Uber Technologies, Inc

Total Page:16

File Type:pdf, Size:1020Kb

Uber Technologies, Inc 2017-2018 US Safety Report Uber Technologies, Inc. San Francisco, CA Published: December 5, 2019 Disclaimer: The data included in this Report is being provided for informational purposes only and reflects incidents report- ed to Uber in numerous ways, as discussed further herein. The data consists of reported incidents that allegedly occurred in connection with (as defined here) an Uber-facilitated trip. Given the limitations described herein, the Report does not assess or take any position on whether any of the reported incidents actually occurred, in whole or in part. Accordingly, no data, analysis, statement, representation, or other content contained in this Report can be relied upon by any party for any other purpose. This Report is issued as of the publication date listed above. Uber has undertaken reasonable efforts to ensure that the data, analysis, statements, representations, and other content contained in this Report are accurate as of the publica- tion date, and will not update the Report or its contents after such publication date. Table of Contents 4 Terms used in this Safety Report 6 Foreword 8 An introduction letter 10 Executive summary 20 Safety investments 33 Methodology 49 Uber’s scale in the United States 50 Data insights 50 Motor vehicle fatalities 57 Fatal physical assaults 58 Sexual assault 71 Conclusion Appendix I: Why data standards matter Appendix II: Examining Uber’s Use of the Sexual Misconduct and Violence Taxonomy and the Development of Uber’s United States Safety Report (by National Sexual Violence Resource Center, RALIANCE, and Urban Institute) Appendix III: An Evaluation of Safety Incident Categorization Capabilities for Uber (by The Chertoff Group) Appendix IV: Sexual Misconduct and Sexual Violence Taxonomy Terms used in this Safety Report Audit function (or audit process) Safety support agent(s) Uber’s data-quality assurance process, which is designed Customer support personnel at Uber who are tasked with to ensure data classification accuracy, reliability, and handling and responding to reported safety incidents and consistency across all safety incident reports. actioning user accounts as necessary. FARS Sexual assault The Fatality Analysis Review System. Operated by the Based on the Sexual Misconduct and Sexual Violence National Highway Traffic Safety Administration (NHTSA), Taxonomy, sexual assault is defined as any physical or FARS is a nationwide census of fatal traffic crashes within attempted physical contact that is reported to be sexual the 50 states, the District of Columbia, and Puerto Rico. in nature and without the consent of the user. This can include incidents within the taxonomy ranging from Guest rider Attempted Touching of a Non-Sexual Body Part (e.g., a user Any rider in an Uber-facilitated trip who is not the rider who trying to touch a person’s shoulder in a sexual/romantic requested the trip through their Uber account. Guest riders way) to Non-Consensual Sexual Penetration. (For further can accompany rider account holders on trips or take the sexual assault categories and their definitions, please see trip without the rider account holder present. Appendix IV.) Section Three Section NISVS Sexual misconduct The National Intimate Partner and Sexual Violence Survey. The Sexual Misconduct & Sexual Violence Taxonomy Administered through the Centers for Disease Control defines sexual misconduct as non-physical conduct (verbal (CDC), NISVS is an ongoing survey that collects national- or staring) of a sexual nature that happens without consent and state-level data on intimate partner violence, sexual or has the effect of threatening or intimidating a user violence, and stalking victimization in the United States. against whom such conduct is directed. This can include incidents within the taxonomy ranging from Staring/ Relevant facts Leering to Verbal Threat of Sexual Assault. (For further During the incident-report review process, safety support sexual misconduct categories and their definitions, please agents may gather relevant facts that may aid in the see Appendix IV.) ultimate resolution of a report. These relevant facts may include but are not limited to: GPS information, trip Statement of experience timestamps, and any additional information provided During the case-review process, specialized safety support to us, such as dashcam, phone, or audio recordings and agents aim to speak directly with the victim or survivor to screenshots of text conversations. Although these relevant obtain a firsthand account on the details of their reported facts can be useful, they are not necessary for an accused incident. In cases where a survivor is not able or willing to party’s account to be removed from the platform, and we provide that statement of experience, Uber considers all rely heavily on a survivor’s statement of experience. other relevant facts obtained during the review. Ridesharing (or ridesharing platform) Taxonomy For the purposes of this report, the Uber ridesharing A system used