Sharing Economy Apps: Good Or Bad?

Discussing the good, the bad and the ugly of the sharing economy.
The sharing economy has changed many areas of our lives for the better, most notably the way we order taxis and how we go on vacation. On the whole, this has been a big win for consumers and the companies they give their hard-earned money to. It offers services we want and need at a lower cost by removing many of the externalities and procedures of licensing and official permits. In addition, many users and consumers feel good about supporting individuals and so-called “micro entrepreneurs” rather than big corporations and massive chains.
However, because these apps are so widespread and seamless to use, it’s easy to forget that, like anything, they come with risks attached. Now with millions upon millions of users, apps like Airbnb and Uber are running into the kinds of problems that are inevitable with such magnitude; there is simply no way to have that many users and absolutely no faults or ill-intentioned users. At the same time, scammers and con artists are more likely to take advantage of these apps’ “trusted” names because consumers who are first-time users are more likely to fall prey to their tactics once the company becomes well known.
It seems that hardly a week goes by where there isn’t a headline detailing some sharing economy app mishap. All of which begs the question: who is responsible when these apps fail their users? As a user is ostensibly “opting in” to a service with higher risk for a lower cost, do these apps hold the same liability as, say, a licensed hotel or taxi cab company? Or do users have to accept the risk as part of the “sharing” aspect of this new way of doing business?
One example occurred recently when a slew of British holiday-makers said they had been scammed via the Airbnb app by ill-intentioned accounts. During 2015 so far, apparently roughly 2 users a day are scammed on the site in Britain alone. Many of these come from scammers advertising fake properties and then asking for payment upfront, rather than via the platform. First-time users are duped when they are emailed invoices with Airbnb letterhead, and transfer the money, none the wiser. Is it Airbnb’s responsibility to police these bogus accounts? Or do users have a responsibility to be familiar with the payment platform and be savvy enough to spot a scammer?
A similar example comes from ride-sharing app Uber. Although the vast majority of rides go off without a hitch, there have been high profile cases of passenger safety being compromised via ill-intentioned, dangerous and criminal drivers in both the US and elsewhere. However, because Uber drivers are considered “independent contractors” rather than official employees of the company, it’s unclear whether the company has responsibility for these people. Though Uber insists it is committed to passenger safety and it does background checks on all its drivers, it’s impossible to track if Uber drivers are more likely to commit an offence than regular, licensed taxi drivers. But a passenger has far less recourse legally if an incident occurs in an Uber than they do with a fully liable taxicab company.
To be fair, both Uber and Airbnb have taken steps as their usership has grown to the tens of millions to better their practices. Airbnb now requires hosts to have insurance that covers commercial guests should any mishap occur, and if they don’t, the company itself offers a policy. In addition, Uber continues to find ways to make their background checks more rigorous. But ultimately, consumers have to realise that part of the reason these apps offer such a great deal and convenience of use is precisely because they are sidestepping some of the very measures that make traditional industries safe.