Navigating the Sharing Economy: a 6-Decision Guide for Municipalities LUMCO Large Urban Mayors’ Caucus of Ontario
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Navigating the sharing economy: A 6-decision guide for municipalities LUMCO Large Urban Mayors’ Caucus of Ontario On behalf of the Large Urban Mayors’ Caucus of Ontario (LUMCO), we are pleased to present this guide Ajax to help municipalities navigate the complexities of the sharing economy. Barrie Brampton As municipalities, we are on the front lines of the sharing economy—whether in the form of sharing Brantford that has been around for years, such as carpooling, or larger, for-profit enterprises like apps that enable Burlington home rentals. There is no doubt that new technologies have accelerated the sharing economy and Cambridge created new questions for municipalities about how we can maximize opportunities while protecting Chatham – Kent the public interest. Greater Sudbury Guelph This guide is not meant to tell municipalities what to do. Rather, it’s a tool to help local councils and Hamilton communities analyze the impact of various sharing economy services on their own residents and Kingston businesses and make decisions based on local needs. It’s a framework that recognizes that while Kitchener London decisions must remain local, it makes sense to consider the issues and opportunities we all have in Markham common. Mississauga Oakville Our thanks to all who contributed to this collaborative effort. Thank you to the City of Guelph for Oshawa leading this initiative and coordinating with all the parties involved. Thank you to the Province of Ottawa Ontario for working with us, and for the funding they provided for research and writing of the guide. Richmond Hill Thank you to the Cities of Mississauga and London for their contributions and to the Association of St. Catharines Municipalities of Ontario (AMO) who supported the guide’s development. Thunder Bay Toronto Thanks also to the Guelph Lab—a partnership between the City of Guelph and the University of Guelph Vaughan (CESI) —for their research and the pilot testing they are undertaking with Guelph’s taxi bylaw, and to Waterloo the Guelph Chamber of Commerce. Whitby Windsor It is our hope that this guide will help municipalities across Canada navigate the exciting, fast-growing and sometimes challenging world of the sharing economy. Sincerely, Linda Jeffrey Cam Guthrie Chair, LUMCO Co-Chair, LUMCO Mayor, City of Brampton Mayor, City of Guelph Table of contents Executive summary............................................................................1 Decision: What kinds of policy actions About this Guide ..................................................................................2 or tools are needed? .......................................................................15 Introduction to the sharing economy ....................................3 Few resources required .............................................................16 What is the sharing economy? ................................................3 More resources required ..........................................................16 Why is the sharing economy important to Most resources required ...........................................................16 municipalities? ................................................................................4 Case study: The rapid growth of sharing ......................................................5 Different approaches to bike-sharing ................................17 What potential impacts do municipalities need to A note on bylaws .........................................................................18 consider? ............................................................................................5 How to choose the appropriate tool...................................18 Guiding a municipality’s response: six decisions ............6 Case studies: Decision: What type of approach is most appropriate? 7 Supporting car-sharing through Monitoring and assessment .....................................................7 multiple policy responses .......................................................19 Reactive .............................................................................................7 Enabling sharing space—Bologna’s regulation for Proactive ...........................................................................................7 the care and regeneration of the urban commons ......19 Case study: Decision: Design considerations ..............................................20 The Hydrocut—a reactive approach Making decisions .........................................................................20 to risk and liability concerns .....................................................8 Enforcement, disputes, liability .............................................20 Decision: What are the primary public policy goals? .....9 Decision: Implementation and evaluation .......................21 Economic development/employment goals .....................9 Limits and caps ............................................................................21 Environmental goals .................................................................10 Data and evaluation ..................................................................22 Consumer choice and protection goals ...........................10 Decisions in action: How municipalities in Ontario Community development/social goals .............................11 have responded to ride-hailing companies ....................23 Service delivery innovation goals ........................................11 Conclusion: A call to action ...........................................................25 Decision: What type(s) of sharing will be included? ....12 Endnotes ................................................................................................26 For-profit companies .................................................................12 References ............................................................................................27 Mission-driven initiatives ........................................................12 Aligning sharing approaches with municipal priorities .........................................................13 Case studies: MuniRent and for-profit forms of sharing ........................14 Austin and co-operative forms of sharing .......................14 REACH and community sharing ..........................................14 Alternative formats are available upon request in accordance with the Accessibility for Ontarians with Disabilities Act, 2005. August 2017 Navigating the Sharing Economy i Executive summary Sharing is one of the oldest and most universal instincts. Today, disruptive digital technologies make it easier than ever by facilitating peer-to- peer relationships and enabling people to connect with one another directly and more equitably. Today citizens can share on a large scale and with strangers, not just with friends, family and their direct communities. While this “sharing economy” can create many benefits, it Responding to the sharing economy has the potential also raises a number of questions, from the impact on tax to realize significant public value, including: bases to safety and liability concerns. • improvements in service delivery and cost reductions Many of these issues fall within the purview of municipal • economic development government. As a result, sharing economy initiatives are being shaped by zoning codes, hotel and taxi licensing • a reduction in environmental impacts regulations, transit and all manner of distinctly local policy.1 At the same time, municipalities should not ignore This Guide is designed to help municipalities understand potential issues that may arise in the context of certain this new economy, what it means on a local level and how sharing initiatives, such as: to respond appropriately. As they navigate this new terrain, municipalities should keep three points in mind. • uneven service delivery • the rise of precarious employment 1. The sharing economy encompasses a wide range of models and sectors. • lack of independent data to accurately track the The term “sharing economy” brings to mind private impact of sharing-driven activities companies such as Uber and Airbnb. However, sharing itself is part of a larger tradition, the most established and • the erosion of consumer protections promising examples of sharing are not always found in Municipalities will need to both evaluate impacts Silicon Valley and don’t necessarily involve sophisticated at a local level and take steps to ensure any sharing apps. This sector includes bike-sharing programs, initiatives in their community are carefully aligned with community gardens and many other socially and their goals. ecologically minded ventures. Case studies in this Guide were selected to help illuminate these lesser-known but 3. Municipalities have a range of options available to important and impactful examples. shape the local sharing economy. 2. There is currently a lack of data on the impacts of Municipalities that choose to engage with the sharing the sharing economy, especially outside of large economy are not limited to establishing regulations cities, but the data that does exist points to both through bylaws. Instead, there is a range of options local positive and negative impacts. governments can use to craft a response that advances the The range of models and the rapid growth of sharing public interest. Some of these tools may already be familiar make it difficult to draw general conclusions about the to municipalities; other tools provide ample opportunity