101 Iowa L. Rev. 405 (2015)

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Abstract

Society has changed dramatically in the years since the taxi industry was first regulated. Innovation and technology in fields virtually unknown or unrealized 50 years ago have shaped consumer culture today, and most consumers rely on the ease and accessibility of their smartphones to get what they need and even to go where they need to go. Uber, a ridesharing experience that allows users to request a car through a smartphone app, was developed in the midst of this new consumer culture in which access to commodities is more valuable than individual ownership and where people value social interaction and the human experience. Unsurprisingly, Uber's unforeseen growth across the country has created new competition in a taxi industry that has been largely undisrupted since it began in the early 20th century. The taxi industry and many cities and states have responded by demanding that Uber comply with already-existing taxi regulations, including entry controls and price-fixing. This Note argues that in today's sharing economy, the solution is not to force Uber to comply with outdated regulations; rather, regulators should rely on experimental regulations for safety, which will allow consumers to make their own choice of which service they would like to use while ensuring their safety. Furthermore, by relying on the use of experimental regulations, regulators will be able to evaluate the effectiveness of the regulations as more information on these services becomes available.