This applies not just to snitching but a lot of other "marketplace"-type apps where the bulk of the value is provided by third-party participants. Think ridesharing, food delivery, marketplaces, etc.

I'm not sure it's justifiable for these companies to have just as much (if not more) engineers working on a product that's already been built and is successfully running - I'd expect there to only be a skeleton crew for maintenance and the bulk of employees being support/operations/legal once the tech stack is built and stable.