It is literally anti-competitive, bad for consumers and competitor startups. How can an average startup compete if a rich company or VC backed startup has a business model of selling below cost to get market share? The fact that the big players are doing it makes it an oligopoly not a monopoly, but that's still bad.
This is a 100+ year old problem and has already been solved in other industries, but tech likes to think it is unique. It's a bad pattern to sell below cost to gain market share. Oil and steel companies were selling below cost to undercut competing startups in the 1900s, then raised prices when those competitors folded. It wasn't good for anyone other than the robber barons then either.
This is a 100+ year old problem and has already been solved in other industries, but tech likes to think it is unique. It's a bad pattern to sell below cost to gain market share. Oil and steel companies were selling below cost to undercut competing startups in the 1900s, then raised prices when those competitors folded. It wasn't good for anyone other than the robber barons then either.