Trump's pick for transportation secretary could be a big boost to Uber and Lyft

While much of Silicon Valley is reeling from the election results, companies that rely on the so-called "gig economy" like Uber and Lyft might be breathing a sigh of relief at President-elect Donald Trump's pick for transportation secretary.

Trump has reportedly chosen Elaine Chao, a former labor secretary under George W Bush, to lead the transportation department - and she's already shown that she's on the side of companies like Uber and Lyft when it comes to labor regulations.

In a speech at the American Action Forum in November 2015, Chao said that many of the labor regulations in place today haven't caught up with the peer-to-peer economy that's been enabled by the internet, and she specifically used Uber as an example:

As Dan Primack first pointed out, it's a note-worthy speech because not only is Chao clearly well-versed in the labor issues facing companies like Uber and Lyft, but also because she's willing to trust their data about workers without investigating further. Meanwhile, other news organizations like BuzzFeed have questioned whether Uber drivers can make a living wage at all.

Chao's stance on the so-called "gig economy", which she goes on to include examples like Airbnb hosts or Etsy sellers, is that the government "must not stifle the innovation" and that there's room to craft new solutions:

While Chao wouldn't be in charge of labor if she's confirmed, her familiarity with the issues facing these companies and pro-gig economy stance suggest she might be friendlier to the rise of Uber and Lyft as alternative transportation services. Both Uber and Lyft told Business Insider that they're looking forward to working with Chao as transportation secretary - a role that could shape not only their labor policies, but also the future of self-driving cars.

"Ms. Chao's knowledge of transportation issues is extensive and we look forward to working closely with her," said Niki Christoff, Uber's head of federal affairs.

Lyft also congratulated Chao on the position: "We have the utmost respect for Elaine Chao, an accomplished public servant and highly capable leader. We congratulate her on the nomination and look forward to working with her on an array of transportation issues."

Trump is expected to officially nominate Chao on Tuesday afternoon.

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