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> Regulatory arbitrage of some sort seems to be involved in many recent digital business models. Whether it concerns or involves (lack of) data privacy regulati

> Regulatory arbitrage of some sort seems to be involved in many recent digital business models. Whether it concerns or involves (lack of) data privacy regulation, "reinventing" labour contracts or undercutting taxation frameworks, it is a most cruel reminder of how poor the management of the commons. Well here is the thing, in my country the majority of Airbnb rental are(at least were) illegal. Authorities knew this but hypocritically, illegal rentals were good for tourism, so the state cracked down on a few illegal rentals, for the example, while allowing 99% of them. This is regulatory arbitrage. Uber on the other hand, didn't have the same luck since legal taxi drivers started to beat up Uber drivers so Uber quickly shut down their operation, as they were running illegal taxis and they couldn't have their cake and eat it too with the justice system... Sometimes it does backfire. One of the reasons why all these SV tech business got away with it is the fact that they are all located in US, only the landlord or the driver are taking real risks legally. As I said before, if I tried such an operation in my own country, I'll be shut down in no time and sent straight to jail for running illegal hotels. "it's just an app" wouldn't work. I still think that my government could have banned these apps if they really wanted to at first place, they are so eager to shutdown torrent/illegal VOD websites for instance, but they didn't.

naveen99 5y ago
The irony of law abiding vigilante drivers beating up regulation abritraging drivers
- throw_m239339 5y ago
  > The irony of law abiding vigilante drivers beating up regulation abritraging drivers Who's going to go file a complain? Uber running illegal taxis? Judges looking into this would be delighted for Uber to get a local presence in order for them to file a complain so the police could arrest a few of their executives...
  - short12 5y ago
    Wouldn't they just send a lawyer. Even if they did send an executive there is zero chance of an arrest being made
- yetihehe 5y ago
  Recently I heard a joke about postmen leaving aviso instead of delivering post. If you see him leaving aviso, you can legally beat him. You have his signed proof that you weren't home at the time.
  - secondcoming 5y ago
    'aviso'?
    - yetihehe 5y ago
      Written notification about tried delivery of a letter or package which can only be received in person. If you are not home, you can go to nearest post office and receive it there. Sorry, I thought it's english word.
      - deleted 5y ago
        [deleted]
      - tamcap 5y ago
        https://en.wiktionary.org/wiki/avis#Old_French https://en.wiktionary.org/wiki/avis#Old_French Wiktionary says it comes from Latin. In English "advise", alas, not used in the common language in regards to mail, like it is used in Polish (and Czech?).
        tecleandor 5y ago
        In Spanish 'aviso' would be 'notice' or 'warning'. Italian 'avviso' is kind of similar.
      - belter 5y ago
        Interestingly not far from the semantics you wanted to convey :-) Collins ...in British English (əˈvaɪzəʊ) - NOUN "a boat carrying messages; a dispatch-boat"
- rvba 5y ago
  The thing with legal taxis is that the quality of their service is complete shit. At least in some countries. You dont know how much you will pay (their estimates are always too low) and the first questions by the driver are to check if you know the town. If you dont sound like a local, then they will drive you through the longest route possible. And worst: you can do nothing about it. No way to report the licensed driver. Before uber it was like a license to steal. In uber you can give 1 star - so the cheaters dont get any customers + you have some idea of price and route.
  - Aerroon 5y ago
    And because taxis are so heavily regulated it wasn't possible to compete with those bad taxis either. Regulation can cement an oligopoly.
  - bellyfullofbac 5y ago
    I wonder if we can make Yelp for taxis. Open the app, scan the plate, check the reviews, if they're bad, go to the next taxi. But I guess dodgy taxi drivers would just buy new license plate (e.g. for their "own" private cars) and swap them - ok in a lot of jurisdictions taxi plates look different to normal car plates. Or the taxi driver can be made aware of the bad reviews and they'd have to do a deal with the app user, e.g. a fixed price with a 20% discount, for a fair review. (Rough idea, there are probably bigger issues when you're dealing with crooked drivers).
    - jfrunyon 5y ago
