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There's a very simple reason companies like Google treat users like crap and kill good products: growth rate. Google & co's business models revolve not around m
by nexthash 6y ago
There's a very simple reason companies like Google treat users like crap and kill good products: growth rate. Google & co's business models revolve not around meticulously building and charging for great products (classic business model) but controlling Internet marketshare. The more users reliant on them, the more money they make. Quality be damned, all they want is a bigger DAU metric. Good, maintained products? Customer service? Heck with it. That's not their business.
How did it come to this? Well, at least in the short term, this kind of business busts up traditional high-quality paid tools. If a Google-like business enters a market where a high-quality paid competitor exists, they will subsidize something similar with VC money and suck users away, bankrupting the competitor. Then, with the power they have gained they are free to focus on monetizing their users, which is a story for another time.
This is especially made easier by the fact that it is really difficult to get paid on the Internet: you are essentially selling access to information, not a physical good (all of this might not apply to businesses rooted in the physical world like Amazon and Airbnb). When an average user sees a free service and a paid service both offering what is essentially information, they will go free every day. Since the price of reaching people on the Internet is so low, and the difficulty of getting paid is high, freemium platforms emerge and can outcompete paid competitors by leveraging this fact.
As a consequence to this, quality tools have retreated into paid niches, driven to raise prices. We are essentially left with two product types: gigantic Google-like freemium platforms, and high-quality high-expense alternatives (e.g. Feedly in the Google Reader example). While the former might suck at serving their users and providing value/quality, they make so much money that a cheap, quality tool or a paid, large platform will be quickly snuffed out like a candle without huge investor subsidies.