Earlier quoted context omitted.
Reddit's URLs got much shorter within a few iterations of the product. As to why compete with imgur? User experience. It's much easier to share a picture on Reddit now, with it being a native feature, rather than having to go to imgur or elsewhere, upload something, find the best/right URL to share with, and the submit that to Reddit.
Right, but why not just pay imgur some $$$ for the privilege of a simple little upload form? That seems like a far smarter idea. Now Reddit is responsible for running not only its current business but also an entirely separate image hosting business. Keep in mind how ridiculously expensive it is to run an image host. Even imgur, which is by far the most acceptable of the popular hosts, has a ton of obtrusive ads. I h…
presumably ownership of the image.