμφιλεγόμενες νομοθετικές διατάξεις, είχε προκαλέσει σφοδρή αντιπαράθεση στη Βουλή. Από την πλευρά της ΝΔ αρκετοί βουλευτές – Υπουργοί της σημερινοί Κυβέρνησης, κατακεραύνωσαν το «δώρο» του τέως Υπουργού Μεταφορών, ζητώντας να αποσυρθούν οι διατάξεις και να υπάρχει το δικαίωμα της επιλογής στην ελεύθερη αγορά. Το θέμα είχε κατακλύσει τα ΜΜΕ και τα social media, φθάνοντας μέχρι το επίπεδο των πολιτικών αρχηγών.
  • Ο Κ.Μητσοτάκης μάλιστα είχε κάνει λόγο σε δήλωση του για προσπάθεια να εγκλωβιστεί η Beat στο καθεστώς της μεταφορικής εταιρίας και όχι να αναγνωρίζεται ως εταιρία τεχνολογίας – διαμεσολάβησης υπηρεσιών μετακινήσεων όπως συμβαίνει διεθνώς, σημειώνοντας πως η προηγούμενη Κυβέρνηση «απεχθάνεται την αξιολόγηση, τις ελεύθερες επιλογές, ταυτίζεται με στενά συντεχνιακά συμφέροντα μιας μειοψηφίας συνδικαλιστών που μας γυρνούν στο χθες». Προσθέτοντας επιπλέον, πως «(εμείς) είμαστε με το δικαίωμα των πολλών στην ασφάλεια και την ποιότητα». https://www.youtube.com/watch?v=dPuB-ZCNRiE
  • Παρ’ όλα αυτά, ο ΣΥΡΙΖΑ προχώρησε στην ψήφιση του ν. 4530, με τον οποίο η Beat απαγορεύεται να κάνει οποιαδήποτε προσφορά προς τους επιβάτες, αλλά και ούτε να έχει το δικαίωμα της να ορίσει την ποιότητα των υπηρεσιών που προσφέρει.
  • Στις αρχές του καλοκαιριού η Beat, κατέθεσε υπόμνημα στην Επιτροπή Ανταγωνισμού, με το οποίο ζητά την αυτεπάγγελτη έρευνα της για συνθήκες ανελεύθερου ανταγωνισμού, επικαλούμενη ευρωπαϊκή νομολογία, υπογραμμίζοντας πως το μοναδικό αποτέλεσμα που έχουν οι παρούσες νομοθετικές διατάξεις είναι ο καταναλωτής να στερείται φθηνότερες τιμές και καλύτερες υπηρεσίες. Επιπλέον, τον περασμένο Ιούνιο το Πολυμελές Πρωτοδικείο Αθηνών δικαίωσε την Βeat στην αγωγή είχε καταθέσει κατά του Θύμιου Λυμπερόπουλου (πρώην πρόεδρος του ΣΑΤΑ) τον Φεβρουάριο του 2018 και εκδικάστηκε το Νοέμβριο του ίδιου έτους. Συγκεκριμένα,το δικαστήριο απεφάνθη ότι ο τέως πρόεδρος του ΣΑΤΑ τέλεσε σε βάρος της τα αδικήματα της συκοφαντικής δυσφήμισης και της εξυβρίσεως, με σκοπό να βλάψει την εμπορική πίστη και φήμη της. Η απόφαση ήταν μια ξεχωριστή δικαίωση για τον ιδρυτή της εταιρείας που αντιστάθηκε στις κομματικές μεθοδεύσεις και σκοπιμότητες του ΣΥΡΙΖΑ.

Ας μου επιτραπεί να προσθέσω και μια σειρά από σκέψεις που βασίζονται στις παρακαταθήκες του επιτυχημένου παραδείγματος Δρανδάκη- Beat.