for incident categorization. Uber’s Safety platform involves peer-to-peer ride services inclusive of, Taxonomy is used to categorize safety incidents for proper but not limited to, UberPool, UberX, Uber Black, Uber SUV, agent routing, support protocol design, data tracking, and and UberXL. It also includes ride services in markets where other purposes. professional rideshare drivers are commercially licensed (e.g., New York City). Third party Any person who is not a driver, rider account holder, or guest rider involved in a reported safety incident. Terms Uber 4 User Victim/Survivor Any person using the Uber platform. For the purposes of We’ve learned from experienced advocates that people this report, it pertains specifically to drivers and riders. impacted by sexual violence may identify in many different ways, which can be deeply personal to the individual. In an effort to be inclusive and to ensure that all people impact- ed by sexual violence can identify with the language used in this report, Uber has chosen to use the terms victim and survivor throughout this report. Both terms are intended to refer to a person who has experienced any type of sexual misconduct or sexual assault. Section Three Section Terms Uber 5 Foreword From Karen Baker, Chief Executive Officer, National Sexual Violence Resource Center As an advocate who has been working in the movement to end sexual violence for the past 20 years, I welcome this unprecedented report, which provides an opportunity to shed light on how this information-sharing emboldens our work for a safer future. When the National Sexual Violence Resource Center (NSVRC) began working with Uber and the Urban Institute two years ago to create a classification system for unwanted behaviors, we didn’t anticipate how much we would learn about informing and enhancing the way industries and corporations enact meaningful change, and how those changes contribute to efforts to prevent and end all forms of sexual violence. The publication of this report is a bold step that builds off of that effort and sets a new bar for corporate responsibility and transparency. Never before have we seen a company disclose this level of information proactively. As experts in this field, we know first-hand that sexual harassment and abuse occur in all industries because they are a part of our larger society. All too often we have seen institutions respond to this reality by dismissing, denying, and downplaying the data and the broader problem. A 2019 national study found that 81% of women and 43% of men report experiencing some form of sexual harassment Section Three Section and/or assault in their lifetime1—the research speaks for itself, and it is irresponsible and unconscionable to deny the pervasive harms experienced by so many. All too often, victims of sexual assault and rape don’t know where to go or how to report, and are silenced by the fear that they won’t be believed or that their report won’t be taken seriously. This contributes to why sexual assault is such an under-reported crime across society. A recent US Department of Justice study found only 25% of sexual assaults or rape were reported to police.2 Technology can make it easier for people to come forward, and it has the potential to increase accountability. For example, trip information and track- ing in ridesharing apps may make it more likely for riders and drivers to report incidents. We also know that reporting goes up when people know how to report and feel that their reports will be taken seriously. By releasing this data publicly, Uber is confronting these challenging issues head-on rather than shying away from or minimizing the numbers. In fact, they made the intentional decision to be overinclusive, capturing data by accepting every report at face value, without requiring corroboration; and by placing incidents in the highest possible category of severity, when the descriptions were vague. More than ever, business leaders have a unique opportunity to play a role in addressing the pervasive problem of sexual assault and harassment. In order to contribute, they need to first accurately assess the nature and scope of sexual misconduct in their context. Second, they must respond appropriately when incidents occur; and third, they must enforce standards of safety and respect to reduce and prevent further occurrences. 1. Holly Kearl, “The Facts Behind the #MeToo Movement: A National Study on Sexual Harassment and Assault,” February 21, 2018, p. 7, http://www.stopstreetharassment.org /wp-content/uploads/2018/01/Full-Report-2018-National-Study-on-Sexual-Harassment-and-Assault.pdf. 2. Rachel E. Morgan, Ph.D., and Barbara A. Oudekerk, Ph.D., “Criminal Victimization, 2018,” Department of Justice, Office of Justice Programs, Bureau of Justice Statistics, September 2019, p. 8, https://www.bjs.gov/content/pub/pdf/cv18.pdf. Foreword Uber 6 Consistent categorization of reports of sexual harassment, misconduct, and assault make it possible for companies to capture reliable data and to hold themselves accountable to handling reported incidents responsibly.
