If restaurants and drivers complained about DoorDash but DoorDash
was raking in juicy profits, you could be like “what do you want,
innovate or die, the market has spoken.” But in fact restaurants
and drivers complain about DoorDash, and it lost $450
million in 2019 on about $1 billion of revenue. Arguably the
market has spoken and said “stop it, come on, this is dumb.”
In the old economy of price signals, you tried to build a
product that people would want, and the way you knew it worked
is that people would pay you more than it cost. You were adding
value to the world, and you could tell because you made money.
In the new economy of user growth, you don’t have to worry about
making a product that people want because you can just pay them
to use it, so you might end up with companies losing money to
give people things that they don’t want and driving out the
things they do want.
That sounds like a joke but it’s not even an exaggeration.