CITIES, THE SHARING ECONOMY and WHAT'S NEXT
CITIES, THE SHARING ECONOMY and WHAT'S NEXT
About the National League of Cities
The National League of Cities (NLC) is the nation's leading advocacy organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. Through its membership and partnerships with state municipal leagues, NLC serves as a resource and advocate for more than 19,000 cities and towns and more than 218 million Americans. NLC's Center for City Solutions and Applied Research provides research and analysis on key topics and trends important to cities, creative solutions to improve the quality of life in communities, inspiration and ideas for local officials to use in tackling tough issues and opportunities for city leaders to connect with peers, share experiences and learn about innovative approaches in cities.
About the Authors
Lauren Hirshon, Director of Consulting; Morgan Jones, Associate Consultant; Dana Levin, Associate Consultant; Kathryn McCarthy, Associate Consultant; Benjamin Morano, Associate Consultant; Sarah Simon, Consulting Intern with the Fels Institute of Government at the University of Pennsylvania. Brooks Rainwater, Center Director of the Center for City Solutions and Applied Research at the National League of Cities.
Acknowledgments
The authors would like to acknowledge Nicole DuPuis for her help developing the research plan and reviewing the report. We would like to extend special thanks to Soren Messner-Zidell, who created the data visualizations, cover illustration and designed the report, and Paul Konz for editing the report. We are grateful for all of the city officials that took the time to speak to us about the sharing economy in their cities.
Photo credits: All photos courtesy of Getty Images, 2015, unless otherwise noted. Vector maps courtesy of Free Vector Maps, 2015.
? 2015 National League of Cities. All Rights Reserved.
CITIES, THE SHARING ECONOMY and WHAT'S NEXT
TABLE OF CONTENTS
2 Section I: Introduction 4 Section II: Methodology 6 Section III: Innovation 11 Section IV: Economic Development 15 Section V: Equity and Access 21 Section VI: Safety 27 Section VII: Process and
Implementaiton 36 Section VIII: Conclusion
Section I
INTRODUCTION
We are on the cusp of a monumental shift taking place in cities around the world. From innovative technologies and business models to redefined concepts of equity and safety, the sharing economy is impacting cities. At the same time, cities make the sharing economy work and power its ability to grow worldwide. And this is only the beginning. With more than half of the world's population living in cities - a figure projected to rise precipitously in coming years - all eyes are on cities for global leadership.
This National League of Cities report seeks to provide an analysis of what is currently happening in American cities so that city leaders may better understand, encourage and regulate the growing sharing economy. Interviews were conducted with city officials on the impact of the sharing economy and related topics, and the report centers around five key themes: innovation, economic development, equity, safety and implementation.
The sharing economy is also commonly referred to as collaborative consumption, the collaborative economy, or the peer-to-peer economy. This term refers to business models that enable providers and consumers to share resources and services, from housing to vehicles and more. These business models typically take the form of an online and/or application-based platform for business transactions. The vast differences in the types of sharing economy platforms can be mind-boggling, from pure sharing services with no money changing hands to commercial services and everything in between. Policymakers often assume that the concept of the sharing economy applies only to ridesharing (or ridehailing1) and homesharing, and are typically unaware of the wide array of goods and services that can be shared, which range from food and other consumables to an individual's time and tools. Municipalities, for example, can even share heavy equipment, reducing overall expenditures and providing needed tools that might otherwise have been unavailable.
It is safe to say that the sharing economy is thriving it is upending traditional industries, disrupting local regulatory environments, and serving as a benchmark for innovation and growth. This is all happening at once, and there is no status quo; while emerging models are
developing, the relative novelty of this issue precludes long-term, tested best practices. Additionally, there is no "one-size-fits-all" regulatory framework that every locality can or should apply to the influx of new economic activity. One of the truly innovative aspects of cities is their ability to experiment and develop unique, locallydriven solutions to new challenges.
NLC recently published a research report analyzing the current sentiment towards homesharing and ridesharing, and we concluded that the general sentiment of cities towards the sharing economy is shifting in certain municipalities, while others remain more resistant to change. Unlike other emerging city issues, the patterns of diffusion across the country do not necessarily present themselves along the traditional lines of city size or region. States are also playing a significant role in the emergence of the sharing economy, often intervening in a manner that includes legislation, regulatory rulings and even legal action.
The common theme within this conceptual space is that cities make the sharing economy work. Cities play a central role in deciding which sharing economy practices are adopted and which are rejected. Further, the unanticipated surge in sharing economy business models and the proliferation of companies that serve as catalysts for collaborative consumption has created a disruption of existing systems. Traditional industries are being upended with the growth of innovative sharing economy models that do not fit neatly into existing local regulatory environments. Much of this shift has been a direct result of the fact that community members both expect ondemand services and crave collaborative opportunities. City leaders must walk a fine line, working to embrace change and innovation while simultaneously prioritizing safety and developing context-sensitive city solutions that work for their community.
1 The terminology for what has been popularly termed ridesharing is in flux, with the Associate Press shifting to ride-hailing with a January 2015 decision whereas others continue to use the term ridesharing. For purposes of this report, because interviews were conducted prior to the AP's shift, and most city leaders know the terminology as ridesharing, we have used ridesharing throughout.
1
Why Sharing?
1 23
Cities experience an increase in
Urbanization
Changing conditions in
Economics
Generational changes in
User Preference/ Lifestyle
Many cities are welcoming these new business models, despite regulatory barriers and the swift and sometimes aggressive nature of their immersion.
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