Recommended publications
  • The Market Impacts of Sharing Economy Entrants: Evidence from USA and China
    Electronic Commerce Research https://doi.org/10.1007/s10660-018-09328-1 The market impacts of sharing economy entrants: evidence from USA and China Yue Guo1,2 · Fu Xin1 · Xiaotong Li3 © The Author(s) 2019 Abstract This paper studies the link between the difusion of the sharing economy and tra- ditional mature industries by empirically examining the economic impacts of shar- ing economy entrants. This study adds to the ongoing debate over whether and how ride-hailing platforms infuence new car sales in USA and China. Our results sug- gest that the short-term impact of Didi Chuxing’s entry on new car sales is positive. Unlike the efect of Didi Chuxing on new car sales in China, Uber’s entry nega- tively infuences new car sales in USA. The entry of Didi Chuxing is related to a 9.24% increase in new car sales in China and the entry of Uber is related to an 8.1% decrease in new car sales in USA. We further empirically confrm that the impact of ride-hailing companies is trivial in small cities. Keywords Collaborative consumption models · Uber · Didi · Ride-hailing services · Sharing economy · Two-sided platforms 1 Introduction Over the last few years, the rapid proliferation of smartphones and the associated applications have fueled rapid growth of the online sharing economy, such as those of Uber, Airbnb, Lyft, Turo, and Peerby. These emerging online peer-to-peer plat- forms, collectively known as ‘collaborative consumption’, have made a great deal * Fu Xin [email protected] * Xiaotong Li [email protected] Yue Guo [email protected] 1 Hohai Business School, Hohai University, Nanjing, China 2 King’s Business School, King’s College London, London, UK 3 College of Business, University of Alabama in Huntsville, Huntsville, AL 35899, USA Vol.:(0123456789)1 3 Y.
    [Show full text]
  • 2020 ESG Report
    ESG Report 20202020 An environmental, social, and governanceESG report for investors Report ESG Report 2020 - DRAFT - Company Confidential 1 We are proud to share Uber’s 2020 ESG Report, which highlights our perspective on the environmental, social, and governance (ESG) issues that matter most to our business and our stakeholders—including platform users (drivers, delivery people, merchants, and consumers), employees, cities, regulators, and investors. The report is intended to provide a high-level overview of Uber’s views on, approach to, and performance on key ESG issues. Additional content regarding these issues, and more, can be found on Uber.com. Data is as of December 31, 2019, unless otherwise noted. Narrative may cover material through August 31, 2020. ESG Report 2020 - DRAFT - Company Confidential 2 Table of contents Uber’s purpose 4 Our cultural norms 5 Letter from our CEO 6 Our business 7 About this report 9 Oversight of ESG at Uber 11 Integrity and trust 17 User safety 24 COVID-19 response 27 Driver and delivery person well-being 32 Diversity, inclusion, and culture 35 Local impact 43 Climate change 47 Performance data 53 Notes from performance data 62 Terms used in this report 65 Indexing 67 ESG Report 2020 3 Uber’s Purpose Why we exist To reimagine the way the world moves for the better What we do Make real life easier to navigate for everyone Who we are Fearless optimists: crazy enough to believe, tenacious enough to make it happen ESG Report 2020 4 Our cultural norms Our 8 cultural norms reflect who we are and where we’re going.
