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A lot of those early .com companies could have been profitable. They chose to go for rapid growth instead. Some people here probably remember discussion of users mattering more than revenue.

You see that same pattern with AI now. Products are being provided for free or nearly free, and plenty is being spent on marketing.

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Thats because both then and now there’s a perception that it’s a land grab.

That the key to success is developing a brand and user base faster than the next person can.

And that’s where AI makes things so hard. Creating a protective moat.

also people forget that user base can change, yahoo -> gmail, altavista -> google search etc

A lot of companies are shocked to find user loyalty is about as good as employer

The minute Amazon stops being good about refunds or a cheaper delivery app comes out than DoorDash I’m gone. No loyalty.

And both of those are on the verge as they focus on profits over customer experience.

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