Because they have businesses that scale: dominated by fixed costs with very small unit costs, where twice as many units have very much less than twice as much total cost to deliver.
> "But that doesn't scale", I hear you say. They could simply hire more people, that scales fine.
No, it doesn't. Hiring more people with any given skill set has superlinear costs very quickly (because of supervision heirarchies and increased quantity even before that increasing the clearing price).
Cost scaling worse than linearly is pretty much what people mean when they say, “Doesn’t scale".
Because they have businesses that scale: dominated by fixed costs with very small unit costs, where twice as many units have very much less than twice as much total cost to deliver.
> "But that doesn't scale", I hear you say. They could simply hire more people, that scales fine.
No, it doesn't. Hiring more people with any given skill set has superlinear costs very quickly (because of supervision heirarchies and increased quantity even before that increasing the clearing price).
Cost scaling worse than linearly is pretty much what people mean when they say, “Doesn’t scale".