After appearing to have banned its employees from using services like Uber and Airbnb for work, the University of California clarified on June 27 that employees can still use peer-to-peer services when traveling on University-related business.
On June 25, UCLA employees received an email from a UC official saying that the University has been seeking ways to overcome liability concerns involved with the use of certain peer-to-peer service companies. Because of these legal concerns with the companies, the UC asked its employees not to use the services.
A couple days later, the University clarified its stance and said it will continue to reimburse employees for using Uber and Airbnb when they travel for business.
“We … would like to work proactively with companies … to get everyone to a point of complete comfort with the risks involved,” the University said in a statement.
For some UC faculty such as economics professor Walker Hanlon, the UC’s clarification was a relief.
Hanlon typically has booked his lodging through Airbnb, an online service that connects people renting out their homes to those who want a place to stay. He said he has saved hundreds of dollars by using the site.
“I didn’t want to take money off of my research and waste it to spend on such a fancy hotel,” Hanlon said.
Companies such as Uber and Airbnb have been the center of many legal controversies recently. In Sacramento last week, taxi drivers protested against Uber, saying regulations for those companies have not gone far enough.
Uber, a company that connects riders and drivers with a smartphone app, said in a statement last week that it has a strong commitment to safety. The company added that it has an insurance policy that provides up to $1 million for passengers and drivers in the case of an incident, according to the statement.
In June 2013, the Los Angeles Department of Transportation sent cease-and-desist letters to Uber, Lyft and Sidecar, which all offer ridesharing services. The department claimed the companies have been operating an “unlicensed commercial transportation service” in violation of its code. The three companies continue to operate in Los Angeles today, claiming that an agreement reached with the California Public Utilities Commission in February 2013 supersedes those letters.
A March memo by L.A. city officials shows Airbnb violates zoning laws in many neighborhoods because owners of houses are not allowed to rent out their homes for fewer than 30 days.
While legal challenges have mounted, the services have become more popular. Uber was valued at about $18 billion including fundraising in June, while Airbnb was valued at about $10 billion in April.
In a letter to UC President Janet Napolitano June 26, Lt. Gov. Gavin Newsom defended services such as Airbnb and Lyft.
“Sharing economy offers consumers more choices at often less cost than comparable services offered by traditional vendors,” Newsom said. “Prohibiting UC employees from using services that cost less is simply bad for the University’s bottom line.”
He added that he thinks banning the services goes against the spirit of innovation the UC should seek to foster. He said he thinks the University should not “work against innovators and entrepreneurs.”
Compiled by Jeong Park, Bruin senior staff.