      I know it's normal for taxi drivers here to own their taxi, and therefore be the only one who drives it - I wonder how common that is throughout the rest of the world? Are there places where different drivers might drive the same cab in shifts?
      - pverghese 5y ago
        It's not even normal in the US for medallioned taxis. 50% of the medallions are owned by one man and leased out to others who can loan the car out to others as well.
- aerosmile 5y ago
  Decades ago, if you wanted a work-when-you-want lifestyle and no boss, and you didn't know how to start your own business, becoming a cabbie was the obvious career path. And cabbies do occasionally experience unpleasant customers with nobody to turn to for help, so you have to have a thick skin to last in that job. For whatever reason, in the US the crowd self-selected towards the immigrant population, whereas in many less developed countries it went towards the bare knuckle boxing type of crowd. No wonder that the latter didn't hesitate to use their knuckles on Uber drivers, whereas in the US that rarely ever happened.
jfrunyon 5y ago
> One of the reasons why all these SV tech business got away with it is the fact that they are all located in US Well, they could still be (at the very least) prohibited from operating in your country. Sadly, most of these services (Airbnb, Uber) were also illegal here in the US, but for "some reason" (aka lots and lots of $$$), no one ever bothered enforcement against them. Eventually they spent enough money on bribes^H^H^H^H^H^H lobbying to legalize themselves. (Then, of course, at least in the case of Uber and friends, once they were established they quietly raised prices and reduced driver income, which were the very reasons the short-sighted public liked them so much.)
- hattar 5y ago
  In defense of the short-sighted public (me), I don’t know the operating costs, profit requirements, accounting model, etc of a hired car service. I can’t assume any time the price of a product goes down, that someone is trying something shady. I can say I loved Uber et al primarily because unlike any experiences I ever had with calling a taxi, a car actually showed up to bring me to my destination. If I correctly interpret your definition of “the public” to mean “the common men and women using these services”: it’s a bit unfair to give them the blame, rather than pursue a failure of regulators or regulations.
  - awillen 5y ago
    Everybody forgets that this is why Uber did so well in SF. The cabs are complete garbage - they don't come when you call, their credit card machines are always "broken" and the drivers are screaming at people on their cellphones for the whole ride. Before UberX was a thing I was paying more for Ubers than for cabs because I would get actual, quality service that way. The SF cab industry abused its regulatorily privileged position. If that industry (or their regulators) had enforced even basic decency and respect for their customers, there would've been no need for Uber in the first place.
  - jfrunyon 5y ago
    If you didn't know that Uber was skirting regulations to offer their cheap prices, then you literally weren't paying any attention and I don't know how you even knew Uber existed.
SkeuomorphicBee 5y ago
> Uber on the other hand, didn't have the same luck since legal taxi drivers started to beat up Uber drivers so Uber quickly shut down their operation, as they were running illegal taxis and they couldn't have their cake and eat it too with the justice system... Sometimes it does backfire. In my country taxi drivers also started to beat up Uber drivers, but it backfired hard on them, it only reinforced the notion that taxi drivers are dangerous, not to be trusted (after all, if they are the kind of person capable of randomly assaulting business competitor, they certainly are capable of assaulting a client in a disagreement, so why would I risk ride with them?), so the beatings helped steer the public opinion in favour of Uber, resulting in the legalization of Uber. Also, in my country breaking a minor (administrative/civil) law doesn't mean you are not protected by more important criminal law, so the victim Uber drivers did seek criminal charges against the offending Taxi drivers. Interestingly, in the aftermath, the taxi lobby (which used to be fiercely anti-consumer) worked to reform taxi laws to be much more pro-consumer in order to compete with Uber, they lowered their prices, removed the ridiculous accessory fees (extra for baggage, extra for more than 2 passengers, ...), added a requirement for background checks for drivers (this was a important one), gps tracking of cars, ... . So official taxis actually got much better due to Uber.

