The politics of the sharing economy: Evidence from Uber in South Korea

Abstract

This study explores factors influencing legislative initiatives in the sharing economy, focusing on the interaction between traditional industry power and legislators' policy incentives. We identify four politician types: (a) constituency-centered legislators from districts with strong traditional groups, (b) constituency-centered legislators from districts with weak traditional groups, (c) party-centered legislators from districts with strong traditional groups, and (d) party-centered legislators from districts with weak traditional groups. Analyzing Uber’s operations in Seoul, South Korea, from 2012 to 2016 reveals the impact of legislators’ constituency-centered initiatives driven by strong traditional groups on regulatory outcomes concerning Uber. In contrast, legislators in the other three categories adopted a position of deliberate nonaction regarding Uber-related regulations, perceiving Uber’s early market entry as not beneficial to the general public. Our findings contribute to bridging the gap in existing literature by highlighting the significance of the supply side of policymaking in the sharing economy.