Airbnb, Uber, Etsy, and other companies within the sharing economy could see friendly regulatory reform from President-elect Donald Trump’s pick for transportation secretary, Elaine Chao, based on remarks Chao made at a meeting last year to the American Action Forum.
Airbnb and Uber, which in North Carolina have faced pushback from city and state lawmakers, represent a thriving peer-to-peer economy in the United States, Chao said, stating that 90 percent of all Airbnb participants rent rooms from their own homes rather than other rental properties.
“Airbnb connects travelers with private citizens who have rooms to rent, allowing them to capitalize the excess capacity in their homes,” Chao said. “In July 2010, the company received 300 letters from homeowners who said they were able to avoid foreclosure because of the extra income derived from Airbnb rentals.”
Companies like Uber have also helped financially struggling families supplement fluctuating income by providing hourly earnings that are equal to or higher than the average hourly earnings of taxi drivers, Chao said.
“Many of the government’s workplace regulations were created during an era when workers spent the majority of their lives in one establishment or one profession,” Chao stated. “That’s no longer the case today. So it is legitimate to ask if the regulatory solutions of the past — crafted by big government for big business — are appropriate for a peer-to-peer economy that is fluid, flexible and filled with workers who prefer independent arrangements.”
Chao, who served as labor secretary for eight years under President George W. Bush, is a former Citicorp executive, where she helped negotiate transportation financing deals. She also was appointed as deputy transportation secretary by Bush, and has served at Harvard’s Kennedy School of Government as well as at the Heritage Foundation.
The secretary’s experience with bureaucracy and the regulatory process will equip her to deal with rules and red tape that continue to create roadblocks, according to Richard F. Hohlt, a Republican consultant and friend of Chao’s.
“We need to preserve the protections of the past for those who need them, while crafting new solutions that better fit the preferences of workers in the sharing economy,” she concluded. “The digitally-enabled…economy has provided an important safety net for many families during difficult times. At a minimum, government policies must not stifle the innovation that has made this sector such an explosive driver of job growth and opportunity.”
Follow this link to learn more about attempts to regulate Airbnb in North Carolina.