Government vs Technology
I think everybody knows tech startups like Uber and Airbnb, which disrupt the, in this case, “old-fashioned” taxi and hotel market. Many see these companies as heroes who change the rules of the market. However, the government and the traditional companies are not that happy with these companies as they create unfair competition. This has led to many lawsuits in order to forbid these kind of companies. Is it the task of the government to intervene to restore the traditional market or do they need to embrace these companies as they innovate the industry?
I personally think that the government has to embrace these companies as they just found a more profitable way to deliver the services/ products. Survival of the fittest as Darwin would say. These companies show that the current regulations are old-fashioned and that it is time to review the regulations in order to improve the technology. During our Bachelor Business Administration we all read cases where companies failed, because they did not adapt to their changing environment. If companies have to adapt, I am convinced that the government has to do the same.
Sam Altman, the president of Y Combinator, stated that “The greatest threat to this country is incompetence of governance”. He says that the government has to adapt faster to the rapidly growing technology, otherwise there will be a mismatch.
In order to keep up with technology, policy makers have to collaborate more with these disrupters to innovate the rules. For example, currently many different companies are investing in self-driving cars, but for these self-driving cars you will need to have modified road rules.
It is important for the government to adapt and react faster to technology. As the Conversation states “New technology will force new rules, whether we like it or not”.