The Taking Economy: Uber, Information and Power
Businesses have long used what they know about consumers to shape behavior and maximize profits. But what happens when a business sits between the consumer and the service provider? They’re able to monitor and nudge all participants, including those whose livelihood depends on the service. Therein lies the power of the middleman.
Sharing economy companies like Uber, Lyft, and Airbnb are able to leverage their access to information about users and their control over the user experience to mislead, coerce, or otherwise disadvantage sharing economy participants, according to a new paper, , by , assistant professor at the Ƶ, and , a researcher at the Data & Society Research Institute in New York City. The paper will be published in the Columbia Law Review, volume 177.
“Consumer protection law is past due for an update,” says Calo. “Today's digital platforms know everything about consumers and use what they know to try to channel their behavior."
To be effective, the scholars argue that legal interventions must reflect a deeper understanding of the acts and practices of digital platforms as well as interrupt the incentives of sharing economy firms to abuse their position.