DOCSLIB.ORG

Shu-Yi Oei Tulane University Law School

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Shu-Yi Oei Tulane University Law School NEW YORK UNIVERSITY SCHOOL OF LAW SPRING 2015 COLLOQUIUM ON TAX POLICY AND PUBLIC FINANCE . “Can Sharing Be Taxed?” Shu-Yi Oei Tulane University Law School March 31, 2015 NYU Law School Vanderbilt Hall-208 Time: 4:00-5:50 p.m. Number 9 SCHEDULE FOR 2015 NYU TAX POLICY COLLOQUIUM (All sessions meet on Tuesdays from 4-5:50 pm in Vanderbilt 208, NYU Law School) 1. January 20 – Brigitte C. Madrian, Harvard Kennedy School. “Does Front-Loading Taxation Increase Savings? Evidence from Roth 401(k) Introductions.” 2. January 27 – David Kamin, NYU Law School. "In Good Times and Bad: Designing Legislation That Responds to Fiscal Uncertainty." 3. February 3 – Kimberly Blanchard, Weil, Gotshal & Manges. "The Tax Significance of Legal Personality: A U.S. View." 4. February 10 – Eric Toder, Urban Institute. “What the United States Can Learn From Other Countries’ Territorial Tax Systems.” 5. February 24 - Linda Sugin, Fordham University, School of Law. “Invisible Taxpayers.” 6. March 3 – Ruth Mason, University of Virginia Law School. “Citizenship Taxation.” 7. March 10 – George Yin, University of Virginia Law School. “Protecting Taxpayers from Congressional Lawbreaking.” 8. March 24 – Leigh Osofsky, University of Miami School of Law, “The Case for Categorical Nonenforcement.” 9. March 31 – Shu-Yi Oei, Tulane University Law School. “Can Sharing Be Taxed?” 10. April 7 – Lillian Mills, University of Texas Business School. “Managerial Characteristics and Corporate Taxes.” 11. April 14 – Lawrence Zelenak, Duke University School of Law. “Up in the Air over the Taxation of Frequent Flyer Benefits: the American, Canadian, and Australian Experiences.” 12. April 21 – David Albouy, University of Illinois Economics Department. “Should we be taxed out of our homes? Leisure and housing as complements and optimal taxation.” 13. April 28 – David Schizer, Columbia Law School. “Tax and Energy Policy.” 14. May 5 – Gregg Polsky, University of North Carolina School of Law, "Private Equity Tax Games and Their Implications for Tax Practitioners, Enforcers, and Reformers." SYO & DMR Draft 3/15/15. In progress. Please email the authors for most updated version. CAN SHARING BE TAXED? Shu-Yi Oei* & Diane M. Ring** 93 WASH. U. L. REV. ___ (forthcoming 2016) ABSTRACT The past few years have seen the rise of a new model of production and consumption of goods and services, often referred to as the “sharing economy.” Fueled by startups such as Uber and Airbnb, sharing enables individuals to obtain rides, accommodations, and other goods and services from peers via the Internet or mobile application in exchange for payment. The rise of sharing has raised questions about how it should be regulated, including whether existing laws and regulations can and should be enforced in this new sector or whether new ones are needed. In this Article, we explore those questions in the context of taxation. We argue that, contrary to the claims of some commentators, the application of substantive tax law to sharing is mostly (though not completely) clear, because current law generally contains the concepts and categories necessary to tax sharing. However, tax enforcement and compliance may present challenges, as a result of two distinctive features of sharing. First, some sharing businesses opportunistically pick the more favorable regulatory interpretation if there is ambiguity regarding which rule applies or whether a rule applies. The existence of these ambiguities has been exacerbated by the structures of the new sharing economy and this has led to compliance and enforcement gaps. Second, the “microbusiness” nature of sharing raises unique compliance and enforcement concerns. We suggest strategies for addressing these dual challenges, including lower information reporting thresholds, safe harbors and advance rulings to simplify tax reporting, and targeted enforcement efforts. * Hoffman F. Fuller Associate Professor of Law, Tulane Law School. ** Professor of Law & The Thomas F. Carney Distinguished Scholar, Boston College Law School. 2 CAN SHARING BE TAXED? [17-Mar-15 TABLE OF CONTENTS Abstract ................................................................................................................... 