  • Σο Δείκτη της Οικονομίας Διαμοιρασμού που δημιούργησε το Consumer Choice Center, η Αθήνα κατατάσσεται τελευταία μεταξύ των 48 μεγάλων πόλεων του κόσμου που είναι φιλικές προς την υιοθέτηση εφαρμογών της λεγόμενης «οικονομίας διαμοιρασμού». Αυτό είναι το αποτέλεσμα του αναχρονιστικού θεσμικού πλαισίου που η σημερινή Κυβέρνηση καλείται να διορθώσει, διότι ουσία εξελίσσεται σε ανάχωμα για περαιτέρω τεχνολογική ανάπτυξη σε μια εποχή που το εγχώριο οικοσύστημα των startups δείχνει να ανθίζει.
  • Η πρόκληση εκσυγχρονισμού του τοπίου φαντάζει ως μια σημαντική ευκαιρία για τα συναρμόδια Υπουργεία να αυξήσουν τα δημόσια έσοδα περιορίζοντας τη φοροδιαφυγή και παράλληλα να προσφέρουν νέες ποιοτικές υπηρεσίες στους καταναλωτές. Κι’ από την άλλη, είναι μια μοναδική ευκαιρία για την αντιπολίτευση να διορθώσει έγκαιρα τη στάση της απέναντι σε ένα κλάδο, που θα τη φέρει περισσότερο κοντά στο σοβαρό ακροατήριο που διακαώς επιθυμεί.
  • Η ανάγκη για αποφυγή των Μέσων Μαζικής Μεταφοράς έχει καταστήσει την ασφαλή μετακίνηση με ταξί κάτι παραπάνω από αναγκαία, παρ’ όλα αυτά, η αγορά των μετακινήσεων στην Ελλάδα δέχθηκε βαρύ πλήγμα. Οι απώλειες υπολογίζονται στο 85% του τζίρου. Κι’ όλα αυτά, σε μια περίοδο που οι οδηγοί επιβαρύνονται με μια σειρά από επιπλέον κόστη όπως διαχωριστικά καμπίνας, αντισηπτικά, μάσκες και απολυμάνσεις.
  • Η Beat αποτέλεσε το πρώτο success story του εγχώριου οικοσυστήματος νεοφυών επιχειρήσεων, είναι δημιούργημα του Ν.Δρανδράκη και αποτελεί σήμερα μέρος του FREE NOW Group, μιας σύμπραξης στο χώρο των «μετακινήσεων του αύριο», των δύο γερμανικών κολοσσών Daimler AG και BMW. Πρόκειται για την ταχύτερα αναπτυσσόμενη εταιρεία του κλάδου σε Ευρώπη και Λατινική Αμερική, η οποία στην Ελλάδα συνεργάζεται με περισσότερους από 8,000 οδηγούς ταξί σε Αθήνα και Θεσσαλονίκη, με το συνολικό αριθμό των εγγεγραμμένων επιβατών να ξεπερνά τα 1.6 εκατομμύρια στο κλείσιμο του 2019.

Τέλος, θα ήθελα να «μιλήσω» για ένα παράδοξο: Να αναπτύσσουν οι Έλληνες μηχανικοί της εταιρίας νέες καινοτόμες υπηρεσίες μετακινήσεων που κάνουν θραύση σε άλλα μέρη του κόσμου, τις οποίες όμως δε μπορεί να απολαύσει ο Έλληνας καταναλωτής, επειδή το νομοθετικό πλαίσιο, παραμένει αναχρονιστικό.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Beware Those Coming After Your Delivery Apps

on-demand-food-app-fb

The pandemic has, for better or worse, forced us to live online. That has made internet retail, digital services and delivery apps a godsend for millions of us sequestered at home.

This entirely new sector of the economy has allowed us to safely buy and enjoy without the risk of coronavirus. At the press of a button, your favorite food and drinks are magically delivered to your door.

But as you bite into your meal delivered by Grubhub, Uber Eats or DoorDash, there is a movement afoot to make that even more difficult.

Getting in between you and your food delivery is a coalition of advocacy groups working around the country to regulate, limit and severely restrict companies that offer delivery via applications.

Dubbing themselves “Protect Our Restaurants,” this Washington-based coalition of social justice groups is calling on state and local government to cap the commissions on delivery service apps.

They have already been successful in the District of Columbia, Seattle and San Francisco, where commission rates for food deliveries are now capped at 15 percent. And there is a bevy of other city councils lining up to join them, some wanted an even lower cap at 5 percent.

They claim delivery companies, the same ones that have empowered consumers, given vast new capabilities to restaurants and provided good income to couriers, are “exploiting” each of these groups in pursuit of the almighty dollar.

