The sharing economy is just going to continue to grow, and governments will be challenged to understand and manage its implications while embracing its benefits. However, governments will be at a significant disadvantage if they wait too long and newer technologies and markets will have already been developed that do not follow traditional models. Think of the following: Uber is the worlds largest taxi service and owns no cars. Airbnb provides lodging yet does not own real estate.
How will local governments adapt to these new ways of doing business that are disrupting traditional business models? All we know now is that governments are a long way from even contemplating and accepting this new reality.
Government will have to adapt and evolve with technology or it too will become obsolete as so many other things and systems in our world. At the moment there is such a holding back of technology from our current system. I mean money, capitalism and representative democracy. We have the ability to easily produce enough for everyones needs, there is no need to continually aquire and destroy. With tech we can have fluid democracy ass described by the blockchain project democracy.earth.
Tech companies need to keep pushing the bounds of the possible and change will eventually come.