2015-03-18



While Germany was busy banning Uber and France raided its offices, George Osborne used his Budget to embrace car-sharing apps.

The Chancellor revealed that Government staff will be encouraged to use technology start-ups to share transport and accomodation in order to cut costs.

"The Government will ... enable government employees to use sharing economy solutions to book accommodation and transport when travelling on official business, where this represents value for money," the Red Book, released on Wednesday, stated.

The Department for Business, Innovation & Skills (BIS) added that it will give civil servants the option of making the most of what is known as the "sharing economy", where such options "are cheaper and more convenient than hotels and taxis".

BIS highlighted US firms Zipcar, a car sharing and car club service owned by Avis, and San Francisco-based Airbnb, the room-letting website, as two examples of companies that "help people and businesses make the most of their assets, time and skills".

Both have signed up to a new trade body in the UK that has been set up to represent and champion this country's sharing economy, which PwC estimates could be worth £9bn by 2025.

Uber, a taxi-hailing app that also offers ride-sharing, was banned in Germany on Wednesday. An Uber spokesman said the company "regrets" the Frankfurt regional court's decision and expects to appeal.

The company, which operates in about 250 cities in 50 countries, is facing more than a dozen lawsuits across Europe amid competition and safety fears.

French police raided Uber's offices in Paris on Tuesday as part of an investigation into its controversial ride-sharing service. The company called the raid an "attempt at intimidation".

Airbnb, which puts people who are in search of a bed for the night in touch with those with a spare one to rent, has faced calls to be shut down in the US amid claims hosts are not held to the same safety standards as hotels are, and that many users will dodgehotel taxes.

Following the Budget, Airbnb wrote on its website: "We thank the government for supporting the sharing economy. These are thoughtful, forward-thinking policies that set an example to the rest of the world. We look forward to working with the government on putting their commitments into action."

Other members of the UK trade body, named Sharing Economy UK, include Appear Here, Bla Bla Car, Compare and Share, EasyCar, Echo, Hassle.com, Liftshare, Love Home Swap, Nimber, One Fine Stay, OuiShare and Task Rabbit.

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