1 Table of Contents .................................................................................................... 2 Introduction ............................................................................................................. 3 I. The Sharing Economy ........................................................................................ 8 A. Vehicle Ridesharing .................................................................................... 10 B. Peer-to-Peer Lodging and Accommodation ................................................ 15 C. Other Online Peer-to-Peer Marketplaces for Sharing ................................. 16 II. Tax Issues in the Sharing Economy ................................................................... 17 A. Income Taxation of Peer-to-Peer Ride Services ......................................... 18 B. Income Taxation of Home Sharing ............................................................. 22 C. Self-Employment Taxes and Local Occupancy Taxes ............................... 27 III. Tax Compliance and Enforcement Challenges in the Sharing Sector: Opportunism and Microbusiness ..................................................................... 33 A. Tax Opportunism: The Information Reporting Example ............................ 34 B. Other Examples of Tax Opportunism ......................................................... 47 C. The New Microbusiness Economy ............................................................. 56 IV. Tax Enforcement Strategies for Sharing and Beyond ....................................... 59 A. Short-Term Strategies for Managing Sharing’s Challenges ....................... 61 B. Medium- to Long-term Approaches ............................................................ 64 C. Beyond Sharing ........................................................................................... 67 Conclusion .............................................................................................................. 69 17-Mar-15] CAN SHARING BE TAXED? 3 INTRODUCTION The past few years have seen the rise of a new mode of production and consumption of goods and services. In this so-called “sharing economy,” startups such as Uber, Airbnb, and TaskRabbit enable consumers to summon rides, rent accommodations, or hire help from peers via the internet or a mobile app, in exchange for payment.1 On the supply side, these models enable owners of homes, apartments or vehicles, or those who possess certain skills (such as house painting, home organization, or dogsitting) to monetize those assets or skills.2 The technological platforms employed by these startups enable individual producers and consumers to transact with each other with unprecedented ease.3 Also known as “collaborative consumption,” the “peer-to-peer economy” or “peer-to-peer consumption,” a broad range of commentators suggest that the sharing economy is transforming the way people consume and supply goods and services, such as transportation, accommodations, and task help.4 Commentators note that sharing arrangements have the potential to significantly affect traditional industries such as taxicabs, limousine services, and the hotel industry.5 As such, the sharing economy 1 See generally UBER, https://www.uber.com, AIRBNB, https://www.airbnb.com, TASKRABBIT, https://www.taskrabbit.com. 2 THE PEOPLE WHO SHARE, https://web.archive.org/web/20140318160538/http://www.thepeoplewhoshare.com/blog/w hat-is-the-sharing-economy/ (describing the sharing economy as “the shared creation, production, distribution, trade and consumption of goods and services by different people and organisations.”); The Rise of the Sharing Economy, THE ECONOMIST, Mar. 9, 2013 (print edition) available at http://www.economist.com/news/leaders/21573104-internet- everything-hire-rise-sharing-economy. 3 See sources cited note 2. 4 See, e.g., Pricewaterhouse Coopers, “The sharing economy: how will it disrupt your business?” (August 2014), http://pwc.blogs.com/files/sharing-economy-final_0814.pptx (estimating that “[f]ive key sharing sectors (P2P finance, online staffing, P2P accommodation, car sharing and music/video streaming) have the potential to increase global revenues from around $15 billion now to around $335 billion by 2025” and warning that “[i]ncumbents need to see disruption coming from an expansion of sharing and develop effective strategies to respond, whether by acquisition, partnership or launching their own sharing services.”); NPR Special Series: The Sharing Economy: A Shift Away From Ownership, http://www.npr.org/series/244583579/the-sharing-economy-a-shift- away-from-ownership (exploring different aspects of the sharing economy). We note that the popular press has, in some sense, been ahead of scholars in examining the sharing economy, interviewing its participants, and commenting on its development. 