> This price is quite unrelated to what the service costs to run.
Well. It's noteworthy when the price is lower than the cost.
It's not that rare. But it is noteworthy, as it's not sustainable.
Well. It's noteworthy when the price is lower than the cost.
It's not that rare. But it is noteworthy, as it's not sustainable.
But, yes, if the cost to run the service is X and the optimal price is <X, you have a problem.
such insight
Grow at all cost with VC money, grab the market by offering unsustainably cheap prices, and when you have a monopoly, offer a slightly better or slightly worse version of the previous service (but hey, with an app that runs react!), at a slightly higher or same as before price (turns out profitability is important!), with much much worse working conditions for everyone involved (VC needs their money back, has to come from somewhere!)
Then look around confused when there is insane wealth inequality and social unrest.