The hospitality industry is already on its last leg due to state-imposed lockdowns. Why would getting in the way between you and your next hot meal be the new issue of economic and social justice?

In July, it was projected by the NPD group that restaurant deliveries made up as much as 7 percent of food orders, 50 percent more than pre-pandemic. That number is underestimated, but it proves the rush is not yet over.

That means more customers are using food delivery apps to put meals on the table, sampling restaurants and kitchens so desperate for the income. And that service comes at a price.

For orders placed through a delivery app to a restaurant, the app charges either a flat or percentage-based fee as a commission, which funds the logistics, the courier’s pay and marketing costs. This amount varies between 13.5 percent and 40 percent, depending on which options a restaurant agrees to when they sign up.

It is that variance in commission rates that so enrages activists in this space. Plenty of anecdotes have swarmed social media warning of high fees for conducting businesses through the apps.

And while these caps on commission are well intended, they are counter-productive.

It will mean fewer order volumes that can be processed, less money will be available to couriers who sign up to deliver for the app, and apps will have to limit which businesses they accept. That would hurt restaurants, couriers and consumers who depend on these services.

This would end up hurting more people than it purports to help. That would be both anti-consumer and anti-innovation in the same fell swoop, which seems bonkers several months into a pandemic.

The other complaint mounted is antitrust concerns, similar to congressional hearings against Apple, Amazon, Facebook and Google earlier this month. Activists want to use the weapons of the Federal Trade Commission to break up the “monopoly power” of delivery services.

Most of these companies, however, are true American success stories. They have existed for less than 10 years, have pivoted multiple times, expanded their services, and found a good niche empowering restaurants to quickly and reliably get their food to delivery customers.

Thousands of delivery workers have quick and easy work, giving much-needed income to students, those between jobs, and people who want extra income. They often contract with multiple services, depending on which offers the highest commission per delivery, similar to rideshare drivers.

The benefits to restaurants are also clear: less money is spent on hiring a delivery driver or vehicle, commissions charged are transparent and partnering with a well-known app helps attracts more customers who would otherwise never order from that specific restaurant. Most of these restaurants likely never had delivery before they signed up for these apps. That is hardly a case for trustbusting.

If those aiming to regulate food delivery companies and are successful in doing so, they’ll set up a paradox of their own making: the only companies that will be able to comply with the regulations and caps will be the firms with the most capital and resources. This would lockout any potential new competition and do more to restrict consumer choice than enhance it.

The last few months have provided every consumer with plenty of uncertainty. Being able to order products right to our door, though, has been a blessing.

Intervening in the market to undermine the choice of consumers and business contracts with restaurants would make that process arguably worse, and not better.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Beware Those Coming After Your Delivery Apps

Beware Those Coming After Your Delivery Apps

The pandemic has, for better or worse, forced us to live online. That has made internet retail, digital services and delivery apps a godsend for millions of us sequestered at home.

This entirely new sector of the economy has allowed us to safely buy and enjoy without the risk of coronavirus. At the press of a button, your favorite food and drinks are magically delivered to your door.

But as you bite into your meal delivered by Grubhub, Uber Eats or DoorDash, there is a movement afoot to make that even more difficult.

Getting in between you and your food delivery is a coalition of advocacy groups working around the country to regulate, limit and severely restrict companies that offer delivery via applications.

Dubbing themselves “Protect Our Restaurants,” this Washington-based coalition of social justice groups is calling on state and local government to cap the commissions on delivery service apps.

They have already been successful in the District of Columbia, Seattle and San Francisco, where commission rates for food deliveries are now capped at 15 percent. And there is a bevy of other city councils lining up to join them, some wanted an even lower cap at 5 percent.

They claim delivery companies, the same ones that have empowered consumers, given vast new capabilities to restaurants and provided good income to couriers, are “exploiting” each of these groups in pursuit of the almighty dollar.

The hospitality industry is already on its last leg due to state-imposed lockdowns. Why would getting in the way between you and your next hot meal be the new issue of economic and social justice?

In July, it was projected by the NPD group that restaurant deliveries made up as much as 7 percent of food orders, 50 percent more than pre-pandemic. That number is underestimated, but it proves the rush is not yet over.

That means more customers are using food delivery apps to put meals on the table, sampling restaurants and kitchens so desperate for the income. And that service comes at a price.