5 See, e.g., Georgios Zervas, Davide Proserpio & John Byers, The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry (Feb. 2014), available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2366898. 4 CAN SHARING BE TAXED? [17-Mar-15 raises important legal and regulatory issues, including questions of whether and how the new startups should be regulated and questions about the appropriate relationship between regulation and innovation.6 One set
Load more

Recommended publications
  • How Transportation Network Companies Could Replace Public Transportation in the United States Matthew L
    University of South Florida Scholar Commons Graduate Theses and Dissertations Graduate School November 2017 How Transportation Network Companies Could Replace Public Transportation in the United States Matthew L. Kessler University of South Florida, [email protected] Follow this and additional works at: http://scholarcommons.usf.edu/etd Part of the Civil Engineering Commons, Public Policy Commons, and the Urban Studies and Planning Commons Scholar Commons Citation Kessler, Matthew L., "How Transportation Network Companies Could Replace Public Transportation in the United States" (2017). Graduate Theses and Dissertations. http://scholarcommons.usf.edu/etd/7045 This Thesis is brought to you for free and open access by the Graduate School at Scholar Commons. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. How Transportation Network Companies Could Replace Public Transportation in the United States by Matthew L. Kessler A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science in Engineering Science Department of Civil and Environmental Engineering College of Engineering University of South Florida Co-Major Professor: Steven E. Polzin, Ph.D. Co-Major Professor: Abdul. R. Pinjari, Ph.D. Xuehao Chu, Ph.D. Martin D. Hanlon, Ph.D. Date of Approval: October 23, 2017 Keywords: TNC, Supplantment, Transit Agency, Ride-sourcing, Smartphone app Copyright © 2017, Matthew L. Kessler DEDICATION This page is dedicated in memory of my beloved uncle, Joel “Jerry” Kessler, my grandparents: Miriam Sylvia and William Berkowitz, Gertrude and Sam Kessler. Lifelong friend MariaLita Viafora, and a special friend, Michael R.
    [Show full text]
  • Pdf (Arguing That the Sharing Economy Is a Consequence of Moore’S Law and the Internet)
    Notre Dame Law Review Volume 94 | Issue 1 Article 7 11-2018 The hS aring Economy as an Equalizing Economy John O. McGinnis Northwestern University Pritzker School of Law Follow this and additional works at: https://scholarship.law.nd.edu/ndlr Part of the Law and Economics Commons, Law and Politics Commons, and the Law and Society Commons Recommended Citation 94 Notre Dame L. Rev. 329 (2018). This Article is brought to you for free and open access by the Notre Dame Law Review at NDLScholarship. It has been accepted for inclusion in Notre Dame Law Review by an authorized editor of NDLScholarship. For more information, please contact [email protected]. \\jciprod01\productn\N\NDL\94-1\NDL107.txt unknown Seq: 1 19-NOV-18 13:05 THE SHARING ECONOMY AS AN EQUALIZING ECONOMY John O. McGinnis* Economic equality is often said to be the key problem of our time. But information technol- ogy dematerializes the world in ways that are helpful to the ninety-nine percent, because informa- tion can be shared. This Article looks at how one fruit of the information revolution—the sharing economy—has important equalizing features on both its supply and demand sides. First, on the supply side, the intermediaries in the sharing economy, like Airbnb and Uber, allow owners of housing and cars to monetize their most important capital assets. The gig aspect of this economy creates spot markets in jobs that have flexible hours and monetizes people’s passions, such as cooking meals in their home. Such benefits make these jobs even more valuable than the earnings that show up imperfectly in income statistics.
