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"We can drive the value of a service towards zero and create additional value at the same time," was the thinking here.

I think you mean "We can drive the cost of a service towards zero and create additional value at the same time," was the thinking here.

Don't think they realized they'd also be driving the value to zero.

Exactly what I meant indeed. They probably thought how nice and how much cost-savings they were gonna get.

But they did ironically also drive the value they offered towards zero in this case ¯\_(ツ)_/¯