Right, the regulations are meant to protect both the parties to the economic activity and people who aren't parties. The Uber equivalent, I guess, would be that

Right, the regulations are meant to protect both the parties to the economic activity and people who aren't parties. The Uber equivalent, I guess, would be that their system can eliminate drivers passengers don't like, and passengers drivers don't like, but they have no incentive (except bad PR) to make sure, for example, that drivers not carrying customers are properly insured should they hit pedestrians. The self-regulatory mechanisms don't give the pedestrians or other non-parties a lever to advocate on their own behalf.