2514 lines
218 KiB
HTML
2514 lines
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<span class="toLocalTime" data-tlt-epoch-time="1422791820">Sunday, Feb 1, 2015 11:57 AM UTC</span> </span>
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<h1>
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The sharing economy is a lie: Uber, Ayn Rand and the truth about tech and libertarians </h1>
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<h2>
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Disruptive companies talk a good game about sharing. Uber's really just an under-regulated company making riches </h2>
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<p class="topics">Topics: <a href="/topic/uber" class="gaTrackLinkEvent" data-ga-track-json="["topic", "click", "uber"]">uber</a>,
|
||
<a
|
||
href="/topic/libertarians" class="gaTrackLinkEvent" data-ga-track-json="["topic", "click", "libertarians"]">libertarians</a>, <a href="/topic/sydney" class="gaTrackLinkEvent" data-ga-track-json="["topic", "click", "sydney"]">Sydney</a>,
|
||
<a
|
||
href="/topic/editors_picks" class="gaTrackLinkEvent" data-ga-track-json="["topic", "click", "editors_picks"]">Editor's Picks</a>, <a href="/topic/sharing_economy" class="gaTrackLinkEvent"
|
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data-ga-track-json="["topic", "click", "sharing_economy"]">sharing economy</a>,
|
||
<a
|
||
href="http://www.salon.com/category/technology/" rel="tag">Technology News</a>
|
||
</p>
|
||
<div class="featuredMedia"><a class="lightBox" title="The sharing economy is a lie: Uber, Ayn Rand and the truth about tech and libertarians"
|
||
href="http://media.salon.com/2014/12/uber_rand_paul.jpg"><img alt="The sharing economy is a lie: Uber, Ayn Rand and the truth about tech and libertarians" title="The sharing economy is a lie: Uber, Ayn Rand and the truth about tech and libertarians" src="http://media.salon.com/2014/12/uber_rand_paul.jpg"/></a>
|
||
<span
|
||
class="caption">Ayn Rand, Rand Paul <span class="photoCredit">(Credit: AP/Manuel Balce Ceneta/Photo montage by Salon)</span></span>
|
||
</div>
|
||
<div class="articleContent">
|
||
<p>Horror stories about the increasingly unpopular taxi service Uber have
|
||
been commonplace in recent months, but there is still much to be learned
|
||
from its handling of the recent hostage drama in downtown Sydney, Australia.
|
||
We’re told that we reveal our true character in moments of crisis, and
|
||
apparently that’s as true for companies as it is for individuals.</p>
|
||
<div
|
||
id="ym_1007925900364593340" class="ym"></div>
|
||
<div class="recirc1"></div>
|
||
<p>A number of experts have challenged the idea that the horrific explosion
|
||
of violence in a Sydney café was “terrorism,” since the attacker was mentally
|
||
unbalanced and acted alone. But, terror or not, the ordeal was certainly
|
||
terrifying. Amid the chaos and uncertainty, the city believed itself to
|
||
be under a coordinated and deadly attack.</p>
|
||
<p>Uber had an interesting, if predictable, response to the panic and mayhem:
|
||
It raised prices. A lot.</p>
|
||
<p>In case you missed the story, the facts are these: Someone named Man Haron
|
||
Monis, who was considered mentally unstable and had been investigated for
|
||
murdering his ex-wife, seized hostages in a café that was located in Sydney’s
|
||
Central Business District or “CBD.” In the process he put up an Islamic
|
||
flag – “igniting,” as <a href="http://www.reuters.com/article/2014/12/15/us-australia-security-idUSKBN0JS0WX20141215">Reuters</a> reported,
|
||
“fears of a jihadist attack in the heart of the country’s biggest city.”</p>
|
||
<p>In the midst of the fear, Uber stepped in and tweeted this announcement:
|
||
<span
|
||
style="font-size: 13px;">“We are all concerned with events in CBD. Fares have increased to encourage
|
||
more drivers to come online & pick up passengers in the area.”</span>
|
||
</p>
|
||
<p>As <a href="http://mashable.com/2014/12/14/uber-sydney-surge-pricing/">Mashable </a>reports,
|
||
the company announced that it would charge a minimum of $100 Australian
|
||
to take passengers from the area immediately surrounding the ongoing crisis,
|
||
and prices increased by as much as four times the standard amount. A firestorm
|
||
of criticism quickly erupted – “<a href="https://twitter.com/Uber_Sydney">@Uber_Sydney</a> stop
|
||
being assholes,” one Twitter response began – and Uber soon found itself
|
||
offering free rides out of the troubled area instead.</p>
|
||
<p>What can we learn from this incident? Let’s start by parsing that tweet:</p>
|
||
<p><em>“We are all concerned with events in CBD …”</em>
|
||
</p>
|
||
<p>That opener suggests that Uber, as part of a community under siege, is
|
||
preparing to respond in a civic manner.<em></em>
|
||
</p>
|
||
<p><em>“… Fares have increased to encourage more drivers to come online & pick up passengers in the area.”</em>
|
||
</p>
|
||
<div class="recirc2"></div>
|
||
<hr/>
|
||
<div data-position-name="300-mi1" class="adPosition bigBox ad-300-mi1 flex"></div>
|
||
<hr/>
|
||
<div class="toggle-group target hideOnInit" data-toggle-group="story-13850779">
|
||
<p>But, despite the expression of shared concern, there is no sense of <em>civitas</em> to
|
||
be found in the statement that follows. There is only a transaction, executed
|
||
at what the corporation believes to be market value. Lesson #1 about Uber
|
||
is, therefore, that in its view there is no heroism, only self-interest.
