How Norway is embracing the sharing economy instead of fighting it

Companies like Airbnb and Uber have ushered in the era of the sharing economy however most governments have nevertheless to work out the way to regulate these new business models. Norway, however, is an exception and is leading the charge in reckoning out the way to preserve the pliability of this model, while mandating sure labor and quality standards.

This week, a commission appointed by the Norwegian government handed in its recommendations for however Scandinavian nation might move for the sharing economy through taxation and release. The first step would be to alter the status of Uber drivers so they'll be as legitimate as regular taxi drivers ar currently, according to reporting by Norwegian publication Aftenposten.
The commission believes that companies like Uber will open up the Norwegian taxi trade and bring much-needed competition to the world. Its recommendations also embody sinking the legal standing of corporations operating within the sharing economy, thereby bringing them into the tax system while not compromising on safety standards. By doing this, the commission hopes to use the potential of the sharing economy to lower fares and support fairer competition, which would ultimately profit the buyer.

This is in line with belief in Norway. Although some studies have steered that individuals in Scandinavian nation are slow to look at the sharing economy, the overall opinion of Norwegians towards the sharing economy are positive and other people believe that it'll ultimately profit shoppers. The few participants of the study that had personally used the sharing economy were happy with their expertise, with only a minor share having had a poor expertise with it.
It is therefore perceivable that the present Norwegian government, which consists of parties that ar in favor of liberation, is looking for ways in which to include the sharing economy into the Norwegian business scene to encourage market competition. Norwegian employers’ organizations, such as NHO and Virke, have supported the changes proposed by the commission, especially once it comes to the necessity for taxation of firms like Airbnb.

The commission does not advocate limiting the quantity of your time that individuals will farm out their homes through Airbnb, like Amsterdam did in 2013, as it believes that allowing new forms of accommodations will lower costs within the lodging sector. Instead, the commission proposes ways to alter the tax system in order that it'll be easier for folks to declare little amounts of financial gain.
However, the recommendations made by the commission have conjointly been met with some resistance. Labor federations, such LO, have voiced their concerns that firms in the sharing economy wouldn't be control to identical standards as alternative firms once it involves employment rights. The unions fear the increase of social selling — once employers elect exploitation low-cost labor, i.e. migrant workers — with more liberation and that taxi services may deteriorate in far areas.

The sharing economy is undeniably going through some growing pains right away, but it is important that governments round the globe realize ways in which to include these new business-forms into their legislation. Governments cannot prevent amendment and should ask for out new ways in which to touch upon new economic realities.