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Guest Writer
May 10, 2014

The Government Battles with the Growing Sharing Economy

The Sharing Economy is a misunderstood new wave of business, but it’s causing enough of a stir in a handful of industries that it has caught the attention of consumers and businesses alike. The Internet infused applications instigate exchange of goods and services among consumers – a far cry from the traditional business to consumer model of the most powerful and equally profitable industries. These apps have grown in popularity, and in certain instances with the type of zeal that has the potential to cause mass hysteria from consumers utilizing these new community-based businesses.

By Diana Zelikman from Fueled (New York’s leading mobile app development and once in a while they write blog entries for betahaus.)

As of now, the Sharing Economy ideal poses a number of legal questions surrounding government regulation that can’t be easily answered. We, at Fueled, thought we’d check out one business whose implicated itself below.

Company: Airbnb

Coming on the market, fast and loud, with a peer to peer exchange of a constantly sought after asset, Airbnb is an online community network that quickly connects individuals with rental properties to those who are seeking a place to stay on a short-term, temporary basis. Whether customers are looking for a quiet getaway in the mountains of Colorado or need a cozy penthouse with a view deep into the ever busy hub of Manhattan, this mobile app based company provides a means to an end, in a notably inexpensive way. Those who have property to rent on a short-term basis are able to do so with ease by posting the property online, giving way to a money making connection that would otherwise have been unavailable.

The Issue: Short-term Rentals and the Law

Although this may seem like a beautifully simple way to connect needy consumers without the overreaching arm of big business types, cities across the nation are concerned with the regulatory side of this apartment-to-bed-and-breakfast concept. The biggest issue? Regulations that relate directly to the business of short-term rentals are being called into play, specifically in the state of New York. Recently a statewide subpoena was issued to cease business activities for thousands of rental properties within the state, noting that the use of Airbnb to rent out a property violates these broad regulations.

The Basis for Complaint

The “Illegal Hotel Law,” an antiquated piece of legislation, was updated in 2010 to vaguely outlaw the “business” of renting an apartment for fewer than 30 days if the apartment owner is not present. This, in turn, has created a frustrating situation for the state while it attempts to collect potential tax revenue as well as enforce safety and insurance regulations that are applicable normally to solely traditional hotels.

The Complaining Parties

Both the State of New York, in this case, as well as the businesses that stand to lose a hefty portion of an otherwise solid market share - the booming (and outlandishly expensive) New York hotel industry - and are trying to save the changing dynamic of the hotel industry. Their reasoning is if large hotel chains are susceptible to government imposition through regulation, the same should be expected of Airbnb users since they provide similar services.

What’s Next?

Without viable regulations that can be applied directly to practicing sharing economy businesses such as Airbnb, it is nearly impossible to impose the type of control the state of New York is seeking. The concept that competition within an industry is only possible between big players is beginning to waver and large corporations are scrambling to create roadblocks wherever they can. Many similar issues were present when e-commerce sites like eBay and Amazon launched, so it’s clear that government regulations and the laws are out of date to say the least. There is no clear answer, however, to the New York Airbnb issue yet. But with the popularity of the Sharing Economy coming in strong, something will need to be done in an effort to remedy the problems facing renters – both those providing the property and those utilizing them – and the breakdown of big business as the only option within the hotel industry.

Want to read more insightful articles? Follow the link!

In addition to the betahaus locations, we've formed a close relationship with some of the world's best coworking spaces. With your betahaus membership, you can work from any of our partner spaces for 5 days per month.

Coworking Spaces in Europe

Republikken // Copenhagen, Denmark // Vesterbrogade 26, 1620 København V, Denmark

Le Laptop // Paris, France // 6 Rue Arthur Rozier, 75019 Paris, France

Le Laptop - Coworking Paris

utopic_US // Madrid, Spain // Calle de la Colegiata, 9, 28012 Madrid, Spain

utopic_US - Coworking Madrid

Nest 71 // Saravejo, Bosnia & Herzegovina // Milana Preloga 12, Sarajevo 71000, Bosnia & Herzegovina

Nest 71 - Coworking Bosnia & Herzegovina

  

Toolbox // Milan, Italy // Via Agostino da Montefeltro, 2, 10134 Torino, Italy

Edspace // London, England // Block D, Hackney Community College, Falkirk St, London, UK

Bios // Athens, Greece // Pireos 84, Athina 104 35, Greece

 

CoWorx // Kristiansand, Norway // Markens Gate 8, 4611 Kristiansand, Norway

CRU – Loja / Cowork // Porto, Portugal // Rua do Rosário 211, 4050-524 Porto, Portugal

SPARK // Mostar, Bosnia & Herzegovina // Bleiburških žrtava, Mostar 88000, Bosnia & Herzegovina

