The sharing economy hangover: states and ol’biz strike back on c2c startups

Every year or so, Wired publishes its “Internet is dead” rant, but we could also say it’s a healthy reminder of what are the origins of the Internet, against walled gardens, ivory towers and al the other ways vested interests keep blocking an inescapable liberation of the individual and the rise of communities (see the CIA forecast for 2030 to be sure).

Three huge pieces of info come this week, from states, to satisfy the good ol’ business facing disruption – sometimes destruction – from startups.

• AirBNB has long been on the grill, and looks like a mad runner avoiding as many bullets sent by government and local authorities. After the New York incident when a host was fined by the city to rent illegally his flat, the hospitality industry seems to be near to win a compromise. AirBNB announced they could soon pay for a tax that would make them on the same fiscal status than hotels. Well, *we* the users would pay it, because for all its community-driven speech, be sure AirBNB will not pay more taxes, but we will.

•  In Canada, the government has demanded to the crowdfunding industry that all successful projects be declared for the tax collection on revenues, like any other source of money you would legally earn. This case is quite sensitive, and I really struggle to understand what value to the crowdfunder and the crowdfunded a tax will bring. In the case of AirBNB, you can at least talk of security norms or other certifications that protects the consumer (the guests). Same in France, where Fleur Pellerin, state secretary for SMEs and innovation, pushed a new text to “give a framework” to collaborative funding. A limit of €250 per individual and €300K per project is discussed, which is quite low if you look at the top hits of Kickstarter in the US in comparison. Some say it’s a way to get banks (and the state) back in a game where it is losing so much ground.

• In Paris, then, a new blow was just released against the Uber-model of private cabs that disrupts the old industry of cabs, which in France is a powerful lobby (for a terrible service and a ridiculously high price compared to other European capital cities). And the way the law is going to be enforced is really a nasty hit to all tech-savvy and always-in-a-rush customers, as starting January 1st, there should be a “15 minutes minimum time limit between the moment a user order a private tourism vehicle and the moment he gets in”. How fucking nasty is that, seriously??

I’m not a complete web-libertarian and do agree that “community” is often a neat marketing argument to make people pay for a new service. But:

• Service in the hotel and cab industry is really terrible, and monopolies make them unable to innovate. Customer experience is more often than not terrible, price not adapted.
• New behaviors are completely stifled by such rules and regulations. There’s no way I would ever reconsider staying in an anonymous and expensive hotel when I can live like a local guy by staying in a flat where someone actually lives.
• The issue of consumer protection is a right one, but the law is not going to be of any use, more, reputation is the new currency online and is a way to ensure no one will get screwed. On eBay, reputation of sellers and PayPal protection of fraud makes thefts and scam almost impossible. Same with these new service where the notion of customer feedback is key.

I have one proposal for governments: ok for putting new taxes and keeping monopolies play with our experience and wallet, but why not an open search engine of systemic evaluations of hotels and cabs, with an obligation to display the rating at the door? 

M