Others in this comment thread have pointed out JavaScript, and I think that's a pretty good bet on why Ruby isn't really used by newer companies anymore. If you're trying to build an application for the web, it makes a lot more sense to work with _one_ language rather than two. Additionally, because JavaScript is always going to have a good amount of developers in the hiring pool due to its platform exclusivity over the web frontend, it's much easier to build out your engineering team than it was when your code is written in Ruby. Ryan Dahl described JS as "the best dynamic language in the world". I'm not entirely sure if I agree with that, but I do know where he's coming from. JavaScript is much easier and more ergonomic to use these days, and some of the most innovative technologies for web application development are coming out of this space.
I love Rails, but given the way things are going, I'm not sure I'll ever build a project with it again. We just don't need it anymore. That's not to say it doesn't have a place, and there will definitely always be jobs in Rails since it's being heavily used by the enterprise world, just that I don't think I'll be all that interested in it again now that I can use JS for everything.
Working with ruby became synonymous with working on rails to the detriment of the rest of the ecosystem.
Lots of starter programming courses whether university or online are in Python, etc. Again if you're not actually and engineer or developer of sorts, you're not likely to spend much time and effort moving on from the language you already know that everyone else in your field using, etc.
As a result I saw more than one organization say, "No new projects in Ruby."
I'm sure that there were many different experiences in many different organizations. And I have no idea how widespread my impression is. But it certainly discouraged some people from using Ruby.