Opinion
Should Shared Sleep Cabins Be Shut Down?
  ·  2017-08-07  ·   Source: NO. 32 AUGUST 10, 2017
(LI SHIGONG)

Since the "sharing economy" concept became prevalent, every business supposedly run on the principle has begun to attract attention and some have even become a topic of heated debate. Not long ago, shared sleep cabins in office buildings—capsule-like enclosed spaces meant for short rentals—appeared in cities like Beijing, Shanghai and southwest China's Chengdu. However, they were soon shut down for safety reasons.

Shared sleep cabins ran on the principle of capsule hotels. Users stepped inside after leaving their shoes outside. Once the door closed, it could be opened only after using a mobile app to check out. During the peak time, which was around noon, the charge was about 10 yuan ($1.4) half an hour, and at other times, 6 yuan (89 cents) half an hour. According to operators, these cabins were full during noon, when it is siesta time. Some people working late into the night also used these cabins.

Though not having a business license and failing to meet sanitation and safety criteria, as the authorities say, these cabins were doing brisk business due to the convenience they offered. Therefore, with the authorities beginning to shut them down, some people feel the operator should have been given more time to meet the standards. However, critics of the cabins say it was better to shut them down for the many hidden risks they posed.

Not sharing economy

Zhu Wei (Legal Daily): I don't see shared sleep cabins as part of the sharing economy. When we talk about the sharing economy, the platforms that provide such a service have neither assets nor ownership. But in the case of shared sleep cabins, the platform that offered the service owned the cabins. This is not what the sharing economy is about.

These cabins also did not fall into the category of "Internet Plus" hotels, of which the Airbnb is a typical example. Platforms like Airbnb don't own the beds provided by different hosts. However, for shared sleep cabins, the situation was totally different. These cabins were hotels by nature. As a special commodity, shared sleep cabins must go through certain approval procedures, or they should stop operating.

With ordinary hotels, the owners must acquire certain certifications and register with commercial and industrial bureaus. Besides, they have to meet security, fire protection and other standards. Otherwise it's risky for travelers to stay in these facilities. Under the guise of being part of the Internet-based sharing economy, the shared sleep cabins were bypassing these important criteria and posing a serious threat to customers sleeping inside.

These cabins were very similar to the capsule hotels which are very popular in Japan, but even the small capsule hotels have to get the necessary certificates. On the other hand, the shared sleep cabins wanted to avoid applying for the necessary certification and permission by claiming they were part of the sharing economy while they were actually illegal.

Let's look at the specific hidden risks in these cabins. The first one is the danger of fire. Since their doors could be opened only by scanning QR codes, in case of a sudden fire, people inside would not be able to run out immediately. Second, these cabins offered an ideal place for prostitution and taking drugs. Third, they did not ask for clients' IDs although travelers were asked to register online using their real names. Fourth, their sanitation and hygiene were a matter of concern.

Wang Jingyan (Qianjiang Evening News): Some people say shared sleep cabins are actually capsule hotels but differences do exist. Sleep cabins provided WiFi and air conditioners and accepted payments by scanning QR codes. Most users didn't mean to stay inside overnight but only to rest for some hours. These innovative features made shared sleep cabins popular overnight.

Although China encourages innovation, caution is necessary when it comes to putting innovation into actual practice. After all, the cabins are used as a public resting place and any danger from this novelty is likely to hurt a lot of people. This worry is not groundless given the fact that these cabins lacked business licenses and did not live up to sanitation and fire protection criteria.

Although the cabins were supposedly made of flame retardant material and came equipped with fire extinguishers, whether the material could really resist fire still needs to be seen.

All of these considerations must be carefully dealt with. At the current stage, therefore, it is inevitable that the shared sleep cabins have been shut down as all these hidden problems pose a threat to people's safety.

Compared with capsule hotels, shared sleep cabins were more popular in China. However, the cabins were not doing well in dealing with their hidden problems. It reflected the lack of operational experience and careful consideration on the part of the company.

Some people defend shared sleep cabins, arguing since they enjoyed a vast market in fast-paced big cities, they should be given more time for improvement. However, not all business is able to take advantage of the sharing economy, particularly, business that is directly linked to people's safety.

Regulation needed

Meng Hang (China City): In big cities like Beijing, Shanghai and Chengdu, shared sleep cabins had become a fad. However, more and more users complained about their lack of security, sanitation and insulation. Now, the cabins have been found unqualified and shut down.

While some hail the shutdown, some feel it's a pity because if shared sleep cabins are properly designed, equipped with better facilities and sanitation and have better security, they would be a big help to travelers in ports, bus and railway stations and hospitals. They are not only convenient but can also offer an option to illegal inns sprouting around such places.

In my opinion, the time is not ripe yet for shared sleep cabins as they pose a danger. To shut them down might be the best choice for the time being. Shared sleep cabins themselves are not necessarily a bad thing, but more time is needed to standardize them.

The company running the cabins is trying to update the system and will work with the authorities to improve sanitation, security and fire protection so that in the future shared sleep cabins meet official standards as well as consumers' requirements.

Zhu Quan (news.cjn.cn): Shared sleep cabins are like capsule hotels. Thanks to their convenience, space saving, safety, low cost and good sanitation, capsule hotels are widely accepted in many countries, and enjoy a high occupancy rate.

The question is, why do capsule hotels, which are prevalent in other countries, don't do well in China, like in the case of shared sleep cabins? Because strictly speaking, these cabins are not capsule hotels. Compared with capsule hotels, shared sleep cabins lag far behind in everything from security to sanitation.

The Chinese Government has a tolerant attitude toward new business models, such as e-commerce, mobile payment and shared bicycles. However, there is a bottom line for emerging industries. For shared sleep cabins, this bottom line is safety. Although these cabins were favored by the public for their convenience, there was no excuse to overlook the hidden risks.

At present, it's necessary to halt the operation of these cabins. An abnormal proliferation of these cabins, driven by profit-seeking, should not be allowed. But since other countries have a lot of experience to offer in operating capsule hotels, why can't we borrow some of it? Maybe this will help shared sleep cabins avoid some risks.

Liu Junhai (Legal Daily): The traditional accommodation industry is subject to laws and regulations, which ensure the safety of the guests.

Given the many hidden problems, it's necessary to bring shared sleep cabins under the authorities that supervise the traditional hotel industry. For example, IDs of guests should be demanded during registration. If the operator refuses to do so, then these cabins should be shut down.

In the future, however, such products will be seen more frequently, so it's better to standardize their operation rather than suppress them. These cabins should be allowed to exist, but strict supervisory and management rules should be exercised. Strong regulation and standardization will make it possible for these cabins to operate in a healthy way.

Copyedited by Sudeshna Sarkar

Comments to yanwei@bjreview.com

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