Yes, that's what they are.

I have reservations about machines doing due diligence, especially in an expedited fashion.

It makes me question what they’re hiring so many engineers for.

I assume there's lots of stuff they need engineers for - I imagine managing loads of Spotify stores simultaneously has some strange requirements around inventory management, ordering stock from suppliers, returns, providing customer support e.t.c.

Well the valuation process is somewhat automated (they basically need to pull in transactional and user data from shopify into some financial model) which does require engineers.

There like Zillow, but instead of buying homes, they're buying small businesses and given the valuation differences for small vs large business (as said above), it seems like this would be hard to screw up.

They're not flipping the businesses, they're running them. It's also possible to buy out multiple businesses from the same category, shutter some of the underperformers, and then enjoy the temporarily reduced competition in the category.