    [Show full text]
  • The Top 7 International Ride-Sharing Apps
    Locations Resource Artciles Beyond Uber: The Top 7 International Ride-Sharing Apps Need a Lyft? In an Uber rush? Chances are good that if you’re residing in the United States, both these questions have taken on double meanings in recent years. From the most urbanized to isolated societies, applications such as Lyft and Uber have brought a new form of transportation, known as ridesharing, to the masses. As part of the greater sharing economy, or through the uberisation effect, these applications take advantage of our telecommunication networks and smart devices to make our lives easier. In short, they do this by ultimately removing the larger companies from the equation and facilitating mutually benecial peer-to-peer interactions. Ride-sharing is a great example for this, as anyone who has used an associated application can attest. When using Uber, for instance, a customer must only broadcast their need for a ride to a specic destination, and any registered nearby driver may accept. Uber, of course, takes its cut from the fares, but otherwise, the transaction is solely between the consenting driver and customer. For many in the world, Uber has become more than a household name for ride-sharing applications, becoming more akin to the industry as a whole, rather than a specic brand. This is in the same regard as to how Kleenex has superseded tissue paper, despite other brands available on the market. That said, there are actually several competitors to Uber outside of the United States. If you’re traveling abroad, having some knowledge of them, as well as their existence, might save you when you need it most, particularly if your destination is not supported by the company you’re familiar with.
    [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]
  • Efficienciesandregulato
    EFFICIENCIES AND REGULATORY SHORTCUTS: HOW SHOULD WE REGULATE COMPANIES LIKE AIRBNB AND UBER? Benjamin G. Edelman* & Damien Geradin** CITE AS: 19 STAN. TECH. L. REV. 293 (2016) ABSTRACT We explore the regulation of new software platforms that connect consumers with informal service providers for transportation, short-term rentals, and more. These platforms tend to be in tension with existing regulatory frameworks which typically require licensing, certification, and insurance. In one view, some of these requirements are outdated or protectionist, benefiting incumbents more than consumers. Others counter that the rules embody important values and protect both customers and the public at large. We explore these disagreements with an eye for how the regulatory framework might allow the key efficiencies these platforms provide, while assuring protection for customers and avoiding harm to noncustomers. * Associate Professor, Harvard Business School. [email protected] ** Professor of Law, Tilburg University and George Mason University School of Law. Founding partner, EDGE Legal. [email protected] 293 294 STANFORD TECHNOLOGY LAW REVIEW [Vol. 19:293 TABLE OF CONTENTS I. INTRODUCTION ................................................................................................. 294 II. EFFICIENCIES ..................................................................................................... 296 A. Main efficiencies from software platforms ........................................................ 296 1. Reducing transaction costs ......................................................................
    [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]
  • Gett Prepares to Conquer New York in Polish Style!
    Gett prepares to conquer New York in Polish style! 04.05.2017 The Gett taxi app will acquire JUNO – one of the largest players on the New York taxi market – for $200 million. Gett, a leader on the passenger transport market in Europe, will acquire New York taxi company JUNO. Thanks to this merger, Gett will increase its share on the market of this American city to 13 percent. Gett’s strategic goal is to achieve second position in New York. The purchase amounts to $200 million. Gett is part of the portfolio belonging to MCI.TechVentures, managed by Private Equity Managers (MCI Capital Group) in Poland. “This move represents an enormous opportunity for growth. That’s why we will try to secure additional capital this year,” says TechCrunch’s Dave Waiser, founder of Gett. Uber, which controls close to 70 percent of the market, currently dominates the streets of New York. In second place is the application Lyft, in operation since 2012, which boasts a 20-percent share. Together with JUNO, Gett will have approx. 25 thousand drivers, which represents almost 45 percent of the drivers at the disposal of Uber. In the first two months of 2017, Uber drivers carried out more than 14 million trips, compared to only 2.7 million by Lyft. Together, Gett and JUNO will account for almost 2 million trips. “In terms of the number of trips and passengers, the New York market alone can be compared to the British or Russian markets. Acquiring JUNO secures a strong position for Gett in the American metropolis.
