Future Citie - Catapult City as Regulator

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About

How does the city regulate business models in a way that allows for disruptive entry?

 
Tier 1 - Top performers
 
Tier 2
 
Tier 3
 
Tier 4
Why it's important

Regulatory compliance is something that all businesses should make sure they get right. This can be particularly challenging for companies which bring new business models to market that challenge the assumptions made by regulations from a previous era.

Digital technologies are increasingly disrupting previously well-defined industry boundaries, giving rise to new business models. These can create value for businesses and consumers alike.

Often it is the city authority that has to determine how these new models will be regulated, particularly in markets that operate at a city level, such as on-demand taxi services and short lets. This is a delicate balancing act.

High-performing cities are finding ways to accommodate innovative new business models into their local economy. This does not mean crudely deregulating markets, nor does it involve using regulation to protect incumbents. Rather, it is about taking measures to make sure that regulations keep up to date with new ideas and technologies.

What we looked for in cities
Update regulations to permit entry
1

Existing regulations are enforced proportionately

Proportional enforcement ensures that old regulations do not block new entry over technicalities.
2

Regulations are reviewed and updated to take account of new business models

Regulation becomes better able to take account of pace of change.
3

The full spectrum of stakeholders is engaged to craft balanced regulation

Engaging with all stakeholders helps to construct fair and balanced regulations.
Update regulations to permit entry
1
Existing regulations are enforced proportionately
Proportional enforcement ensures that old regulations do not block new entry over technicalities.
2
Regulations are reviewed and updated to take account of new business models
Regulation becomes better able to take account of pace of change.
3
The full spectrum of stakeholders is engaged to craft balanced regulation
Engaging with all stakeholders helps to construct fair and balanced regulations.
INSIGHTS FROM LEADING CITIES
Future Citie - Catapult

In advance of the Olympics, Tokyo has set a target of 20 million visitors a year by 2020. And as part of its economic growth strategy, the government has designated special zones in Tokyo and Osaka where regulations related to short-term lodging are set to be eased.

Future Citie - Catapult

From February 2015, Airbnb will work with Amsterdam to collect tourist taxes from their hosts and pay this direct to the city. This world-first Airbnb-friendly law will see the two parties work together, with Airbnb ensuring that hosts are aware of their legal responsibilities.

Future Citie - Catapult

In 2014, Seattle approved updated regulations to allow Uber, Lyft and other smartphone app-based transport services to operate legally. The result of more than a year’s debate between the city, taxi companies and ride-share services, the regulation allows a new industry to thrive while maintaining high levels of public safety.