|
||
This is Ayn Rand’s brutal, irrational and primitive philosophy in its purest
|
||
form: altruism is evil, and self-interest is the only true heroism.<em></em>
|
||
</p>
|
||
<p>There was once a time when we might have read of “hero cabdrivers” or
|
||
“hero bus drivers” placing themselves in harm’s way to rescue their fellow
|
||
citizens. For its part, Uber might have suggested that it would use its
|
||
network of drivers and its scheduling software to recruit volunteer drivers
|
||
for a rescue mission.<em></em>
|
||
</p>
|
||
<p>Instead, we are told that Uber’s pricing surge <em>was</em> its expression
|
||
of concern. Uber’s way to address a human crisis is apparently by letting
|
||
the market govern human behavior, as if there were (in libertarian economist
|
||
Tyler Cowen’s phrase) “markets in everything” – including the lives of
|
||
a city’s beleaguered citizens (and its Uber drivers). <em></em>
|
||
</p>
|
||
<p>Where would this kind of market-driven practice leave poor or middle-income
|
||
citizens in a time of crisis? If they can’t afford the “surged” price,
|
||
apparently it would leave them squarely in the line of fire. And come to
|
||
think of it, why would Uber drivers value their lives so cheaply, unless
|
||
they’re underpaid? <em></em>
|
||
</p>
|
||
<p>One of the lessons of Sydney is this: Uber’s philosophy, whether consciously
|
||
expressed or not, is that life belongs to the highest bidder – and therefore,
|
||
by implication, the highest bidder’s life has the greatest value. Society,
|
||
on the other hand, may choose to believe that every life has equal value
|
||
– or that lifesaving services should be available at affordable prices. <em></em>
|
||
</p>
|
||
<p>If nothing else, the Sydney experience should prove once and for all that
|
||
there is no such thing as “the sharing economy.” Uber is a taxi company,
|
||
albeit an under-regulated one, and nothing more. It’s certainly not a “ride
|
||
sharing” service, where someone who happens to be going in the same direction
|
||
is willing to take along an extra passenger and split gas costs. A ride-sharing
|
||
service wouldn’t find itself “increasing fares to encourage more drivers”
|
||
to come into Sydney’s terrorized Central Business District. <em></em>
|
||
</p>
|
||
<p>A “sharing economy,” by definition, is lateral in structure. It is a peer-to-peer
|
||
economy. But Uber, as its name suggests, is hierarchical in structure.
|
||
It monitors and controls its drivers, demanding that they purchase services
|
||
from it while guiding their movements and determining their level of earnings.
|
||
And its pricing mechanisms impose unpredictable costs on its customers,
|
||
extracting greater amounts whenever the data suggests customers can be
|
||
compelled to pay them.<em></em>
|
||
</p>
|
||
<p>This is a top-down economy, not a “shared” one.<em></em>
|
||
</p>
|
||
<p>A number of Uber’s fans and supporters defended the company on the grounds
|
||
that its “surge prices,” including those seen during the Sydney crisis,
|
||
are determined by an algorithm. But an algorithm can be an ideological
|
||
statement, and is always a cultural artifact. As human creations, algorithms
|
||
reflect their creators. <em></em>
|
||
</p>
|
||
<p>Uber’s tweet during the Sydney crisis made it sound as if human intervention,
|
||
rather than algorithmic processes, caused prices to soar that day. But
|
||
it doesn’t really matter if that surge was manually or algorithmically
|
||
driven. Either way the prices were Uber’s doing – and its moral choice.<em></em>
|
||
</p>
|
||
<p>Uber has been strenuously defending its surge pricing in the wake of accusations
|
||
(apparently <a href="http://gothamist.com/2012/11/04/uber.php">justified</a>)
|
||
that the company enjoyed windfall profits during Hurricane Sandy. It has
|
||
now promised the state of New York that it will cap its surge prices (at
|
||
three times the highest rate on two non-emergency days). But if Uber has
|
||
its way, it will soon enjoy a monopolistic stranglehold on car service
|
||
rates in most major markets. And it has demonstrated its willingness to
|
||
ignore rules and regulations. That means<em> </em>predictable and affordable
|
||
taxi fares could become a thing of the past. <em></em>
|
||
</p>
|
||
<p>In practice, surge pricing could become a new, privatized form of taxation
|
||
on middle-class taxi customers.<em></em>
|
||
</p>
|
||
<p>Even without surge pricing, Uber and its supporters are hiding its full
|
||
costs. When middle-class workers are underpaid or deprived of benefits
|
||
and full working rights, as Uber’s <a href="http://www.businessinsider.com/uber-drivers-say-theyre-making-less-than-minimum-wage-2014-10">reportedly are</a>,
|
||
the entire middle-class economy suffers. Overall wages and benefits are
|
||
suppressed for the majority, while the wealthy few are made even richer.
