Growing Pains: The Role of Regulation in the Collaborative Economy

Abstract

The rise of the collaborative economy has breathed new life into old industries. Everyday consumers now use the power of collaborative platforms like online marketplaces and on-demand services to rent, share, and swap their houses, cars, and homemade goods with their peers. As such platforms continue to grow in size and popularity, they will undoubtedly face numerous regulatory challenges, and how they respond to future roadblocks will determine their longevity. This paper examines the regulatory obstacles faced by the collaborative economy by providing three case studies focused on the regulatory experiences of Airbnb, Uber, and Lending Club. The observations from the three case studies indicate that regulation is an inevitable truth for the collaborative economy, and that it will be a key factor behind smoothing the integration of collaborative platforms into mainstream society.