    [Show full text]
  • The Ridesharing Revolution: Economic Survey and Synthesis
    The Ridesharing Revolution: Economic Survey and Synthesis Robert Hahn and Robert Metcalfe* January 10, 2017 Paper prepared for Oxford University Press Volume IV: More Equal by Design: Economic design responses to inequality. Eds. Scott Duke Kominers and Alex Teytelboym. Abstract Digital ridesharing platforms, such as Uber and Lyft, are part of a broader suite of innovations that constitute what is sometimes referred to as the sharing economy. In this essay, we provide an overview of current research on the economic efficiency and equity characteristics of ridesharing platforms, and provide a research agenda that includes an examination of the natural evolution toward driverless cars. We have three main findings: first, relatively little is known about either the equity and efficiency properties of ridesharing platforms, but this is likely to change as companies and researchers focus on these issues. Second, we may be able to learn something about the likely diffusion and benefits of these technologies from experience with other policies and technologies. Third, while we believe these platforms will do substantially more good than harm, the measurement, distribution, and size of the gains from these technologies requires further research. * Robert Hahn is professor and director of economics at the Smith School at the University of Oxford, a non-resident senior fellow at Brookings, and a senior fellow at the Georgetown Center for Business and Public Policy. Robert Metcalfe is Postdoctoral Research Scholar in Economics at the University of Chicago. We would like to thank Ted Gayer, Jonathan Hall, Scott Kominers, Jonathan Meer, Alex Teytelboym, Scott Wallsten, and Cliff Winston for helpful comments and Julia Schmitz, Brian Campbell and Samantha van Urk for excellent research assistance.
    [Show full text]
  • Uber Technologies Inc.: Managing Opportunities and Challenges
    Center for Ethical Organizational Cultures Auburn University http://harbert.auburn.edu Uber Technologies Inc.: Managing Opportunities and Challenges INTRODUCTION Uber Technologies Inc. (Uber) is a tech startup that provides ride sharing services by facilitating a connection between independent contractors (drivers) and riders with the use of an app. Uber has expanded its operations to 58 countries around the world and is valued at around $41 billion. Because its services costs less than taking a traditional taxi, in the few years it has been in business Uber and similar ride sharing services have upended the taxi industry. The company has experienced resounding success and is looking toward expansion both internationally and within the United States. However, Uber’s rapid success is creating challenges in the form of legal and regulatory, social , and technical obstacles. The taxi industry, for instance, is arguing that Uber has an unfair advantage because it does not face the same licensing requirements as they do. Others accuse Uber of not vetting their drivers, creating potentially unsafe situations. An accusation of rape in India has brought this issue of safety to the forefront. Some major cities are banning ride sharing services like Uber because of these various concerns. Additionally, Uber has faced various lawsuits, including a lawsuit filed against them by its independent contractors. Its presence in the market has influenced lawmakers to draft new re gulations to govern this “app-driven” ride sharing system. Legislation can often hinder a company’s expansion opportunities because of the resources it must expend to comply with regulatory requirements. Uber has been highly praised for giving independent contractors an opportunity to earn money as long as they have a car while also offering convenient ways for consumers to get around at lower costs.
    [Show full text]
  • Platform Economy December, 2018
    The rise of the platform economy December, 2018 The rise of the platform economy The platform economy poses significant questions, challenges and opportunities for society, the labour market and organisations The world is going through a new economic revolution, disrupting the economy, businesses, labour markets and our daily lives in a way not seen since the industrial revolution. Driven by technological innovations and increased online connectivity, the role of digital labour market matching is rising. At the heart of this change is the rise of the platform economy1. Workers are finding work through online outsourcing platforms and apps in this so called platform economy. While the gig economy has been talked about for years, the rise of the economy through digital platforms is relatively new. As the platform economy evolves, there are both new opportunities as well as new challenges that arise with heightened complexity. This article explores some of the challenges and future questions related to the rise of the platform economy for both society and organisations tapping into the platform economy. 1 Kenney & Zysman, 2016: 64 What is the platform economy? An increasing number of businesses are starting to adopt the platform business model and its digital strategies in order to remain competitive. Companies such as Airbnb, Uber, Amazon, Google, Salesforce and Facebook are creating online networks that facilitate digital interactions between people. There is a large variation between the function and type of digital platforms available in today’s marketplace, ranging from platforms providing services (e.g., Uber and Airbnb), to products (e.g. Amazon and eBay), to payments (e.g., Square, PayPal), to software development (e.g., Apple, Salesforce) and many more.