For orders placed through a delivery app to a restaurant, the app charges either a flat or percentage-based fee as a commission, which funds the logistics, the courier’s pay and marketing costs. This amount varies between 13.5 percent and 40 percent, depending on which options a restaurant agrees to when they sign up.

It is that variance in commission rates that so enrages activists in this space. Plenty of anecdotes have swarmed social media warning of high fees for conducting businesses through the apps.

And while these caps on commission are well intended, they are counter-productive.

It will mean fewer order volumes that can be processed, less money will be available to couriers who sign up to deliver for the app, and apps will have to limit which businesses they accept. That would hurt restaurants, couriers and consumers who depend on these services.

This would end up hurting more people than it purports to help. That would be both anti-consumer and anti-innovation in the same fell swoop, which seems bonkers several months into a pandemic.

The other complaint mounted is antitrust concerns, similar to congressional hearings against Apple, Amazon, Facebook and Google earlier this month. Activists want to use the weapons of the Federal Trade Commission to break up the “monopoly power” of delivery services.

Most of these companies, however, are true American success stories. They have existed for less than 10 years, have pivoted multiple times, expanded their services, and found a good niche empowering restaurants to quickly and reliably get their food to delivery customers.

Thousands of delivery workers have quick and easy work, giving much-needed income to students, those between jobs, and people who want extra income. They often contract with multiple services, depending on which offers the highest commission per delivery, similar to rideshare drivers.

The benefits to restaurants are also clear: less money is spent on hiring a delivery driver or vehicle, commissions charged are transparent and partnering with a well-known app helps attracts more customers who would otherwise never order from that specific restaurant. Most of these restaurants likely never had delivery before they signed up for these apps. That is hardly a case for trustbusting.

If those aiming to regulate food delivery companies and are successful in doing so, they’ll set up a paradox of their own making: the only companies that will be able to comply with the regulations and caps will be the firms with the most capital and resources. This would lockout any potential new competition and do more to restrict consumer choice than enhance it.

The last few months have provided every consumer with plenty of uncertainty. Being able to order products right to our door, though, has been a blessing.

Intervening in the market to undermine the choice of consumers and business contracts with restaurants would make that process arguably worse, and not better.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Now They’re Coming After Your Delivery Apps

Throughout the course of the pandemic, the world of commerce has shifted primarily online. That’s made online retail, digital services, and delivery apps a godsend for millions of us sequestered in our homes.

This entirely new sector of the economy has allowed us to safely buy, enjoy, and use goods and services without the risk of coronavirus. Now it’s possible to enjoy the best drinks and food in just a few minutes, delivered by courier straight to your door.

Finally, a silver lining!

Alas, no: a group of organizations is looking to upend and halt those deliveries of restaurant meals to your home.

A new coalition calling itself Protect Our Restaurants is calling on state and local government to cap the commissions allowed on delivery service apps, and for the FTC to take action against delivery companies like Grubhub, Uber Eats, Postmates, and Doordash.

That would severely affect your ability to hit up a delivery app for a hot meal at your convenience. What gives?

The coalition is made up of organizations such as The American Sustainable Business Association, The American Economic Liberties Project, and the Institute for Local Self-Reliance, with the stated goal of “persuading policymakers to regulate food delivery apps so they can’t use their market power to exploit restaurants and take money out of our local economies.”

They claim delivery companies, the same ones that have empowered consumers, given vast new capabilities to restaurants, and provided good income to couriers, are “exploiting” each of these groups in pursuit of the almighty dollar.

The same claims were made in a class-action lawsuit filed earlier this year by consumers in New York who claimed these companies “prevent competition, limit consumer choice and force restaurants to agree to illegal contracts”. We’re no strangers to lawsuit abuse.

There are more than a few reasons to believe they’re wrong.

COMMISSION

Earlier this year, pre-pandemic, the NPD group estimated delivery orders in the United States to represent just 3% of all restaurant orders, and it’s risen as high as 7% in July 2020. Likely more now.

That means more and more customers are using food delivery apps to get the food they once ordered in restaurants, but to their homes.

Even before then, a prime complaint area of the coalition mentioned above and similar parties is the commission charged by these various food delivery apps as a fee for delivery and all other services they provide.

