Introduction

Ride-sharing, an on-demand digital mobility service, is globally adopted. This branch of “sharing economy” maximizes efficiency of underutilized private assetsvia information technology. Capitalism is reduced since low entries are required to participate. (Hahn, 2017) Hence,P2Ptransactions occur where mutual trusts are fostered.

On Sept. 19, 2013, California became the first state to regulate the industry, and 48 states and Washington, to enact legislations as of August 2017. (Moran, 2017) Issues regarding inspection, licensing, reporting and privacy are , since ride-share is not a conventional model,disruptions form inlegal grey areas, andchallenges in safety, equity and legality are continuously faced by the TNCs. (Crespo, 2016)

Social Contract is driven by the Rule of Law when it comes to governance. Driven by self-interests, societies need third-party interventiondue to lack of spontaneous investment into common good. (White, 2014) Yet the optimal control has always been unclear, thus there is necessity for thegovernment to maintain public safety, promoting rule abidance over defection. Our study is tasked with the identification of an ideal extent of regulation to diminish detrimentsto social cooperation and advocacy.

In the paper, government archives as precedents of powerallows better comprehension on controlling means;lawsuitsare particularly concerned as representative verdicts;prior incidents are also a chief source. These assist our research by revealing harmed interests foreach entity, and it is uncovered whether TNCs meet their commitments. Strong needs for reforms are demonstrated, and we aim to testify our hypothesis of regulatory deficiencies in guaranteeing public goods.

Findings Current regulations

We find that most public safetyissues can be ascribed to a lack of screening , submitting the name and identification to the company for a background check would be the mere requirement of becoming a driver.

Other issues can be traced to the lack of vehicle inspection and ’ privacy is also in danger. In 2017,Uber is said to be divulging 50,000 passengers’ data to a hacker.

Over-regulation

People criticized that if ride-sharing is excessivelyregulated,negative effects will be generated. By banning inspirations and innovations, development of the whole industry might be is also said that innovation and regulation simply don’t work together.

Government and companies’ action

Both the government and transportation network companies have made efforts (regulatory reforms)to improve the governments implemented regulations to require the companies to conduct backgrounds checks on their drivers and vehicles that are subject to annual inspections.

The TNCs also make changes to their regulations Uber for example. Its Safety Center had carried out new rules concerning passenger safety which can mainly be put into three categories. Firstly, the app will have a place where riders can learn about key safety , an app named “Trusted Contacts” is instructed, allowing riders to designate up to five connections. The last server to solve problem discussed early in the paper about the screening process. The “Annual Background Check” reruns annually no matter it is required legally.

Methodology

In addition to existing pieces, a survey is conducted among customers. Subjects are chosen in Beijing, a metropolis where ride-sharing occupies substantialposition in the city operation for its convenience. By May 2018, consumer scale in China reached 185 million, and the market penetration rate was up to 16.9%. (JiGuang,2018)Thus, representative data would be concluded.

The study comprises 22 multiple-choice questions and is sectioned into categories- the first on user experience and the second on attitudes and anticipations. Demographical questions on frequency of use, gender and age are instrumental in identifying correlations. Deeper inspection into public attitudes are enabled through the survey.

Results are presented in percentage from 112 responses. 29.5%havediscoveredasymmetrical or inconsistent information;84.82%consider regulations immature; 76.8% hold privacy concerns;71.43% claimed inadequate responsibility from TNCs; and 70.54%consider current supervision insufficient. The materials prove our hypothesis and help acquire multifaceted viewpoints on therole of ride-sharing, thus there would be betteradvocacies for reforms.

Conclusion

We identified mainly three loopholes in ride-share regulations, the lack of inspection as well as the maintenance of the vehicles used, and private information of the passengers being threatened. Additionally, the reason why regulations cannot be undue and its relationship with inspiration are , we discovered that both the government and the TNCs have make changes. For the government, they made adaptations mainly requiring background check in drivers. For the companies, they allow the riders to share their location with both their families and police while highlighting safety keys.

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