    [Show full text]
  • Online Transportation Price War: Indonesian Style
    CORE Metadata, citation and similar papers at core.ac.uk Provided by Klaipeda University Open Journal Systems SAKTI HENDRA PRAMUDYA ONLINE TRANSPORTATION PRICE WAR: INDONESIAN STYLE ONLINE TRANSPORTATION PRICE WAR: INDONESIAN STYLE Sakti Hendra Pramudya1 Universitas Bina Nusantara (Indonesia), University of Pécs (Hungary) ABStrAct thanks to the brilliant innovation of the expanding online transportation companies, the Indonesian people are able to obtain an affor- dable means of transportation. this three major ride-sharing companies (Go-Jek, Grab, and Uber) provide services which not only limited to transportation service but also providing services for food delivery, courier service, and even shopping assistance by utili- zing gigantic armada of motorbikes and cars which owned by their ‘driver partners’. these companies are competing to gain market share by implementing the same strategy which is offering the lowest price. this paper would discuss the Indonesian online trans- portation price war by using price comparison analysis between three companies. the analysis revealed that Uber was the winner of the price war, however, their ‘lowest price strategy’ would lead to their downfall not only in Indonesia but in all of South East Asia. KEYWOrDS: online transportation companies, price war, Indonesia. JEL cODES: D40, O18, O33 DOI: http://dx.doi.org/10.15181/rfds.v29i3.2000 Introduction the idea of ride-hailing was unfamiliar to Indonesian people. Before the inception (and followed by the large adoption) of smartphone applications in Indonesia, the market of transportation service was to- tally different. the majority of middle to high income Indonesian urban dwellers at that time was using the conventional taxi as their second option of transportation after their personal car or motorbike.
    [Show full text]
  • New Strategies for the Platform Economy
    SPECIAL COLLECTION STRATEGY New Strategies for the Platform Economy To reap the rewards and avoid the risks, companies exploring a platform business model must look carefully at their partnerships and growth strategy. Brought to you by: SPRING 2021 NEW STRATEGIES FOR THE PLATFORM ECONOMY SPECIAL REPORT 1 9 17 Competing on How Healthy Is Your Platform Scaling, Platforms Business Ecosystem? Fast and Slow THE DOMINANT DIGITAL PLATFORMS are now among the world’s most phases. At each stage, there are specific early valuable — and most powerful — companies, leaving a huge swath of organizations forced indicators to look for that point to potential to play by their rules. In this new competitive environment, businesses need new ways to failure. Tracking the appropriate metrics gain advantage despite platforms’ constraints and market clout. And businesses seeking to for each stage and being alert to red flags create successful platform ecosystems find that while the rewards can be great, the helps businesses pivot to a new approach or likelihood of failure is high. This special report examines the challenges faced by both limit their losses. platform owners and participants. Platforms aiming for market dominance have typically prioritized rapid growth. The asymmetries in power and infor- attention from U.S. and European regulators, However, Max Büge and Pinar Ozcan have mation between platform owners and the whose scrutiny of dominant platforms’ found that scaling quickly is not the right businesses reliant on them have implications practices may lead to shifts in the prevailing strategy in all circumstances: Pursuing fast for the traditional levers of competitive balance of power.
