Viewpoint:
Views, perspectives and readers’ letters
Our Opinion
Why Charleston must give in to Uber’s demand The S.C. Public Service Commission and the Charleston County Aviation Authority need to get their approach to Uber right, and we’re not overstating it by suggesting the world is watching. Uber comes into a city a bit like a guerrilla army that pulls in conscripts from locals who didn’t know they were unhappy with taxicabs until they realized there was a different way. That approach has been very effective and well-documented in the technology press. Uber updates its app for a city and unleashes a disruptive attitude that creates a buzz, creates jobs and fills a demand that’s being unmet or poorly met by existing regulations and services provided by taxicabs. Uber says it just provides a mobile app that connects riders and those who are willing to give rides in their personal vehicles for a fee. It sounds simple, but it’s pulled in billions in venture capital and caused unwanted growing pains in cities across the globe. The service is wildly popular, especially in tech-heavy cities that have found a way for Uber and other similar companies to co-exist with taxi companies. We understand the taxi operators’ interest: They have to play by the rules, which mandates they have to do certain things that increase their costs. No one likes competition when your competitor isn’t playing by the rules. We understand the government concern: They pass laws, make policy and expect businesses to comply, in their estimation, for the greater good. Gov. Nikki Haley gets it. Her negative response to a cease and desist order from the S.C. Public Service Commission sends the right message and indicates an urgency to fix this problem before it spirals into a PR fiasco. How we treat this early wave of technology companies sends a message about South Carolina’s attitude toward emerging businesses. Even those not exclusively in the tech sector. Haley isn’t alone. PeopleMatter CEO Nate DaPore, BoomTown CEO Grier Allen, Blue Acorn CEO Kevin Eichelberger and Advantage Media Group CEO Adam Witty all signed a letter to the S.C Public Service Commission along with Charleston Mayor Joe Riley to express their support for Uber. Uber is one of the more publicly disruptive tech companies coming to our region, but it’s not the last and how creatively we adopt the first generations of startups and disruptors that don’t always rely on business models that fit neatly into a regulatory package sets a precedent and sends a message. Should we roll over and give Uber everything it wants? Of course not, but there’s common ground. They’ve shown a proclivity toward working with governments that want to work with them. But not working with them won’t stop them from coming. Uber raised more than $4 billion in venture capital last year, which is enough cash to keep them rolling amid legal challenges. Charleston has an opportunity to become a beacon to the international tech community in how it approaches the Uber problem. That would be a real Silicon Harbor, a Silicon Safe Harbor where it’s not just safe to do business but encouraged.
Innovation economy rises by leveraging what Charleston has
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n 2001, while the national economy was in the grips of a major recession, Charleston launched an effort to attract, nurture and promote its knowledge economy. The Charleston Digital Corridor was not born out of a sense of crisis as Charleston weathered this recession better than most cities. Nor were there expensive and exhaustive reports that for the most part have proven to be marginally useful as they tell you the somewhat Ernest obvious or serve as more of an analytical resource. Andrade The Charleston Digital Corridor was the result of citizens recognizing the subtle but growing divergence between stagnating wage levels and Charleston’s rising cost of living and the need to develop a strategy to close this gap by building a high-wage economy. Largely driven by public and institutional employment, hospitality, port-related distribution facilities and basic manufacturing businesses, wage levels were stagnating while Charleston’s cost of living was experiencing a dramatic rise especially driven by housing prices. Fast forward 10 years, Charleston has leveraged its well preserved urban historical fabric, coastal geography, legendary lifestyle and livability, and attractive business climate to build a highwage tech and tech-related economy recognized as one of the fastest growing in the country.
Some lessons learned
• The economic landscape is changing at a faster pace than in the past - tactical, practical and measurable actions are what matter to a community as they lead to fruitful engagement followed by demonstrable results. • The single biggest impact on success was engaging with energetic and passionate “can
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do” local leaders who catalyzed community engagement by successfully executing their respective business plans while also serving as ambassadors for Charleston’s tech industry. Broad community consensus took a back seat to input from the tech industry followed by precise execution, constant measurement constant measurement and a “quickly kill it if it does not work” attitude. Dense, high amenity, “open” urban office campuses are preferred by millennial tech workers to sprawling “sequestered” suburban office parks which limit professional and social interaction between like-minded professionals and mobility to the automobile. Leverage “what you have” instead of wishing “what you had.” Celebrate small wins and being unique instead of headline grabbing announcements and trying to copy cat other communities. Contrary to expert commentary about private leadership with building sustainable high wage economies, Charleston’s early success has been driven largely by the public sector with input from the private sector. Charleston set the table for the growth of the tech industry through targeted legislative changes, cutting red tape and moving with the same speed the tech industry requires to become successful.
Ernest Andrade is the principal of Andrade Economics and the founder and executive director of the Charleston Digital Corridor.
We want to hear from you Write: Andy Owens, Managing Editor Charleston Regional Business Journal, 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 Email: editorial@scbiznews.com