Skip to main content

Why are Governments Killing the On-Demand Economy?

hand on steering wheel of car

By curbing Uber and similar on on-demand + sharing services, Governments are only harming their citizen and their opportunity to get employed.  I say this because on-demand services result in on-demand + sharing economy that results in job creation for all human beings alike. In effect it allows optimum utilization of assets by an individual or a family! The assets could be physical or Skills or Virtual, the possibility of earning money by utilizing those assets is substantial and highly beneficial. Here are few direct benefits:


Utilization of Excess Capacity: As a driver on 101 Hi-way in Bay Area, Uber founders must have noticed the single owner driven cars and thus access capacity available that could be used by co-drivers by simply sharing a ride as Cars with more than one passenger always use Car Pool Lane and never stuck in traffic. However, sharing a ride or car pool, as it is known is very complicated. To sync calendars, travelling schedules, car types (my car is better than yours), social etiquette, cultural fit and even meeting of minds is very critical when two people ride together. It is difficult as there is no financial consideration and one feels obligated and other indebted! Instead, I give you a ride and you pay for it or I have a Excess capacity, you can buy it! You pay, I drive, no obligations on either side. Same is with other transport modes, be it truckers, buses, , bikes(possibly only in developing countries) etc.


I have a Job: With on-demand + sharing services, I have a car, I have a job! I don't have to sit at home and sulk. I can work 24x7! However, by making them licensed, as in case of India, the governments are killing the possibility of me driving a car as shared ride! This is ridiculous! What I do with my car is my business. Yes, there are insurance issues, but that is an opportunity too as insurance companies can come up with a plan, as in case of a taxi, that covers the passenger and make more money! If I want to become a driver for an on-demand + sharing services and make money, I am ready to pay for insurance too! Why should governments try and create a different class of Taxi (as done by Indian State Government)? On-demand + sharing Taxi services could reduce the number of cars on the road and thus improving traffic condition and reduce Vehicular pollution as well.


Organizing the unorganised: Many unorganized workers are really farmers in India and farmers have two jobs! One at the time of harvesting, which is farming, and other one when they are not harvesting, simple some semi-skilled job like a carpenter, mason, construction Site worker or anything similar. By connecting them thru a technology Platform like Uber where, depending upon their task in hand, they can announce their availability. This would enable them and their employers plan the next task better, increase productivity as well as efficiency for all concerned and would mean more monies for all stake holders.


Encourage not discourage: Today, the government and even courts, are discouraging these tech companies to engage with them harming everyone’s interest. Imagine if all hospitality, healthcare, construction, utility etc. temp workers are organized based on their availability, location and skills. This will ensure higher quality, lowest travel time & cost, thus lowest delivery time & cost of it, low turnaround time and higher efficiency, resulting in lower cost and higher profits to businesses. In such a business there is no case of discouraging tech companies like Uber to engage with consumer and workers as it is more convenient for consumers, more paying for workers and more rewarding for business!


So, Governments, just lay off! Let the free enterprise and tech join hands to do what they do best, DISRUPT!