How might the Uber affect governance in a metropolitan area

Introduction

Uber is a service which offers ride sharing for its users， and has faced several challenges. This essay will set out the ways in which， within the context of the communal economy， various governance elements have an influence on Uber. This paper suggests that the solution to these challenges is not to enforce compliance with outdated regulations. Instead， regulators need to rely on novel regulations to ensure safety.

Main argument

Uber is a ride-sharing service which allows its users to book a taxi by utilizing a smartphone app （Posen and Hannah， 2015）. It is unsurprising that Uber’s huge and unpredicted growth throughout the nation has resulted in new and ferocious competition within the taxi industry （Posen and Hannah， 2015）. Traditional companies are asking that Uber complies with the taxi regulations which are already in existence （Cusumano， 2015）.

The government of a country can apply various measures to achieve the societal outcomes it needs. There are several modes of governance within the dimension of policy. These include：

1. Coercion. In this mode， binding legal instruments which prescribe detailed， set standards and leave no room for difference are used. Coercion is extremely inflexible， as this mode results in fully binding and highly prescriptive types of legislation （Butt Philipp， 1988）.

2. Voluntarism. This mode is at the other end of the spectrum from the traditional mode of steering. Voluntarism uses non-binding instruments as well as flexible and guidelines， which are not compulsory in the eyes of the law. This mode， therefore the one which has at least supranational intervention （Borra ′s and Greve， 2004）.

3. Framework regulation. Framework regulation can offer more flexibility during implementation. Therefore， this level of intervention on offer within this mode is greater than one would find in the non-binding policies of both targeting and subsidiarity， but are lower than the levels employed in coercion （Falkner et al.， 2005）.

When a company such as Uber attempts to keep its power within the market through abusive means， the markets will then not work efficiently （Henry， no date）.As more people lose their jobs and turn to taxi driving to make money， there are more and more taxis available， but fewer people who have the money to hire them. This means taxi drivers feel that they have no choice but undertake in poor business practices. At this point， the State must then work to change policy （Posen and Hannah， 2015）.

Many consumers are drawn to the concept of these ‘sharing’ services， since they result in greater access to goods and services at more affordable prices. It is only intervention from the government to combat temporary legal actions which have acted to restrict Uber’s operations. There are some drawbacks like Prices rise when consumer demand is high. Uber drivers also have the right to refuse a lift to someone （Cusumano， 2015）.

The government has for many years encouraged modernization. However， governments do not yet have a framework within which to regulate these new services （Christopher et al.， 2014）. Uber strives to engage with its communities. These companies point out that their services have a strong， positive impact on their cities’ economies. （Posen and Hannah， 2015）.Uber welcomes these regulations， since they demonstrate that the service is becoming essential to consumers （Posen and Hannah， 2015）.

Conclusion

No-one could have imagined the technology and innovations that have led to companies such as Uber at the time when the taxi industry became regulated （Rauch andSchleicher， 2015）. Clearly， it is hard to predict how services such as Uber will grow. Therefore， the regulations around these services must evolve as industries evolve， and be able to respond to changes within the industries. Therefore， regulators need to be able to evaluate both the changes within relevant industries and the needs of their consumers （Posen and Hannah， 2015）.

References：

[1]B?hr，H.and Falkner，G.2007.Modes of governance：towards a conceptual clarification. Taylor & Francis. [Online]. [Accessed 17 October 2017]. Available from：http：//www.tandfonline.com/doi/abs/10.1080/135017606061071406.

[2]Borra's，S.and Greve，B.（2004）‘Concluding remarks： new method or just cheap talk？’，Journal of European Public Policy 11（2）：329–36.

[3]Cusumano，M.2015.How traditional firms must compete in the sharing economy.Communications of the ACM.（1）.pp.32-34.

[4]Falkner，G.（2005）.Complying with Europe.Cambridge：Cambridge University Press.

【作者簡介】李赫宸（1994- ），男，漢族，山西大同人，利茲大學，學生，在讀碩士研究生，研究方向：交通規劃。