    [Show full text]
  • Financial Report for the Second Quarter and the First Six Months 2018
    Vostok New Ventures Ltd. Financial Report For the Second Quarter and the First Six Months 2018 • Net result for the period was USD 12.17 million (mln) (January 1, 2017–June 30, 2017: 8.64). Earnings per share were USD 0.14 (0.10). • Net result for the quarter was USD -14.07 mln (-8.69). Earnings per share for the quarter were USD -0.17 (-0.10). • The net asset value of Vostok New Ventures (“Vostok” or “the Company”) was USD 892.51 mln on June 30, 2018 (December 31, 2017: 879.99), corresponding to USD 10.55 per share (December 31, 2017: 10.40). Given a SEK/USD exchange rate of 8.9599 the values were SEK 7,996.76 mln (December 31, 2017: 7,244.35) and SEK 94.57 (December 31, 2017: 85.65), respectively. • The group’s net asset value per share in USD increased by 1.4% over the period January 1, 2018– June 30, 2018. • During the quarter April 1, 2018–June 30, 2018, the group’s net asset value per share in USD decreased by 1.5%, mainly as a result of the revaluation of Avito, BlaBlaCar and Gett. • During the second quarter 2018, Vostok New Ventures invested USD 4 mln into DOC+, a Russian digital health company, for a minority stake of the company. Vostok also did follow on investments in Gett, el Basharsoft and Agente Imóvel. • On June 14, 2018, the Company issued senior unsecured corporate bonds in an amount of SEK 400 million within a total framework of SEK 600 million.
    [Show full text]
  • Rider Multihoming in the United States Rideshare Market
    Rider Multihoming in the United States Rideshare Market by Daniel X. Valderrama Bachelor of Science in Systems Engineering United States Military Academy, 2013 SUBMITTED TO THE SYSTEM DESIGN AND MANAGEMENT PROGRAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENGINEERING AND MANAGEMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY MAY 2020 © 2020 Daniel X. Valderrama. All Rights Reserved. The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part in any medium now known or hereafter created. Signature of Author: ____________________________________________________________ Daniel X. Valderrama Fellow, System Design and Management Program May 15th, 2020 Certified by: __________________________________________________________________ Bruce Cameron Director, System Architecture Group Thesis Supervisor Accepted by: __________________________________________________________________ Joan S. Rubin Executive Director System Design and Management [This Page Intentionally Left Blank] 2 Rider Multihoming in the United States Rideshare Market By Daniel X. Valderrama Submitted in the System Design and Management Program on May 15th 2020 in partial fulfillment of the requirements for the degree of Master of Science in Engineering and Management ABSTRACT This thesis examines rider multihoming in the US ridesharing market. Ridesharing services experience substantial multihoming on both sides of the platform, and appear to suffer from a combination of a lack of differentiation as well as low multihoming costs. Through an informational interview, a qualitative survey, and a conjoint survey and analysis, rider preferences were able to be categorized and quantified. An adapted conjoint survey and analysis allowed for a simulation of rider decisions to accept a ride or multihome along price, time, and company attributes.