For orders placed through a delivery app to a restaurant, the app charges either a flat or percentage-based fee as a commission, which funds the logistics, the courier’s pay, and marketing costs associated with being in the app. This amount varies between 13.5% and 40%, depending on which options a restaurant agrees to when they sign up.

It’s that variance in commission rates that so enrages activists in this space. In one highly-circulated Facebook post, one restaurant owner claimed Grubhub collected more than 60% in commission (another look reveals the owner also paid for promotions and discounts on the app, and also had several cancellations and adjustments that would account for the larger share in commissions charged by Grubhub). Add to that plenty more anecdotes of high fees circulating social media.

In response, the cities of Washington, D.C., Seattle, and San Francisco have already capped commission rates at 15%, and a bevy of other city councils are lining up to join them. Many activists are now calling on more cities to do the same, and even lower the cap down to 5%.

While these caps on commission are well intended, they are actually counter-productive.

It will mean fewer order volumes that can be processed, less money will be available to couriers who sign up to deliver for the app, and higher prices to compensate for lost income. That would hurt restaurants, couriers, and consumers themselves who depend on these services.

And considering these apps offer quality marketing services as well as delivery for the restaurants on these services, there will likely be fewer resources available there as well. If you don’t have the capital to brand a Grubhub or Uber Eats, how can you expect to draw in customers?

Overall, a sweeping restriction on commission rates would degrade the quality and quantity of the delivery services, and end up hurting more people than it purports to help. That would be both anti-consumer and anti-innovation in the same fell swoop.

ANTITRUST

Much like the Congressional hearings against Apple, Amazon, Facebook, and Google some weeks ago, this coalition wants to use the weapons of the federal government through the Federal Trade Commission to break up the “monopoly power” of delivery services, mainly Grubhub, Uber Eats, Postmates, and Doordash.

With the exception of Grubhub, each of these companies (or subsidiaries in the case of Uber) has existed for less than 10 years. They’ve pivoted multiple times, expanded their services, and finally found a good niche empowering restaurants to quickly and reliably get their food to delivery customers.

At the same time, thousands of delivery workers have been able to get quick and easy work through the apps, giving needed income to students, those between jobs, and people who want extra income. These couriers often contract with multiple services, depending on whichever company offers the highest commission per delivery, similar to rideshare drivers.

Because every restaurant is free to contract its own delivery service or operate their own as was the case for many years, it’s hard to argue that a monopoly exists –– especially if there are more than four dominant players who provide delivery. That’s far from requiring antitrust intervention.

The benefits to restaurants seem clear: less money is spent on hiring a dedicated delivery driver or vehicle, commissions charged are consistent and transparent (whatever their amount), and partnering with a well-known app helps attracts more users who otherwise would never order from that specific restaurant.

Add to that, most of these restaurants likely never had delivery before they signed up for these apps, meaning they went from $0 profit to much more in just a few clicks.

If those costs weren’t worth it to restaurants, they’d start their own delivery services independent of these companies. That was the status quo before any of these companies arrived on the scene, we should remember.

Beyond that, if any of these companies have engaged in any illegal activity, such as promoting fraudulent websites or phone numbers, as the coalition alleges, then this should, of course, be investigated. But that falls outside of the domain of using antitrust laws to break up delivery companies that are providing valuable services to both consumers and restaurants.

If parties are aiming to regulate food delivery companies and are successful in doing so, they’ll set up a paradox of their own making: the only companies that will be able to comply with the regulations and caps will be the delivery firms with the most capital and resources. This would lock out any potential new competition and do more to restrict consumer choice than enhance it.

The last few months have provided each and every worker and consumer with plenty of uncertainty. Being able to order products right to our door, though, has been a blessing. Intervening in the market to undermine the choice of consumers and business contracts with restaurants would make that process arguably worse, and not better.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

We Need the Gig Economy Now More Than Ever

Forced to limit our social interactions to get through this pandemic, millions of us are using apps and online services to try to bring some measure of normalcy and convenience to our lives.

Demand for food and alcohol delivery is through the roof and thousands of other platforms are still popular and ripe for a comeback once restrictions and lockdowns are lifted.

But for many users and consumers, the pandemic is revealing the very real regulatory problems limiting the sharing economy.