|
||
The invisible costs of ventures like Uber are extracted over time, far
|
||
surpassing whatever short-term savings they may occasionally offer.<em></em>
|
||
</p>
|
||
<p>Like Walmart, Uber underpays its employees – many of its drivers <em>are</em> employees,
|
||
in everything but name – and then drains the social safety net to make
|
||
up the difference. While Uber preaches libertarianism, it practices a form
|
||
of corporate welfare. It’s reportedly <a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2014/11/17/why-uber-loves-obamacare/">celebrating Obamacare</a>,
|
||
for example, since the Affordable Care Act allows it to avoid providing
|
||
health insurance to its workforce. But the ACA’s subsidies, together with
|
||
Uber’s often woefully insufficient wages, mean that the rest of us are
|
||
paying its tab instead. And the lack of income security among Uber’s drivers
|
||
creates another social cost for Americans – in lost tax revenue, and possibly
|
||
in increased use of social services. <em></em>
|
||
</p>
|
||
<p>The company’s war on regulation will also carry a social price. Uber and
|
||
its supporters don’t seem to understand that<em> </em>regulations exist
|
||
for a reason. It’s true that nobody likes excessive bureaucracy, but not
|
||
all regulations are excessive or onerous. And when they are, it’s a flaw
|
||
in execution rather than principle. <em></em>
|
||
</p>
|
||
<p>Regulations were created because they serve a social purpose, ensuring
|
||
the free and fair exchange of services and resources among all segments
|
||
of society. Some services, such as transportation, are of such importance
|
||
that the public has a vested interest in ensuring they will be readily
|
||
available at reasonably affordable prices. That’s not unreasonable for
|
||
taxi services, especially given the fact that they profit from publicly
|
||
maintained roads and bridges.<em></em>
|
||
</p>
|
||
<p>Uber has presented itself as a modernized, efficient alternative to government
|
||
oversight. But it’s an evasion of regulation, not its replacement. As
|
||
<a
|
||
href="http://fusion.net/story/33680/the-inside-story-of-how-the-uber-portland-negotiations-broke-down/">Alexis Madrigal</a>reports, Uber has deliberately ignored city regulators
|
||
and used customer demand to force its model of inadequate self-governance
|
||
(my conclusion, not his) onto one city after another.<em></em>
|
||
</p>
|
||
<p>Uber presented itself as a refreshing alternative to the over-bureaucratized
|
||
world of urban transportation. But that’s a false choice. We can streamline
|
||
sclerotic city regulators, upgrade taxi fleets and even provide users with
|
||
fancy apps that make it easier to call a cab. The company’s binary presentation
|
||
– us, or City Hall – frames the debate in artificial terms.<em></em>
|
||
</p>
|
||
<p>Uber claims that its driver rating system is a more efficient way to monitor
|
||
drivers, but that’s an entirely unproven assumption. While taxi drivers
|
||
have been known to misbehave, the worldwide litany of complaints against
|
||
Uber drivers – for everything from dirty cars and <a href="http://consumerist.com/2014/07/30/uber-passenger-complains-of-spider-bite-in-filthy-car/">spider bites</a> to
|
||
<a
|
||
href="http://www.forbes.com/sites/ellenhuet/2014/09/30/uber-driver-hammer-attack-liability/">assault with a hammer</a>, <a href="http://www.businessinsider.com/uber-nikki-williams-2014-12">fondling</a> and
|
||
<a
|
||
href="http://www.businessinsider.com/an-uber-driver-allegedly-raped-a-female-passenger-in-boston-2014-12">rape</a>– suggest that Uber’s system may not work as well as old-fashioned
|
||
regulation. It’s certainly not noticeably superior.<em></em>
|
||
</p>
|
||
<p>In fact, <a href="http://www.huffingtonpost.com/2014/12/09/uber-california-lawsuit_n_6298206.html">prosecutors in San Francisco and Los Angeles</a> say
|
||
Uber has been lying to its customers about the level and quality of its
|
||
background checks. The company now promises it will do a better job at
|
||
screening drivers. But it <a href="http://consumerist.com/2014/12/18/uber-reportedly-revamping-security-wont-say-exactly-what-its-doing/">won’t tell us</a> what
