Platforms first attract users with quality service, then abuse them to benefit business customers, and finally exploit both groups to extract all value for themselves, leaving a degraded service.
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Airbnb's AI-driven party prevention is a pro-host move to counterbalance recent pro-guest changes to its fee structure. This illustrates how platform businesses must continuously alternate which side of the marketplace they favor to keep both groups engaged and prevent churn on either side.
Platform decay isn't inevitable; it occurred because four historical checks and balances were removed. These were: robust antitrust enforcement preventing monopolies, regulation imposing penalties for bad behavior, a powerful tech workforce that could refuse unethical tasks, and technical interoperability that gave users control via third-party tools.
Previously, competitors could build tools to lower switching costs (e.g., Apple reading Microsoft Office files), forcing platforms to maintain quality. Modern anti-circumvention laws now prohibit this, enabling unchecked platform decay.
Platforms first attract users with good service, then lock them in. Next, they worsen the user experience to benefit business customers. Finally, they squeeze business customers, extracting all value for shareholders, leaving behind a dysfunctional service.
The idea of a truly "open web" was a brief historical moment. Powerful, proprietary "organizing layers" like search engines and app stores inevitably emerge to centralize ecosystems and capture value. Today's AI chatbots are simply the newest form of these organizing layers.
Platforms first attract users with a great service, then pivot to monetizing those users for business customers, and finally extract all value for themselves, degrading the experience for everyone else. This cycle, termed "inshittification," is enabled by locking in users and businesses who become too dependent to leave.
OpenAI's platform strategy, which centralizes app distribution through ChatGPT, mirrors Apple's iOS model. This creates a 'walled garden' that could follow Cory Doctorow's 'inshittification' pattern: initially benefiting users, then locking them in, and finally exploiting them once they cannot easily leave the ecosystem.
Avoid building your primary content presence on platforms like Medium or Quora. These platforms inevitably shift focus from serving users to serving advertisers and their own bottom line, ultimately degrading reach and control for creators. Use them as spokes, but always own your central content hub.
Many digital media companies chased massive scale by leveraging Google and Facebook. However, these audiences were never truly theirs, leading to a lack of loyalty and a flawed business model when the platforms' priorities shifted, revealing the audiences were just 'rented'.
Previously, scarce and mission-driven tech workers could refuse to build features that harmed users. Mass layoffs created a labor surplus, removing workers' leverage and allowing companies to push through user-hostile changes without internal resistance.