Platform Decay Driven by Flawed Growth Economics, Analysts Say

The phenomenon known as enshittification—where digital platforms degrade their services to extract value—stems from a fundamental miscalculation in how companies price growth, according to economists and industry observers. The article explores how broken unit economics force platforms into a cycle of exploitation, eroding user trust and long-term viability. Experts say the model conflates venture capital subsidies with genuine profit, leading to inevitable decline.