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>> help the average jose and joe, but isn't this model squeezing out the middle and lower-income class? look at taxicab drivers for example? >> well, obviously have you have a few market like this, you are going to have displacement of people out of the hotel industry and taxi industry. there is a study looking at the number of jobs displaced in the hotel industry. and that is going to be jolting when you have a market growing and expanding this rapidly. >> but isn't competition good for business? >> absolutely. i think that there are a couple of important points to note here. one is that this kind of displacement from an old way of doing things to a new way of

doing things is a signature of progress. it's ago that we see all the time, and the fact that it is being lead by platforms like uber and air b&b -- these familiar things getting a place to stay, taking a ride from one point to another, we're going to have to reinvent the regulatory infrastructure as well. and this wouldn't happen if it was just a bunch of independent people trying to do it. you need the scale of air b&b or scale of uber to clear the regulatory landscape. so that's where this sort of peer-to-peer business will flourish. we'll see a lot of less taxicab drivers in a decade. i don't think the taxicab as we know it is going to survive except in some of the larger cities in the u.

u.s. -- displacement not at the same scale, but we're going to see a similar shift in people who are vacationing, but people who are providers today, hotels, and taxi drivers, they are either going to contact to the major platforms and start providing their services in that new way or they will find other jobs. >> or they are going to fight it and insist on regulations similar to those they have to conform to. >> yeah, but these regulatory battles never -- trying to block technological progress through regulation is not a winning strategy in the long one. >> all right. scott i know you want to jump in. >> i think the use of the terminology clear the regulatory landscape is a little bit telling. if you are going to build something that appears to the providers participating at the

bottom live of the community, then using rhetoric from the top level or approaching business models that say we're going to clear the landscape, you know, displace people without considering what the impact is going to be on the community and expect it to have long-term sticking power is a little bit problematic. and that is something that air b&b and uber are finding out right now, and it is forcing them to come up with a common sense approach that updates the regulations and approaches, but also doesn't allow for this idea that you can just step aside -- all the way around regulation to carry on -- >> speaking of regulation -- hang on just a second guys. i want to broaden out this idea of regulation beyond the air b&b's and the ubers, and get back to the little guy and little gal, if i was renting out a handbag and something

destroyed it, or i got sick eating at one of these places, what is the recourse? >> lisa let me ask you this? what happens if you get sick at a small restaurant? i would say you are a lot more connected to the cooks than in a restaurant. and it's not the same as a mcdonald's or a burger king, and even with that we -- we take security as well as food safety very seriously, all of our chefs are vetted -- >> but are you regulated and inspected? do you have a license like a restaurant that i would go into? >> i think also there is a shift in what regulation means. why did regulations first come about? because there were people going places and there wasn't technology around and you needed a body that said these are good, these aren't good. and now a lot of these services

are putting in mechanisms to almost democratize these things. if there is a bad one, you will get kicked off of the system. it is a lot more transparent than what currently exists. >> i agree with noah completely, actually, and, you know, i'm not saying that -- nobody is saying that regulation has to go away. nobody is saying that the government doesn't have a role to play. but we're blurring the lines between personal and commercial at this point. we used to have stuff you did for yourself and your friends, and stuff you did as a professional provider, now those lines are blurring because of noah's company and air b&b and uber and lift, and we have to stop and think what does the platform do effectively on its

own, and what are the things for which we actually have to spending resources to have the government come in and inspect and license. we made a tradeoff between safety and convenience as a society. it's just that the lines that have been drawn for a full-time taxi driver or full-time restaurant, they don't apply to this new world. >> roxanne says . . . but on the flip side most of the drivers don't know where they are going anywhereway. >> still ahead what does the sharing of business mean? will it increase innovation? think of that. we'll be back in two minutes. ♪

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♪ >> welcome back. we're talking about average joe entrepreneurship, people renting out their idle assets to earn a little extra cash. it has turned to a $26 billion a year industry. that is not chump change. is the shared economy infringing on revenue streams or creating knew ones. >> people like avis and hertz they go out and acquire the companies that came into this car-sharing business early on.

and companies are taking risks they wouldn't have normally taken. i think you can see companies like air b&b, and uber, they will be competing with companies like amazon, they are logistics companies already. so you will see a lot more innovation from the few that are able to scale that large, up to more established companies. the bigger companies are not going to standing back and let this kind of happen without them stepping into the market. >> all right. >> go ahead. aruin. >> one of the most -- i mean, exciting things for me about the sharing economy, is the fact that i think that these platforms can be engines for innovation, and here is how -- you know, now when you -- i mean today when you want to start a business, it's sort of a high-risk proposition. it's all or nothing. so a lot of people stay in traditional jobs. it takes someone with a particularly personal type to

strike out on their own. when you can dip your toes in the water by being an air b&b host for a while, try out driving a lift car, i think what this is going to do is it's going to bring a whole new set of people into the innovation and entrepreneurship landscape, and because of that, i think that the long term economic growth sort of affects of the sharing economy platforms are going to be quite substantial. >> one of the long term effects is community . . . noah, i'm going to use an outdated pop cultural reference. let's take a drlorian ten years

into the future. what be the sharing economy you will be interacting with? >> it won't be just in the developed countries, but in the emerging markets as well. as for air b&b and other companies it already has. companies in general are really thrusting for authenticity and connectivity. we thought we could do that with social networks. that only got us so far. and now we're taking another step into almost an 2.0 version where we can contact and have meaningful interaction or services provided off line. >> scott you used the word "sticky" early in the program. do you think these are going to stick and develop the kind of loyalty and repeat businesses that we see with traditional businesses? >> i think something that noah and arun have talked about, is

to me it's globalizing these businesses and making them homogenous. and you have two levels. one are the businesses that will skill become quite large, and probably quite generic in sort of a steady level of service and scale. but i think -- and that's going to appeal to a certain kind of customer. the things that will be stickier at a local level are the way individual communities and cities develop their own localized community-based economies. and i think you'll start to see some separation. air b&b is doing a start thing right now in what they are facing in new york and portland, and developing -- >> our community sites darwin . . . >> all right. on that note, thanks to all of

our guests. until next time, waj and i will see you online at aljazeera.com/aj aljazeera.com/ajamstream. welcome to al jazeera america, i'm nelson mandela -- del walters. these are the stories we're following for you. >> malaysian flight mh 17 took off from am der dam and was shot down. >> president obama blamed russia separatists and russia itself. and investigators now heading to the crash scene trying to determine what happened to flight 17. and israel saying its ground