Uber’s battle for Buenos Aires is shaking rule of law in Argentina

A 2016 protest against Uber in Buenos Aires. Image: Getty.

Just 12 hours after Uber’s service became available in the Argentine capital, Buenos Aires, taxi industry representatives took the company – and the city’s administration – to court. The case was similar to those faced by the company in London, Barcelona, Copenhagen, Budapest, Frankfurt and several US states and Canadian provinces. Uber has faced legal challenges in relation to labour and licensing regulations, as well as allegations of misuse of data and tax avoidance.

Uber’s expansion has become a global epic with regional episodes. While the specifics differ, the terms of the debate remain the same. On one side: the rhetoric of inevitable technological progress and free choice. On the other: claims that precarious work and exploitation have reappeared in a sleeker guise.

Yet the Buenos Aires instalment of the saga is, in some ways, unique. In other places, Uber has acted on authorities’ demands – in some cases leaving those markets entirely, in others reforming or waiting for new regulations to develop. But on 22 April 2016, when a Buenos Aires judge declared Uber’s activities to be in breach of local laws and ordered the immediate blockade of the app, Uber simply continued its operations.

Since then, protests by both Uber and taxi drivers have intensified, while the conflict has branched out on several legal fronts, dragging in more courts, Uber drivers, tax authorities, Uber officials themselves and most recently one of the company’s Argentine lawyers, who initiated legal action in the state of California for what his legal representatives describe as “the unimaginable harm Uber inflicted on him as a result of Uber’s recklessly orchestrated entry into Buenos Aires”.

Uber’s strategy might seem scandalous – perhaps even more so, because it’s working.


Power to the people?

From the beginning of the conflict, the ride-sharing company argued that existing rules were obsolete, and that it was willing to cooperate with authorities to develop a legal framework “adapted to 21st century technology”, so that people would be “able to choose freely” like millions of others around the world.

Among the middle classes of many developing nations like Argentina, these arguments and references to modernity have huge political significance. In countries where democratic institutions are haunted by spectres of corruption and bureaucratic mismanagement, citizens see in Uber’s platform a world of opportunities. Anyone can set out and drive someone for money, a completely impenetrable algorithm produces market values according to demand, and users rate each other based on their experience. And crucially, no local actor can interfere: Uber’s separation from the state is seen to guarantee its virtues.

As part of my PhD fieldwork in Buenos Aires, I was researching how the middle classes understood the place of Argentina in the world. To these people, Uber carried the promise of a modernity beyond local interests and petty regulations. It seems the company has effectively aligned itself with the side of “the people”, in a struggle against governments, unions and other interests, which appear to stand in the way of progress.

A test for democracy

The legal tug-of-war resulting from Uber’s strategy is testing the strength of Argentina’s governance structures. Cities and states seeking to enforce the rule of law can appear silly and provincial in the eyes of their citizens – even when similar laws are followed elsewhere. Buenos Aires’ minister of transportation characterised Uber’s business strategy as being “two-tiered”: respecting governments in developed countries, ignoring them in developing ones.

Uber’s regional director for Latin America George Gordon replied:

French president Emmanuel Macron received Dara Khosrowshahi, Uber’s CEO, and they jointly announced investments in new forms of transportation and the launching of an insurance policy bringing maternity and paternity benefits to drivers and accident and injury coverage. This is an example of the relations we want to build in each country and city where we operate. Uber will continue to operate in Argentina, committed to growing and in the hope of opening a space of dialogue and cooperation with national authorities.

The irony is that the modernity middle class people in developing countries yearn for cannot exist without government and the rule of law. The structures and policies of private companies are set up for profit, not for public interest. The point of the law is precisely to ensure there is a framework citizens can reach out for, when things go wrong.

If the driver of a ride-sharing platform commits a crime, would a low rating be sufficient sanction? Would it be for that platform’s management to decide what counts as evidence? Those opposing Uber asked such questions hundreds of times, but amid the race for modernity they have seemed to be somehow missing the point.

Uber’s legal conflict in Buenos Aires may be entering its fourth year, but the people have already decided their winner. A developing nation’s yearning for modernity proved the crucial battleground for a slightly different epic than usual. At the very least, this ongoing saga should prompt new debates about new technologies and their place in people’s lives.

The Conversation

Juan Manuel del Nido, Postdoctoral Researcher, University of Manchester.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 
 
 
 

A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.