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Legal and other ramifications of platforms like Uber, Airbnb, Ebay etc.

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Ivan Mushketyk

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Recently I was thinking about starting a company that follows the model of Uber, Airbnb, Ebay and other similar companies that bring together providers of services (taxis, apartments, goods) and users of this services.

I see two significant obstacles in creating the business like this and I don't know how to overcome them.

1. Legal ramifications if a provider of a service provides a bad service, or even worth, commits an illegal act. An example would be a rude Uber driver or an Ebay seller that ships a cheap Chinese phone instead of an advertised iPhone 7. How do these companies like that protect their customers and themselves from unscrupulous providers?

2. How to bootstrap a business like this? Uber was useless without taxi drivers, but when there are no taxi drivers there not much sense for users do download an app, and if there are no users it does not make sense for taxi drivers to join which creates a Catch 22 problem. How do these companies break this vicious circle?
 

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ProblemOd

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Recently I was thinking about starting a company that follows the model of Uber, Airbnb, Ebay and other similar companies that bring together providers of services (taxis, apartments, goods) and users of this services.

I see two significant obstacles in creating the business like this and I don't know how to overcome them.

1. Legal ramifications if a provider of a service provides a bad service, or even worth, commits an illegal act. An example would be a rude Uber driver or an Ebay seller that ships a cheap Chinese phone instead of an advertised iPhone 7. How do these companies like that protect their customers and themselves from unscrupulous providers?

2. How to bootstrap a business like this? Uber was useless without taxi drivers, but when there are no taxi drivers there not much sense for users do download an app, and if there are no users it does not make sense for taxi drivers to join which creates a Catch 22 problem. How do these companies break this vicious circle?
A quick google search and you can find out both answers to your questions. There's tons of info on the creation and success of uber and airbnb.
 

Waspy

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This people. This right here is why so many great business concepts are never launched.

"What if"

JUST START IT.
 
OP
OP
Ivan Mushketyk

Ivan Mushketyk

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Jun 26, 2017
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Dublin City, Ireland
A quick google search and you can find out both answers to your questions. There's tons of info on the creation and success of uber and airbnb.
These are not very useful answers. Do you know how to actually avoid potential legal issues? What to pay attention to? You could simply provide a link to something if you know the answer.
 

Waspy

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These are not very useful answers. Do you know how to actually avoid potential legal issues?
No. But lawyers do. And lawyers are very expensive.

Maybe you can hire one when you earn some money from this business you are gunna start.

/SassyResponce
 

biophase

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These are not very useful answers. Do you know how to actually avoid potential legal issues? What to pay attention to? You could simply provide a link to something if you know the answer.
What people are telling you is to just start and not to worry about what ifs.

Get your first taxi driver and then get your first rider then figure out the rest later.
 

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