StartUp Armenia Foundation // Yerevan, Armenia // 0019, 1 Marshal Baghramyan Ave, Yerevan 0019, Armenia

Tøyen Startup Village // Oslo, Norway // Hagegata 23, 0653 Oslo, Norway

Tøyen Startup Village - Coworking Oslo

Smart Coworking // Prague, Czech Republic // Václavské nám. 806/62, 110 00 Nové Město, Czechia

Smart Coworking - Coworking Prague

Lighthouse // Tel Aviv, Israel // HaHaroshet 14-16 Ra'anana, Tel Aviv, Isreal

Lighthouse - Coworking Tel Aviv

Coworking Spaces in North America

Fueled // New York City, USA // 11, 568 Broadway, FL 11, New York, NY 10012, United States **Maximum 3 Days

  

Capital Factory // Austin, USA // 701 Brazos St, Austin, TX 78701, United States

Público // Mexico City, Mexico // Puebla 403, Roma Nte., 06700 Ciudad de México, CDMX, Mexico

Coworking Spaces in South America

Area Tres // Buenos Aires, Argentina // El Salvador: El Salvador 5218, C1414BPV CABA, Buenos Aires, Argentina // Soho: Malabia 1720, C1414DMJ CABA, Buenos Aires, Argentina

Area Tres - Coworking Buenos Aires

 

HubBOG // Bogota, Colombia // Cl. 98 #18-71, Bogotá, Cundinamarca, Colombia

HubBOG - Coworking Bogota

Coworking Spaces in Asia

CIT // Taipei, Taiwan // 10452, Taiwan, Taipei City, Zhongshan District, 玉門街1號

CIT - Coworking Taipe

 

Of10 // Mumbai, India // Prudential, Ground Floor, Hiranandani Gardens, Powai, Mumbai, Maharashtra 400076, India

 

Kibar // Jakarta, Indonesia // Jl. Prof. Moh. Yamin No.1, RT.7/RW.5, Menteng, Kota Jakarta Pusat, Daerah Khusus Ibukota Jakarta 10310, Indonesia

Midori.so // Tokyo, Japan // Midori.so Nakameguro: 3 Chome-3-11 Aobadai, Meguro-ku, Tōkyō-to 153-0042, Japan // Midori.so Nagatacho: 2 Chome-5 Hirakawachō, Chiyoda-ku, Tōkyō-to 102-0093 // Midori.so2: 3 Chome-13 Minamiaoyama, Minato-ku, Tōkyō-to 107-0062, Japan

Midori.so - Coworking Tokyo

Launchgarage Innovation Hub // Manila, Philippines // Level 2, Industria Mall, Circulo Verde, Calle Industria, Bagumbayan, Quezon City, 1110 Metro Manila, Philippines

Coworking Spaces in Australia

Independent Studios // Melbourne, Australia // 39/40 Porter St, Prahran VIC 3181, Australia

Coworking Spaces in Africa

Urban Station EGYPT // Cairo, Egypt // 2 Wadi El Nil Mohandeseen, Cairo, Egypt

Urban Station EGYPT - Coworking Cairo

Nairobi Garage // Nairobi, Kenya // Nairobi Garage, The Mirage, Chiromo Rd, Nairobi, Kenya

Nairobi Garage - Coworking Nairobi

 

BONUS: Cowork & Relax at the Coliving Space, Coconat // Brandenburg, Germany // Klein Glien 25 14806 Bad Belzig, Germany // Get €10 off your stay

 

Did we mention this was going to be easy? 

Just kidding. We definitely did.

But, look. Your space will be fully-furnished from the day you move in. We’ll have the WiFi up-and-running and printers online. The meeting rooms will be ready to go. The kitchenette stocked with mugs and freshly brewed coffee. And you’ll have the support of our coworking team. They’ll provide everything from reception to package handling to space maintenance. They’ll get you oriented in the space and make sure you have what you need to get to work.

New office without the downtime.

Some office spaces have a one-size-fits-all approach, but that's not really our style. The reason no two betahaus locations look the same is because they’re locally designed. And we give our Team Space members this same opportunity to customize their space.

Choose a room with a view of the city or one on the ground floor with easy access to the garden. Change the lighting fixture or bring your own bookshelf. We want teams to be able to white label, decorate, and really make the space their own if they want to.

And if you’re really looking to customize, Team HQs allow teams to collaborate with our architects and coworking team to create a space that is completely bespoke. Whether it’s additional meeting rooms, unconventional seating, or a yoga room, we apply our 10 years of experience in building functional workspace to your creative vision to create something that’s just right.


Probably the biggest benefit of coworking is community and events. Now we know it may not be the first thing you’re looking for as you seek out your next office space, but bear with us.

