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Is there a word for this type of business model? Offering a service for free until they become the de-facto standard, and then start squeezing people?
by c0mptonFP 4y ago
Is there a word for this type of business model? Offering a service for free until they become the de-facto standard, and then start squeezing people?
- popcorncowboy 4y agoMonopoly
- christophilus 4y agoGitlab is far from a monopoly by any definition. The name for it is VC-backed capitalism. Burn through money to buy a market— run at a loss longer than your competitors can, then flip and start hiking prices once you are dominant. That was never a good strategy for Gitlab, though, so I’m surprised they took that road.
- popcorncowboy 4y ago> The name for it is VC-backed capitalism The goal of which is to seek monopoly or at worst stable oligopoly. Anyway, GP was asking what you call it when you saturate/dominate a market, become the standard and then raise prices on your captured audience. This is definitional monopoly. VC-backed capitalism is a predictable symptom emerging from the possbility of such outcomes.
- darylteo 4y agoAdopt Extend Extinguish