Comment by deaton
6 hours ago
Tale as old as the word "startup" even. Uber/Lyft did it with taxis. DoorDash did it with food delivery. You run at a loss for years while destroying your legacy competition by just outlasting them, then once you have cornered the market you squeeze.
I understand the cynism but it’s not the case here. Stainless isn't a case of blitzscaling or running a loss for years to destroy the competition. The motto of the company is polished and robust and we invested a lot into generating what we think are the highest quality SDKs available. We could have shipped things way, way faster if the focus on design and quality wasn’t such an essential part of the development process
No but Anthropic and OpenAI are very much trying to use their positions to destroy everyone's ability to do things without their product, make AI essential, and then jack prices. Thats the only way this becomes profitable.
It's not about Stainless, it's about Anthropic.
Now Uber is profitable what stops a taxi from just competing again, forcing Uber to have to be unprofitable again?
Skill issue. Taxi companies aren't able to innovate and adapt and improve, despite the competition from Uber, preferring instead to use lobbying and regulations too survive in a post-Uber world.
Actually, it is a marketing issue. Taxis did innovate and did improve and imo are a better product than uber today. They have an app that is no different than what you expect with rideshare apps. Actually it is better, I can schedule a ride and get a flat rate with tip already baked in to places like the airport. No need to fret about surge prices at all, what I see when I schedule it today is what I pay when it comes tomorrow or next week or next month, whenever I've scheduled it.
But, no one uses it, because uber and lyft have become kleenex or coca cola: the brand name associated with the basic phenomenon, such that consumers cannot even think about the phenomenon without thinking first of the brand and probably resorting to the brand.
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I'm reading "enshitification", and it describes this cycle of first losing money but acquiring customers, then switching focus to catering to businesses, then to themselves and at that point the tool is not what it was supposedly intended to be.
This is the same startup culture. The only innovation here is finding new way to swindle customers and businesses out of money.