The explosion of sharing or on-demand services like Uber and Airbnb is the beginning of an economic upheaval every bit as significant as the industrial revolution. The on-demand economy promises to radically reshape the cost of services and change the face of the workforce. These upheavals, in turn, are altering state and local government policies -- imposing unforeseen fiscal risks.
One of the fallouts, for instance, is an upsurge in the growth of temporary or part-time workers, such as Uber drivers, Airbnb hosts and Axiom Law attorneys. These workers are providing on-demand services at rock bottom prices. They are not working in downtown or suburban office buildings or for traditional employers, nor are they eligible for traditional health-care or pension benefits. The challenges for states and localities, therefore, will be how, in light of these changes, they adjust tax policies, revise regulations for zoning and public safety, and provide retirement benefits.