naveen99 5y ago

The irony of law abiding vigilante drivers beating up regulation abritraging drivers

throw_m239339 5y ago
> The irony of law abiding vigilante drivers beating up regulation abritraging drivers Who's going to go file a complain? Uber running illegal taxis? Judges looking into this would be delighted for Uber to get a local presence in order for them to file a complain so the police could arrest a few of their executives...
- short12 5y ago
  Wouldn't they just send a lawyer. Even if they did send an executive there is zero chance of an arrest being made
yetihehe 5y ago
Recently I heard a joke about postmen leaving aviso instead of delivering post. If you see him leaving aviso, you can legally beat him. You have his signed proof that you weren't home at the time.
- secondcoming 5y ago
  'aviso'?
  - yetihehe 5y ago
    Written notification about tried delivery of a letter or package which can only be received in person. If you are not home, you can go to nearest post office and receive it there. Sorry, I thought it's english word.
    - deleted 5y ago
      [deleted]
    - tamcap 5y ago
      https://en.wiktionary.org/wiki/avis#Old_French https://en.wiktionary.org/wiki/avis#Old_French Wiktionary says it comes from Latin. In English "advise", alas, not used in the common language in regards to mail, like it is used in Polish (and Czech?).
      - tecleandor 5y ago
        In Spanish 'aviso' would be 'notice' or 'warning'. Italian 'avviso' is kind of similar.
    - belter 5y ago
      Interestingly not far from the semantics you wanted to convey :-) Collins ...in British English (əˈvaɪzəʊ) - NOUN "a boat carrying messages; a dispatch-boat"
rvba 5y ago
The thing with legal taxis is that the quality of their service is complete shit. At least in some countries. You dont know how much you will pay (their estimates are always too low) and the first questions by the driver are to check if you know the town. If you dont sound like a local, then they will drive you through the longest route possible. And worst: you can do nothing about it. No way to report the licensed driver. Before uber it was like a license to steal. In uber you can give 1 star - so the cheaters dont get any customers + you have some idea of price and route.
- Aerroon 5y ago
  And because taxis are so heavily regulated it wasn't possible to compete with those bad taxis either. Regulation can cement an oligopoly.
- bellyfullofbac 5y ago
  I wonder if we can make Yelp for taxis. Open the app, scan the plate, check the reviews, if they're bad, go to the next taxi. But I guess dodgy taxi drivers would just buy new license plate (e.g. for their "own" private cars) and swap them - ok in a lot of jurisdictions taxi plates look different to normal car plates. Or the taxi driver can be made aware of the bad reviews and they'd have to do a deal with the app user, e.g. a fixed price with a 20% discount, for a fair review. (Rough idea, there are probably bigger issues when you're dealing with crooked drivers).
  - jfrunyon 5y ago
    I know it's normal for taxi drivers here to own their taxi, and therefore be the only one who drives it - I wonder how common that is throughout the rest of the world? Are there places where different drivers might drive the same cab in shifts?
    - pverghese 5y ago
      It's not even normal in the US for medallioned taxis. 50% of the medallions are owned by one man and leased out to others who can loan the car out to others as well.
aerosmile 5y ago
Decades ago, if you wanted a work-when-you-want lifestyle and no boss, and you didn't know how to start your own business, becoming a cabbie was the obvious career path. And cabbies do occasionally experience unpleasant customers with nobody to turn to for help, so you have to have a thick skin to last in that job. For whatever reason, in the US the crowd self-selected towards the immigrant population, whereas in many less developed countries it went towards the bare knuckle boxing type of crowd. No wonder that the latter didn't hesitate to use their knuckles on Uber drivers, whereas in the US that rarely ever happened.

jfrunyon 5y ago

> One of the reasons why all these SV tech business got away with it is the fact that they are all located in US Well, they could still be (at the very least) prohibited from operating in your country. Sadly, most of these services (Airbnb, Uber) were also illegal here in the US, but for "some reason" (aka lots and lots of $$$), no one ever bothered enforcement against them. Eventually they spent enough money on bribes^H^H^H^H^H^H lobbying to legalize themselves. (Then, of course, at least in the case of Uber and friends, once they were established they quietly raised prices and reduced driver income, which were the very reasons the short-sighted public liked them so much.)

hattar 5y ago
In defense of the short-sighted public (me), I don’t know the operating costs, profit requirements, accounting model, etc of a hired car service. I can’t assume any time the price of a product goes down, that someone is trying something shady. I can say I loved Uber et al primarily because unlike any experiences I ever had with calling a taxi, a car actually showed up to bring me to my destination. If I correctly interpret your definition of “the public” to mean “the common men and women using these services”: it’s a bit unfair to give them the blame, rather than pursue a failure of regulators or regulations.
- awillen 5y ago
  Everybody forgets that this is why Uber did so well in SF. The cabs are complete garbage - they don't come when you call, their credit card machines are always "broken" and the drivers are screaming at people on their cellphones for the whole ride. Before UberX was a thing I was paying more for Ubers than for cabs because I would get actual, quality service that way. The SF cab industry abused its regulatorily privileged position. If that industry (or their regulators) had enforced even basic decency and respect for their customers, there would've been no need for Uber in the first place.
- jfrunyon 5y ago
  If you didn't know that Uber was skirting regulations to offer their cheap prices, then you literally weren't paying any attention and I don't know how you even knew Uber existed.

SkeuomorphicBee 5y ago

> Uber on the other hand, didn't have the same luck since legal taxi drivers started to beat up Uber drivers so Uber quickly shut down their operation, as they were running illegal taxis and they couldn't have their cake and eat it too with the justice system... Sometimes it does backfire. In my country taxi drivers also started to beat up Uber drivers, but it backfired hard on them, it only reinforced the notion that taxi drivers are dangerous, not to be trusted (after all, if they are the kind of person capable of randomly assaulting business competitor, they certainly are capable of assaulting a client in a disagreement, so why would I risk ride with them?), so the beatings helped steer the public opinion in favour of Uber, resulting in the legalization of Uber. Also, in my country breaking a minor (administrative/civil) law doesn't mean you are not protected by more important criminal law, so the victim Uber drivers did seek criminal charges against the offending Taxi drivers. Interestingly, in the aftermath, the taxi lobby (which used to be fiercely anti-consumer) worked to reform taxi laws to be much more pro-consumer in order to compete with Uber, they lowered their prices, removed the ridiculous accessory fees (extra for baggage, extra for more than 2 passengers, ...), added a requirement for background checks for drivers (this was a important one), gps tracking of cars, ... . So official taxis actually got much better due to Uber.