Enshittification refers to the decline of platforms from user-oriented benefits to exploitation for business gains. Initially, platforms serve users well, but as they shift focus to business customers, they mistreat both parties to maximize profit. This pattern, prevalent in tech industries characterized by network effects, illustrates a broader economic trend and raises concerns about the morale among tech workers. The analysis suggests that the consequences of enshittification extend beyond social platforms, affecting various businesses and industries with similar dynamics.
"Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die."
"The basic logic of enshittification - in which businesses start out being very good to their customers, then switch to ruthless exploitation - applies to any business characterized by network effects."
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