Digital aggregators and marketplaces play distinct roles in connecting clients with suppliers but they differ significantly in terms of their operations and legal and TAX consequences to resellers.
Neither suppliers nor clients can not do anything within aggregators framework. Drivers are limited to take rides and get paid by “tariffs” which are controlled by aggregators like Uber. The client chooses only the category; everything else is chosen by the aggregator.
On the contrary marketplaces like Airbnb allow suppliers to set prices as well as allowing clients to make their rational decision within is a direct connection between suppliers and clients.
How to differentiate between aggregator and marketplace?
To understand the type one needs to understand who determines prices. Who determines the price with Aggregators? The Aggregator itself determines the price and announces it to clients and suppliers as a “take it or leave it” offer. All communications are separated by an aggregator into 2 flows first – between “Platform and Client” and second – “Platform and Supplier”. Who determines the price with the Marketplace? It is – the “market” that determines the price as there is a direct communication and direct agreement between supply and demand.
Airbnb is a hero of the marketplace’s defences.
On 19 Dec 2019 Airbnb secured a victory in its fight to avoid more regulation by authorities after the European court of justice ruled that it acted as an “information society service” rather than a real estate agency.
How does the marketplace model fit into mobility?
GetTransfer.com was the first to implement the marketplace as a business model into travel ride-hailing. Today GetTransfer.com is the number one marketplace for booking global travel mobility services for 13M clients, where you can book transfers, long distance trips, cab rides, hourly chauffeur driven car rentals and delivery services in any country in the world.
EU TAX implications
If one decides to resell aggregator’s services he must understand that he is considered as a transportation service agent for all rides, at least in the EU. This includes but is not limited to a) he beares liabilities for rides and b) must be sure that VAT taxes are paid with respect to the country of every ride.
For countries other than the EU, one must check local relegation to properly address taxations for transportation and digital intermediation.
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