Comment by parineum
18 hours ago
Yeah, that's where the realization led me too.
These companies probably need to be forced to at least try to price their products at a level that would be sustainable long term.
18 hours ago
Yeah, that's where the realization led me too.
These companies probably need to be forced to at least try to price their products at a level that would be sustainable long term.
This happens naturally because no company can run at a loss forever.
I think it's funny that we're getting subsidized and discounted services and this makes some people so angry that the comment section is demanding laws that would force companies to charge us more.
Of course but they can run at that rate long enough to make it impossible for another company to compete and go bankrupt. Which is the problem.
Like I said, this is the iconic strategy of monopolies. They take their pool of money, move into a new market, lower prices below cost until local competition withers away then buy their assets at bankruptcy prices and raise prices to whatever they want. Those temporary discounts are designed to kill competition, innovation and choice.
VC subsidized prices are exactly as bad for the market as that. It's unclear to me if the intent is the same but intent doesn't really matter.
I'd also like to state that I'm not angry about it.