“The sharing economy is projected to increase more than 20-fold in the next 10 years, but risk abounds.”
Uber, Lyft, Airbnb, and Homeaway are all companies that share risks.
People who have used Uber know the reliable benefits of catching a ride when and where you need it compared to having to wait for a taxi. Uber’s functions of knowing by map exactly where the driver is and when exactly he is arriving is one of those qualities which makes it a popular service. Despite its eye-popping (as described by Risk & Insurance) growth, the sector faces a near-daily raft of legal and regulatory challenges that it will have to overcome. To be specific those terms include insurance requirements, equal access and employment laws, zoning regulations, and health and safety standards. Uber isn’t the only tiger on the prowl.
Companies like Lyft, Airbnb, and Homeaway are also comparable even though they serve different markets. The concern is just as big with Airbnb hosts who rent rooms, entire apartments, or homes. These people do not have any idea what the risk is at all. Uber and Airbnb mainly have been known as leaders of sharing economy. These businesses do not stand alone, there are also many other companies like Lyft and Homeaway who provide similar services. “There have also been a host of recent liability claims and lawsuits arising from high profile incidents, including reports of pedestrian deaths, rapes of home renters, invasion of privacy and bodily injury.” In all, the “sharing economy” has developed from a low key local phenomenon into a highly lucrative business model.