Economy

Uber’s New Guidelines Highlight Issues With Sharing Economy (Watch)

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Popular ride-sharing app Uber just updated its community guidelines. And it doesn’t just include rules for drivers. This time, the company is also specifying behavior that is unacceptable for riders.

The new rules restrict passenger activities like vandalism, vomiting due to excessive alcohol consumption and flirting with drivers. This is the first time Uber has had to create restrictions for its passengers. But due to the nature of the business, it shouldn’t come as much of a shock.

Businesses and apps that use the growing “sharing economy” model have to rely on multiple parties to hold up their end of every bargain. For Uber, that means that they need both drivers and passengers to act appropriately.

If the company only focuses on driver activity, but lets passengers do basically whatever they want, it could lead to fewer people wanting to be drivers. That could lead to less reliable service or Uber would have to pay its drivers more just to attract enough people willing to put up with questionable behavior.

What Makes the Sharing Economy Work?

For other businesses that want to use the sharing economy model, this is also something to consider. In this type of business, you need those representing your business to act in an acceptable manner. But you also need customers to do the same.

Uber Photo via Shutterstock

[“source-smallbiztrends”]

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