It feels like every company just decided 2023 was the year they finally pulled the trigger and tried to cash-out and bail.
Tech has always been geared towards losing money to provide a valuable service but the understanding from investors who don't loan for free is that at some point you turn on the profit engine. Some tech companies are able to generate revenue without necessarily making their product awful for users, but the more pull and pressure investors have, and the more driven by impatience, the enshittifier things become.
The Fed turning off the free money tap last year by starting to raise interest rates was an inevitable wake up call for investors that they needed to change their model to start profiting or at least lose less. Many, many companies, users and products are experiencing US's investors-first-and-only capitalism's inevitable end; it destroys the good it created. Companies without long-term investors or leverage to hold off investors willing to kill the golden goose either enshittify, or if they don't have a way to enshittify, go under.
Interest rates. No free money.
Interest rates went up and the flood of money from investors went down.
Investors are probably demanding a return on their massive amounts of speculative investing in the tech industry.
There seems to be a pattern in services like this where they launch as a good idea that's under priced and take off like a rocket, then growth levels off as everyone is either already using the service or never will regardless of what they do. Once you reach that point, however, you still need to show revenue growth because capitalism, so if you can't get more users you either have to make the service more expensive for the users you have, or cheaper to run. The former we see happening all over the place, and the latter is actually a good thing in limited amounts as unnecessary parts are trimmed off, but will almost always also result in useful features being axed. Hence why everything seems to be getting more expensive and worse.
Year of the enshitification, more like.
It feels like every company just decided 2023 was the year they finally pulled the trigger and tried to cash-out and bail.
Tech has always been geared towards losing money to provide a valuable service but the understanding from investors who don't loan for free is that at some point you turn on the profit engine. Some tech companies are able to generate revenue without necessarily making their product awful for users, but the more pull and pressure investors have, and the more driven by impatience, the enshittifier things become.
The Fed turning off the free money tap last year by starting to raise interest rates was an inevitable wake up call for investors that they needed to change their model to start profiting or at least lose less. Many, many companies, users and products are experiencing US's investors-first-and-only capitalism's inevitable end; it destroys the good it created. Companies without long-term investors or leverage to hold off investors willing to kill the golden goose either enshittify, or if they don't have a way to enshittify, go under.
Interest rates. No free money.
Interest rates went up and the flood of money from investors went down.
Investors are probably demanding a return on their massive amounts of speculative investing in the tech industry.
There seems to be a pattern in services like this where they launch as a good idea that's under priced and take off like a rocket, then growth levels off as everyone is either already using the service or never will regardless of what they do. Once you reach that point, however, you still need to show revenue growth because capitalism, so if you can't get more users you either have to make the service more expensive for the users you have, or cheaper to run. The former we see happening all over the place, and the latter is actually a good thing in limited amounts as unnecessary parts are trimmed off, but will almost always also result in useful features being axed. Hence why everything seems to be getting more expensive and worse.