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Comment by manfredo

So now Craigslist needs to be regulated as an automobile dealer because it hooks up people selling cars to each other? Is Apple in the business of recording music because it runs iTunes? Does DoorDash need to have their offices inspected for food safety because they run a market for food delivery. No. Craigslist operates a platform for selling cars, it doesn't actually sell cars itself. Apple doesn't actually make music (unless they runs studio they I don't know about), they run a market for artists and record companies to sell their own music. DoorDash operates a platform for restaurants to sell food, it doesn't actually sell food itself. Contrary to your insistence otherwise, running a platform that connects buyers and sellers of something is not the same thing as actually providing that good or service yourself. People say that it takes mental gymnastics to arrive at this conclusion. I see the opposite: how do you manage to convince yourself that people writing code at Uber are in the same line of business as getting behind the wheel of a taxi? How do people convince themselves that a PM at DoorDash works at a restaurant?

Also, you misstate (or rather, only partially state) the description of their business in SEC filings. They describe themselves operating a market for food delivery and personal transportation. They are in the business of transportation and food delivery, but they are a in a different layer than the people actually driving cars. This is akin to saying Expedia is in the airline business. Yes, but they sell airline tickets they don't fly planes. Calling Uber a taxi company makes a out as much sense as saying Expedia is an airline.

And for 3 & 4 this could easily be resolved by having driver set up their own LLCs. But I'm not convinced this is actually a requirement. Plenty of people are contractors and fill out 1099s without operating their own LLC or partnership or some other type of company.

parent manfredo 6 years ago

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