They weren't "innovating". They were trying to run an air taxi service without meeting the pilot training requirements and aircraft equipment safety requirements for carrying passengers. Private pilots should not be carrying passengers for money - the accident rates at the low end of general aviation are too high.
(Never go flying to a destination with someone who isn't IFR qualified. The weather can always change.)
This was on YC a few days ago, at https://news.ycombinator.com/item?id=10769333