Note that a lot of tech companies, particularly startups, operate at a massive loss while they increase their market share and outcompete established competitors. The idea is that once they’re entrenched they can start raising prices and cutting back on expenses to start making massive profits-- see how great it was to use Uber 10 years ago and Amazon 15 years ago versus now. This heel turn was always coming for a lot of these companies. Interest rates rising and investors being less willing to hand over cash after high-profile failures like crypto just hastened the shift.
Note that a lot of tech companies, particularly startups, operate at a massive loss while they increase their market share and outcompete established competitors. The idea is that once they’re entrenched they can start raising prices and cutting back on expenses to start making massive profits-- see how great it was to use Uber 10 years ago and Amazon 15 years ago versus now. This heel turn was always coming for a lot of these companies. Interest rates rising and investors being less willing to hand over cash after high-profile failures like crypto just hastened the shift.