All these companies that are suddenly having layoffs and/or enshittifying everything at once all shared the same basic business model (pardon the Bronze Age meme format from Slashdot…):
Give goods or services away for free
Attract customers on the basis of getting goods or services for free
???
Profit!
Years of basically free debt service and stupid VC money let them kick the can down the road for a long time in terms of figuring out what Step 3 was gonna be, up to the point that many such services didn’t even bother, replacing both Steps 3 and 4 with “Sell to whichever FAANG is sucker enough to think they can leverage our userbase for their own product.” High interest rates have suddenly put a stop to the money party, though, and now they’re all scrambling to find ways of aggressively monetizing their services.
All these companies that are suddenly having layoffs and/or enshittifying everything at once all shared the same basic business model (pardon the Bronze Age meme format from Slashdot…):
Years of basically free debt service and stupid VC money let them kick the can down the road for a long time in terms of figuring out what Step 3 was gonna be, up to the point that many such services didn’t even bother, replacing both Steps 3 and 4 with “Sell to whichever FAANG is sucker enough to think they can leverage our userbase for their own product.” High interest rates have suddenly put a stop to the money party, though, and now they’re all scrambling to find ways of aggressively monetizing their services.