Comment by vlovich123
2 days ago
Not true. Enshittification also happens when they cut the quality of the service to improve their margins which they need to do for whatever reason (competition on price, profit improvements etc). Thats why the cheapest tier the quality of the vehicles will be worse and all services will run like that because that’s all you can achieve at that price point (unless they figure out how to have automated distributed cleaning stations and even then that’s tricky because the car is still out of commission and losing you money to get cleaned even if it’s only a minor detour).
Enshitification is just price conscious consumers willingly trading quality for price.
If it actually hurt companies they would stop doing it
Not necessarily. It also means segmenting the market to extreme lengths so that even a marginal increase in quality is combined with a significantly greater price. It’s about pushing the most price sensitive customers to have the worst quality while the less price insensitive you get a marginally better product for an outsized increase in cost.
I remain convinced that while value extraction is higher in this model, the world people generally want to live in is one where the ability of businesses to price discriminate in this way is not so unbridled.
Enshittification is generally an exploitation of market efficiencies in some form, be it lock-in effects or market dominance in an area with a high barrier to entry. It's an explicit goal of a lot of investment: pick one company in an area, invest so much money into it no-one else can compete, corner the market by offering a better product than anyone else, then once you own the market, turn up the price and turn down the quality to get as much money out of it before someone builds a competitor and your customers can leave.
The best examples of enshitification are in airlines and electronics. Those are highly competitive markets where manufacturers are free to charge high prices for high quality, but they realize customers won't buy it.