Especially now, we need functioning and smart laws that empower those who use the gig economy, not penalize them. This is especially true for low-income Americans, who are more than likely to use these services to supplement their incomes or save money.

In California, the sweeping law that went into effect in January classifies practically all workers as employees. This measure has, as predicted, practically wiped out the state’s 5 million freelancers and contractors, removing their ability to gain independent income.

Instead of hiring freelancers full-time, companies have been eliminating positions or leaving the state altogether.

Musicians, freelance journalists and rideshare drivers, who once benefitted from their independent status, have found it more difficult to make a living. It’s no surprise that practically every industry has been jockeying for an exemption and a rewrite of the law is eminent.

For home sharing, local jurisdictions have placed caps on the number of properties available for short-term rentals, curtailing the supply. New York City and Seattle require hosts to obtain both business and rental licenses that can cost thousands of dollars.

In cities such as Des Moines and Las Vegas, rental properties cannot be within 600 feet of each other, and countless others require audits of how many guests can be in each bedroom. That’s put homeowners in a pinch, and revealed the lobbying efforts behind those restrictions.

Too often, regulators and politicians have folded to the demands of the industries that once held monopolies over hospitality services, such as hotels and car rental agencies.

In many states, for instance, rental car companies have banded to severely restrict peer-to-peer car-sharing apps, such as Turo and Getaround, which allow car owners to rent out their vehicles to drivers for reasonable rates.

In states like Florida and Arizona, Enterprise and National Car Rental have succeeded in lobbying to ban these apps from offering vehicles at prime locations such as airports and requiring them to collect rental car fees.

These are the types of restrictions and anti-consumer laws that are not only holding back the gig economy but are threatening its existence altogether.

Of course, the effects of the pandemic on the sharing economy cannot be overstated. The behemoth sharing economy companies such as Airbnb, Uber and Lime are struggling with fewer people traveling and using their services. But that is not how we should measure the success of the gig economy.

The promise of the sharing economy has never been about gains on Wall Street, bold corporate executives or even profits for investors. It is not about a single company’s bottom line or its market share. Rather, it has always been about offering new and innovative options to empower people like you and me to improve our lives.

The sharing economy empowers both consumers and entrepreneurs to creatively and collaboratively use or lend resources they otherwise wouldn’t. That allows people to earn additional income as owners and save money as users.

Whether it is ridesharing, carsharing, home sharing, the sharing of tools, or e-scooter rentals, the regulations on the sharing economy should not make them more difficult to use or from which to profit.

If regulators want to help consumers and owners, they should take legislative steps to legalize or ease restrictions on all sharing economy services. Giving people more access to sharing economy services would provide much-needed income to families in need and would help reduce costs for millions more.

The question is not whether the gig economy should be regulated or not. It is whether it is accessible or not. Reasonable and smart regulation would solve those issues.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Is the gig economy bill a disaster or triumph for ride-hailing? Depends on who you ask

Uber and Lyft have been warning drivers about the end of flexible schedules, and passengers about more expensive rides that take longer to arrive, all thanks to a California bill that passed this week

But drivers and other gig workers are celebrating what could be a pathway to fair pay, benefits, and other employee rights, which some claim will come at only a slight cost to riders.

After the bill, called AB5, makes its way to the governor’s desk, it should go into effect on Jan. 1, 2020. It would make companies reclassify many independent contractors as employees, something Uber and Lyft have opposed. 

While this would directly affect drivers and other gig economy workers, like the 200,000 in California working for Uber, the people who use the apps could also see changes. 

The New York Times cited “industry officials” who say costs for companies like Uber and Lyft could rise by 20 to 30 percent because of AB5. Other industry experts like Michael Droke, a partner at Dorsey & Whitney in California, a law firm that has represented big companies like 3M and Wells Fargo in labor disputes, also sees costs going up for companies and prices going up for riders. 

“Many industries rely on independent contractors to deliver products and services, from food delivery to software coding and design. Those workers will be converted to employees, significantly increasing the cost of the products and services,” Droke said. 

Yaël Ossowski, deputy director of the Consumer Choice Center, which supports deregulation, said the law could force people to “seek out alternatives.” Instead of ordering a cheap ride, he thinks people will be forced to do things like carpool, hail a cab, or find a nearby bus.

Read more here

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