    [Show full text]
  • Online Cab Aggregators Around the World
    Online Cab Aggregators around the World Prepared by Valoriser Consultants Tel: +91-11-25546049 | Mobile: +91-9958835533 | Email: [email protected] | Website: www.valoriserconsultants.com Uber Technologies Inc. (www.uber.com) Started in: 2007 Founders Funding Business Model: Ride Sharing Seed/Angel $1.5 million Presence in: 140+ cities around the world Series A $11 million Series B $37 million Series C $258 million Series D $1.2 billion Travis Kalanick and Garrett Camp Total $1.5 billion • Founded in 2007, Uber is currently the market leader in terms of revenue, valuation and its market presence in the taxi market. – The company is currently managing a large fleet of cars across the world. Uber drivers are also licensed, but are not employees of the company. They work when they want and must provide their own cars. • The concept is gaining lots of popularity around the world. It is posing real challenge to traditional taxi market. The company is signing up around 20,000 drivers every month around the world. • Uber has taken lots of initiative in the recent time to integrate its application with other services like booking option in Google Map, Partnership with Concur for business travel and discussion with Facebook & WhatsApp for possible integration. © 2014 Valoriser Consultants Publication 2 Lyft Inc. (www.lyft.com) Started in: 2005 Founders Funding Business Model: Carpooling Seed/Angel $1.5 million Presence in: 64 cities in 31 states (USA) Series A $6 million Series B $15 million Series C $60 million Series D $250 million John Zimmer and Logan Green Series E $332.5 million • Lyft is one of the most popular carpooling providers in the USA, providing short trips to commuters.
    [Show full text]
  • Unlock the Value of Mobility Services | Accenture
    Unlock the value of mobility services Turning business models into profits 2 Contents Executive summary 4 How to unlock the value of mobility services 6 Defining mobility services 7 The key barrier to profitability 8 COVID-19 challenges the previous growth path 10 The 2030 market outlook on mobility services 16 About the research 18 Appendix 19 Contributors 20 3 Executive Summary The demand for mobility services has accelerated dramatically over the last decade. Despite significant investments and corresponding growth in urban areas, many of today’s leading transport companies have not cracked the code on how to profit from new mobility services. 4 Despite the sharp increase in demand, mobility We then identified a series of three actionable services have been significantly impacted by steps providers can take to overcome these the global outbreak of COVID-19. The demand obstacles. Our recommendations speak to the for mobility has decreased substantially and unique needs of the mobility services market consumers have been prompted to rethink their and serve as concrete measures both regulators preferred mode of transportation with more and private companies can take to protect and emphasis on protecting their safety while having grow mobility service investments. to consider a more uncertain economic situation. However, the underlying drivers of the mobility 1. New rules for a new game transformation still hold true: a need to improve quality of life in urban areas and reduce traffic 2. Optimize mobility across the fleet gridlocks, a stronger push to decarbonize transport and reduce local pollution, as well as customers’ 3. Pivot from your core products changing expectation of digitally-enabled services with on-demand availability.
    [Show full text]
  • The Future of Mobility Ride-Hailing and New Businesses to Fuel $7Tn+
    EQUITY RESEARCH | June 4, 2019 | 6:25 AM EDT The following is a redacted version of the original report. See inside for details. THE FUTURE OF M BILITY Ride-hailing and new businesses to fuel $7tn+ global mobility market The next 10 years of mobility will bring more change in the way that people and products move than any decade since the invention of the automobile. Emerging technologies and business models like ride-hailing and sharing, autonomous driving and delivery, micro-mobility and even eVTOL (flying cars, finally) stand to disrupt profit pools that we estimate exceed $700bn, and venture backed startups and incumbents will attempt to address over $7tn in spend- ing. Given the size of the opportunity, it should come as no surprise that access to capital has created a hyper competi- tive environment marked by massive operating losses driven by marketing, subsidies, incentives, and capital in- vestment. As this environment matures and rationalizes, we expect consolidation that will lead to profitability, the establishment of category leaders, and significant opportunities for investors. Heath P. Terry, CFA Daniel Powell Piyush Mubayi Frank Jarman David Tamberrino, CFA Adam Hotchkiss +1 212 357-1849 +1 917 343-4120 +852 2978-1677 +1 212 902-7537 +1 212 357-7617 +1 212 902-3941 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Goldman Sachs & Co. LLC Goldman Sachs & Co. LLC Goldman Sachs (Asia) L.L.C. Goldman Sachs & Co. LLC Goldman Sachs & Co. LLC Goldman Sachs & Co.LLC Goldman Sachs does and seeks to do business with companies covered in its research reports.
    [Show full text]