How tech opened up to government

For both established companies and startups, the question of how best to work with regulators is paramount, especially for those looking to disrupt entrenched industries. While there may not be a universal strategy, it seems clear that there is no room to take a combative, or even irreverent, approach, even though such tactics may have worked for companies like Uber in the past.

When Uber first launched in New York in 2011, the company allegedly failed to obtain the proper licenses from the New York City Taxi and Limousine Commission, and later got caught in a protracted fight with Mayor Bill de Blasio. In the past, Lyft has also failed to comply with some state and municipal rules that resulted in a hefty settlement with the state. Today’s tech companies are attempting a more collaborative approach, working with government agencies and currying the favor of elected officials before formally launching services in the state. The Department of Transportation-led dockless e-bike pilot program with Lime, Jump, and Motivate is just one such example.

“It used to be that you could build a company in a vacuum, that you could build a huge network around that company in a vacuum – where regulators weren’t really paying attention, where competitors weren’t really paying attention – until it was huge,” said Julie Samuels, executive director of the industry group Tech:NYC. “Those days are done.”

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