    [Show full text]
  • How Uber Won the Rideshare Wars and What Comes Next
    2/18/2020 How Uber Won The Rideshare Wars and What Comes Next CUSTOMER EXPERIENCE | HOW UBER WON THE RIDESHARE WARS AND WHAT COMES NEXT How Uber Won The Rideshare Wars and What Comes Next How Uber won the first phase of the rideshare war and how cabs, competitors, and car companies are battling back. BY ELYSE DUPRE — AUGUST 29, 2016 VIEW GALLERY https://www.dmnews.com/customer-experience/article/13035536/how-uber-won-the-rideshare-wars-and-what-comes-next 1/18 2/18/2020 How Uber Won The Rideshare Wars and What Comes Next View Gallery In 2011, two University of Michigan alums Adrian Fortino and Jahan Khanna partnered with venture capitalist Sunil Paul to revolutionize how people got from point A to point B quickly without having to do much. The company was Sidecar, and the idea was simple: “We're going to replace your car with your iPhone,” Fortino explains. Sidecar did not lack competition. Around this time, the taxi industry was experimenting with new ways to make it easier for individuals to summon cars. And entrepreneurs, frustrated with wait times, imagined new ways to hire someone to drive them around. Multiple companies formed to solve this need, including one that is now considered a global powerhouse: Uber. By the time Sidecar went into beta testing in February 2012, Uber, or UberCab as it was originally known when it was founded in 2009, had raised at least $37.5 million at a $330 million post-money valuation, according to VentureBeat. Lyft followed shortly after when it went into beta in mid 2012, boasting more than $7 million in funding, according to TechCrunch's figures.
    [Show full text]
  • Get Uber Com to Avail This Offer
    Get Uber Com To Avail This Offer Homopterous Curtice unknits unmixedly. Polyphase Rodrick sometimes entombs any chopines clabbers entirely. Sherlocke often liberated patriotically when macrocosmic Derrick rethinks heftily and pauperizes her sparklers. Sign up at the next trip and can save on selective pool rides you uber to offer no coupon code Uber Eats Promo Codes. Uber rides by using this coupon code. Activation fee waiver and 20 service discount offers avail only permit current drivers of Uber. Doordash Driver Referral gsmowo. Get all updated Uber Eats coupons promo code and offers on plant food delivery. Eligible users must clean to work using an eligible mode then the surf of link request. Other publications such data but what about putting a part in this available in to avail of its services to make your google home after all. Thank you say yes, among other cities across india launched a putative class on eight premier, get uber com to avail this offer valid in order. SUV, Uber Black, Uber X, etc. Redeem the coupon code to avail the benefits. Customers coming up with this form a wide range of uber employee? Tap of purchase through digital platforms that passengers on things are both are also get uber com to avail this offer code working on your pockets while. Have an event or just apply for your ride at attractive, if you have not been successfully round capital has since applying our. To Article 51 TFEU Uber may not avail itself start the freedom to provide. Have difficulty ever declare that the traffic is horrible crime take public transport but submit a cab might oppose you more? Download unlimited music downloads in any of money by times prime membership, one charged differently by! Want better get uber com to avail this offer? Hi Jonathan, love your blog.
    [Show full text]
  • Uber Transportation Instructions
    UBER TRANSPORTATION INSTRUCTIONS This year we are trying something new for your Patient Congress transportation needs! If the weather is bad or you are not able to walk to the Hill, you can now take Uber . Uber connects riders to drivers with the push of a few buttons on their smart phones. Uber uses a quick and easy app that will help make your trip to and from the Hill pleasant and quick. Below, you will find instructions on how to install the safe and secure Uber app onto your phone, how to use Uber for your trip to and from the Hill, and how to cancel your Uber ride if you need to. Note: Please be sure to give yourself ample time to get to the Hill and to get through security in order to be on time for your meeting on the Hill. We anticipate that it may take approximately 20 minutes to get through security. Uber is available for download on: - iPhone (iOS 7 or newer) -Android (Jelly Bean or newer) - BlackBerry (BB OS 7 only) - Windows Phone 7 Using your Smartphone: Download the UBER app in your app store, or at uber.com/app Register with UBER • Click on the newly installed Uber app and then click ‘Register’. • Fill in the information requested using a cell phone number that can access text messages, chose an easy-to- remember password, then click ‘next’. • Enter in your credit card information, PayPal or Google Wallet information. • Click ‘Register’ Request a ride with UBER • UBER automatically uses your phone’s GPS and Wi-Fi to set your pickup location.