|
||
measures its taking to improve its safety record, and it’s <a href="http://consumerist.com/2014/12/18/uber-reportedly-revamping-security-wont-say-exactly-what-its-doing/">fighting the kind of driver scrutiny</a> that
|
||
taxicab companies have been required to enforce for many decades. <em></em>
|
||
</p>
|
||
<p>Many reports suggest that beleaguered drivers don’t feel much better about
|
||
the company than victimized passengers do. They tell <a href="http://qz.com/299655/why-your-uber-driver-hates-uber/">horror stories</a> about
|
||
the company’s hiring and management practices. Uber <a href="http://www.salon.com/2014/09/03/uber_unrest_drivers_in_los_angeles_protest_the_slashing_of_rates/">unilaterally slashes drivers’ rates</a>,
|
||
while claiming they don’t need to unionize. (The <a href="http://www.fastcompany.com/3037371/the-teamsters-of-the-21st-century-how-uber-lyft-and-facebook-drivers-are-organizing">Teamsters</a> disagree.) <em></em>
|
||
</p>
|
||
<p>The company also pushes<a href="http://thinkprogress.org/economy/2014/11/06/3589715/uber-lending-investigation/"> sketchy, substandard loans</a> onto
|
||
its drivers – but hey, what could go wrong?<em></em>
|
||
</p>
|
||
<p>Uber has many libertarian defenders. And yet, it <a href="http://pando.com/2014/10/29/uber-prs-latest-trick-impersonating-its-drivers-and-trying-to-scam-journalists/">deceives the press</a> and
|
||
<a
|
||
href="http://www.slate.com/blogs/the_slatest/2014/11/17/uber_exec_suggests_using_personal_info_against_journalists.html">threatens to spy on journalists</a>, <a href="http://money.cnn.com/2014/08/04/technology/uber-lyft/">lies to its own employees</a>,
|
||
keeps its practices a secret and routinely invades the privacy of civilians
|
||
– sometimes merely for entertainment. (It has a tool, with the Orwellian
|
||
name the “<a href="http://www.forbes.com/sites/kashmirhill/2014/10/03/god-view-uber-allegedly-stalked-users-for-party-goers-viewing-pleasure/">God View</a>,”
|
||
that it can use for monitoring customers’ personal movements.) <em></em>
|
||
</p>
|
||
<p>Aren’t those the kinds of things libertarians say they hate about <em>government</em>?<em></em>
|
||
</p>
|
||
<p>This isn’t a “gotcha” exercise. It matters. Uber is the poster child for
|
||
the pro-privatization, anti-regulatory ideology that ascribes magical powers
|
||
to technology and the private sector. It is deeply a political entity,
|
||
from its Nietzschean name to its recent hiring of White House veteran David
|
||
Plouffe. Uber is built around a relatively simple app (which relies on
|
||
government-created technology), but it’s not really a tech company. Above
|
||
all else Uber is an ideological campaign, a neoliberal project whose real
|
||
products are deregulation and the dismantling of the social contract.<em></em>
|
||
</p>
|
||
<p>Or maybe, as that tweeter in Sydney suggested, they’re just assholes.<em></em>
|
||
</p>
|
||
<p>Either way, it’s important that Uber’s worldview and business practices
|
||
not be allowed to “disrupt” our economy or our social fabric. People who
|
||
work hard deserve to make a decent living. Society at large deserves access
|
||
to safe and affordable transportation. And government, as the collective
|
||
expression of a democratic society, has a role to play in protecting its
|
||
citizens. <em></em>
|
||
</p>
|
||
<p>And then there’s the matter of our collective psyche. In her book “A Paradise
|
||
Built in Hell: The Extraordinary Communities that Arise in Disaster,” Rebecca
|
||
Solnit wrote of the purpose, meaning and deep satisfaction people find
|
||
when they pull together to help one another in the face of adversity.
|
||
But in the world Uber seeks to create, those surges of the spirit would
|
||
be replaced by surge pricing.<em></em>
|
||
</p>
|
||
<p>You don’t need a “God view” to see what happens next. When heroism is
|
||
reduced to a transaction, the soul of a society is sold cheap. <em></em>
|
||
</p>
|
||
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||
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