Imagine using your lunch breaks to chat with someone in your industry. Meeting freelance developers at after-work beers. Networking with investors at BETAPITCH. Pitching at our weekly betabreakfast and getting support and feedback on your new ideas.

betahaus has spent the last 10 years cultivating a community of people who we genuinely like working with. And when you join, your team will become a part of it, too.

" People matter! Community was always what we were all about. ‘’

In June we launched #PeopleInbeta - our monthly blog post series in which our Content Manager - Vihra interviewed teams and freelancers from the betahaus community to present the variety of creatives we have in ‘haus, to understand their missions and get some useful advice for our audience. We talked on topics such as sustainability (with PlanA) , decentralized digital identity (with JOLOCOM), curated music experiences (with Bespoke Sounds), freelance photography (with Sara Herrlander), full-stack development (with Obst Digital), design (with LAUDO) and much more.

Interview with LAUDO at betahaus | Neukölln
Interview with Obst.Digital at betahaus | Neukölln

"The Summer is the best time to host Backyard sessions and BBQ’s’’

In the summer, we launched a couple of new events in Neukölln like Freelancers, Unite!, The Backyard Sessions and My friend’s BBQ. 

Freelancers, Unite! developed as our productive coworking session with freelancers from in and outside the ‘haus. Once a month, we picked an important freelance topic (such as taxes, time-management, etc) and invited experts to give us insights on the topic. We saw so many new faces and had the chance to come back closer to where we started from - the freelance, grassroots culture. 

Freelancers, Unite! at betahaus | Neukölln

Another event, which started in July (and turned out to be our favourite events) were The Backyard Sessions. Organised by our queen of Neukölln - Robbin – the Backyard Sessions are our creative evenings with live music jams, movie screenings and cocktails. 

The Backyard Sessions at basement.berlin
Movie Screening at basement.berlin

This last event was hilarious because for quite some time, nobody knew exactly who organised it or invited them. The friend was throwing a BBQ for the community in the garden and this led to all our members joining and staying after for a beer or two with us.

‘’My favourite moment this year was the second friends bbq which was actually cancelled because of the rain forecast. But despite the bad weather, people show up and it turned into a super nice intimate evening with Elizaveta and Paul giving a garden concert.’’ - Robbin (Community Manager, betahaus)

''In July, it was great how the casual after-work BBQ turned into an impromptu acoustic blues jam session with Elizavetta Barsegova and Paul, who have the voice of an angel. Actually, all of the My Friend's BBQ's and Backyard Sessions were AWESOME.’’
- Paige (Head of Marketing, betahaus) 

The Garden at betahaus | Neukölln
My Friend's BBQ at betahaus | Neukölln



"As a coworking space, you have to give stage to important topics.’’

This year we released a new event format in Kreuzberg called ‘’The betaSalon’’. It's an open panel discussion which aims to give stage to important topics and give free speech on them. The fist one we did on the EU elections, last month we talked about changemakers, but our favourite one for this season stays ‘’Mother + Founder’’ where we partnered with FemGems podcast and recorded a live podcast episode for them having Madeleine Gummer von Mohl (betahaus co-founder), Kristine Zeller (co-creater of ooshi period underwear) and Luisa Hoffman on the stage.

betaSalon at betahaus | Kreuzberg

"We should fight for a more human-centered tech development’’

Every September, our co-founders take part in the Techfestival. in Copenhagen, spending a few days disconnecting from the daily life and focusing on creating a better, more human-centered tech future. This year the think tank which included our co-founders Madeleine and Max came up with the TechPledge. The Tech Pledge was made to emphasize the need for a new direction in tech. Similar to the Hippocratic oath for doctors, the Tech Pledge is a promise to make tech a force for good and ensure responsible and sustainable tech leadership. It’s a commitment to driving a new direction in technology.

Techfestival. 2019 in Copenhagen


"Startups are transforming European football as we know it.’’

One of the most exciting projects for betahausX this year (which is also continuing in 2020) is their new startup challenge called The Werder Lab - a global startup competition that aims to reimagine the way clubs like Werder work with athletes, fans and partners.



"You should leave time for the things you love most’’ 

This year couldn’t end without us having our favourite events - the end-of-the-year holiday party and the BETAPITCH Global Finals. On the 6th of December we saw the 9 finalists of the regional BETAPITCH competitions pitching in front of our jury. Congrats to Troy from Hamburg for winning the big prize.

We finished the year at our Holiday Party celebrating anything and everything at betahaus | Neukölln together with our members, friends of friends and our favourite artists from Passiflora LIVE, Tapete and Kotoe.

Love at The betahaus Holiday Party 2019


Thank you for being with us in 2019. It's been a crazy big year for us and it wouldn't been possible without your support, trust and the hard work of our amazing team. Have an amazing holiday time and we'll see you again in 2020.

With love,
betahaus

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