It is not the economies of scale but entry cost increase per each new player entering the same market. The real world markets are guarded, price fixing oligopol

It is not the economies of scale but entry cost increase per each new player entering the same market. The real world markets are guarded, price fixing oligopolies. The most important thing a startup is expected to do is not to get profitable quick but suffocate all possibilities of competition. Dysfunctionality is not a bug, it is a feature of our economic system.