This week Dutch politician and European Commission vice-president Neelie Kroes gave us her perspective on the sharing economy and recent taxi protests. She believes that there is a 'valley' start-up culture in Europe and it needs greater support. On her blog she responds to widespread strikes and attempts to ban or limit taxi app services across Europe.
“The debate about taxi apps is really a debate about the wider sharing economy. That debate forces us to think about the disruptive effects of digital technology and the need for entrepreneurs in our society”
She recognizes that this is a fearful time for cab drivers stating "it is right that we feel sympathy for people who face big changes in their lives" but "we cannot run away from these debates either".
“We cannot address these challenges by ignoring them, by going on strike, or by trying to ban these innovations out of existence. That is why a strike won’t work: rather than “downing tools” what we need is a real dialogue where we talk about these disruptions caused by technology.”
Kroes believes that Europe needs more entrepreneurs to create jobs and growth. These entrepreneurs understand that services can no longer be designed around the producers, but need to empower the consumers. She is concerned that if Europe does not embrace entrepreneurship Europe will be know as "the place that used to be the future, but instead has become the world's tourism playground and nursing home". Kroes states that the disruptive force of technology is a good thing. "It eliminates some jobs and it changes others. But it improves most jobs and creates new ones as well".
She also warns that sharing entrepreneurs need to follow the rules and pay taxes but also sheds some interesting light on the role of regulators:
“The job of the law is not to lie to you and tell you that everything will always be comfortable or that tomorrow will be the same as today. It won’t. Not only that, it will be worse for you and your children if we pretend we don’t have to change. If we don’t think together about how to benefit from these changes and these new technologies, we will all suffer.”
She concludes with a plea for Europeans to stop running away and face facts: "digital innovations like taxi apps are here to stay. We need to work with them not against them."
Check out the rest of her blog post on her website and let us know what you think. It's certainly one of the more in favor responses to the sharing economy by a regulator thus far. Is she right? Are regulators running from digital technology instead of embracing it's potential? Is there a way for both apps and taxi companies to live in harmony?