Ask HN: Is it a good idea to spin up a VPS for each subscriber?

My SaaS is going to be priced at much more than $5/mo, but the computation involved is fairly cheap. A $5 VPS from Linode/DigitalOcean is more than sufficient. However, latency is fairly important criteria to my application, so a dedicated VPS (as much of an oxymoron that term is) would be pretty neat.

Is it feasible to spin up a separate VPS every time I get a subscriber? They'd be paying much more than $5/mo, so the cost of the VPS would be covered.