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216 pages, Paperback
First published November 19, 2015
The appeal of a bottom-up, personal, community-driven alternative to traditional corporations has fizzled; we are left with Uber, a company financed by high net-worth investors via Morgan Stanley and by Saudi Arabia's Public Investment Fund, and AirBnb, by some measures the largest hotel company in the world.
But as Uber and AirBnb have grown, they still struggle to define a sustainable business model. Their success to date has been driven in part by the ease with which the platform model pushes the costs and risks onto the platform participants (drivers for example), and onto the neighborhoods and cities in which they operate.
But managing commons in a sustainable fashion has proven difficult, particularly at large scale [though government management is not analyzed here, national parks being one example], which is why many commons have been discarded, replaced legitimately or illegitimately by private resources managed as commodities (agricultural enclosure, carbon permits, tradable fishing quotas), or by public resources managed by a central authority (roads, public hygiene). Still, urban commons (in the city) and digital commons (online) are spaces where new models of production and collaboration are being played out: continual sources of hope, and of hype.
Uber has no idea about sharing and community. Its insistence that all exchanges reduce to market transactions is an ideological flaw; it exemplifies the implicit political agendas that often hide behind the apps and algorithms of Sharing Economy business models, and should make us take their claims to be responsible self-regulators with a pinch of salt. The fact that a strong government stance succeeded in changing the company's behavior reminds us that there is nothing inevitable about the way that the Sharing Economy will evolve.
Airbnb erodes the commons by gentrification of its biggest markets, which are the world's major tourist destinations. [David] Harvey's comments [in Rebel Cities] about hotels apply to Airbnb also: Barcelona loses its marks of distinction as residents are driven out by the proliferation of rental apartments. Even when the company pays taxes on behalf of its hosts it refuses to give to the city governments the names and addresses of those hosts, making it almost impossible for democratically elected city governments to manage the impact of tourism on some their most valuable neighborhoods. Airbnb also demands homogenization: it operates in 34,000 cities and chafes at the inconsistency of regulations; but each city is different and the inconsistency, or variety, of regulations is a feature, not a bug.
The ideas of urbanist Jane Jacobs have been a prolific source of ideas about the value of commons in our daily lives, but technology organizations such as Code for America, who seek to combine Jacobs' ideas with software and work 'to change the way cities work through technology and public service' are pursuing a contradiction. They seek to force the uniqueness of individual cities into standardized frameworks in order to build software that works across many cities. The very idea of a one-size-fits-all solution to bottom-up city innovation is flawed, because every application that is successfully implemented in a large number of cities erodes the uniqueness that makes the cities distinct. Beyond this, the notion of welcoming 'civic startups' as somehow different from other money-making enterprises ignores the conflicting demands of sharing and money-making, and will lead to the erosion of civic commons.
In a few short years the Sharing Economoy has gone from the generosity of 'what's mine is yours' to the self interest of 'what's yours is mine', as the non-commercial values invoked by the phrase 'sharing economy' have been left behind or reduced to public relations exercises.
The main impulse that drove the writing of this book was a sense of betrayal: that what started as an appeal to community, person-to-person connections, sustainability, and sharing, has become the playground of billionaires, Wall Street, and venture capitalists extending their free-market values ever further into our personal lives. The promise of a more personal alternative to a corporate world is instead driving a harsher form of capitalism: deregulation, new forms of entitled consumerism, and a new world of precarious work. There is a lot of talk of democratization and networks, but what's happened instead is a separation of risk (spread among the service providers and customers) from reward, which accrues to the platform owners. Despite the claims of ecological sustainability embodied in ideas like 'access over ownership' and the re-use of excess capacity, the on-demand sector is instead encouraging a new form of privileged consumption: 'lifestyle as a service.'
Unfortunately, something different and altogether darker is happening: the Sharing Economy is extending a harsh and deregulated free market into previously protected areas of our lives. The leading companies are now corporate juggernauts themselves, and are taking a more and more intrusive role in the exchanges they support to make their money and to maintain their brand. As the Sharing Economy grows, it is reshaping cities without regard to those things that make then liveable. Rather than bringing a new openness and personal trust to our interactions, it is bringing a new form of surveillance where service workers must live in fear of being snitched on, and while the company CEOs talk benevolently of their community of users, the reality has a harder edge of centralised control. Sharing Economy marketplaces are generating new and ever-more-entitled forms of consumption. The language of ‘a little extra money’ turns out to be the same as that used about women’s jobs forty years ago, when they were not seen as ‘real’ jobs that demanded a living wage, and so did not need to be treated the same, or paid as much, as men’s jobs. Instead of freeing individuals to take control over their own lives, many Sharing Economy companies are making big money for their investors and executives, and making good jobs for their software engineers and marketers, by removing the protections and assurances won by decades of struggle, by creating riskier and more precarious forms of low-paid work for those who actually work in the Sharing Economy. (p.3)