There is good competition and bad competition.
replyPricing your product unsustainably vs a competitor to gain market share is regarded as "bad competition" and has historically been seen as anticompetitive.
It does not benefit the consumer in the long run, because the goal is to use your increased funding or cash reserve to wipe your competition out of the market, decreasing competition in the long term.
Then, once your competition is gone, and you've entrenched yourself, you do a rug pull.
you're right but for now it doesn't matter if both competitors are running on infinite vc money, we as consumers benefit from it. it only matters if they cause negative externalities in the meantime
replyThis is the benefits of competition in action
replyTo be clear, unsustainably hemorrhaging money to gain marketshare over a competitor is generally considered an anticompetitive practice.
replyWhat if both competitors are doing it?
replyIt’s also THE playbook of the Silicon Valley.
replyAlso why there’s so much enthusiasm for it on HN
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