Revving up New York’s digital economy

Technology is rapidly changing, creating new opportunities for consumers around the country.

In Washington, D.C., a 23-year old Penn State graduate paid off his student loans in 10 months by sharing his Honda Civic on Turo, our peer-to-peer car-sharing platform. Similarly, a 79-year old retiree in Palm Beach, Florida, supplements his Social Security payment and retirement savings by renting out his 2005 Mustang.

These are just two examples of the new opportunities available to people because of technology platforms driving the digital economy. The question confronting policymakers in New York, and across the country, is how to best unleash the tremendous potential these new platforms provide for individuals and businesses alike.

Fortunately, Gov. Andrew Cuomo understands the potential. To his credit, he has made technology and entrepreneurship focal points of his economic agenda. He has sought to position New York as a second Silicon Valley. In addition to New York City’s growing role in the digital economy, public investments tech-ventures – from nanotech at the University at Albany to the photonics center in Rochester – have been the cornerstone of efforts to re-make the upstate New York economy.

The key to unlocking this potential is modernizing regulatory regimes that were crafted before many of these technologies existed. For example, current law in New York does not allow a company like Turo to offer insurance protection to car owners who wish to make additional income renting out their cars to travelers or neighbors. Consequently, Turo does not operate in New York, leaving it the only state in the nation without this opportunity. The state Legislature had a chance to update the law this session, but ultimately decided against it.

New York faces a difficult business climate, and many workers face an uncertain job market and lost opportunities. The sharing economy allows people to take an otherwise underused asset – like a spare car sitting in the garage – and turn it into a source of income. The community of Turo members, for example, includes thousands of car owners who rent their cars when they aren’t using them and people who rent cars wherever they travel.

In 49 other states, car sharing benefits both car owners and renters, especially in low- and middle-income communities. Renting out their car on Turo can offset the cost of ownership. Over two-dozen community groups, inspired by the opportunities elsewhere, have clamored to bring car sharing back to New York state. They recognize it is unfair that New Yorkers are stuck with such limited transportation options. Buying a car is a huge investment. Why don’t we make it a little easier on people by allowing them to earn an income from that investment?

Is New York serious about being a high-tech friendly state? If so, our government must modernize in order to rev up the state’s digital economy with a simple set of rules to protect New Yorkers and give them new opportunities.

Andre Haddad is the CEO of Turo, a car-sharing marketplace.