Platform Economics is very different from how firms worked in the past. People are still waking up to it. Their signature feature is they are able to squeeze b

Platform Economics is very different from how firms worked in the past. People are still waking up to it. Their signature feature is they are able to squeeze both the buyer and the seller. To whatever extent they want. Thats the key point. No one else has a say. It only works once you become large enough where both buyer and seller have no other great options. At that stage, you basically control what in traditional economics is called the money supply (ie who owns the printers and decisions on how much will be printed). Just like large enough Banks historically could exploit both the depositor and borrower. Until they all got regulated after causing never ending chaos. So the goal becomes - be the largest. And to be the largest you have to kill competition. To kill competition you have to control the price(undercut every one - make things free), control labor pool (jack up salaries/perks of the best), govts policy (lobbying budget), influence what customers want (marketing spend/bid out the competition in ad auctions etc). The capex is all about signalling to everyone we are ready to grab land on this new continent. Join our army or get fucked.