    [Show full text]
  • The Social Costs of Uber
    Rogers: The Social Costs of Uber The Social Costs of Uber Brishen Rogerst INTRODUCTION The "ride-sharing" company Uber has become remarkably polarizing over the last year. Venture capital firms still love Ub- er's prospects, as reflected in a recent $40 billion valuation.1 Yet the company seems determined to alienate just about everyone else.2 Taxi drivers have cast Uber as an unsafe and rapacious competitor, leading lawmakers to shut it out of various mar- kets.3 Uber's claim that its average New York City driver earns over $90,000 a year was so hard to verify that a Slate writer en- titled her article "In Search of Uber's Unicorn." 4 And in what some have called "Ubergate,"5 a senior executive stated that the company might investigate the personal and family lives of its critics-in particular a female journalist who accused it of disre- garding female passengers' and drivers' safety.6 t Associate Professor of Law, Temple University James E. Beasley School of Law. I'd like to thank the staff of The University of Chicago Law Review for superb edito- rial assistance. Errors are of course mine alone. 1 Mike Isaac and Michael J. De La Merced, Uber Adds a Billion Dollars More to Its Coffers, NY Times Dealbook Blog (NY Times Dec 4, 2014), online at http://dealbook .nytimes.com/2014/12/04/uber-files-to-sell-1-8-billion-in-new-shares (visited Feb 26, 2015). 2 Indeed, one Silicon Valley venture capital chieftain has called the company "ethi- cally challenged." Hailey Lee, Uber Is 'Ethically Challenged'-Peter Thiel (CNBC Sept 17, 2014), online at http://www.enbe.com/id/102008782 (visited Feb 26, 2015).
    [Show full text]
  • The Sharing Economy Part 1: New Business Models + Traditional Tax Rules Don’T Mix
    THE SHARING ECONOMY PART 1: NEW BUSINESS MODELS + TRADITIONAL TAX RULES DON’T MIX Authors WHAT IS THE SHARING ECONOMY? Beate Erwin The current international tax system was established on principles dating back to Fanny Karaman the first half of the 19th century, when the internet did not exist and the economy Tags mostly consisted of brick-and-mortar stores. Back then, a foreign entity would gen- Airbnb erally have a taxable presence in a host country if the entity had a certain level of Cross-Border Tax Planning physical presence in that country to which income generation could be linked. Such Digital Economy taxable presence is referred to as a “permanent establishment.” But with the advent Sharing Economy of the internet came the rise of the digital economy, and what has evolved is a mix Uber of brick-and-mortar and online stores. As the purchase of services and goods was gradually dematerialized and internet gi- ants such as Google or Microsoft appeared, governments struggled to keep up. The growth of digital economy brought increased scrutiny of tax structures1 set up under laws designed for brick-and-mortar stores. Most recently, governments around the world have shifted their focus to a relatively new part of the digital economy called the “sharing economy.” The I.R.S. describes it as follows: The sharing economy typically describes situations where the Inter- net is used to connect suppliers willing to provide services or use of assets — apartments for rent, cars for transportation services, etc. — to consumers. These platforms are also used to connect workers and businesses for short-term work.2 Well-known examples of companies that utilize the sharing economy are Uber or Airbnb.
    [Show full text]